Four companies we have previewed reported quarterly results after markets closed Thursday or before they opened on Friday. Three of the four beat on both the top and bottom lines (FedEx, Darden Restaurants and Winnebago) while Rivian missed on both.
Lowered guidance from Darden took the stock down Friday morning, while Rivian’s production outlook sent investors headed for the exits. FedEx and Winnebago both traded higher.
Thursday, we previewed earnings expected out after markets close Friday and before the open on Monday: Bit Digital, Blade Air Mobility and Carnival.
Here is a look at two companies scheduled to report quarterly results either after markets close Monday and two more before they open Tuesday.
General Mills
Shares of food products giant General Mills Inc. (NYSE: GIS) have added about 22% over the past 12 months, all of it since early September. General Mills is the second-largest packaged food company in the country, trailing only Kraft Heinz. The company’s Wheaties brand is celebrating its 100th birthday this year with limited-edition boxes of cereal sold only on the company’s website. Can Cocoa Puffs’ NFTs be far behind? Sales have been rising in the quarter, but we won’t know until Tuesday morning whether profits are keeping up.
Sentiment on the stock is muted. Of 20 analysts covering the shares, 13 have a Hold rating, and only four rate the stock at Buy or Strong Buy. The stock has been trading at around $69, above the median price target of $65, but with 13% upside potential based on the high target of $74.
Second-quarter fiscal 2022 revenue is forecast at $4.86, which would be up 7% sequentially and 3% higher year over year. Adjusted earnings per share (EPS) are forecast at $1.05, up 5% sequentially but down about 2% year over year. The current estimates for the full fiscal year ending in May call for EPS of $3.78, down less than 1%, on sales of $18.26 billion, up less than 1%.
General Mills’ share price to earnings multiple for the 2022 fiscal year is 18.2. For fiscal 2023, the multiple to estimated EPS of $3.92 is 17.6, and for 2024, it is 16.9 times estimated EPS of $4.08. The stock’s 52-week range is $53.96 to $69.67. The high was posted Friday morning. General Mills pays an annual dividend of $2.04 (yield of 3.03%). Total shareholder return for the past year was 19.6%.
Micron
Semiconductor maker Micron Technology Inc. (NASDAQ: MU) has added about 12% to its share price over the past 12 months. Since January of 2020, however, the stock is up about 53%, including a drop of 30% between April and early October. The stock has added about 24% since that mid-October low. When Micron reports results after markets close Monday, investors will be paying particular attention to demand for the company’s memory chips and to the effect Micron’s planned production increases will have on the share price.
Of 35 analysts covering the stock, 27 have a Buy or Strong Buy rating on the shares and another six rate the stock at Hold. At a share price of around $81.50, the upside potential based on a median price target of $95 is about 17%. At the high target of $165, upside potential is 102%.
First-quarter fiscal 2022 revenue is forecast at $7.68 billion, down 7.2% sequentially but 33% higher year over year. Adjusted EPS are forecast at $2.11, down 13% sequentially and up 170% year over year. For the full fiscal year, revenue is currently forecast at $32 billion, up 15.5%, and EPS are forecast at $8.86, more than 46% higher.
Micron’s share price to earnings multiple for fiscal 2022 is 9.2. For fiscal 2023, the multiple to estimated EPS of $11.13 is 7.3, and for 2024, it is 7.4 times estimated EPS of $10.96. The stock’s 52-week range is $65.67 to $96.96. Micron pays an annual dividend of $0.10 (yield of 0.12%). Total shareholder return for the past year was 12.8%.
24/7 Wall St.Nike
Over the past 12 months, shares of athletic gear maker Nike Inc. (NYSE: NKE) have added about 17% to their value. Over the past two years, the Dow Jones industrial average component has added about 66% to its share price, with most of the gain coming in 2020. Investors will be paying close attention to how Nike is managing its supply chain issues, which have affected both sales and inventory levels. Digital sales have been rising, and investors also expect to see growth in that area as well. Nike reports quarterly results after markets close on Monday.
Analyst sentiment on the stock is nearly unanimously positive, with 27 of 33 brokerages rating the stock at Buy or Strong Buy and five more having a Hold rating. At a share price of around $161.40, the upside potential based on a median price target of $184.38 is about 14.3%. At the high price target of $206, the implied upside is 27.6%.
For the company’s second quarter of fiscal 2022, revenue is expected to come in at $11.25 billion, down 8.1% sequentially and essentially flat year over year. Adjusted EPS are forecast at $0.63, down nearly 46% sequentially and 19.2% lower year over year. For the full fiscal year, current estimates call for EPS of $3.52, down about 1.1%, on sales of $47.11 billion, up about 5.8%.
Nike’s share price to earnings multiple for fiscal 2022 is 45.9. For fiscal 2023, the multiple to estimated EPS of $4.71 is 34.3, and for 2024, it is 29.0 times estimated EPS of $5.57. The stock’s 52-week range is $125.44 to $179.10. Nike pays an annual dividend of $1.22 (yield of 0.75%). Total shareholder return for the past year was 16%.
Rite Aid
Retail drugstore operator Rite Aid Corp. (NYSE: RAD) reports fiscal 2022 third-quarter results first thing Tuesday morning. Over the past 12 months, the share price has pulled back nearly 30%, including a share price spike to near $32.50 in late January. For the year to date, shares trade about 24% lower. Shares got a bit of a boost earlier this month on chatter that the company offered a good target for an activist investor. So far, no volunteers have stepped up.
Few analysts pay attention to the shares, and none rates the stock above a Hold. At a share price of around $12.10, the stock is trading a dime above its median price target. Upside potential based on a high price target of $15.00 is 24%. Rite Aid has lowered guidance in each of the two prior quarters after missing sales estimates in both quarters.
Third-quarter revenue is expected to come in at $6.28 billion, up about 2.8% sequentially and 2.6% year over year. The adjusted loss per share is forecast at $0.18, compared to a loss per share of $0.41 in the prior quarter and EPS of $0.40 in the third quarter of last year. For the full fiscal year, Rite Aid is expected to post a loss per share of $0.76 compared to last year’s loss of $0.15. Revenue is expected to increase by 3.9% to $24.98 billion.
Rite Aid is not expected to post positive EPS until fiscal 2024. The single analyst estimate for that year calls for EPS of $0.41, which represents a multiple to the share price of 29.6. The stock’s 52-week range is $11.50 to $32.48. Rite Aid does not pay a dividend. Total shareholder return for the past year was negative 39.5%.
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