The last week of February promises a dynamic mix of earnings reports across various sectors. In the technology space, investors are eagerly anticipating updates from Salesforce (NYSE:CRM), Snowflake (NYSE:SNOW), Zoom Video Communications (NASDAQ:ZM), HP (NYSE:HPQ), Zscaler (NASDAQ:ZS), C3.ai, Inc. (NYSE:AI) and Dell Technologies (NYSE:DELL).
Meanwhile, in the energy sector, attention is focused on Plug Power (NASDAQ:PLUG), Devon Energy Corporation (DVN) and OneOK (OKE). The entertainment industry will also be in the spotlight, with AMC Entertainment Holdings (AMC) and Paramount Global (PARA) scheduled to report.
Retailers such as Lowe’s Companies (LOW), Macy’s (M), eBay (EBAY) and Best Buy Co. (BBY) are set to announce their earnings as well, offering a glimpse into consumer spending trends. At the same time, the finance sector will be represented by The Toronto-Dominion Bank (TD), The Royal Bank of Canada (RY), and The Bank of Nova Scotia (BNS), providing valuable insights into the financial health of these institutions.
These reports, along with others from First Sola (FSLR), Okta (OKTA), Virgin Galactic Holdings (SPCE), Beyond Meat (BYND), Novavax (NVAX), 3D Systems Corporation (DDD), Li Auto (LI), Workday (WDAY), Marathon Digital Holdings (MARA) and Autodesk (ADSK), will collectively shape market sentiment in the coming week.
Below is a rundown of the major quarterly updates anticipated in the week of February 26 to March 1:
Monday, February 26
Zoom Video Communications (ZM)
Zoom Video Communications (ZM) is set to announce its Q4 earnings results after the market closes on Monday. The company, which has seen its shares decline approximately 14% in 2024, currently holds a consensus Hold rating from both sell-side analysts and Seeking Alpha authors. Notably, Seeking Alpha’s Quant Rating system recently downgraded Zoom from Strong Buy to Hold, just days before the earnings report.
Seeking Alpha author Miletus Research highlights Zoom’s ability to sustain its market share in the UCaaS (Unified Communications as a Service) market despite facing strong competition. This resilience is attributed to Zoom’s strong product lineup, expanding base of enterprise customers, and consistent financial performance. The author suggests that the market may be overly concerned about competitive threats and points to potential future growth opportunities for Zoom in segments such as Zoom Phone and Contact Center.
- Consensus EPS Estimates: $1.15
- Consensus Revenue Estimates: $1.13B
- Earnings Insight: Zoom has exceeded EPS expectations in 8 consecutive quarters, missing revenue estimates just twice in that span.
Tuesday, February 27
Lowe’s Companies (LOW)
Just a week after rival Home Depot (HD) reported disappointing comparable sales, Lowe’s Companies (LOW) is scheduled to provide its Q4 quarterly update before the opening bell on Tuesday.
Despite the recent challenges in the sector, Seeking Alpha’s analysts and sell-side analysts maintain a bullish outlook on Lowe’s stock, recommending a Buy. However, Seeking Alpha’s Quant Rating system is more cautious, assigning a Hold rating.
In a notable development, billionaire investor Bill Ackman’s Pershing Square Capital Management significantly reduced its stake in Lowe’s, from 7.07M shares in Q3 2023 to 1.25M shares in Q4, representing an 82.4% decrease.
Meanwhile, J.P. Morgan upgraded its rating on Lowe’s to Overweight from Neutral last week and included the stock in its Analyst Focus List as a value stock.
- Consensus EPS Estimates: $1.68
- Consensus Revenue Estimates: $18.47B
- Earnings Insight: Lowe’s has beaten EPS estimates in 8 consecutive quarters and revenue expectations in 3 of those reports
Wednesday, February 28
Salesforce (CRM)
San Francisco-based software giant Salesforce (CRM) is set to announce its Q4 results after the market closes on Wednesday. Analysts are anticipating 35% growth in the bottom line and approximately 10% growth in the top line.
The stock has shown significant growth, around 80%, over a period of 12 months. Meanwhile, it was named one of Bank of America’s top picks for 2024, with BofA Analyst Brad Sills saying the company is well positioned to continue capturing share of the cumulative $200B market. Seeking Alpha’s Quant Rating system has classified the stock as a Strong Buy, while Wall Street analysts have a consensus Buy recommendation.
According to Investing Group Leader Dan Victor, the introduction of artificial intelligence tools through the Einstein 1 Platform is driving a new round of growth and acting as a tailwind for the CRM.
- Consensus EPS Estimates: $2.27
- Consensus Revenue Estimates: $9.22B
- Earnings Insight: CRM has exceeded EPS and revenue expectations in 8 straight quarters.
HP Inc. (HPQ)
HP Inc. (HPQ) is scheduled to announce its quarterly earnings update after the closing bell on Wednesday. The consensus among sell-side analysts remains bullish on the stock, with a Buy rating, while Seeking Alpha’s Quant Rating system takes a more cautious stance with a Hold rating.
Recent disclosures revealed that Berkshire Hathaway decreased its stake in the company during Q1, reducing its holdings from 102.5M shares to 22.9M shares.
In a positive development, last week, HSBC upgraded HP to Buy from Hold, citing favorable sector dynamics and expanding margins. The firm also raised the price target on the stock to $33 from $30.
- Consensus EPS Estimates: $0.81
- Consensus Revenue Estimates: $13.60B
- Earnings Insight: HP has beaten EPS in 6 of the past 8 quarters, topping revenue estimates in 2 of those reports
Thursday, February 29
Zscaler (ZS) is scheduled to report its quarterly results after the market closes on Thursday. The stock has experienced a 72% increase over the past year and holds a Strong Buy rating from Seeking Alpha’s Quant Rating system, along with a consensus Buy recommendation from Wall Street analysts.
The company is strategically positioned for the next generation of threat actors, thanks to its core platforms, ZIA, ZPA, and ZDX, which serve as gateways to protect against external malicious threats, says SA author Michael Del Monte. He believes that Zscaler also has a significant opportunity on the GenAI ramp, further strengthening its growth prospects.
- Consensus EPS Estimates: $0.58
- Consensus Revenue Estimates: $506.81M
- Earnings Insight: Zscaler has consistently outperformed EPS and revenue expectations in the past 8 quarters.
Friday, March 1
Plug Power (PLUG)
Plug Power Inc. (PLUG) is scheduled to announce its Q4 results on Friday before the opening bell. The stock has received a Sell rating from Seeking Alpha’s Quant rating system, which notes lower profitability and negative earnings per share (EPS) revisions compared to other players in the industrial sector. However, Wall Street analysts have a consensus Hold rating.
In a recent move, Plug Power unveiled a plan to reduce annual operational expenses by more than $75M, with a one-time implementation cost of $15M. The initiative includes measures such as job cuts, operational consolidation, supply chain optimization, and reductions in discretionary spending aimed at enhancing efficiency and scalability.
SA contributor Bashar Issa notes challenges facing Plug Power’s GenDrive and GenSure, particularly regarding high warranty and service contract costs. Recent developments, including a 50% share price decline, loan negotiations with the Department of Energy (DOE), and equity raises, underscore Plug Power’s reliance on external funding and the financial impacts of new Internal Revenue Service (IRS) regulations.
- Consensus EPS Estimates: -$0.41
- Consensus Revenue Estimates: $202.93M
- Earnings Insight: Plug Power has exceeded EPS estimates in just 1 of the past 8 reports, exceeding revenue forecasts in 3 of those quarters
