5 Notable Earnings Reports to Watch

In this article, we discuss the 5 notable earnings reports to watch. If you want to read our detailed analysis of these companies, go directly to the 10 Notable Earnings Reports to Watch.

5. Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY)

Number of Hedge Fund Holders: 28

Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) has an interesting history. Back in the 1970s, James Buster Corley started a restaurant, and around the same time, Dave Corriveau was operating a place for entertainment and games. In 1982, Corley and Dave met each other and came up with the idea of opening first Dave Buster’s. Since then, the company has been offering high-quality food and beverage as well as sports and other entertainment under one roof.

The company recently came into the limelight after beating expectations for the second quarter. Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) reported earnings of $1.07 per share for the three months ended August 1, compared to a loss of $1.24 per share in the year-ago quarter.

Revenue came in at $377.6 million, up 642.9 percent versus the comparable period of 2020. Analysts were expecting Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) to report earnings of 58 cents per share on revenue of $358 million.

CEO Brian Jenkins praised the results, saying:

“Dave & Buster’s second quarter was clear evidence that the brand is back, posting record revenues and EBITDA with all 142 stores open as of the end of the quarter.”

4. Zscaler, Inc. (NASDAQ: ZS)

Number of Hedge Fund Holders: 38

Shares of Zscaler, Inc. (NASDAQ: ZS) slipped over 3 percent on Friday, 10 September 2021, despite announcing upbeat quarterly results and outlook. The company reported adjusted earnings of 14 cents per share for its fiscal fourth quarter ended July 31, up from 8 cents per share in the comparable period of 2020.

In addition, Zscaler, Inc. (NASDAQ: ZS) posted revenue of $197.1 million, up 57 percent on a year-over-year basis. The results easily exceeded the consensus forecast of 9 cents per share for earnings and $186.8 for revenue.

Speaking on the results, CEO Jay Chaudhry said:

“We delivered outstanding results for the fourth quarter, with a record number of large deals across diverse sectors driving 57% revenue growth and 70% billings growth year over year, finishing the fiscal year with strong business momentum. Enterprises of all sizes are adopting Zscaler’s Zero Trust Exchange to accelerate their secure digital transformation journey as they turn away from legacy castle-and-moat security. We continue to invest and innovate across all our product pillars and help our customers adopt a Zero Trust architecture designed to secure the cloud and mobile world.”

Zscaler, Inc. (NASDAQ: ZS) also issued the financial outlook for its fiscal year 2022. It expects adjusted earnings in the range of 52 cents – 56 cents per share, in line with the consensus forecast of 54 cents per share. Revenue for the full year is expected to come between $940 million and $950 million, better than analysts’ average estimate of $899.1 million.

3. The Kroger Co. (NYSE: KR)

Number of Hedge Fund Holders: 39

The Kroger Co. (NYSE: KR) traces its roots back to 1883 when Barney Kroger opened a grocery store in Cincinnati, Ohio. The company worked hard over the years and offered quality goods to customers. The consistency in quality and services provided by Kroger helped it to become a leading grocery retailer in the U.S.

The company recently caught investors’ attention after announcing better-than-expected results for the second quarter. The Kroger Co. (NYSE: KR) reported adjusted earnings of 80 cents per share for the three months ended August 14, up from 73 cents per share in the comparable period of 2020.

Analysts were expecting The Kroger Co. (NYSE: KR) to report adjusted earnings of 64 cents per share. Revenue came in at $31.68 billion, compared to $30.49 billion in the year-ago quarter, and higher than the consensus forecast of $30.64 billion. On the bright side, digital sales in the quarter jumped more than two folds.

Commenting on the results, CEO Rodney McMullen said:

“Our strategic focus on leading with fresh and accelerating with digital continues to build momentum across our business. Kroger’s seamless ecosystem is working. This was evident during the quarter as we saw customers seamlessly shift between channels, and we continued to see strong digital engagement.”

The Kroger Co. (NYSE: KR) also raised its profit outlook for the full year. It now expects adjusted earnings in the range of $3.25 – $3.35 per share, compared to its earlier guidance between $2.95 – $3.10 per share. The updated outlook is higher than the consensus forecast of $3.09 per share.

2. Academy Sports and Outdoors, Inc. (NASDAQ: ASO)

Number of Hedge Fund Holders: 45

Shares of Academy Sports and Outdoors, Inc. (NASDAQ: ASO) made a new 52-week high of $46.16 on Friday, 10 September 2021, after delivering impressive financial results for the second quarter. The sporting goods retailer reported adjusted earnings of $2.34 per share for the three months ended July 31, up from $1.81 per share in the comparable period of 2020.

Revenue for the quarter rose 11.5 percent on a year-over-year basis to $1.79 billion. Analysts, on average, were expecting Academy Sports and Outdoors, Inc. (NASDAQ: ASO) to report adjusted earnings of $1.42 per share on revenue of $1.66 billion.

CEO Ken Hicks expressed his satisfaction with the results. Hicks said in a statement:

“The Academy Sports + Outdoors team delivered the best quarterly financial results in the Company’s history as we surpassed the very strong store comparables from last year. We plan to build on this continued success by further sharpening our focus on the fundamentals of the business and investing in our strategic initiatives with the goal of adding new customers, gaining market share and driving sales and profit growth.”

Looking forward, Academy Sports and Outdoors, Inc. (NASDAQ: ASO) expects revenue in the range of $6.465 billion to $6.620 billion for its fiscal year 2021, compared to the consensus forecast of $6.20 billion.

1. RH (NYSE: RH)

Number of Hedge Fund Holders: 54

RH (NYSE: RH) is a well-known luxury home furnishing retailer, offering upscale home furnishings through its retail galleries, sourcebooks, and official website. The company recently delivered solid results for the second quarter.

The home-furnishings company reported adjusted earnings of $8.48 per share for the three months ended July 31, significantly higher than $4.90 per share in the comparable period of 2020. Analysts were expecting RH (NYSE: RH) to post adjusted earnings of $6.51 per share.

Revenue came in at $988.9 million, up 39 percent versus the year-ago quarter and above the consensus forecast of $973.4 million. RH (NYSE: RH) also raised its sales outlook for the full year. The company now expects its revenue to increase in the range of 31 – 33 percent versus its earlier growth forecast of 25 – 30 percent.

In a letter to shareholders, CEO Gary Friedman said:

“We are pleased to report another quarter of record results with adjusted net revenues increasing 39% to $989 million versus $710 million a year ago, and up 40% compared to the second quarter of 2019. RH continues to set a new standard for financial performance in the home furnishings industry and our results now reflect those of the luxury sector as adjusted operating margin reached 26.6% versus 21.8% last year. We generated $263 million of adjusted operating income in the quarter, up 70% compared to $155 million a year ago.”

You can also take a peek at 10 Highest Sharpe Ratio Dividend Stocks in the S&P 500 and Billionaire Jeffrey Talpins’ Top 10 Stocks Picks.

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