Micron Technology (MU, $77.35) will headline this week's relatively bare earnings calendar, with the chipmaker slated to report its fiscal second-quarter results after Tuesday's close.
Analysts, on average, are anticipating earnings of $1.97 per share for the three-month period, up 101% on a year-over-year (YoY) basis. On the top line, the consensus estimate is for $7.5 billion – a significant improvement over the $6.2 billion MU reported in the year-ago period.
Wedbush analyst Matt Bryson recently upgraded the semiconductor stock to Outperform (Buy), saying DRAM pricing likely bottomed in the first three months of 2022.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
He believes Micron will meet or exceed fiscal second-quarter guidance. "We did not encounter any signs of MU pushing discounted inventory towards the end of the quarter, with the Boise manufacturer rather lifting terms for NAND bits as it benefitted from concerns about lost Kioxia/Western Digital (WDC) production," he says.
For context, production at a joint Kioxia/WDC 3D NAND fabrication facility in Japan was disrupted last month by chemical contamination.
Lululemon Stock Struggles Ahead of Q4 Earnings
Lululemon Athletica (LULU, $319.51) has not been immune to broad-market headwinds, with shares down around 18% for the year-to-date.
Can a solid earnings report help the consumer discretionary stock reverse course?
The athletic apparel maker will unveil its fourth-quarter earnings report after the March 29 close and analysts seem generally upbeat about the quarter. On average, Wall Street pros are calling for earnings of $3.28 per share (+27.1% YoY) and revenue of $2.1 billion, a 23.4% increase from year prior.
Deutsche Bank analyst Gabriella Carbone (Buy) is expecting a fourth-quarter beat and believes LULU will report above-consensus earnings of $3.31 per share, saying post-omicron sales trends improved in January.
However, she'll be watching Lululemon's first-quarter and full-year guidance, which could come in below consensus estimates. "We think ongoing transit delays in North America will lead LULU to resort to air freight, which may pressure margins to a greater degree than anticipated," Carbone writes in a note.
Walgreens Vaccine Boost Solid to Start 2022, But Should Wane
Walgreens Boots Alliance (WBA, $47.17) is the last of the Dow Jones stocks to report this earnings season, with the pharmacy chain slated to unveil its fiscal second-quarter earnings after Thursday's close.
On average, analysts are looking for a 9.5% increase in earnings to $1.38 per share and a 1.8% rise in revenue to $33.4 billion.
"In a similar vein to last quarter, we expect a solid quarter as vaccine trends and over-the-counter testing volume related to the omicron variant are expected to yield a positive boost to earnings," says Credit Suisse analyst A.J. Rice. He has a Neutral rating on WBA, which is the equivalent of a Hold.
Walgreens has said that every 1 million vaccines distributed contributes roughly 2 cents per share to its bottom line and Rice estimates that the company administered 10 million shots in its fiscal second quarter. Looking forward, though, the analyst believes the vaccine benefit will begin to wane.
WBA's impending sale of its U.K. drugstore chain Boots could also be in focus when the company reports earnings. While several bidders have reportedly dropped out of the running, "headlines indicate that the sale process continues," Rice says.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market TodayNvidia became the first company ever to boast a $5 trillion market cap, but it wasn't enough to lift the Dow and the S&P 500.
-
Stock Market Winners and Losers of the 'Big, Beautiful' BillDefense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
