The 3 Most Important Earnings of the Coming Week

June 5, 2016 by Chris Lange

24/7 Wall St. has put together a preview of some of the major companies reporting their quarterly results this week. We are out of earnings season but still some companies will report in the interim. We have included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well. For example, Valeant Pharmaceuticals International Inc. (NYSE: VRX), which has been so often in the headlines of late, may or may not share its latest results this week.

FuelCell Energy

On Wednesday, FuelCell Energy Inc. (NASDAQ: FCEL) is expected to share its most recent quarterly results. The consensus estimates call for a net loss of $0.40 per share and $35.02 million in revenue.

This company skyrocketed early in May following an announcement that the fuel cell maker will work with Exxon on a new method to capture carbon dioxide emissions at power generation plants. FuelCell Energy received a $2.5 million grant from the U.S. Department of Energy in 2014 for development of the technology, and it struck a deal with Cenovus Energy in 2015 to complete preliminary front-end engineering and design for siting a fuel cell system to capture carbon dioxide from power plant flue gas.

This cult stock continued to rise over the course of the month. Shares traded at $8.22 on the close on Friday, in a 52-week trading range of $4.51 to $14.88. The stock has a consensus analyst price target of $13.60.

Lululemon Athletica

The fiscal first-quarter results from Lululemon Athletica Inc. (NASDAQ: LULU) are scheduled for Wednesday. The consensus estimates call for $0.31 in earnings per share (EPS), as well as $487.69 million in revenue. This company had a very solid March and first quarter, and the second quarter looks to be off and running as well. Lululemon designs, manufactures and distributes athletic apparel and accessories for women, men and female youth.

The company is riding high on the current athletic-leisure trend in the United States, with the stock up 28% year to date. Shares were trading at $67.24 on Friday’s close. The consensus price target is $69.45. The stock has a 52-week trading range of $43.14 to $69.73.

H&R Block

H&R Block Inc. (NYSE: HRB) is set to report its fiscal fourth-quarter results on Thursday. The analysts’ consensus forecast calls for EPS to come in at $3.16, along with $2.29 billion in revenue. This quarter tends to be the biggest one for H&R Block, given that it includes tax season.

However, in the previous quarter the earnings report destroyed shareholders, dropping 19% over the course of that week. At that time, the decline in revenues was primarily due to lower client volumes in its U.S. assisted tax offices, the impact of the divestiture of H&R Block Bank and the impact of foreign currency exchange rate fluctuations. The decline in volume was offset by improved pricing and form mix in both assisted and DIY categories.

Shares were changing hands at $21.66 on Friday’s close. The consensus price target is $30.33, and the stock has a 52-week trading range of $19.18 to $37.53.

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