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Tuesday 03 December 2024
Nike, Micron & FedEx: Earnings Previews
June may be drawing to a close, but earnings reports are still rolling in. This week, stock traders and market analysts will be closely monitoring the earnings releases from various companies to gauge the health of the overall economy. From Nike to FedEx and Micron to General Mills, here are this week’s scheduled releases and what you need to know about them:
FedEx Earnings: Did the Company Deliver in Q4?
American transportation and e-commerce giant FedEx (FDX) is set to report its earnings today, Tuesday, June 25, after market close. Despite missing analysts' projections for eight consecutive quarters, analysts still project revenue growth this time. FedEx is expected to report Q4 revenue of $22.06 billion, up from $21.9 billion in the same quarter last year.
Given the company's history of missing revenue expectations, its CEO Raj Subramaniam commented in the last earnings statement that FedEx is “making meaningful progress on [its] transformation,” highlighting that it is “improving the customer experience.”
More About FedEx
To better understand the upcoming earnings report, it may be important to consider FedEx's recent performance and the factors that could potentially influence its results. The company recently announced plans to reduce 1,700 to 2,000 positions across segments, including commercial and back-office roles, with the intention of saving millions of dollars. Additionally, FedEx approved a $5 billion share buyback in Q3 and revealed plans to buy back $500 million of shares in Q4. Accordingly, traders may be interested in seeing if this plan materialised. All in all, since the start of the year, FedEx gained a modest 1.5%.
Micron Earnings: Will the AI Player Shine?
Tech company Micron (MU) is scheduled to report its Q3 fiscal 2024 earnings tomorrow, on Wednesday, June 26, after the market closes. Like many of its tech peers, Micron is expected to benefit from the rising demand for Artificial Intelligence (AI), particularly due to its partnership with AI leader NVIDIA (NVDA). This collaboration provides NVIDIA with memory chips for its AI Graphic Processing Units (GPUs).
Market analysts predict Micron's revenue to reach $6.7 billion, marking both annual and quarterly growth. In fiscal Q3 2023, the company reported a net income loss of $1.9 billion, but this year's report is expected to show a net income of $399.39 million.
Additionally, diluted EPS is projected to be 30 cents, a significant improvement from the loss of $1.73 per share during the same period last year. Since the beginning of the year, Micron's stock has gained about 68.6%. It will be interesting to see how the company performs following its earnings report. (Source: Investopedia)
Nike Earnings: What Will the Athletic Apparel Giant Reveal?
American athletic apparel company Nike (NKE) is scheduled to report its Q4 fiscal 2024 earnings after the market close on Thursday, June 27. Nike, which has lost over 8.7% since the start of 2024, is projected to have stronger earnings this quarter.
Analysts expect Nike’s net income to reach $1.28 billion on a revenue of $12.9 billion, slightly higher than Q4 2023, when the revenue was $12.83 billion and the net income was $1.03 billion.
Despite this, the consensus among analysts is that the company’s upcoming earnings may not significantly impact its stock price, as they expect results to align closely with the consensus estimate.
However, the guidance for fiscal 2025 is anticipated to be a key discussion point. Interestingly, in the last earnings report, Nike CFO, Matthew Friend, attributed the company’s downbeat projection for fiscal 2025 to its strategy of shifting its product portfolio towards newness and innovation and a subdued macroeconomic outlook worldwide.
Given the market's inherent volatility, it remains to be seen how Nike’s shares will react to the upcoming figures.
Conclusion
In the last week of June 2024, a plethora of earnings from multifaceted companies will be released, providing traders and analysts with valuable insights into the state of the markets and the economy. Despite the abovementioned projections, it is important to note that the markets are unpredictable and that only time will unveil what the future holds for these companies.
