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Upcoming Earnings to Watch: HPE, LULU, KR

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Stocks were bouncing up and down on Friday morning, but major U.S. indexes remained on track to record a solid overall week on the back of dovish Fed sentiment and hopes that trade tensions with China will be eased at the G20 summit.

This rally could be erased quickly if Xi and Trump are unable to cooperate, but a face-to-face meeting of the two leaders is certainly an important first step.

The meeting comes at an interesting time for investors, as major funds and individual traders alike are meticulously planning their portfolios for the New Year. We are also in the midst of a low-volume stretch for earnings reports, which actually tends to result in broader gains for companies that do report and impress.

With that said, investors should remember to use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.

We have made this task even easier today by selecting a few of next week’s top reports to preview right now. Let’s take a closer look at a few of the earnings announcements due during the week of December 2.

1. Hewlett Packard Enterprise Company (HPE - Free Report)

Hewlett Packard Enterprise is scheduled to release its latest quarterly earnings report after the market closes on December 4. HPE shares have whipsawed over the past six months, and after a strong start to 2018, the stock is now up just over 3% on the year. Management will hope a fresh batch of numbers can get investors excited again.

Analysts expect HPE to report adjusted earnings of $0.43 per share, according to our Zacks Consensus Estimate. Within the last 60 days, the company has seen one positive revision and one negative revision to EPS estimates for the period. Revenue is projected to be $7.85 billion, up 2.5% from the year-ago quarter.

 

2. Lululemon Athletica Inc. (LULU - Free Report)

Trendy athletic apparel maker Lululemon is slated to post its most recent financial results after the closing bell on December 5. Shares of LULU have added roughly 63% year-to-date, but the stock has room to run on good earnings after pulling back 20% from its highs. With the valuation stretched already, Lululemon will really have to impress.

Our latest Zacks Consensus Estimates are calling for earnings of $0.69 per share and revenue of $733.5 million. These results would represent year-over-year growth rates of 23.2% and 18.5%, respectively. Lululemon is currently trading at about 36x earnings, which is a steep premium to its industry’s average of 24x. However, the stock has a PEG of 1.9, so its earnings growth potential seems reasonably priced in.

 

3. The Kroger Co. (KR - Free Report)

Grocery store behemoth Kroger will announce its quarterly operational figures before U.S. markets open on December 6. Kroger shares have inched about 7% higher on the year and 25% higher in the past six months. Earnings estimates for the to-be-reported quarter have trended downward, however.

90 days ago, analysts had a consensus EPS estimate of $0.46 for Kroger; now, that estimate is down to $0.43. This would represent a decline of 2.3% from the year-ago period. Revenue is estimated to be 0.6% lower to $27.6 billion.

 

 

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