Earnings Previews: Commercial Metals, Jabil, Kroger, Planet Labs

The three major U.S. equity indexes tanked Monday, with the S&P 500 Index entering bear market territory after dropping 3.90%. The Nasdaq dropped by 4.68%, and the Dow Jones industrials closed down 2.79%. All three traded up by less than 1% early Tuesday. The Federal Reserve meeting begins Tuesday and ends with an announcement and press conference Wednesday afternoon. An interest rate hike of 0.50% is virtually guaranteed, with a raise of 0.75% on the table now as well.

After markets closed Monday, Oracle reported quarterly results that beat estimates on both the top and bottom lines. Revenue guidance for the company’s current quarter was solidly higher than the consensus estimate. Shares traded up more than 9% Tuesday morning.

Lithium-ion battery recycler Li-Cycle topped the consensus revenue estimate by more than 30%. The adjusted EBITDA loss totaled $20.7 million. The stock traded down more than 3%.

Here is a look at four companies scheduled to release quarterly results Tuesday afternoon or Thursday morning. There are no notable earnings releases scheduled for Wednesday.

Commercial Metals

Recycler and metals fabricator Commercial Metals Co. (NYSE: CMC) reports second-quarter fiscal 2022 results first thing Thursday morning. The stock has added nearly 13% to its share price over the past 12 months. Since posting a 52-week high in mid-April, however, the shares trade down about 20.3%.

In January, the company announced that it would build a new steel micro-mill to serve customers in the Midwest, Northeast and Mid-Atlantic regions. Site selection has begun, and once that is completed, the company estimates a construction period of around two years.

Just nine analysts cover the stock, and five of them have a Hold rating. The other four rate the shares at Buy or Strong Buy. At a recent share price of around $36.80, the upside potential based on a median price target of $44.00 is 19.6%. At the high price target of $55.00, the upside potential is 49.5%.

For the company’s fiscal third quarter, analysts are expecting revenue of $2.25 billion, which would be up 11.8% sequentially and 21.6% higher year over year. Adjusted earnings per share (EPS) are forecast at $1.63, up 6.8% sequentially and 56.7% year over year. For the full 2022 fiscal year ending in August, CMC is forecast to report EPS of $6.42, up 82%, on sales of $8.47 billion, up 25.8%.

Shares trade at 5.7 times expected 2022 EPS, 7.7 times estimated 2023 earnings of $4.78 and 8.0 times estimated 2024 earnings of $4.62 per share. The stock’s 52-week range is $28.77 to $46.68. CMC pays an annual dividend of $0.52 (yield of 1.52%). Total shareholder return for the past year was 12.8%.


Shares of manufacturing services provider Jabil Inc. (NYSE: JBL) dipped by 2.5% over the past 12 months, including a December spike to an all-time high. Since then, however, the shares are down about 21.3%. The company’s gross margin over the past four quarters is nearly 8%, and its EBITDA margin is nearly 6.9%. In the company’s prior quarter, both came in at 12-month highs. Jabil reports quarterly results before Thursday’s opening bell.

Of seven brokerages covering the stock, all have a Buy or Strong Buy rating. At a share price of about $56.10, the upside potential based on a median price target of $81.00 is 44.4%. At the high target of $90.00, the potential upside is about 60.4%.

Analysts are expecting fiscal third quarter revenue of $8.22 billion, up about 8.8% sequentially and 14.0% higher year over year. Adjusted EPS for the quarter are forecast at $1.62, down by 3.6% sequentially but up 24.6% year over year. For the full fiscal year ending in August, analysts currently estimate EPS of $7.22, up 28.8%, on revenue of $32.68 billion, up 11.6%.

Shares trade at 7.8 times expected 2022 EPS, 7.3 times estimated 2023 earnings of $7.65 and 7.0 times estimated 2024 earnings of $8.00 per share. The stock’s 52-week range is $52.43 to $72.11. JBL pays an annual dividend of $0.32 (yield of 0.57%). Total shareholder return for the past 12 months was negative 2.5%.

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