This week several key companies are set to release earnings, offering insight into their performance and future prospects.
GameStop (GME) will report its fourth-quarter results on Tuesday 25 March, with analysts expecting earnings of $0.09 per share and $1.48bn in revenue. The company's stock remains volatile, and investors will watch for updates on its store portfolio and new ventures into autograph authentication.
Kingfisher (KGF.L) will also report on 25 March, with a focus on its full-year results amid rising costs and weak consumer confidence. Investors will look for insights into profitability and performance across its key markets.
Bellway (BWY.L), the UK housebuilder, reports its first-half results on 25 March, with attention on home sales, average selling prices, and updated guidance for the full year.
Lululemon (LULU) will release its fourth-quarter results on 27 March, with strong growth expected, but investors will closely watch whether the company surpasses forecasts.
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Fevertree (FEVR.L) reports its full-year results on 25 March, with a focus on its partnership with Molson Coors and near-term profit outlook.
Here's more on what to look out for:
GameStop (GME) is set to release its quarterly earnings before the market opens on Tuesday 25 March. Analysts predict the meme stock will report earnings of $0.09 per share and revenue of $1.48bn (£1.14bn) for the quarter.
Shares of GameStop saw a significant jump on 10 February, rebounding from their 200-day moving average. The stock surged after GameStop CEO Ryan Cohen posted a photo with MicroStrategy (MSTR) — now Strategy — CEO Michael Saylor. Strategy, known as the largest corporate holder of bitcoin (BTC-USD), sparked speculation on social media that GameStop might be exploring a potential move into the cryptocurrency market.
However, GameStop’s stock remains a volatile player in the meme stock universe, characterised by dramatic ups and downs. The company’s shares have been struggling in recent weeks, falling more than 70% from their all-time high of $120.75, which was reached in January 2021.
Separately, Wedbush reaffirmed an “underperform” rating and issued a $10.00 target price on shares of GameStop in a report from December.
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The company’s most recent earnings report, released on 10 December, painted a mixed picture. GameStop reported sales of $860m and a loss of 6 cents per share, falling short of analysts' expectations of $887.7m in revenue and a loss of 3 cents per share. Despite the disappointing numbers, GameStop's stock rose more than 8% the following day.
In its quarterly report, GameStop also outlined plans for a “comprehensive store portfolio optimization review,” which could lead to the closure of more underperforming locations. The company emphasized that this initiative is part of its strategy to achieve “sustainable profitability” in the future.
Additionally, GameStop has ventured into a new business segment, offering autograph authentication services for trading cards at some of its stores, marking a diversification effort as it adapts to changing market conditions.
NYSE - Nasdaq Real Time Price • USD As of 1:18:36 PM EDT. Market Open.
Lululemon (LULU) is poised to report a year-over-year increase in earnings for the quarter ending January 2025, driven by higher revenues. The widely anticipated consensus outlook suggests positive growth, but how the actual results compare to these estimates could significantly impact the company’s stock price in the near term.
The athletic apparel giant is expected to report quarterly earnings of $5.85 per share, reflecting a +10.6% increase from the same period last year, according to Zacks Investment Research. Revenue is forecast to reach $3.58bn, marking an 11.6% year-over-year increase.
Despite these promising growth figures, Lululemon's stock has cooled in recent weeks. The Canadian retailer’s shares have fallen from $423 at the end of January to just above $325 as of now.
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The upcoming earnings report could be a catalyst for a potential stock rebound if the company surpasses these key estimates. However, if the results fall short, it could drive the stock price lower.
While management's comments on the earnings call will play a crucial role in determining the sustainability of any immediate stock price movements and future earnings outlooks, it is useful to consider the likelihood of a positive earnings surprise.
On 13 January, Lululemon provided a revenue forecast for the fourth quarter, expecting net revenue to range between $3.56bn and $3.58bn. This would represent a solid 11% to 12% growth compared to the same period last year, suggesting a strong finish to the fiscal year.
NasdaqGS - Nasdaq Real Time Price • USD As of 1:18:30 PM EDT. Market Open.
Kingfisher (KGF.L) will release its full-year financial results on Tuesday 25 March, offering insight into the performance of this leading DIY retailer, which operates major brands like B&Q, Screwfix, Castorama, and Brico Dépôt across the UK, France, and Europe.
The company faces significant challenges, with worries about weak consumer confidence and adverse weather conditions threatening its top-line growth, while rising costs from national insurance contributions, wages, utilities, and raw materials are expected to weigh on profits, according to Russ Mould, AJ Bell (AJB.L) investment director, Danni Hewson, head of financial analysis, and Dan Coatsworth, investment analyst.
Chief executive Thierry Garnier has already highlighted the impact of rising costs, estimating a £31m annual hit in the UK from higher salaries and national insurance contributions. In France, the company faces an additional £14m in costs, stemming from payroll taxes and delays in the abolition of the CVAE sales tax. Despite efforts to find efficiencies, Garnier expects these cost pressures to continue into the financial year to January 2026.
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The outlook for Kingfisher’s fourth-quarter performance is mixed, with analysts forecasting a 0.2% year-on-year increase in revenues on a like-for-like basis. This is a modest improvement compared to the third quarter, where like-for-like sales dropped 1.1%, though this was an improvement from a 3.8% decline in the previous period. Overall, analysts expect full-year sales to fall by 1% to £12.8 billion, with a modest 2% recovery to £13.3bn in the following year.
A close look at the company's performance across its key markets will be crucial. In the third quarter, Poland saw positive growth with like-for-like sales up by 2.0%, while the UK posted a more modest 0.4% increase. France, however, struggled, with a 2.8% year-on-year decline in sales.
For the year ahead, analysts have adjusted Kingfisher’s profit forecast. They now expect adjusted pre-tax profit for the year to January 2025 to come in at £523m, down from £568m the previous year. Free cash flow is expected to fall to £422 million for fiscal 2025, down from £514m in fiscal 2024, but still sufficient to fund the ongoing share buyback program and maintain dividends. Analysts anticipate a small increase in the dividend, raising it to 12.5p per share from the 12.4p level held steady for the last four years.
Bellway (BWY.L) is set to report its first-half results for the six months ending December 2024 on Tuesday 25 March. While UK consumer confidence remains weak, as reflected in the GfK consumer confidence index, the major purchase sub-index has shown some improvement, offering a potential glimmer of hope for Bellway and the wider housebuilding sector.
Bellway's trading update in February already provided a detailed picture, so the first-half results may not offer many surprises, said AJ Bell (AJB.L).
However, analysts and shareholders will be keen to hear updated guidance for the full year through June 2025, with particular focus on key metrics such as:
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Completions and average selling prices: CEO Jason Honeyman expects 8,500 home sales for the year, with an average selling price of £310,000 per unit.
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Operating margins: The company has targeted an underlying operating margin of 11% for the full year, and analysts will be watching closely to see how input costs impact this forecast.
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Cladding remediation and tall building provisions: Investors will be looking for updates on any further provisions related to cladding remediation and tall buildings, an ongoing issue in the sector.
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Forward order book and cancellation rates: As of the last update, Bellway's forward order book stood at £1.3bn. Analysts will also look at cancellation rates and weekly reservations per sales outlet, which rose to 0.61 from 0.43 in the same period last year.
Bellway's strong net cash position should help support dividends. Last year, the interim dividend was 16p per share, with a total payout of 54p for the year. This time, analysts expect the full-year dividend to rise to 65p per share.
For the full year 2024, Fevertree (FEVR.L) is expecting total revenue to come in at around £360m, an increase of 4% to 5%. The company also anticipates an improvement of 600 basis points in its gross margin. This positive outlook comes alongside a strategic deal signed in January with Molson Coors (TAP), which acquired an 8.5% stake in Fevertree. The £71m raised through the deal was returned to shareholders through a share buyback program.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown (HL.L), noted that the partnership with Molson Coors is seen as a significant strategic move. In exchange for the stake, Fevertree gains access to Molson Coors’ extensive production, distribution, and marketing resources. The hope is that this partnership will help Fevertree accelerate its growth in the US, which has already become its largest market.
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While the company is expected to see a sharp rebound in profits for 2024, the focus for investors will be on guidance for 2025 and beyond. Despite the long-term optimism surrounding the Molson Coors partnership, near-term profit expectations remain cautious, with increased marketing spending and potential operational challenges on the horizon.
“Investors are positive about the partnership’s long-term prospects, but near-term profit expectations are weak as marketing spending ramps up and operational creases will likely need to be ironed out. There’s a lot of work to be done and some disappointments along the way can’t be ruled out,” Chiekrie said.
Monday 24 March
S4 Capital (SFOR.L)
Caledonia Mining (CMCL.L)
BYD (1211.HK)
Fincantieri (FCT.MI)
Tuesday 25 March
AG Barr BAG.L)
Henry Boot (BOOT.L)
Tullow Oil (TLW.L)
WAG Payment Systems (WPS.L)
Mission Group (TMG.L)
Xaar (XAR.L)
Michelmersh Brick (MPO.MU)
Gamma Communications (GAMA.L)
IP Group (IPO.L)
Ashtead Technology (AT.L)
Smiths Group (SMIN.L)
China Telecom (0728.HK)
McCormick (MKC-V)
Wednesday 26 March
Vistry (VTY.L)
Evoke (EVOK.L)
Kenmare Resources (KMR.L)
Team17 (TSVNF)
Virgin Wines (VINO.L)
Bank of China (601398.SS)
China Life (1336.HK)
Dollar Tree (DLTR)
Chewy (CHWY)
Thursday 27 March
Playtech (PTEC.L)
Franchise Brands (FRAN.L)
EnQuest (ENQ.L)
M&C Saatchi (SAA.L)
Capricorn Energy (CNE.L)
CNOOC (600938.SS)
H&M (HM-B.ST)
United Internet (UTDI.DE)
Jungheinrich (JUN3.DE)
Walgreens Boots Alliance (WBA)
Friday 28 March
ICBC (1398.HK)
Air China (0753.HK)
Great Wall Motor (2333.HK)
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