The current earnings season is winding down with only a few notable companies left to report results for January through March of this year. With 97% of S&P 500 companies having reported their earnings, the results have been mixed.
Although 77% of companies have issued better-than-expected earnings per share (EPS), the numbers show a slowdown in corporate America. The blended earnings growth rate for this year’s first quarter among companies listed in the benchmark S&P 500 index is 9.2%. That’s the slowest earnings growth rate reported since the fourth and final quarter of 2020, which saw 3.8% growth, and was during the depths of the global pandemic. With companies such as Microsoft (NASDAQ:MSFT) lowering their forward guidance for the rest of this year, persistent inflation, higher interest rates, and global supply chain issues appear to be taking a toll. Nevertheless, the following companies and their shareholders will be looking to buck the trend when they report earnings the week of Jun. 6.
Here are five stocks reporting earnings the week of Jun. 6:
|PLAY||Dave & Buster’s Entertainment, Inc.||$37.79|
|CPB||Campbell Soup Company||$45.53|
|MTN||Vail Resorts, Inc.||$255.71|
Stocks Reporting Earnings: Dave & Buster’s (PLAY)
Restaurant chain and video arcade company Dave & Buster’s (NASDAQ:PLAY) is scheduled to report its latest earnings on Jun. 7. Going into the print, PLAY stock has shown itself to be resilient this year. Since January, Dave & Buster’s share price has only declined 1.9% to $37.79 per share. That’s pretty good when compared to a 14% year-to-date (YTD) pullback in the S&P 500 and a 23% fall in the Nasdaq Composite Index. Dave & Buster’s share price has gotten a lift in recent weeks from data that shows American consumers remain strong despite inflation running at a 40-year high, and that they continue to spend on discretionary items, such as dining out and entertainment.
Even though PLAY stock is down only marginally on the year, analysts feel it remains depressed at current levels. The median price target on Dave & Buster’s stock is currently $60, implying 59% upside over the next 12 months. For their upcoming earnings, analysts are looking for the company to report EPS of $1.16 on revenues of $440.84 million. The company and its share price could get a lift over the summer months as people travel, vacation, and eat out more than they have for the past two years as the Covid-19 crisis moves further into our collective rearview mirror.
Campbell Soup Company (CPB)
The iconic canned soup and snack food company, Campbell Soup Company (NYSE:CPB), has proven once again that it can keep chugging along in good times and bad. Its stock can, as well. YTD, CPB stock has lost just .6% to trade at $45.53 per share. In the last six months, while the broader market has crumbled, Campbell’s share price has increased 4.3%. Campbell’s is benefitting from the fact that its food products are viewed as essential to consumers and are affordable compared to the sharp rise in prices for other food items such as meat and dairy.
In addition to the gains over the past six months, CPB shareholders are also benefitting from the stock’s dividend. The company recently declared a quarterly dividend of 37 cents per share, payable on Aug. 1 of this year. That’s good for a dividend yield of 3.09%, which is healthy and above the average dividend yield of 2% among companies listed on the S&P 500 index. For its earnings print on Jun. 8, analysts expect Campbell Soup to report EPS of 61 cents on revenues of $2.05 billion. Anything better than what’s forecasted and Campbell Soup’s share price could run farther than it already has this year.
Stocks Reporting Earnings: Nio (NIO)
While it has taken a drubbing this year, Chinese electric vehicle maker Nio’s (NYSE:NIO) stock has been rebounding lately, having risen 16% between May 26 and Jun. 2 to change hands at $18.67 per share. The catalyst for the turnaround has been twofold. First, the government in China has begun to lift its latest Covid-19 restrictions meant to contain the spread of the deadly respiratory disease. Second, Nio and other Chinese electric vehicle maker’s issued delivery numbers for May that were better than had been expected, showing that they were able to continue producing despite the government restrictions.
Nio said it delivered more than 7,000 vehicles in May, up 4.7% year-over-year. In a written statement, Nio said that its manufacturing capacity is “gradually recovering.” The Shanghai-based company added that it anticipates deliveries rising during the summer months and that it is starting to see supply chain issues ease. While NIO stock is currently on an upswing, the company’s share price remains down 41% on the year. On Jun. 9, analysts forecast that Nio will report an EPS loss of 13 cents on revenues of $1.49 billion.
Speaking of stocks that have been battered and bruised, how about DocuSign (NASDAQ:DOCU)? The electronic agreements and e-signature company was a darling of the pandemic, with its share price cresting at just under $315 a year ago. Since the start of the year, DOCU stock has come down 42.9% to now trade at $86.89 per share. As economies reopen and people return to offices and in-person meetings, DocuSign’s stock has taken a hit. However, a strong earnings print might be just the thing to turn around the downtrodden share price. Wall Street is calling for DocuSign to report EPS of 46 cents on revenue of $581.76 million.
Despite negative sentiment, DocuSign’s stock has also been pulled lower on news of key executive departures, most recently the resignation of the company’s general counsel and senior vice president. Also, the stock suffered big drops after DocuSign lowered its forward guidance. DOCU stock fell 42% in one day last December after the company gave weaker guidance than analysts had anticipated. Key for DocuSign’s upcoming earnings will be for the company to demonstrate that it is righting its own ship and is still capable of growth despite the end of the global pandemic.
Stocks Reporting Earnings: Vail Resorts (MTN)
We’ll get a report on the travel and tourism industry when Vail Resorts (NYSE:MTN) issues its earnings on Jun. 9. The Colorado-based company owns popular ski and golf resorts around the world, including Mount Sunapee in New Hampshire, Whistler Blackcomb in Canada, and Perisher in Australia. MTN stock is down 22% this year at $255.71 per share as its various resorts and hotels continue to fully reopen from the pandemic restrictions that shuttered them or limited their capacity over the past two years. However, with global travel forecast to rebound strongly this summer, Vail Resorts stands to gain.
The company has been doing its best to win back tourists and customers by offering discounts and sales at its signature destinations. The company also used the pandemic as an opportunity to bolster its online sales and services, making it easier for people to book stays and plan their vacations at its resorts. Analysts expect Vail Resorts to report EPS of $9.03 on revenues of $1.15 billion for its latest quarter. The consensus view is also that MTN stock should rise in coming months. The median price target on Vail Resorts stock is currently $289.50, which would be 13% higher than where it currently trades.
On the date of publication, Joel Baglole held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.