The first full week of 2023 is filled with economically significant earnings results across financial, industrial and consumer sectors.
Earlier in the week, investors will receive a report from grocery store chain cannabis company Tilray Brands (TLRY). Albertsons Companies (ACI), who signed the merger agreement Kroger and (Korean), When Bed Bath & Beyond in distress (bbee).
Meanwhile, a report will be released later in the week from Taiwan Semiconductor Manufacturing (New York Stock Exchange: TSM) and JP Morgan (New York Stock Exchange: JPM), Wells Fargo & Company (WFC), Bank of America (New York Stock Exchange: BAC). UnitedHealth Group (UNH) and Delta Air Lines (DAL) are also on the minutes.
Below is a curated list of reports due the week of January 9-13.
Monday 9th January
Tilray Brands (TLRY)
Tilray Brands (TLRY) is set to report results after the bell Monday. The Canadian cannabis company’s shares have fallen more than 50% over the past year, with sharp losses in December.
The decline was accelerated by political disappointment. A law allowing marijuana companies to access U.S. banks was left out of the defense bill. Heading into the earnings call, Wall Street’s ratings reflect Hold’s consensus, according to a Seeking Alpha study.
- Consensus EPS Estimate: $-0.05
- Estimated consensus revenue: $158.2 million
- Earnings Insight: Tilray has beaten earnings expectations in just two of the last eight quarters.
Other Reports: Jefferies Financial (JEF), Acuity Brands (AYI), PriceSmart (PSMT), and WD-40 Company (WDFC)
Tuesday, January 10th
Albertsons Companies (ACI)
Albertsons Companies (ACI) is expected to announce its third quarter financial results in premarket trading on Tuesday. The stock has been trading essentially flat since his late October as investors worry about regulatory implications and a merger deal with Kroger (KR) remains under the microscope.
The company has rejected legal challenges from a number of state attorneys general, but the Washington lawsuit remains unresolved, as does the FTC investigation into the merger. A rapid review in Washington is scheduled for Jan. 17. The chain is also being sued by Washington State AG for its role in the opioid crisis that is still affecting America.
- Consensus EPS Estimate: $0.67
- Estimated Consensus Earnings: $17.58B
- Earnings Insights: Albertsons has beaten earnings expectations for eight consecutive quarters, but only 50% of those reports beat EPS estimates.
Other Reports: Bed Bath & Beyond (BBBY) and TD Synnex (SNX)
Wednesday, January 11th
KB Home (KBH)
Homebuilder KB Homes (KBH) is due to report its fourth quarter results after the market closes on Wednesday. Stocks have tumbled just over 21% over the past year as mortgage applications fell alongside rising interest rates. Aside from a surprising spike in new home sales in November, demand for housing is steadily declining.
“Mortgage application activity plunged to its lowest level in a quarter of a century this week as high mortgage rates continue to weaken the housing market,” Freddie Mac Chief Economist Sam Cater said on Jan.
- Consensus EPS Estimate: $2.85
- Estimated consensus revenue: $1.98 billion
- Earnings Insight: KB Home has only met earnings expectations in two of the last eight quarters.
Thursday, January 12th
Taiwan Semiconductor Manufacturing Company (TSM)
At premarket time on Thursday, Taiwan Semiconductor Company (TSM) is expected to announce its fourth quarter results. The computer chip maker is located in Taiwan and could represent some of the world’s most geopolitically important companies given its centrality as a major provider of semiconductors.
Shares of the world’s largest chip foundries, like much of the semiconductor sector, have fallen more than 40% over the past year. At the end of 2022, the company announced the start of production of his 3nm chips, and he reportedly received an order from Tesla (TSLA) to produce 4nm chips for its self-driving efforts. According to the Financial Times, TSM is also looking to expand into Europe with its German plant. Monthly sales data will be released two days before he reports.
- Consensus EPS Estimate: $1.76
- Estimated Consensus Earnings: $20.77B
- Earnings Insight: Taiwan Semiconductor beat EPS estimates for eight consecutive quarters, underperforming earnings estimates twice during that period.
Friday, January 13th
United Health Group (UNH)
UnitedHealth Group (UNH) is set to release fourth-quarter earnings before Friday’s bell. Shares of the Minnesota-based insurance company have significantly outperformed the market over the past year, posting a gain of about 1%, as opposed to a nearly 20% decline in the S&P. Going into the report, Wall Street’s consensus rating for UnitedHealth remains a ‘buy’, according to a Seeking Alpha survey.
Consensus EPS Estimate: $5.18
Estimated Consensus Earnings: $82.53B
Earnings Insight: UnitedHealth beat EPS and earnings estimates for the eighth straight quarter.
Delta Air Lines (DAL)
Delta Air Lines (DAL) will be the first major airline to report results, with the results announced at Friday’s premarket action. Delta’s share price fell by double digits in 2022, but saw a strong Q4 gain amid resilient demand.
Delta Air Lines, on the other hand, has fared better in the airline industry due to improved profitability trends, the resumption of routes to China, and improved reliability during peak travel times compared to major peers such as Southwest Airlines. We are making stronger achievements. The company also announced his partnership with T-Mobile ahead of the results, giving flight passengers free his Wi-Fi.
The EPS estimate was revised upward 10 times in the 90 days leading up to the results. Wall Street’s consensus rating is Buy, following a strong buy in mid-December.
- Consensus EPS Estimate: $1.35
- Estimated Consensus Earnings: $12.91B
- Earnings Insight: Delta has beaten EPS estimates in four of the last eight quarters and beat earnings estimates in all eight reports.
Sector Spotlight: Earnings of Large Banks
Rounding out Friday’s report are JP Morgan (JPM), Citigroup (New York Stock Exchange: C), Wells Fargo & Company (WFC) and Bank of America (BAC) are all expected to be listed. Stocks have fallen by double digits over the past year and are trading largely in line with the S&P 500’s downtrend.
Aside from rising interest rates that affect the sector as a whole, rising credit card delinquency rates are another indicator to monitor consumer facing businesses within each bank, especially Bank of America.
According to Dealogic, investment banks expect M&A trends to pick up in 2023, albeit peculiarly. As valuations weakened, “many companies are choosing to sell their stakes rather than sell everything,” the company’s insights say. The rebound in activity is expected to benefit major M&A players such as JP Morgan (JPM).
On a more company-specific basis for the quarter, Citi (C) closed its consumer banking business in China and a $500 million lawsuit against Revlon was dismissed. Meanwhile, JP Morgan has completed its $800 million acquisition of Viva Wallet and dominated Canadian M&A for the full year, according to Bloomberg.
Elsewhere, Bank of America Chief Executive Brian Moynihan has warned of persistent problems within the mortgage business, and in his view the trend is It could last until 2024. Finally, Wells Fargo (WFC) continues to come under fire from regulators despite reaching his landmark $3.7 billion settlement with the Consumer Financial Protection Agency in December. .