Earnings: What to look for next week

Earnings Outlook for Next Week

The bulk of earnings season is behind us, with most companies having reported solid numbers. Although some conservative outlooks have raised slight concerns, investors largely interpret these cautionary statements as reflective of election uncertainties rather than fundamental weakness. Next week brings another steady stream of earnings reports, and with the election behind us, it will be interesting to see if management teams offer a clearer outlook for Q4. Key themes next week include the beginning of the January-end reporting season, which provides an extra month of data, and a heavy focus on Chinese ADRs. Technology remains in the spotlight, and Dow component Disney (DIS) will also release its results. Here’s a breakdown of what to expect each day.

Monday

Monday starts slowly due to Armistice Day, which has many banks closed, leading to fewer major earnings reports. Aramark (ARMK) will provide insights into consumer demand for food services, while Monday.com (MNDY) will be a highlight for investors focused on technology and the software-as-a-service (SaaS) sector. Beyond these, there are limited high-impact reports for the day.

Tuesday

Home Depot (HD) kicks off the January-end reporting season, drawing investor interest for insights on the home improvement sector amid affordability concerns. HD is expected to benefit from recent hurricane recovery activity. Hertz Global (HTZ) will provide updates on the travel sector, and Live Nation (LYV) will reveal if demand for live events remains robust. ON (ONON) is poised to offer a glimpse into retail trends and may serve as an early read-through for Nike’s (NKE) upcoming earnings. Novavax (NVAX) could attract attention for its outlook, especially regarding Robert Kennedy Jr.'s potential influence on the FDA under the Trump administration. Tencent (TCEHY) will kick off the Chinese reports, and Cava Group (CAVA) is expected to share insights on its expansion in the fast-casual Mediterranean space. Skyworks Solutions (SWKS) is another key name in the semiconductor space to watch, while SoundHound AI (SOUN) will offer perspective on developments in artificial intelligence.

Wednesday

Wednesday opens with Shopify (SHOP), which will shed light on the e-commerce landscape, particularly in Canada. Later in the day, Cisco (CSCO) will be reporting, with investor focus on enterprise demand and forward guidance into 2025. Homebuilder Beazer Homes (BZH) will provide insights into a sector pressured by rising yields, and Dillard’s (DDS) will offer a preview of retail trends ahead of a broader wave of retail earnings.

Thursday

Chinese ADRs take the stage on Thursday, with Bilibili (BILI), JD.com (JD), ZK International (ZKIN), and NetEase (NTES) scheduled to report. These will be closely watched for indications of how recent Chinese stimulus measures are impacting consumer demand. Disney (DIS) will be the headline act, with analysts looking for updates on consumer spending and streaming performance. Advance Auto Parts (AAP) will report on auto sector demand, a lagging category that could see a turnaround. Macy’s (M), Ross Stores (ROST), and Williams-Sonoma (WSM) will add further insights into the retail sector, while Applied Materials (AMAT) will be essential in gauging demand for semiconductor equipment.

Friday

The week wraps up quietly with Alibaba (BABA), China’s e-commerce leader, reporting results. This report will serve as a vital indicator of Chinese consumer trends, particularly in the context of the country’s economic recovery efforts

Summary

Next week’s earnings will be critical f gauging market sentiment and investor reactions. Will these results prompt a “sell the news” response, or will they merely present a brief pause in the year-end rally? The January-end reports will be closely examined for insights into October’s performance, while Chinese ADRs will provide an update on China’s recovery efforts. Retail will also come into focus as the holiday season approaches. We’re not expecting any major surprises, but precisely for this reason, tracking these earnings reports is essential.