We are in the middle of the second-quarter 2022 earnings season and next week will be the biggest week of this reporting cycle with as many as 1,210 companies are slated to release their quarterly numbers. So far, earnings results are better than expected with no visible sign of an imminent recession.
Here we have selected five companies slated to report earnings results next week. The combination of a favorable Zacks Rank and a possible earnings beat should drive their share prices. These companies are -
Take-Two Interactive Software Inc. ( TTWO Quick Quote TTWO - Free Report) , Ionis Pharmaceuticals Inc. ( IONS Quick Quote IONS - Free Report) , Celsius Holdings Inc. ( CELH Quick Quote CELH - Free Report) , Grocery Outlet Holding Corp. ( GO Quick Quote GO - Free Report) and Lemonade Inc. ( LMND Quick Quote LMND - Free Report) . Q2 Earnings Results So Far
As of Aug 4, before the opening bell, 410 companies within the S&P 500 Index reported their financial numbers. Total earnings of these companies are up 7.8% year over year on 14.8% higher revenues, with 77.3% beating EPS estimates and 68.8% beating revenue estimates.
Our latest projection is that for the second quarter as a whole, total earnings of the S&P 500 Index will rise 6.3% year over year on 13.2% higher revenues. These show a notable improvement over 2.1% growth in earnings year over year on 9.7% higher revenues estimated at the beginning of the reporting cycle.
Our Top Picks
Five companies are slated to beat earnings estimates next week. Each of these stocks carries a Zacks Rank # 2 (Buy) and has a positive
Earnings ESP. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter.
The chart below shows the price performance of our five picks in the past quarter.
Image Source: Zacks Investment Research Take-Two Interactive is gaining from strong digital revenues, driven by solid demand for well-known game franchises like Grand Theft Auto and Farmville. The acquisition of Zynga will establish TTWO as one of the largest publishers of mobile games. The deal would unify Take-Two Interactive’s top-class portfolio of PC and console games and Zynga’s leading mobile franchises.
TTWO has an Earnings ESP of +1.10%. It has an expected earnings growth rate of 5.1% for the current year (ending March 2023). The Zacks Consensus Estimate for current-year earnings improved 1.5% over the last 7 days.
Take-Two Interactive recorded earnings surprises in the last four reported quarters, with an average beat of 19%. The company is set to release
earnings results on Aug 8, after the closing bell. Lemonade provides various insurance products in the United States and Europe. LMND’s insurance products include stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property. Lemonade also offers renters, homeowners, pet, car, and life insurance products, as well as landlord insurance policies. In addition, LMND operates as an agent for other insurance companies.
Lemonade has an Earnings ESP of +12.50%. The Zacks Consensus Estimate for current-year earnings improved 0.2 over the last 30 days. LMND recorded earnings surprises in two out of the last four reported quarters, with an average beat of 4.6%. The company is set to release
earnings results on Aug 8, after the closing bell. Ionis Pharmaceuticals has diverse revenue streams. IONS has a broad pipeline of partnered programs with Biogen, AstraZeneca and others. Ionis Pharmaceuticals is increasing investments in its wholly owned pipeline to diversify revenues from Spinraza (made by Ionis and licensed to Biogen) royalties. Some mid-late-stage data readouts are scheduled in 2022, which could be catalysts for the stock.
Ionis Pharmaceuticals has an Earnings ESP of +27.61%. IONS recorded earnings surprises in two out of the last four reported quarters, with an average beat of 24.4%. The company is set to release
earnings results on Aug 9, before the opening bell. Celsius Holdings specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. CELH sells its products through grocery, drug, convenience, club and mass, and health and fitness channels. Celsius Holdings’ products are produced in Mooresville, NC, and Monroe, WI. CELH serves customers in the United States and internationally.
Celsius Holdings has an Earnings ESP of +17.39%. It has an expected earnings growth rate of more than 100% for the current year . The Zacks Consensus Estimate for current-year earnings improved 75% over the last 90 days.
CELH recorded earnings surprises in three out of the last four reported quarters, with an average beat of 206.3%. The company is set to release
earnings results on Aug 9, after the closing bell. Grocery Outlet’s flexible sourcing and distribution business model helps it in offering products at exceptional values. GO’s opportunistic purchasing strategy, marketing efforts, store-growth endeavors and e-commerce initiatives to deepen customer reach appear encouraging.
Grocery Outlet registered solid comparable store sales in first-quarter 2022. An upbeat performance and robust traffic trends in the second quarter prompted management to lift 2022 view.
GO has an Earnings ESP of +3.55%. It has an expected earnings growth rate of 8.9% for the current year . The Zacks Consensus Estimate for current-year earnings improved 1% over the last 30 days.
Grocery Outlet recorded earnings surprises in the last four reported quarters, with an average beat of 4.8%. The company is set to release
earnings results on Aug 9, after the closing bell.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar.