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In the first full week of September, the market is set to see a limited number of earnings reports due to a holiday-shortened schedule. However, there are some eagerly anticipated results to watch for, including updates from notable companies like Zscaler (NASDAQ:ZS) in the cloud security sector, DocuSign (NASDAQ:DOCU), the one-time pandemic favorite, GameStop (NYSE:GME), known for its former meme-stock status, and Kroger (NYSE:KR), the grocery giant.
Additionally, C3.ai (AI), ChargePoint (CHPT), American Eagle Outfitters (AEO), and Gitlab (GtLB) will also release their latest financial figures.
Below is a rundown of the major quarterly updates anticipated in the week of September 4 to September 8:
Monday, September 4
US markets will remain closed in observance of the Labor Day holiday.
Tuesday, September 5
Zscaler (ZS)
Zscaler (ZS) is slated to report its Q4 results after the market closes on Tuesday. Despite a 42% increase in the company’s stock price so far this year, Seeking Alpha’s Quant Rating system gives shares a cautionary rating of Hold. Meanwhile, Wall Street analysts rate the stock as a Buy.
With a bearish stance on the stock, Seeking Alpha contributor Reconquista Capital expects sales growth to drop significantly, leading the stock to be re-rated downward. However, another Seeking Alpha columnist, Gary Alexander, believes that “Zscaler’s huge margin expansion justifies a premium multiple today in exchange for later profitability.”
- Consensus EPS Estimates: $0.49
- Consensus Revenue Estimates: $430.59M
- Earnings Insight: Zscaler has consistently outperformed EPS and revenue expectations in the past 8 quarters.
Also reporting: America’s Car-Mart (CRMT), Brady (BRC), AeroVironment (AVAV), Asana (ASAN), GitLab (GTLB) and more.
Wednesday, September 6
GameStop (GME)
Video game retailer GameStop (GME) is scheduled to post its Q2 earnings after the bell on Wednesday.
Seeking Alpha author Josh Arnold writes, “The stock is oversold and has strong seasonality tailwinds, which could potentially lead to a rally if the earnings report is well received.”
Fellow SA contributor Value Kicker highlights that GameStop’s declining revenue and lack of strategic vision suggest a need for a turnaround, as its high costs and uncompetitive nature make it unviable compared to other retailers.
As per Seeking Alpha’s Quant Rating system, GME exhibits characteristics historically associated with poor future stock performance, as well as decelerating momentum and negative EPS revisions when compared to other consumer discretionary companies, which leads to a Sell rating. Wall Street analysts similarly grade the stock, which has lost 35% over the past 12 months, as a Sell.
- Consensus EPS Estimates: -$0.14
- Consensus Revenue Estimates: $1.14B
- Earnings Insight: GameStop has beaten EPS estimates in only 2 of the past 8 quarters and revenue expectations in 5 of those reports.
Also reporting: Core & Main (CNM), Photronics (PLAB), American Eagle (AEO), C3.ai (AI), Calavo Growers (CVGW), ChargePoint (CHPT), Couchbase (BASE), Dave & Buster’s (PLAY), Descartes (DSGX), Intapp (INTA), Phreesia (PHR), Sportsman’s Warehouse (SPWH), Sprinklr (CXM), Torrid (CURV), UiPath (PATH), Verint Systems (VRNT), Yext (YEXT) and more.
Thursday, September 7
DocuSign (DOCU)
DocuSign (DOCU) will report its Q2 earnings after the market closes on Thursday. Market participants will closely evaluate billing statistics as the company’s billing growth has slowed dramatically, falling from 56% in 2021 to 13% in 2023. The company’s guidance for 2Q calls for 0.46% Y/Y growth. For 2024, the firm expects 2.1% Y/Y growth.
Just few days before the earnings report, the Seeking Alpha Quant Rating system changed its view from Hold to Buy, while Wall Street analysts maintain a consensus Hold rating.
On a positive note, Seeking Alpha’s contributor Geoffrey Seiler writes, “DOCU has gotten too cheap, and investors could have a few ways to win. This could be through a turnaround, an activist getting involved, or the company getting bought out.”
- Consensus EPS Estimates: $0.66
- Consensus Revenue Estimates: $677.42M
- Earnings Insight: DocuSign has beaten EPS estimates in 7 of the past 8 quarters and exceeded revenue expectations in all of those quarters.
Also reporting: ABM Industries (ABM), BRP Inc. (DOOO), G-III Apparel (GIII), Science Applications (SAIC), Toro (TTC), Braze (BRZE), Guidewire Software (GWRE), Semtech (SMTC), Smartsheet (SMAR), Smith & Wesson Brands (SWBI), Zumiez (ZUMZ) and more.
Friday, September 8
Kroger (KR)
Supermarket chain Kroger (KR) will release its Q2 earnings data before the opening bell on Friday. Sell-side analysts and Seeking Alpha’s Quant Rating system are bullish on the stock, with shares receiving a Buy rating on both fronts.
“The acquisition of Albertsons may or may not end up positive. And since the deal won’t close until sometime next year, doubt will hang over Kroger’s price in the meantime. And even after it closes, we won’t know the final outcome for at least another year. That long period of time will cause most investors FUD and could restrict Kroger’s upside potential,” says SA author Bill Zettler, who is taking a cautious approach to the stock with a hold rating.
- Consensus EPS Estimates: $0.91
- Consensus Revenue Estimates: $34.12B
- Earnings Insight: Kroger has beaten EPS estimates in 100% of the past 8 quarters and revenue estimates in 6 of those reports.
Also reporting: Hooker Furnishings Corporation (HOFT) and Rent the Runway (RENT).
