US stocks remain under immense pressure amid valuation concerns. Major indices led by the NASDAQ have pulled lower from record highs, with the S&P 500 and the Dow Jones Industrial average struggling to bounce back after recent sells-offs.
The correction from record highs has come at the backdrop of companies posting impressive financial results affirming continued growth amid the disruptions triggered by the COVID-19 pandemic. While a good number of companies have already reported earnings, there are notable earning reports poised to light up the market this week.
Adobe
Adobe Inc. (NASDAQ: ADBE)’s first-quarter report is one of the most-awaited after market close on Tuesday March 23, 2021. Analysts expect the diversified software company to report net earnings of $1.3 billion on sales of $3.8 billion.
In the same quarter last year, the company reported earnings per share of $2.27 a share on sales of $3.1 billion. Net income, on the other hand, totaled $851.9 million. While the company did deliver an earnings surprise of 6.04%, expectations are high that Adobe will top estimates.
Similarly, analysts expect management to forecast a net income of $1.3 billion for the second quarter or $2.70 a share. Sales guidance is expected to come in at $3.7 billion.
It waits to be seen if the earnings report will be the catalysts to avert a further slide in the stock. Adobe is down by more than 5% since it reported its last quarter earnings in December.
GameStop
GameStop Corp. (NYSE: GME) has been on a roller-coaster since the start of the year. After a 2000% plus rally to record highs of $483, the stock has shed nearly half of the gains to the $200 handle. Amid the sell-off, the company has been the center of attention amid increased implied volatility.
Likewise, the multichannel video game company will be the center of attention as it reports its fourth-quarter and full-year earnings result for 2020 after market close on March 23.
The market expects a net income of $88.3 million or $1.35 a share. Likewise, sales are expected at $2.2 billion. Last year same quarter, the video game company delivered earnings per share of $1.27 a share on sales of $2.2 billion.
General Mills
After a rocky start to the New Year, General Mills, Inc. (NYSE: GIS) has rediscovered its footing erasing all losses and rallying by more than 2% for the year. The breakfast and snack food specialist is poised to report its third-quarter financial results on March 24, 2021, with market expectations high that the company will report upbeat top-line and bottom-line numbers.
General Mills is to report its third-quarter results on organic sales growth in the last quarter dropping to 7% from the previous 10% growth. However, the earnings report is expected to show the impact of newly introduced products to millions of people.
Analysts expect the company to report revenues of $4.5 billion, representing a 6.4% year over year increase. Likewise, net income is expected to top estimates coming in at $$522.9 million or 84 cents a share.
Last year same period, the snack company reported earnings of 77 cents a share on sales of $4.2 billion. Net income totaled $580.8 million. Analysts expect management to project a net income of $543.7 million or 86 cents a share for the fourth quarter on sales of $4.3 billion.
IHS Markit Ltd
IHS Markit Ltd (NYSE: INFO) is another notable earnings report worth waiting for on March 23, 2021. The world leader in critical information analytics and solutions is poised to report its first-quarter results before the market open on March 23, 2021.
Analysts expect the company to report adjusted net income of $285 million or 70 cents a share on sales of $1.1 billion. In the same quarter last year, the company reported earnings of 66 cents a share on sales of $950.9 million. Net income totaled $203.1 million.
The stock is up by more than 5% for the year . However it is down by 6% from its record highs waiting to see if the earnings report will be the catalyst to fuel the next leg higher.
Darden Restaurants
Darden Restaurants, Inc. (NYSE: DRI) we also poised to light the market when it reports its third-quarter earnings on Thursday March 25, 2021. The multi-brand restaurant operator boasts of a solid history of beating earnings estimates. However, given the effects of the COVID-19 pandemic in the third quarter, it is highly unlikely the company will top estimates as has been the case in yesteryears.
Analysts expect the company to report earnings per share of $0.69, representing a 64% year-over-year decline. On the other hand, sales are expected to decline 30% to $1.6 billion, having suffered the full impact of lockdown and outdoor dining restrictions in the quarter.
In the upcoming quarter, analysts expect management to project adjusted net income of $162.7 million or $1.22 a share on sales of $2 billion for ye full-year revenues are expected at $6.7 billion. The stock is up by 15% ahead of the earnings report.
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