Kalkine Media explores five earnings to watch this week

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Kalkine Media explores five earnings to watch this week

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 Kalkine Media explores five earnings to watch this week
Image source: © Warenemy | Megapixl.com

Highlights:

  • Acuity Brands, Inc. (NYSE: AYI) is likely to announce its Q4 FY22 earnings results on Tuesday, October 4.
  • Lamb Weston Holdings, Inc. (NYSE: LW) noted a 14 per cent jump in its Q4 FY22 net sales.
  • ConAgra Brands, Inc. (NYSE: CAG) net sales rose over six per cent YoY in Q4 FY22.

The US stock market has witnessed drastic trading sessions lately, with S&P 500 marking its steepest fall in September since the global financial crisis. Market participants were spooked by the aggressive pace at which the Federal Reserve is increasing the policy rates to cool-off demand.

Meanwhile, with the second quarter earnings season ending on a mixed note, some major companies are due to post their quarterly results this week. Some of the companies that will be announcing their earnings results this week include Acuity Brands, Inc. (NYSE: AYI), Lamb Weston Holdings, Inc. (NYSE: LW), Constellation Brands, Inc. (NYSE: STZ), ConAgra Brands, Inc. (NYSE: CAG), and Levi Strauss & Co (NYSE: LEVI).

The Federal Reserve is walking on an aggressive path to bring down inflation to its target level. Their recent move in fighting inflation was seen after their September gathering when they announced another big hike in the policy rates to tame the rising costs. 

In addition, the comments from the policymakers also confirmed that the central bank has no plans to slow down its rate hikes through next year, which has also hampered the risk-bet appetite of the market participants.

All three indices, Nasdaq, S&P 500, and Dow Jones Industrial Average, witnessed sharp declines after the announcement of the latest jump in the policy rates, indicating the pressures it had created on the investors' minds.

Now let's take a closer look at the past quarters' earnings and other key details about these companies ahead of the scheduled date of their latest quarter earnings release:

Acuity Brands, Inc. (NYSE: AYI)

Acuity Brands is a Georgia-based lighting company with a dividend yield of 0.33 per cent. The provider of lighting and building management solutions holds a market cap of US$ 5.15 billion.

The company's stock closed at US$ 157.47 on September 30, an increase of over two per cent from its previous close. The AYI stock decreased about 25 per cent YTD while losing about eight per cent YoY. It added over three per cent in the third quarter through September 30.

The building management solution company will announce its Q4 FY22 earnings results on October 4, this week.

In the last quarter, its net sales rose 18 per cent YoY to US$ 1.1 billion. Acuity Brands' Q3 FY22 diluted EPS rose 30 per cent YoY to US$ 3.07 apiece.

Lamb Weston Holdings, Inc. (NYSE: LW)

Lamb Weston is a major US-based food processing firm with a dividend yield of 1.24 per cent. The US$ 11.12 billion market cap company produces and processes frozen french fries and other potato-related products.

The company will announce its first quarter fiscal 2023 earnings results on Wednesday, October 5. Meanwhile, the stock of the food processing firm ended its trading session at US$ 77.38 on September 30.

At the closing price of September 30, the LW stock rose nearly 23 per cent while jumping about 27 per cent YoY. 

In Q4 FY22, Lamb Weston's net sales rose 14 per cent YoY to US$ 1.15 billion, while its net income fell 51 per cent YoY to US$ 32 million. For fiscal 2022, its net income dropped by 37 per cent YoY to US$ 201 million, while its net sales rose 12 per cent YoY to US$ 4.09 billion.

Constellation Brands, Inc. (STZ) Q1 FY23 VS Q1 FY22 earnings highlightsSource: ©Kalkine Media®; © Canva via Canva.com

Constellation Brands, Inc. (NYSE: STZ)

Constellation Brands is a leading beverage company that will announce its financial results on Thursday, October 6. The producer of beer, wine, and other spirits had a dividend yield of 1.35 per cent.

The STZ stock declined about seven per cent YTD while trading flat in the third quarter. On a YoY basis, it gained over 10 per cent through last Friday, September 30.

In Q1 FY23, Constellation Brands' net income was US$ 389.5 million on net sales of US$ 2.36 billion. In the year-ago quarter, the beverage company's net loss totalled US$ 908.1 million on net sales of US$ 2.02 billion.

ConAgra Brands, Inc. (NYSE: CAG)

ConAgra Brands is a food company that will release its first quarter fiscal 2023 earnings results on Thursday, October 6. The US$ 15.68 billion market cap company holds a dividend yield of 3.94 per cent, focusing on producing packaged food products under various brand names and selling them through supermarkets and other related establishments.

The CAG stock fell nearly four per cent YTD, three per cent YoY, and over four per cent in the third quarter after closing at US$ 32.63 on September 30, 2022.

The food company's net sales rose 6.2 per cent YoY to US$ 2.91 billion in the final quarter of fiscal 2022. ConAgra Brands' net income fell 49.1 per cent YoY to US$ 157.7 million in Q4 FY22.

Levi Strauss & Co (NYSE: LEVI)

Levi Strauss is a leading global clothing company with a dividend yield of 2.96 per cent. The stock of the US$ 5.74 billion market cap company closed at US$ 14.47 on September 30, down by 6.89 per cent, and on a YTD basis, it fell 40 per cent while dropping about nine per cent QTD and 39 per cent YoY.

The LEVI stock closed at its 52-week low on September 30, 2022. Meanwhile, the California-based company will announce its Q3 FY22 earnings results on October 6, this week.

In Q2 FY22, the clothing company's revenue rose 15 per cent YoY to US$ 1.5 billion, and its diluted EPS was up 26 per cent YoY to US$ 0.12 apiece.

Bottom line

As said earlier, the market has witnessed choppy trading this year, especially in September, with several stocks reaching their 52-week low. However, the starting of the third quarter was optimistic, even though it didn't last long, as investors seem to have moved towards the sideline after a short summer rally.

Exploring the performance of the benchmark US indices, the S&P 500 index dropped more than 16 per cent in the last 52 weeks while falling about 24 per cent YTD. In the third quarter, it lost more than five per cent through last Friday.

On the other hand, the Dow Jones Industrial Average index fell over 15 per cent YoY while losing nearly 21 per cent YTD. It plummeted about six per cent in the last quarter through September 30.

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