The Juneteenth week saw a number of S&P companies disclosing their earnings albeit from different sectors. Let us quickly recap all the financial results that were reported for the week ended June 21.
Out of the seven companies that reported, only Accenture (ACN) missed on both EPS and revenue. Lennar (LEN), Kroger (KR), Darden Restaurants (DRI), Jabil (JBL), CarMax (KMX), and FactSet (FDS) have beat on the top and bottom lines.
Of the 493 companies that have reported quarter-to-date, about 78.9% of them beat on earnings per share, while about 55% of them topped revenue consensus.
On Monday, Lennar (LEN) reported an earnings beat for the second quarter, successfully navigating through a high mortgage rate scenario. The homebuilder continues to target delivering 80,000 homes for the full year, with a gross margin consistent with last year’s ~20.3%. The company had repurchased $603M of its common stock and repaid $554M of senior notes.
The bulk of action unraveled on Thursday, starting with Kroger (KR), which moved higher in premarket trading after topping consensus estimates with its Q1 earnings report. The grocery store operator said identical-store sales excluding fuel rose 0.5% during the quarter to come in ahead of the expectation of analysts for a rise of 0.3%. The company continues to anticipate full-year EPS of $4.30 to $4.50 vs. $4.43 consensus, while capital expenditure spending is forecast between $3.4 billion and $3.6 billion.
Darden Restaurants (DRI) set an underwhelming guidance for the full year even though it managed to beat earnings estimates for Q4. The Olive Garden parent expects full-year total restaurant sales to be between $11.8B and $11.9B, below the consensus estimate of $11.94B. The company also expects to earn a profit between $9.40 and $9.60 per share, which straddles the estimated $9.54. Same-restaurant sales growth is expected to be up 1% to 2%.
Accenture (ACN) revised its revenue outlook for the fiscal year 2024 and provided fourth quarter revenue guidance above estimates, which completely overshadowed its results that missed consensus and sent its shares up as much as 11%. The company now expects FY revenue growth to be in the range of 1.5% to 2.5% in local currency, compared to 1% to 3% previously. The consensus revenue estimate is $65.16B, with year-over-year growth of 1.64%.
Electronics manufacturing company Jabil (JBL) beat profit and revenue estimates for the third quarter and said it remains on track to deliver 5.6% in core margins and $8.40 of core diluted EPS in FY24, while generating more than $1 billion in adjusted free cash flow on revenue of $28.5 billion.
On Friday, CarMax (KMX) edged past consensus estimates for its Q1 earnings report. The auto retailer’s total retail used vehicle unit sales decreased 3.1% to 211,132 compared to a year ago, and comparable store used unit sales decreased 3.8%. The company said vehicle affordability challenges continued to impact Q1 unit sales performance, along with headwinds like inflationary pressures, higher interest rates, and tightened lending standards.
FactSet’s (FDS) results topped EPS and barely managed to eek out a beat on revenue for the third quarter. The financial data platform also raised its guidance for fiscal year 2024 earnings and profit margin and now expects organic ASV plus professional services growth of $85–$120 million, GAAP revenues in the range of $2,180–$2,190 million, adjusted operating margin in the 37.0%–37.5% range, and adjusted diluted EPS around $16.00-$16.40.
Eight S&P 500 companies are expected to report next week, with notable names like FedEx (FDX) and Carnival Corp. (CCL) on Tuesday, Micron Technology (MU) on Wednesday, and Nike (NKE) and Walgreens (WBA) on Thursday.