Earnings season is well underway, and with so many companies chiming in, getting a closer look at company results is a fantastic way to dig deeper into consumer mindset with regards to spending. Last week, we saw companies like Estée Lauder, CVS Health, and Simon Properties check-in. In addition, retailers like Capri Holdings, Tapestry, and Ralph Lauren shared mixed results. As these reports come in, we’re also considering possible catalysts, such as spikes in consumer demand, holiday season spending, and the ever-elusive yet popular subject of the weather and its impact. With Monday’s results already behind us, for the remainder of this week, we can still expect earnings aplenty between now and Friday’s closing bell. Here are five companies to look out for the rest of this week:
Shopify
The e-commerce giant has reported several EPS and revenue beats, and September’s results did not stray. Revenue alone was up 25% year-over-year, and Shopify reported that over 100 million shoppers opted into its Shop Pay option. With the holidays just getting underway at the time of reporting, President Harvey Finkelstein said, “We’re confident that our unified commerce platform empowered our merchants with the tools they need to seize every opportunity and achieve greater success.” Of particular interest this time around will be any broader, overarching holiday-related results, possible information on additions or newcomers to the platform, and any forthcoming forecasts.
Hasbro
It hasn’t been all cake and ice cream for toy companies lately. Despite the success of Barbie, for instance, Mattel, a direct competitor, still reported EPS and revenue misses in its most recent quarter. When Hasbro last reported in, quarterly results were mixed, but CEO Chris Cocks said the results “show we are making progress across many of our key initiatives but that we also have more to do, particularly in returning consumer products to growth.” For the coming quarterly results, we will look to see if the holiday season included enough “tiny tots,” hoping to get a Hasbro product as a gift. We will also look to see how the digital and physical offerings impacted the season and quarter.
Kraft Heinz Company
As a consumer staples giant, Kraft Heinz can be expected to help shed some necessary light on the consumer’s metabolism for its products. Its most recent earnings results have been a mix that included EPS beats and revenue misses, but Kraft Heinz has fared well nonetheless. On its most recent call, CEO and Chair of the Board Miguel Patricio said, “Our third-quarter results were marked by net sales growth across each of our three core pillars: Foodservice, Emerging Markets and U.S. Retail Grow Platforms. At the same time, we continue to improve productivity across the value chain, reinvesting gross efficiencies back into marketing, technology, and research & development. These investments remain a key part of our strategy as we build the business for continued success.” This week, we will look to see how the pillars have shaped up and if or how any coming forecasts from the company relate to them.
Deere & Company
The iconic yellow-and-green machinery has remained in demand for quite some time now. This demand is evidenced in part by Deere & Company having had consecutive strong quarters that include EPS and revenue beats. When Deere & Company last reported in, Chairman and CEO John C. May said, “While our end markets will fluctuate, we remain focused on disciplined execution and strategically investing in solutions that drive customer value.” Of interest in this quarter will be if and how these solutions might have been initiated or deployed and if there are any measurable results yet. Consumer demand for products by Deere & Company and its competitors has not shown signs of slowing to a detrimental pace, so learning more about how its customer base is spending will help shape a better understanding of how much of that machinery we might see out and about in the coming months.
YETI Holdings
Given the blockbuster spike in demand for to-go cups a la the Stanley, it’s not unreasonable to think YETI, which manufactures and sells outdoor products, including viral to-go cups, might also benefit from the current cup craze. The Austin, TX-based company has endured mixed quarters but reported an EPS and revenue beat most recently. On the call, President, CEO, and Director Matt Reintjes said, “YETI posted another strong quarter and continues to build momentum with our branded products, particularly when compared to a very strong year-ago period.” He also added that YETI “saw the strength of our brand in our point of sale data, with consumer demand meaningfully outpacing our reported sales.” We will look to see how the merch held out and if any residual impact from the current cup craze is in effect.
Shopify and Hasbro will report earnings on Tuesday before markets open; Kraft Heinz will report earnings on Wednesday before markets open; John Deere and YETI will report earnings on Thursday before markets open. On Thursday, the U.S. Census Bureau will release its numbers for January retail sales, which will receive a separate recap later on.