The first full week of 2023 is packed with economically important earnings results across the financial, industrial and consumer sectors.
Early in the week, investors will receive reports from cannabis company Tilray Brands (TLRY), grocery store chain Albertsons Companies (ACI), who has a merger deal with Kroger (KR), and beleaguered retailer Bed Bath & Beyond (BBBY).
Meanwhile, reports will come out later in the week from Taiwan Semiconductor Manufacturing (NYSE:TSM) and a host of major banks, like JP Morgan (NYSE:JPM), Wells Fargo & Company (WFC) and Bank of America (NYSE:BAC). UnitedHealth Group (UNH) and Delta Air Lines (DAL) are on the docket as well.
Below is a curated list of reports due for the week of January 9 through 13:
Monday, January 9
Tilray Brands (TLRY)
Tilray Brands (TLRY) is due to post its earnings results after the bell on Monday. Shares of the Canadian cannabis company have fallen over 50% in the past year, deepening losses sharply in the month of December.
The decline was accelerated by disappointments on the political front. Legislation that would have allowed marijuana businesses access to US banks was excluded from a defense bill. Headed into the earnings report, Wall Street ratings reflect a Hold consensus, according to Seeking Alpha surveys.
- Consensus EPS Estimates: $-0.05
- Consensus Revenue Estimates: $158.20M
- Earnings Insight: Tilray has exceeded revenue expectations in just 2 of the past 8 quarters.
Tuesday, January 10
Albertsons Companies (ACI)
Albertsons Companies (ACI) is due to post its fiscal third quarter results in premarket trading on Tuesday. Shares have traded essentially flat since late October as its merger deal with Kroger (KR) remain under the microscope, with investors concerned about the regulatory implications.
While the company rebuffed legal challenges from a number of state attorneys general, a case in Washington state remains open as does an FTC inquiry into the merger. An expedited review in Washington is scheduled for January 17. The chain is also being sued by the Washington state AG for its role in the opioid crisis still impacting America.
- Consensus EPS Estimates: $0.67
- Consensus Revenue Estimates: $17.58B
- Earnings Insight: Albertsons has risen above revenue expectations in 8 consecutive quarters, but exceeded EPS estimates in only 50% of those reports.
Wednesday, January 11
KB Home (KBH)
After the market close on Wednesday, homebuilder KB Home (KBH) is due to post its fiscal fourth quarter results. Shares have declined just over 21% in the past year as mortgage applications have dropped alongside rising interest rates. Aside from a surprise jump in new home sales in November, housing demand has been on a steady downtrend.
“Mortgage application activity sunk to a quarter century low this week as high mortgage rates continue to weaken the housing market,” Sam Khater, chief economist at Freddie Mac, commented on January 5.
- Consensus EPS Estimates: $2.85
- Consensus Revenue Estimates: $1.98B
- Earnings Insight: KB Home has met revenue expectations in only 2 of the past 8 quarters.
Thursday, January 12
Taiwan Semiconductor Manufacturing Company (TSM)
In Thursday’s premarket hours, Taiwan Semiconductor Company (TSM) is scheduled to post Q4 results. The computer chip maker possibly represents the world’s most geopolitically important firm, given its location in Taiwan and its centrality as a major provider of semiconductors.
Shares of the world’s largest chip foundry have fallen over 40% in the past year alongside much of the semiconductor sector. At the close of 2022, the company announced the start of 3nm chip production and reportedly received orders from Tesla (TSLA) to produce 4nm chips for its self-driving efforts. TSM is also considering an expansion into Europe with a plant in Germany, according to The Financial Times. Monthly sales data is due to be released two days prior to the report.
- Consensus EPS Estimates: $1.76
- Consensus Revenue Estimates: $20.77B
- Earnings Insight: Taiwan Semiconductor has beaten EPS estimates in 8 consecutive quarters, missing revenue estimates twice in that span.
Friday, January 13
UnitedHealth Group (UNH)
UnitedHealth Group (UNH) is due to post its Q4 earnings before the bell on Friday. Shares of the Minnesota-based insurance provider has outperformed the market substantially in the past year, posting about a 1% gain in contrast to a nearly 20% drop for the S&P. Going into the report, Wall Street’s consensus rating for UnitedHealth remains a Buy, per Seeking Alpha surveys.
Consensus EPS Estimates: $5.18
Consensus Revenue Estimates: $82.53B
Earnings Insight: UnitedHealth has beaten EPS and revenue estimates in 8 consecutive quarters.
Delta Air Lines (DAL)
Delta Air Lines (DAL) will be the first of the major airlines to post earnings, with its results coming out in premarket action on Friday. Delta shares declined by double-digits in 2022, although it saw a strong rally for the fourth quarter amid resilient demand.
Meanwhile, Delta has been among the stronger performers in the airline industry, owing in part to improving profitability trends, reopening routes to China, and greater reliability amid peak travel times as compared to major peers like Southwest. The carrier also announced a partnership with T-Mobile ahead of the results to provide free Wi-Fi to passengers on its flights.
EPS estimates have been revised upward 10 times in the 90 days prior to the results. The consensus rating on Wall Street is a Buy, shifting from a Strong Buy in mid-December.
- Consensus EPS Estimates: $1.35
- Consensus Revenue Estimates: $12.91B
- Earnings Insight: Delta Air Lines has beaten EPS estimates in 4 of the past 8 quarters, exceeding revenue expectations in all 8 of those reports.
Sector Spotlight: Big Bank Earnings
Rounding out reports on Friday, results from JP Morgan (JPM), Citigroup (NYSE:C), Wells Fargo & Company (WFC) and Bank of America (BAC) are all due to be posted. Each stock has declined by double-digits in the past year, trading largely in-line with the negative trend in the S&P 500.
For the investment banking side, M&A trends are expected to rebound in 2023, albeit idiosyncratically, according to Dealogic. Due to the weakened valuations, “many companies are opting to sell a stake instead of the whole thing,” per the firm’s insights. A pickup in activity is expected to benefit major M&A players like JP Morgan (JPM).
On a more company specific basis for the quarter that was, Citi (C) closed its consumer banking business in China and saw its $500M suit against Revlon dismissed. JP Morgan, meanwhile, closed its $800M acquisition of Viva Wallet and dominated Canadian M&A for the full-year, according to Bloomberg.
Elsewhere, Bank of America CEO Brian Moynihan warned of persistent trouble within its mortgage business, a trend likely to persist into 2024 in his view. Finally, Wells Fargo (WFC) remains under fire from regulators despite reaching a landmark $3.7B settlement with the Consumer Financial Protection Bureau in December.