Stock Market

Editor’s Note: This article is regularly updated to bring you relevant, up-to-date information.

Slim pickings are on the earnings front over the next week. The fourth quarter numbers are largely in with 98% of the companies listed on the benchmark S&P 500 index having now reported. However, there are still a few notable companies left to unveil their latest earnings, and Wall Street will be watching closely to gauge how corporate America is holding up in the face of record inflation, higher interest rates, a war in Europe, and oppressive energy prices.

Next week we’ll get quarterly prints from a leading semiconductor company, an e-commerce giant, a retail pharmacy and a recognizable restaurant chain. Taken together, these companies have the potential to influence their various sectors, if not the broader stock market. Here are five stocks reporting earnings the week of March 28.

  • Dave & Buster’s (NASDAQ:PLAY)
  • Micron Technology (NASDAQ:MU)
  • Lululemon (NASDAQ:LULU)
  • Chewy (NYSE:CHWY)
  • Walgreens Boots Alliance (NASDAQ:WBA)

Stocks Reporting Earnings Next Week: Dave & Buster’s (PLAY)

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Restaurant chain Dave & Buster’s has been steadily outperforming the market this year. Nearly three months into 2022, and PLAY stock is up 11% at $42.60 per share. With pandemic restrictions easing and Covid-19 case counts decelerating, expectations are for increased foot traffic at Dave & Buster’s 146 locations in the U.S. and Canada.

The Dallas, Texas-based company whose outlets combine family friendly restaurants with video arcades has forecast earnings growth this year of more than 100%. That’s impressive, but also speaks to how badly Covid-19 induced closures and restrictions impacted the business over the last two years.

Wall Street analysts have forecast that Dave & Buster’s will report earnings per share (EPS) of $0.61 on revenues of $365.37 million when it reports its latest quarterly results on March 28. And Wall Street sees more gains ahead for the stock. Among 10 professionals who cover the company, the median price target on PLAY stock is currently $51.33 a share, implying another 20% gain over the coming 12-months.

The company will be looking to keep its streak of earnings beats alive when it reports its latest numbers. Over the past four consecutive quarters, Dave & Buster’s has beat analyst expectations by a combined 218%.

Micron Technology (MU)

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Semiconductor and computer data storage company Micron Technology could use a post-earnings bounce. Year-to-date, MU stock is down nearly % at $76.60 per share. In the last month, the company’s stock has come down 14%.

The decline has been due primarily to the global shortage of semiconductor chips, as well as a broader selloff in technology stocks and some internal production snags. Yet, despite the decline, a number of prominent voices on Wall Street remain bullish on Micron Technology, including CNBC host Jim Cramer. Bernstein investment bank also sees potential, having recently upgraded the stock with a price target of $94 per share, up from $58 previously, implying 22.5% upside.

Bernstein and other Wall Street firms see big gains for MU stock later this year once supply issues are resolved and as sales grow in China. Bernstein forecasts that Micron’s revenue will grow by 21% over the next two years and that the company’s earnings per share will grow at a compound annual growth rate (CAGR) of 42%.

In terms of its quarterly results that are due to come out on March 29, analysts expect that Micron Technology will report EPS of $1.97 on revenues of $7.52 billion. Micron Technology looks cheap among semiconductor stocks with a price-to-earnings ratio of 11.84, compared to an average of 25 among most tech stocks.

Stocks Reporting Earnings Next Week: Lululemon (LULU)

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Athletic apparel maker Lululemon comes out with its latest quarterly print on March 29. Analysts expect the Vancouver, Canada-based company to report EPS of $3.28 on revenues of $2.13 billion.

The company has been seeking to diversify from its traditional yoga pants, selling everything from Covid-19 masks to sleeveless women’s golf shirts and announcing a new line of sneakers. All the moves haven’t helped LULU stock, which has declined over 18% YTD to $318.66 a share. In the last six months, the stock has dropped 26%. The share price soared during the pandemic as people wore more casual clothing while working from home. But future growth concerns now persist.

Analysts have been dialing back their expectations for the upcoming earnings report after Lululemon said on Jan. 10 of this year that it expects both revenue and earnings to come in “toward the low end” of the previously issued forward guidance. The company attributed the more pessimistic outlook to the Omicron variant of Covid-19, which led to renewed restrictions at its North American retail stores and hurt sales.

The line of women’s running shoes, which launched on March 22 both online and in select stores across North America, China and the U.K. are expected to bolster future earnings.

Chewy (CHWY)

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We’ll find out if people are still spending a lot of money on their beloved pets when online retailer Chewy announces its latest quarterly results. The unprofitable e-commerce company that specializes in sales of pet food, toys and other accessories is expected to report an EPS loss of -$0.08 per share on revenue of $2.42 billion.

The company has been seeking to expand with a telehealth veterinary service and also through a subscription service that provides customers with discounts on both pet products and virtual vet visits. The growth drivers have yet to impact CHWY stock, which is down 36.5% over the last six months, including a 25% pullback YTD, at $44.26 a share.

Despite the share price falling sharply, Chewy continues to grow at a fast clip. In the previous quarter, the company reported that its active customers increased 14.7% to 20.4 million, while net sales per customer raced ahead by 15.4% to $419. And Chewy sees even bigger growth opportunities ahead as pet owners increasingly shop for their dogs, cats and budgie birds online.

The U.S. pet food market was worth $100 billion at the end of last year and is forecast to grow at a 6.6% annual rate through 2025. Chewy’s internal calculations estimate that online sales will make up 55% of the total pet food market by 2025, up from 37% in 2021.

Stocks Reporting Earnings Next Week: Walgreens Boots Alliance (WBA)

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Lastly, we’ll hear from Walgreens Boots Alliance, the Deerfield, Illinois-based company that operates retail pharmacy chains in 25 different countries under the Walgreens, Duane Reade and Boots brands.

Wall Street is calling for the company to report EPS of $1.38 on revenues of $33.36 billion. Any beat to the upside should help WBA stock, which has fallen over 9% so far in 2022 to $47.24 a share. The company used its retail network to become a leading distributor of Covid-19 vaccines during the pandemic. In 2021, Walgreens Boots Alliance administered more than 50 million doses of the vaccine to combat the respiratory disease.

This year, Walgreens Boots Alliance is focusing on expanding its partnership with primary care clinic company VillageMD. After a successful pilot project, Walgreens is now opening Village Medical clinics inside Walgreens’ retail pharmacies. The company has already opened 80 Village Medical clinics across 10 markets and plans to open 200 more by the end of this year, and have 600 in operation by the end of 2025.

Walgreens has invested more than $6 billion in VillageMD, giving it an ownership stake in the primary care clinic operator. Walgreens sees the partnership as a means to increase foot traffic at its pharmacies and enhance its leadership position in the healthcare space.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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