Earnings Previews: Chewy, Costco, Li Auto, Lululemon

The three major U.S. equity indexes closed lower again Tuesday. The Dow Jones industrials ended the day down by 1.03%, the S&P 500 closed 1.44% lower and the Nasdaq pulled back 2.00%. Ten of 11 sectors closed lower, with energy (−2.65%) and communications services (−2.57%) falling the most. Utilities (0.66%) posted Tuesday’s only gain.

The U.S. Energy Information Administration (EIA) will release the weekly petroleum inventories report Wednesday morning. The American Petroleum Institute (API) reported a drop of more than 6.4 million barrels in the crude inventory. Crude oil production totals 12.1 million barrels per day, according to API, an increase of 400,000 daily barrels since the beginning of the year. On Friday, the Bureau of Labor Statistics will issue its report on the producer price index (PPI) for November. Economists expect the index to rise by 0.2%, as it did in October. Core PPI is expected to rise by 0.2% compared to no month-over-month increase in October.

The three major indexes traded lower in Wednesday’s premarket session.

After U.S. markets closed Tuesday, MongoDB reported adjusted earnings per share (EPS) of $0.23, while the consensus estimate had called for a loss per share of $0.17. Revenue beat the estimate by about 9.5%, and the company issued upside guidance for its fourth quarter. The stock traded up more than 27% Wednesday morning.

Toll Brothers also beat estimates on the top and bottom lines and issued guidance for the first quarter and all of fiscal 2023. For the year, the homebuilder expects sales of 8,000 to 9,000 units, with a gross margin of 27% and an average delivered price of $965,000 to $985,000 per unit. Shares traded up 1.2%.

SentinelOne reported better-than-expected revenue and a smaller-than-expected loss per share. Shares traded essentially flat Wednesday morning.

Stitch Fix missed consensus estimates for both EPS and revenue. Active client totals also fell. The company also issued downside revenue guidance for the current (second) quarter but raised its outlook for adjusted EBITDA. The stock traded up more than 3%.

Before markets opened Wednesday, Academy Sports beat the consensus EPS estimate but missed on revenue. The retailer issued mixed guidance for fiscal 2023, raising its EPS outlook above consensus but lowering the top end of revenue guidance below the consensus forecast. Shares traded down about 2.1% in Wednesday’s premarket.

Campbell Soup beat estimates on both the top and bottom lines. The venerable food producer also raised full-year EPS and revenue guidance beyond consensus estimates. Shares traded up 3.7% early Wednesday.

Ciena, Express and GameStop are set to report quarterly results late Wednesday or early Thursday.

Here is a preview of three companies set to report quarterly results later on Thursday or first thing Friday morning.

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