Earnings Watch: Nike, FedEx, and Carnival Earnings Watch: Nike, FedEx, and Carnival Earnings Watch: Nike, FedEx, and Carnival

Earnings Watch: Nike, FedEx, and Carnival

PG
Peter Garnry

Head of Equity Strategy

Summary:  Our earnings focus next week is Nike, FedEx, and Carnival, and with recent sell-side analyst upgrades on Nike the pressure is on to deliver on the outlook for 2023. For FedEx the situation is completely opposite with revenue expectations having come down to zero growth over the two next quarters suggesting a hangover for the logistics company following the boom days of the pandemic. In today's earnings watch we are also taking a look Adobe earnings which were releases last night and positively surprised investors.


Can Nike deliver on recent rise in expectations?

The Q3 earnings season is done and we find ourselves in the transition period to the Q4 figures which will begin to roll in around mid-January. In the meantime, earnings releases are still being released from companies which fiscal year does not following the calendar year. Next week’s most important earnings release is Nike which has recently seen several sell-side analysts increasing their price target and betting on margin recovery in 2023. Nike report FY23 Q2 (ending 30 November) on Tuesday with revenue expected at $12.6bn up 11% y/y, but it is really the outlook for the holiday season quarter ending in February 2023 that is the most interesting. Is the consumer still keeping up its spending on discretionary items such as those Nike is selling. Analysts covering Nike seem more optimistic on 2023 that the US banking CEOs on the industry conference last week suggesting US consumer spending is coming down.

Nike share price | Source: Saxo

The list below shows the most important earnings releases next week. Except from Nike earnings described above, FedEx and Carnival earnings are also key to watch. FedEx is now on the backside of the pandemic boom in logistics and expectations for revenue growth has collapsed to zero revenue growth over the next two quarters which in real terms is very low expectations. This means that the bar is set low for FedEx when it reports earnings on Tuesday. The cruise line operator Carnival is reporting earnings on Wednesday and is still riding the strong rebound wave from the pandemic lows with revenue growth expected at 206% y/y for the quarter that ended in November.

  • Monday: HEICO
  • Tuesday: Nike, FedEx, General Mills, FactSet Research Systems
  • Wednesday: Toro, Micron Technology, Cintas, Carnival
  • Thursday: Paychex, CarMax
  • Friday: Nitori

Adobe sounds confident on Figma acquisition

Adobe, the software maker of creative content creation, reported FY22 Q4 (ending 2 December) revenue of $4.5bn which was in line with estimates and adjusted EPS of $3.60 vs est. $3.50 was better than expected. The recent cost reductions have already improved profitability relative to consensus so that was a positive thing for investors. However, the 2023 revenue outlook at $19.2bn was a bit below estimates, so why were shares up 5% in extended trading when overall results and the outlook were mixed at best? Management sounded very confident on its acquisition of Figma, which is a fast growing competitor, which investors believe is crucial for Adobe to maintain its long-term growth prospects. Adobe expects the Figma acquisition to go through in 2023.
Adobe share price | Source: Saxo
Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.