After U.S. markets closed on Tuesday, Costco reported revenue and earnings per share (EPS) that were better than expected. Revenue rose 9.5% year over year and 1.5% sequentially. The good report initially induced investors to sell the news, but optimists pushed the share price up about 1.7% early Wednesday.
Before markets opened on Wednesday, Paychex also beat consensus estimates on the top and bottom lines. Revenue rose 6.7% sequentially and 6.6% year over year. Guidance was in line with expectations. Shares traded up by 2.1% shortly after Wednesday’s opening bell.
Accenture, CarMax and Micron will report quarterly earnings either after markets close on Wednesday (Micron) or before they open on Thursday (Accenture and CarMax).
Here is a look at three companies set to release results late Wednesday or early Thursday.
BlackBerry
Shares of BlackBerry Ltd. (NYSE: BB) have added almost 50% so far this year, cutting the 12-month share price decline from about 50% in late March to less than 2% at Tuesday’s close. That jump is largely the result of a patent sale that boosted revenue by $168 million. Back that amount out of May quarter earnings, and revenue fell by about 8% year over year. And sales in the company’s internet-of-things and cybersecurity businesses were down even more. A downbeat forecast delivered earlier this month sent shares down sharply. BlackBerry reports results late on Thursday.
Of 10 brokerages covering the stock, seven have Hold ratings while two rate it at Buy or Strong Buy. At a recent share price of around $4.90, the stock trades above its median price target of $4.75 and right at the high price target of $4.90.
Fiscal 2024 second-quarter revenue is forecast at $146.95 million, which would be down 60.6% sequentially and by 12.5% year over year. BlackBerry is expected to post an adjusted loss per share of $0.05, compared to the prior quarter’s per-share loss of $0.06 and equal to its loss in the year-ago quarter. For the fiscal year ending in February, the company is forecast to post EPS of $0.01 compared with a loss of $0.18 per share in the 2023 fiscal year. Revenue is forecast to rise by 32.3% to $867.57 million.
BlackBerry trades at 117.2 times estimated 2025 earnings of $0.04 and 31.1 times estimated 2026 earnings of $0.16 per share. Its 52-week trading range is $3.17 to $5.75. BlackBerry does not pay a dividend. Total shareholder return for the past year is negative 1.81%.
24/7 Wall St.Carnival Cruises
Since reporting first-quarter earnings in late March, shares of cruise ship operator Carnival Corp. & PLC (NYSE: CCL) had more than doubled their price by early July. Since posting a high on July 5, however, the stock has fallen by nearly 30%.
While demand remains strong, the company’s debt load is fearsome. Total debt amounts to about $36.1 billion, and net debt totals $30.6 billion, down by about $360 million and $550 million, respectively, at the end of the second quarter. Carnival is buying back stock and paying off debt. That is good enough for investors until something changes their minds. Carnival is risky and has rewarded investors willing to take on those risks. When the company reports earnings first thing Friday morning, we shall see how Carnival’s comeback is progressing.
Analysts remain mostly optimistic on the stock, with 16 of 24 analysts having a Buy or Strong Buy rating and another four assigning Hold ratings. At a share price of around $14.00, the implied gain based on a median price target of $20.00 is 42.9%. At the high target of $25.00, the upside potential is 78.6%.
For the company’s third quarter of fiscal 2023, analysts have forecast revenue of $6.68 billion, up 36.1% sequentially and by 55.3% year over year. Adjusted EPS are forecast at $0.74, better than the prior quarter’s loss per share of $0.31 and much better than last year’s quarterly loss of $0.58 per share. For the full fiscal year that ends in November, Carnival is expected to post a per-share loss of just $0.14, compared with last year’s loss of $4.67 per share. Revenue is forecast to reach $21.34 billion, up 75.4% year over year. Carnival posted revenue of $12.17 billion in fiscal year 2022.
Carnival is expected to post earnings of $0.99 in the 2024 fiscal year, yielding a price multiple of 14.0, and $1.37 in fiscal 2025, for a multiple of 10.1. The 52-week trading range is $6.11 to $19.55. The company does not pay a dividend. Total shareholder return for the past year is 56.97%.
Nike
Over the past 12 months, shares of athletic gear maker Nike Inc. (NYSE: NKE) have fallen by about 6%, including a decline of about 23% so far in 2023. The Dow Jones industrial average component needs to show significant recovery in China and some long-anticipated brand strength. The company’s own forecasts call for growth, even if only modestly, in the first quarter of the new fiscal year. Nike reports results later on Thursday.
Of 36 brokerages covering the stock, 23 have a Buy or Strong Buy rating. Ten more have Hold ratings. At a price of around $90.00 a share, the upside potential based on a median price target of $125.00 is about 39%. At the high price target of around $152.00, the implied upside is almost 69%.
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