Back to top

Earnings Island In Focus

Read MoreHide Full Article

It’s that time again: between main earnings seasons for most publicly traded stocks, but which contain a few key leaders in their respective industries posting results this week. We’ve lately taken to calling this time period “Earnings Island.”

Usually Earnings Island contains the same companies reporting within it, quarter after quarter. This time we see a few switches — General Mills (GIS - Free Report)  is in, Nike (NKE - Free Report)  is not (the shoe giant reports later next week, instead) — but for the most part, these companies are those we rely on to bring life to a rather dead space in earnings results:

Oracle (ORCL - Free Report) , the $204 billion market-cap software and cloud-computing tech major, reports earnings for its fiscal Q1 2019 after today’s closing bell. The Zacks consensus estimates are looking for 68 cents per share on revenues of $9.29 billion, and Oracle has beat on earnings every quarter for the past two years. However, the company is currently a Zacks Rank #4 (Sell) with a Style Score (Value - Growth - Momentum) of C. We shall find out if Oracle will change its fortunes to the upside upon the earnings release; year over year, Oracle shares are essentially flat.

FedEx (FDX - Free Report) , a leader in shipping and logistics — with plenty of residual information for both global demand and commerce in general — also reports fiscal Q1 2019 sales and earnings after regular trading ends today. Earnings of $3.78 expected would be 51% higher than the year-ago tally, with revenues expected to reach $16.88 billion in the quarter. The Zacks Rank #3 (Hold) company with a Style Score of A has missed bottom-line estimates in three of the last seven quarters.

Consumer Discretionary firm (and household name) General Mills reports fiscal Q1 2019 results Tuesday, with estimates currently at 64 cents per share on $4.12 billion in quarterly sales. After peaking at all-time highs a couple years ago, General Mills has fighting its way back, with only two earnings misses in the past eight quarters. The company is currently a Zacks Rank #3 with a Style Score of B.

Finally, semiconductor growth play Micron (MU - Free Report)  posts fiscal Q3 2018 results after the closing bell this Thursday. Analyst are looking for $3.30 per share on top-line expectations of $8.22 billion in revenues. After having scaled all-time highs three separate times earlier in 2018, the Zacks Rank #3 company (Style Score A) looks to put the momentum back into its trading narrative this week. MU shares are down 41% from the highs posted last spring.

The Empire State Index was also released ahead of today’s open, with a slight disappointment in store for analysts: following a 25.6 read for August, today’s September number only reached 19. Expectations had been for a more modest pullback. That said, numbers such as these are necessarily volatile as they concern one basic region of the country for a particular month. Although this cooler-than-expected number does follow last week’s weaker Retail Sales and Import/Export Prices.