Upcoming Earnings Reports | Week of May 25

Within this analysis it is possible to find the following information about the most interesting upcoming earnings reports (during this week) in the United States stock market:

  • Key data such as EPS surprise, EPS growth in the last quarter, average reaction or performance compared to the S&P 500 index.
  • Summary with the best and worst companies in each category.
  • Chart comparison of the selected companies and the S&P 500 index over the past 3 months.
  • In-depth analysis of some of the companies selected in terms of financial data and key chart levels.
  • Earnings reports Calendar of the week.

In general, this analysis answers the following questions among others:

  • What are the growth expectations in this quarter?
  • During the last earnings reports, did the company often beat analyst expectations? Has the stock price often reacted positively?
  • Is the company growing in terms of fundamentals?
  • Is the stock price close to key levels that it could overcome thanks to the reaction to the earnings report?

Upcoming Earnings Reports – Key Data

This section shows some interesting information about the companies that are about to release the earnings report. The explanation of each item can be found below the table.

  • EPS surprise and “Price reaction”:

“EPS surprise” represents how much the company has beaten analyst expectations over the past three quarters. This data is useful to understand if the company often beats expectations and if it does little or much.

“Price reaction” represents the reaction of the stock price to the last 3 earnings reports released. This data is useful to understand if the company usually reacts positively or negatively to earnings reports.

  • Est. EPS growth this quarter:

EPS (Earnings-Per-Share) growth expected by analysts in the quarter ended recently compared to the same quarter 12 months earlier. Useful information to know what are the expectations for the EPS that the company will release soon.

  • “Last Earnings Report”:

Growth / decrease in Revenue and Net Income reported in the last Earnings Report (compared to the same quarter of 12 months before) released by the company about 3 months ago. Useful data to know which companies grew in the last quarter and which did not.

  • “Perf. % vs S&P 500”:

Over / under performance of the company’s stock price compared to the S&P 500 index in the last 3 months. Useful to identify the companies that have performed better / worse since the last Earnings Report.

  • “Max Loss/Gain”:

Worst / best daily performance over the past 3 years. Data useful to understand the riskiness of the company because during the earnings report the reactions can often be extreme both in a positive and negative sense.


Summary

Within this summary it is possible to identify the best and worst companies based on the parameters present in the table in the previous section.

Among the companies that will release the earnings report during the week, the company with the highest expectations is Canopy Growth , with an estimated EPS growth in this quarter of 61,2% , while the company with the lowest expectations is Salesforce Inc with an estimated EPS decrease of -56,9% .

During the past 3 quarters, the company that exceeded analysts’ expectations the most was Salesforce Inc with an average EPS surprise of 41,4% , while the company that struggled the most was Canopy Growth with an average EPS surprise of -52,7% .

Dollar General has had the best reaction to the last 3 earnings reports, rising on average by 0,6% during the day, while the company with the worst reaction was Dollar Tree Inc with an average decrease of -6,9% .

By shifting the focus to companies that have outperformed or underperformed the S&P 500 index in the past 3 months, the company that outperformed the index most was Okta Inc Cl A with a 56,2% overperformance , while the company that performed worse than the index was HP Inc with a -21,5% underperformance .

Focusing on the latest earnings report released, the company that reported the highest earnings growth compared to the same quarter 12 months earlier was Dell Tech. with a 236,5% increase , while the company that reported the worst earnings growth was Canopy Growth with a -288,3% decrease .


Selected companies and the S&P 500 index – chart comparison

Within this section it is possible to see the performance of the selected companies and the S&P 500 index in the last 3 months. This chart allows you to easily identify companies that during this period outperformed (or underperformed) the market.


Let’s go deeper into some companies

Within this section we delve into some of the companies based on financial data and key chart levels. The explanation of both sections can be found at the end of the article. For each of the companies there will be a short summary.


Costco Wholesale (COST)

Costco Wholesale Corporation operates an international chain of membership warehouses, mainly under the `Costco Wholesale` name, that carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. 

During the last 3 earnings reports, COST reported better than expected EPS on 3 occasions with an average EPS surprise of 3,0% . During the same period, COST stock price reacted positively on 1 occasions with an average reaction of -0,8% .

In the recently ended quarter, analysts expect a 1,1% EPS increase over the same period last year and in the past 3 months COST overperformed the S&P 500 index by 4,0% . Finally, during the past 3 years COST in its worst trading session has fallen by -8,6% , while in its best session it has risen by 10,0% .

Earnings Report date: May 28 (After-Market-Close)

FINANCIALS:

During the last quarter, COST reported $39.072 million in revenue, up 10,4% compared to $35.396 million reported in the same quarter 12 months earlier. In the same period, net income increased by 4,7% to $931 million, compared to net income of $889 million in the previous period, while net margin was 2,4% worsened by -5,1% compared to the same quarter 12 months earlier.

Focusing on annual data, COST revenue in the last 4 quarters totaled $158.350 million, an increase of 33,4% compared to $118.719,0 million in revenue reported 3 years ago. During the same period, COST reported a 60,8% increase in net income to $3.778 million, compared to $2.350,0 million net income in the previous period, while the net margin improved by 20,5% .

KEY CHART LEVELS:

COST is showing a graphical configuration made up of decreasing highs and rising lows. If, in reaction to the earnings report, it breaks this upward figure, a positive trend could start again, which would have as its target the historic high of $ 325.56 recorded in mid-February 2020.


Veeva Systems Inc (VEEV)

Veeva Systems Inc. operates as a provider of industry-specific, cloud-based software solutions for the life sciences industry. It offers enterprise applications, a multichannel platform, customer relationship management, and content management solutions. 

During the last 3 earnings reports, VEEV reported better than expected EPS on 2 occasions with an average EPS surprise of 1,7% . During the same period, VEEV stock price reacted positively on 2 occasions with an average reaction of -0,5% .

In the recently ended quarter, analysts expect a 13,5% EPS increase over the same period last year and in the past 3 months VEEV overperformed the S&P 500 index by 41,3% . Finally, during the past 3 years VEEV in its worst trading session has fallen by -13,6% , while in its best session it has risen by 14,7% .

Earnings Report date: May 28 (After-Market-Close)

FINANCIALS:

During the last quarter, VEEV reported $312 million in revenue, up 34,1% compared to $232 million reported in the same quarter 12 months earlier. In the same period, net income decreased by -7,0% to $66 million, compared to net income of $71 million in the previous period, while net margin was 21,3% worsened by -30,7% compared to the same quarter 12 months earlier.

Focusing on annual data, VEEV revenue in the last 4 quarters totaled $1.104 million, an increase of 100,6% compared to $550,5 million in revenue reported 3 years ago. During the same period, VEEV reported a 288,0% increase in net income to $301 million, compared to $77,6 million net income in the previous period, while the net margin improved by 93,5% .

KEY CHART LEVELS:

VEEV is one step away from historic highs. In the event of a positive reaction to the earnings report, there would be no particular objectives if not to always record new historical highs. Since the beginning of the year VEEV has grown by 41%, clearly outperforming the market.


Okta Inc (OKTA)

Okta, Inc. is a provider of identity for the enterprise. The Company’s product consists of Okta information technology Products and Okta for Developers. Okta IT Products include Single Sign-On, Mobility Management, Adaptive Multi-Factor Authentication, Lifecycle Management and Universal Directory. Okta for Developers include Complete Authentication, User Management, Application Programming Interface Access Management and Developer Tools.

During the last 3 earnings reports, OKTA reported better than expected EPS on 2 occasions with an average EPS surprise of 2,8% . During the same period, OKTA stock price reacted positively on 0 occasions with an average reaction of -2,5% .

In the recently ended quarter, analysts expect a -23,1% EPS decline over the same period last year and in the past 3 months OKTA overperformed the S&P 500 index by 56,2% . Finally, during the past 3 years OKTA in its worst trading session has fallen by -15,7% , while in its best session it has risen by 19,5% .

Earnings Report date: May 28 (After-Market-Close)

FINANCIALS:

During the last quarter, OKTA reported $167 million in revenue, up 44,8% compared to $116 million reported in the same quarter 12 months earlier. In the same period, net income decreased by -64,0% to -$51 million, compared to net loss of -$31 million in the previous period, while net margin was

Focusing on annual data, OKTA revenue in the last 4 quarters totaled $586 million, an increase of 264,5% compared to $160,8 million in revenue reported 3 years ago. During the same period, OKTA reported a -178,2% decrease in net income to -$209 million, compared to -$75,1 million net loss

KEY CHART LEVELS:

Speech similar to that for VEEV. OKTA is at an all-time high and may continue to post new highs. Since the beginning of the year OKTA has grown by 65%.


Calendar of the week

Inside the image you can find the calendar to know the day on which the companies will release the earnings reports. Every day companies can release the quarterly report in 2 moments:

  • Before Open: the company will release the quarterly report within 1 or 2 hours before the market opens.
  • After Close: the company will release the quarterly report within 1 or 2 hours after the market has closed.

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FINANCIAL DATA & KEY CHART LEVELS

– explanation –

FINANCIAL DATA

This section shows some key financial data contained in the company’s income statement, updated to the latest available earnings report. The 2 tables are as follows:

FIRST TABLE – “Key Data in the past 5 years”

“Key Data in the past 5 years” table shows the amount of Revenue, Net Income and Net Margin (the percentage of Revenue that turns into Net Income) reported in the last year or in the last 4 quarters (TTM-trailing 12-months). In the same table you can find the percentage increase (or decrease) of the 3 items in the last 3 years.

To the right of the table you find a chart containing the trend of Revenue in the last 5 years (green columns) and the trend of Net Income (red line) in the same period. Inside the same chart you will find a semi-transparent line that show the trend line of the Revenue in the last years.

This section is useful for understanding if the company has been growing in recent years.

SECOND TABLE – “Key Data in the last Earnings Report”

“Key Data in the last Earnings Report” table shows the data of the same items of the previous table, but with reference to the last earnings report released by the company in comparison with the same quarter of 12 months before.

On the right of the table you will find the relative chart containing the trend of Revenue (green columns) and Net Income (red columns) in the 2 quarters taken into consideration (current versus last year’s quarter).

This section is useful for understanding if the company has grown in the last quarter compared to the same quarter of last year.

Data are expressed in millions of dollars.

KEY CHART LEVELS

For each of the companies, a chart is shown containing the following key chart levels:

  • Simple moving average 50-day (red line) and 200-day (black line)
  • Resistance and Support

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Sources & additional info

*Chart by stockcharts.com and tradingview.com
*EPS reported, estimated and company description by barchart.com
*Calendar by earningswhispers.com


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