Earnings Previews: Albertsons, Commercial Metals, Tilray
The first results are in for quarterly earnings reports out in January. Of the companies we previewed earlier this week, Bed Bath & Beyond, Conagra Brands and Schnitzer Steel all missed profit estimates, and the first two also missed on revenues as well. Both Constellation Brands and Walgreens beat on both. Four were trading lower, however, just minutes after the opening bell on Thursday, while Bed Bath & Beyond mysteriously traded up by 15%.
There are no other interesting reports due out for the rest of this week, so we shall have a look at a few stocks due to report early next week. Next Thursday might be said to be the beginning of the December-quarter earnings season, and Friday has reports scheduled from three of the nation’s biggest banks.
Here are three companies reporting on Monday and Tuesday of next week.
Albertsons
Grocery store operator Albertsons Companies Inc. (NYSE: ACI) has added about 79% to its share price over the past 12 months. The company appears to be tinkering around the edges with the introduction of an in-store salad bar, an online food replenishment service and a meal-planning capability. Albertsons reports results before markets open on Tuesday.
Albertsons, Kroger and Publix drew the attention of Senator Elizabeth Warren late last month for passing on rising costs to consumers even though the chains posted very strong profits in 2020 and 2021. Senator Warren has asked for responses regarding the stores’ prices, wages and executive compensation.
Of 22 analysts covering the stock, 11 have a Hold rating on the shares, while nine rate the stock as a Buy or Strong Buy. At a recent price of around $29.90 a share, the upside potential based on a median price target of $33 is about 10.4%. At the high price target of $38, the upside potential is 27%.
Fiscal 2022 third-quarter revenue is forecast at $16 billion, which would be down about 3.1% sequentially and about 4.8% lower year over year. Adjusted earnings per share (EPS) are tabbed at $0.58, down 8.9% sequentially and 12.1% year over year. For the full fiscal year ending in February, Albertsons is expected to post EPS of $2.61, down 19.5%, on sales of $69.92 billion, up by less than 1%.
The share price to earnings multiple for the 2022 fiscal year is 11.57. For fiscal 2023 , the multiple to estimated EPS of $2.50 is 11.9, and for 2024, it is 11.9 times estimated EPS of $2.52. The stock’s 52-week range is $15.97 to $37.85. The company pays an annual dividend of $0.48 (yield of 1.64%). Total shareholder return for the past year is 75%.
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Commercial Metals
Recycler and metals fabricator Commercial Metals Co. (NYSE: CMC) reports first-quarter fiscal 2022 results first thing Monday morning. The stock has added about 75% to its share price over the past 12 months, as it took advantage of rising materials and scrap metal prices.
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