AutoZone, Nvidia, Medtronic and Costco Wholesale in Focus

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The Memphis, Tennessee-based auto components retailer is anticipated to report its fiscal third-quarter earnings of $20.02 per share, which represents year-over-year progress of about 39% from $14.39 per share seen in the identical interval a yr in the past.

America’ main retailer and a number one distributor of automotive substitute components and equipment would submit income progress of 17% to $3.26 billion. Within the final 4 quarters, on common, the corporate has crushed earnings estimates over 12%.

AutoZone (AZO) may comp ~30% in F’Q3 with a lift from the stimulus, and a flat comp is feasible in F’This autumn on a harder examine. Nevertheless, these beats might not absolutely circulate by to F’22. Threat/reward appears to be like constructive however much less favorable after the inventory’s latest run. Keep ‘Obese’ with a $1,640 value goal,” famous Simeon Gutman, fairness analyst at Morgan Stanley.

AZO is our prime choose in DIY Auto. We see it as a high-quality retailer with the flexibility to compound earnings/FCF progress over time. Whereas not proof against a harder macro backdrop (fewer miles pushed), we consider AZO is greatest positioned by any recession given its main publicity to the extra defensive DIY phase (~80% of gross sales). As well as, its DIFM progress was accelerating pre-COVID and we predict it could possibly achieve extra share in that phase going ahead. In our view, ongoing share positive aspects coupled with strong expense administration ought to enable AZO to beat headwinds from much less driving within the near- to medium-term.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 25

Wednesday (Might 26)

IN THE SPOTLIGHT: NVIDIA

The Santa Clara, California- based mostly multinational know-how firm is anticipated to report its first-quarter earnings of $3.28 per share, which represents year-over-year progress of over 80% from $1.80 per share seen in the identical interval a yr in the past.

Within the final 4 consecutive quarters, on common, the corporate has delivered an earnings shock of over 10%. The corporate, which designs graphics processing items for the gaming {and professional} markets, in addition to system on a chip unit for the cellular computing and automotive market would submit year-over-year income progress of over 70% to $5.4 billion.

“For the primary quarter of fiscal 2022, NVIDIA anticipates revenues of $5.3 billion (+/-2%). Non-GAAP gross margin is projected at 66% (+/-50 bps). Non-GAAP working bills are estimated to be $1.20 billion. Capital expenditures are anticipated to be roughly $300-$325 million,” famous fairness analysts at ZACKS Analysis.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 26

Thursday (Might 27)

IN THE SPOTLIGHT: MEDTRONIC, COSTCO WHOLESALE

MEDTRONIC: An American Irish-domiciled medical system firm is anticipated to report its fiscal fourth-quarter earnings of $1.42 per share, which represents year-over-year progress of over 140% from $0.58 per share seen in the identical interval a yr in the past.

Within the final 4 consecutive quarters, on common, the corporate has delivered an earnings shock of over 44%. The Fridley, Minnesota-based medical firm would submit year-over-year income progress of over 35% to $8.14 billion.

“Peer outcomes and commentary recommend ~33-34% natural progress (the higher finish of mgmt steerage) is achievable, and we anticipate FY22 steerage in-line with Cns with room for raises. We proceed to see valuation as enticing and Threat/Reward constructive into FY22 restoration,” famous Cecilia Furlong, fairness analyst at Morgan Stanley.

Medtronic is nicely aligned with our 2021 pro-recovery thesis, and we see sustainable 5%+ natural progress pushed by the corporate’s ~5% WAMGR and supported by pipeline product launches & tuck-in M&A contributions. CEO Geoff Martha has dedicated to initiatives to easy bulk buying and ship extra constant outcomes, and redeploy $450mn annual OpEx financial savings towards innovation & product reinvestment.”

COSTCO WHOLESALE: The world’s fifth-largest retailer is anticipated to report its fiscal third-quarter earnings of $2.31 per share, which represents year-over-year progress of over 20% from $1.89 per share seen in the identical interval a yr in the past.

The Fridley, Minnesota-based medical firm would submit income of $43.6 billion.

COST’s outcomes have persistently been among the many greatest in Retail. Over the previous decade, COST has delivered ~6% comps and ~10% EBIT progress on common. It’s uncommon to discover a enterprise with COST’s strong comp/membership progress, whereas relative e-commerce insulation differentiates its worth proposition from different retailers,” famous Simeon Gutman, fairness analyst at Morgan Stanley.

“We’re Obese even because the inventory trades at an elevated valuation given COST’s shortage worth, security, and scale. Within the near-term, we anticipate incremental gross sales uplifts from COVID-19 disruption, and earnings energy appears to be like stronger regardless of COVID-19 bills.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 27

Friday (Might 28)



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