Kalkine Media lists 5 major earnings from this week

Highlights:

• Intuit Inc (INTU) recently announced entering into an agreement to acquire the financial health startup, SeedFi.
• Hormel Foods Corporation (HRL) expects its annual net sales to be around US$ 12.9 billion in fiscal 2023.
• Net sales of Dollar General Corporation (DG) surged over 11 per cent YoY in Q3 FY22.

Market participants are keeping a beady eye on the third quarter corporate earnings for cues on how the firms have performed in the latest quarter. The mixed earnings season has so far helped in lifting the market spirits.

While some big companies posted gloomy earnings, reflecting the impact of higher interest rates, soaring prices, and other related concerns, some firms showed resilience to the uncertainties. Some of the retailers also posted positive earnings earlier, suggesting that the consumers have maintained steady spending despite the higher interest rates.

In addition to that, the latest dovish comments from the Federal Reserve and other key economic data also helped offset some concerns of the traders. Wall Street participants seemed to have lauded the recent comments from Fed Chair Jerome Powell, that the central bank is likely to ease its hawkish approach in bringing down the inflation to its target range of two per cent.

Now, many market watchers are anticipating a smaller hike, i.e., a 50-basis point jump, at Fed's next meeting in mid-December. The Fed officials had bumped the policy rates at their highest pace in years while raising them by 0.75 bps points for four straight times through November.

So, hereby pick five major companies, which include Intuit Inc (NASDAQ:INTU), Salesforce, Inc. (NYSE: CRM), Hormel Foods Corporation (NYSE: HRL), Dollar General Corporation (NYSE: DG), and Ulta Beauty, Inc. (NASDAQ:ULTA), among others, which have announced their latest quarterly results this week:

Intuit Inc (NASDAQ:INTU)

The software firm, that claims to help consumers in achieving financial confidence, Intuit Inc holds a dividend yield of 0.82 per cent. The technology firm's stock, that focuses on the financial software, fell over 35 per cent YTD and about 37 per cent YoY.

The INTU stock soared over seven per cent through December 1, when it closed at US$ 416.07, up 2.08 per cent from its previous closing price.

Intuit Inc reported its Q1 FY23 earnings results on November 29, which showed its revenue grew 29 per cent YoY to US$ 2.6 billion, while its EPS fell 83 per cent YoY to US$ 0.14 apiece.

Meanwhile, on December 1, the financial technology firm said that it has entered into an agreement under which it would acquire the financial health startup, SeedFi.

Salesforce, Inc. (NYSE:CRM)

The cloud-based software company, Salesforce offers applications and other related solutions for customer-focused services, Salesforce Inc had a market cap of US$ 146.4 billion. The stock of the firm, which primarily provides customer relationship management or CRM application to improve the customer experience of its clients, tumbled 42 per cent YTD and around 41 per cent YoY.

It is no surprise that the technology sector has been of the worst-hit sectors this year amid choppy trading in the overall financial market. However, the CRM stock added over two per cent in the quarter through December 2, when it closed at US$ 147.

According to its Q3 FY23 earnings release of November 30, Salesforce Inc's total revenue grew 14 per cent YoY on a reported basis and 19 per cent YoY on constant currency to US$ 7.84 billion. The diluted EPS of the CRM application provider was US$ 0.21 apiece, down from US$ 0.47 per share in Q3 FY22.

For its final quarter revenue, the technology firm provided a guidance range of US$ 7.932 billion to US$ 8.032 billion, representing a jump of eight per cent to 10 per cent YoY. Meanwhile, Salesforce expects its annual revenue to be between US$ 30.9 billion and US$ 31 billion, representing an increase of about 17 per cent YoY.

Hormel Foods Corporation (NYSE:HRL)

The major American food processing firm, Hormel Foods Corporation holds a dividend yield of 2.16 per cent. Its stock fell about two per cent YTD. However, on a YoY basis, it rose 13 per cent and about four per cent on a QTD basis through December 1.

According to its final quarter earnings release of November 30, the food processing company's net sales fell five per cent YoY to US$ 3.3 billion and its diluted EPS remained flat YoY at US$ 0.51 apiece.

However, Hormel Foods Corporation's net sales rose nine per cent YoY to US$ 12.5 billion, and its diluted EPS surged 10 per cent YoY to US$ 1.82 per share.

For fiscal 2023, the company expects its net sales to be between US$ 12.6 billion and US$ 12.9 billion, up one per cent and three per cent YoY, and its diluted EPS to be between US$ 1.83 billion and US$ 1.93 billion, up one per cent and six per cent YoY respectively.

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Dollar General Corporation (NYSE:DG)

The American variety store chain operator, Dollar General Corporation holds a dividend yield of 0.87 per cent. The DG stock was flat in 2022 and rose over six per cent on an annual basis.

As per its Q3 FY22 earnings release of December 1, Dollar General Corporation's net sales rose 11.1 per cent YoY to US$ 9.5 billion, and its diluted EPS rose 12 per cent YoY to US$ 2.33 apiece.

Ulta Beauty, Inc. (NASDAQ:ULTA)

The leading Bolingbrook-based beauty salon firm, Ulta Beauty Inc's market cap was US$ 24.2 billion during writing. The company's stock, which operates a chain of beauty salon stores in the US, soared 14 per cent YTD and around 28 per cent YoY.

Ulta Beauty Inc's net sales were US$ 2.33 billion, and its diluted EPS was US$ 5.34 per share in Q3 FY22, against a diluted EPS of US$ 3.94 apiece on net sales of US$ 1.99 billion in Q3 FY21.

Bottom line:                                                                                                

This aggressive campaign of the central bank also spurred fears over a potential recession. While the shrinking economy for the starting two quarters of the year suggested that the economy might be in a recessionary period, the latest revised GDP data for the third quarter gave some relief.        

The latest GDP data showed the economy advanced at a 2.9 per cent rate in Q3, up from the prior estimates of 2.6 per cent given by the Bureau of Economic Analysis of the US Commerce Department.

However, the layoffs from some companies have suggested otherwise, fueling concerns that the economy might tip into a recessionary period next year.

Meanwhile, next week some key economic data like the payroll, PCE price index, etc., data would be released, which would provide more insights into the latest health of the economy. In addition, the set of data might also set the tone for Fed's future stances with their monetary campaign.

Meanwhile, the S&P 500 index, which indicates the overall economy as well as the equity market's health of the US, fell around 10 per cent YoY and close to 14 per cent YTD.

So, keeping the volatile trading scenario of the market, investors should exercise due diligence before putting any bets into the stock market.