Earnings week ahead: Salesforce, Costco, Canopy Growth, Dell, Dollar General, and more

The final week of May, though shortened by a holiday, is still packed with key earnings reports from various sectors. The list of notable names includes Salesforce (NYSE:CRM), Costco Wholesale (NASDAQ:COST) and Canopy Growth (NASDAQ:CGC).

On the tech front, investors will also get results from Marvell Technology (NASDAQ:MRVL), Chewy (CHWY), Okta (OKTA), Zscaler (ZS), HP (HPQ), Dell Technologies (DELL) and C3.ai (AI). Meanwhile, the consumer staples sector will feature results from Dollar General (DG), Best Buy (BBY), and Hormel (HRL).

Additionally, retailers such as DICK’s Sporting Goods (DKS), Ulta Beauty (ULTA), Kohl’s (KSS), American Eagle (AEO), Abercrombie & Fitch (ANF), Burlington Stores (BURL) and The Gap (GPS) are also on the docket.

Below is a rundown of major quarterly updates anticipated in the week of May 27–31:

Monday, May 27

U.S. markets are closed in observance of the Memorial Day holiday.

Tuesday, May 28

Hello Group (MOMO)

Hello Group (MOMO) will release its Q1 earnings results before the opening bell on Tuesday. Following mixed Q4 results, the company anticipates Q1 revenue to drop Y/Y.

Morgan Stanley recently downgraded the stock to Underweight, citing a limited turnaround story for the Chinese mobile-based social and entertainment service provider. The firm is also expecting the company’s operating profit to decline 25%.

The Seeking Alpha Quant Ratings system maintains a Hold rating on the stock, while Wall Street analysts seem more bullish, giving shares a consensus Buy rating.

• Consensus EPS Estimates: $0.29
• Consensus Revenue Estimates: $3842.87M
• Earnings Insight: The company has beaten EPS estimates in straight 8 quarters and revenue estimates in 6 of those reports.

Also reporting: CAVA Group (CAVA), Avalon GloboCare (ALBT), Digital Turbine (APPS), Danaos Corporation (DAC), Baozun (BZUN), Box (BOX), JOYY (YY), Golar LNG Limited (GLNG), Nano-X Imaging (NNOX), Futu Holdings Limited (FUTU), Diana Shipping (DSX), BioLineRx (BLRX), Affimed N.V. (AFMD), HEICO Corporation (HEI), Galmed Pharmaceuticals (GLMD), Elbit Systems (ESLT), Faraday Future Intelligent Electric (FFIE), Qualigen Therapeutics (QLGN) and more.

Wednesday, May 29

Salesforce (CRM)

Salesforce (CRM) headlines the week with its Q1 earnings update due in postmarket hours on Wednesday. Shares of the San Francisco-based CRM software provider have seen significant upside, rising over 35% over a period of 12 months, although they have only increased by 6% so far in 2024.

After an upbeat Q4 report, Salesforce announced its first-ever quarterly dividend of $0.40 per share and boosted its share buyback program by $10B. It also provided an optimistic outlook for Q1, expecting to generate sales between $9.12B and $9.17B, with the midpoint in line with the consensus of $9.15B and EPS between $2.37 and $2.39 per share, above the $2.20 per share estimate.

Wall Street analysts are largely bullish on Salesforce (CRM), giving it a Buy rating, while Seeking Alpha’s Quant Rating system takes a more cautious approach, recommending a Hold.

SA author Khaveen Investments expects the company to continue to sustain strong FCF margins due to its lean business model with consistently low capex supported by the AWS partnership, reducing the need for physical data center investment.

• Consensus EPS Estimates: $2.37
• Consensus Revenue Estimates: $9.15B
• Earnings Insight: Salesforce has topped EPS and revenue estimates in 8 consecutive quarters.

Also reporting: HP (HPQ), Okta (OKTA), C3.ai (AI), Stratasys (SSYS), Chewy (CHWY), Agilent Technologies (A), UiPath (PATH), Nutanix (NTNX), Capri Holdings Limited (CPRI), Pure Storage (PSTG), Nordic American Tankers Limited (NAT), DICK’S Sporting Goods (DKS), American Eagle Outfitters (AEO), Advance Auto Parts (AAP), Abercrombie & Fitch Co. (ANF), nCino (NCNO), Viking Holdings (VIK), American Superconductor (AMSC) and more.

Thursday, May 30

Costco Wholesale Corporation (COST)

Costco (COST) is slated to report quarterly results after the market closes on Thursday, with analysts anticipating a Y/Y increase in both revenue and earnings for the retail giant.

While Wall Street analysts are optimistic with a Buy rating, Seeking Alpha’s Quant Rating system has maintained a more conservative Hold rating.

SA author Ken Taylor, who has a Hold rating on the stock, believes that Costco’s international expansion and diverse product offerings, including weight loss programs, provide growth opportunities. The company’s real estate strategy and low-cost procurement give it a competitive advantage and help sustain long-term growth.

On the other hand, Nivesha Investors, another SA contributor, has a Sell opinion on the stock: “Costco’s revenue growth is moderating, and it may be time to reevaluate its valuation multiples. FY24 P/E is at a historical high of 45x, and growth is slower than historic averages, making it hard to justify the current share price. Valuation methodologies suggest that Costco is overvalued by over 30%, making it a good time to consider taking profits.”

• Consensus EPS Estimates: $3.71
• Consensus Revenue Estimates: $57.97B
• Earnings Insight: Costco has exceeded EPS expectations in 6 of the past 8 quarters, missing revenue estimates three times in that span.

Also reporting: Marvell Technology (MRVL), Zscaler (ZS), Dell Technologies (DELL), Veeva Systems (VEEV), Best Buy (BBY), MongoDB (MDB), Ulta Beauty (ULTA), Dollar General Corporation (DG), Kohl’s Corporation (KSS), Hormel Foods Corporation (HRL), Ambarella (AMBA), Asana (ASAN), NetApp (NTAP), Nordstrom (JWN), Elastic N.V. (ESTC), The Gap (GPS), Foot Locker (FL), SentinelOne (S), PagerDuty (PD), Academy Sports and Outdoors (ASO), Build-A-Bear Workshop (BBW), Burlington Stores (BURL), Conn’s (CONN), Maxeon Solar Technologies (MAXN) and more.

Friday, May 31

Genesco (GCO)

Genesco (GCO) is scheduled to announce its Q1 results before the market opens on Friday. While Wall Street analysts rate Genesco as a Hold, Seeking Alpha’s Quant Rating system suggests a Sell, largely as a result of growth concerns.

Following disappointing Q4 results, with comps down 4%, CFO Thomas A. George said, “Although we faced a difficult operating environment in the fourth quarter, we delivered sales largely in line with our most recent guidance and a better-than-expected gross margin. However, the earnings impact from unusually disruptive winter storms, along with higher than anticipated expenses at Journeys, drove bottom-line results below our most recent expectations.

Looking ahead, George added: “while we are taking urgent actions to improve our core product assortment, we expect the current sales dynamic to remain a significant headwind in the first half of fiscal 2025 and have factored that into our outlook.”

• Consensus EPS Estimates: -$2.70
• Consensus Revenue Estimates: $445.03M
• Earnings Insight: The company has exceeded EPS expectations in 5 of the past 8 quarters, with revenue estimates in 50% of those reports.

Also reporting: Mesa Laboratories (MLAB), Investcorp India Acquisition (IVCA), Cango (CANG), Global Star Acquisition (GLST) and more.