CNM, LEN, ADBE, DRI, ACN: Earnings Preview

By Kirsteen Mackay

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This week’s company earnings include Core & Main Inc (NYSE: CNM), Lennar Corp (NYSE: LEN), Adobe Inc (NASDAQ: ADBE), Darden Restaurants, Inc (NYSE: DRI), and Accenture Plc (NYSE: ACN).

CNM, LEN, ADBE, DRI, ACN: Earnings Preview

Welcome to another busy week for company earnings, including Oracle Corp (NYSE: ORCL), SeaChange International, Inc (NASDAQ: SEAC), Daktronics, Inc (NASDAQ: DAKT), Coupa Software, Inc (NASDAQ: COUP), Inotiv, Inc (NASDAQ: NOTV), Fire & Flower Holdings Corp (TSE: FAF), Photronics, Inc (NASDAQ: PLAB), Transcontinental, Inc (TSE: TCL.A), ABM Industries, Inc (NYSE: ABM), Braze, Inc (NASDAQ: BRZE), MIND Technology, Inc (NASDAQ: MIND), Weber, Inc (NYSE: WEBR), Jabil, Inc (NYSE: JBL), Nordson Corp (NASDAQ: NDSN), Empire Co. Ltd (TSE: EMP.A), Scholastic Corp (NASDAQ: SCHL), Enghouse Systems Ltd (TSE: ENGH), Winnebago Industries, Inc (NYSE: WGO), Quanex Building Products Corp (NYSE: NX).

Here are five stocks with upcoming earnings to keep on your radar: 

Core & Main Inc (NYSE: CNM)

Core & Main Inc (NYSE: CNM) will report its Q3 earnings results on December 13. FactSet analysts have a consensus estimate of $0.55 for earnings and $1.69bn for sales.

In Q2, CNM net sales increased 43.4% to $1.86bn, gross profit margin increased 190 basis points to 26.9% and net income increased to $182m.

What does Core & Main do?

Core & Main is a leading distributor of water, wastewater, storm drainage, and fire protection products and related services. The company serves municipalities, private water companies, and professional contractors across various end markets nationwide. 

With around 300 locations, the company offers local expertise backed by a national supply chain. Core & Main's team of 4,100 associates is dedicated to helping its communities thrive through safe and sustainable infrastructure. The company is based in St. Louis, Missouri.

Core & Main, Inc recently completed its acquisition of the assets of Lanier Municipal Supply Co. Inc, a full-service distributor of water, wastewater, storm drainage, agricultural, and irrigation products based in Lakeland, Georgia. The company went public via IPO (what is an IPO?) in July 2021. 

Steve LeClair, Core & Main CEO, said:

We are excited to expand our waterworks presence in the Southeast through the acquisition of Lanier Municipal Supply, 

The team brings a tremendous level of expertise and regional knowledge that will strengthen our ability to continue delivering unmatched service to our customers.

In the last six months, CNM has also completed its acquisition of Distributors, Inc, the municipal waterworks division of Trumbull Industries, Earthsavers Erosion Control, and Inland Water Works Supply Co.

CNM stock has a price-to-earnings ratio (P/E) of 11.1 (what is a P/E ratio?). It does not pay a dividend (what is a dividend?). 

Ten FactSet analysts have an Overweight rating on CNM stock, with a target share price of $31.50. The CNM share price is down -31.8% YTD.

Lennar Corp (NYSE: LEN)

Lennar Corp (NYSE: LEN) will release its earnings for Q4 on December 14, 2022. The company will also hold a conference call on December 15, 2022, at 11 am EST. The call will be broadcast live on the internet and can be accessed through Lennar's website. The call will be archived on the website for 90 days for those unable to participate in the live broadcast.

Last quarter Lennar reported revenues of $1.5bn, or $5.03 per diluted share. At the time, Stuart Miller, Executive Chairman of Lennar, said:

While our new orders declined 12% compared to last year's third quarter, we continued to maintain a consistent starts pace and drive sales by adjusting pricing and incentives.

Sales have clearly been impacted by rising interest rates, but there remains a significant national shortage of housing, especially workforce housing, and demand remains strong as we navigate the rebalance between price and interest rates.

According to Bloomberg, Lennar is offering to sell thousands of homes to rental landlords as sales to everyday buyers have declined. According to sources familiar with the matter, the company is circulating lists of properties to potential acquirers. 

Many of the properties are in the Southwest and Southeast regions of the country, and in some cases, landlords can acquire entire subdivisions. The details of the sale process are private.

What does Lennar Corp do?

Lennar Corporation was founded in 1954 and builds affordable, move-up, and active adult homes under the Lennar brand name. Lennar's operations are divided into four segments: Homebuilding East, Central, Texas, and West, Financial Services, Multifamily, and Lennar Other.

Its Financial Services segment provides mortgage financing, title and closing services for Lennar homebuyers and originates commercial real estate loans through LMF Commercial. 

Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties, and the Lennar Other segment includes strategic investments in technology companies. Lennar was founded in 1954 and is headquartered in Miami, Florida.

LEN stock has a P/E of 5.9 and a price-to-book value of 1.1. It pays a 1.7% dividend yield.

19 FactSet analysts have an Overweight rating on LEN stock, with a target share price of $95. The LEN share price is down -23.8% YTD.

Adobe Inc (NASDAQ: ADBE)

Adobe Inc (NASDAQ: ADBE) will release its Q4 and fiscal year 2022 results on Thursday, December 15, after the market closes. The company will hold a conference call with investors at 2 pm PT to discuss the results.

Adobe is expected to report EPS of $3.50 on revenue of $4.53bn. FactSet analyst estimates peg a consensus EPS of $13.62 and sales of $17.61bn for the full year. Adobe EPS guidance is $13.50, and sales guidance is $17.65bn.

ADBE stock has a P/E of 32.6 and a price-to-book value of 10.7. It does not pay a dividend.

32 FactSet analysts have an Overweight rating on ADBE stock, with a target share price of $364.41. The ADBE share price is down almost 42% YTD.

What does Adobe do?

Adobe, Inc is a digital marketing and media solutions company. It operates through three segments: Digital Media, Digital Experience, and Publishing. The Digital Media segment offers creative cloud services, allowing members to download and install the latest products such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Lightroom, and Adobe InDesign.

The Digital Experience segment provides solutions for analytics, social marketing, targeting, media optimization, digital experience management, cross-channel campaign management, premium video delivery, and monetization.

The Publishing segment includes legacy products and services for eLearning solutions, technical document publishing, web application development, and high-end printing.

Adobe was founded in 1982 and is headquartered in San Jose, California.

Darden Restaurants, Inc (NYSE: DRI)

Darden Restaurants, Inc (NYSE: DRI) plans to release its fiscal 2023 Q2 financial results before the market opens on Friday, December 16, 2022. The company will hold a conference call at 8:30 am EST, during which Rick Cardenas, the CEO, and other senior management will discuss the second quarter results and answer questions from participants. 

FactSet analyst consensus expects EPS of $1.44 and sales of $2.4bn.

DRI stock has a P/E of 19.8 and a price-to-book value of 8.5. It pays a 3.2% dividend yield.

29 FactSet analysts have an Overweight rating on DRI stock, with a target share price of $146.04. The DRI share price is down -5.36% YTD.

What does Darden Restaurants do?

Darden Restaurants, Inc is a restaurant company that operates through four segments: Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Business.

Olive Garden is the largest full-service Italian dining restaurant operator, while LongHorn Steakhouse consists of the company-owned LongHorn Steakhouse restaurants. The Fine Dining segment includes the premium brands in the fine-dining sub-segment, such as The Capital Grille and Eddie V's. The Other Business segment includes Cheddar's Scratch Kitchen, Yard House, Seasons 52, Bahama Breeze, franchises, and consumer-packaged goods sales.

The company was founded in 1938 and is headquartered in Orlando, FL.

Accenture Plc (NYSE: ACN)

Accenture Plc (NYSE: ACN) will host a conference call at 8 am EST on Friday, December 16, 2022, to discuss its Q1 fiscal 2023 financial results. An earnings news release will be issued before the call.

FactSet analyst estimates have slated a consensus EPS of $2.92 and sales of $15.58bn for the full year. Accenture's revenue guidance is between $15.2bn and $15.75bn.

ACN stock has a P/E of 26.9 and a price-to-book value of 8.2. It pays a 1.6% dividend yield.

26 FactSet analysts have an Overweight rating on ACN stock, with a share price target of $315.04. The ACN share price is down -30.4% YTD.

What does Accenture do?

Accenture is a global professional services company with leading capabilities in digital, cloud, and security. The company combines its unmatched experience and specialized skills across more than 40 industries to offer a range of services, including strategy and consulting, technology and operations, and Accenture Song. 

These services are powered by the world's largest network of advanced technology and intelligent operations centers. 

Accenture employs around 721,000 people and serves clients in more than 120 countries.

Accenture recently promoted 1,214 people to managing director and 119 people to senior managing director. The company also reported its progress in increasing gender representation globally. It has reached 29% women at the managing director level, closing in on its 2025 goal of 30%.

Accenture is an early adopter of the metaverse as a workplace. During the pandemic, the company purchased 60,000 Oculus headsets for its employees and announced plans to onboard recruits in the company's metaverse, the Nth Floor.

The company has begun to advise its corporate clients on metaverse strategies, and the Nth Floor has also allowed Accenture's employee resource groups to connect across time zones, build safe spaces for meetings, and host events open to the entire company.

Some argue that a shift to the metaverse could support workplace diversity and equity by allowing employees who live in rural areas, people with disabilities, and caregivers to be "present" in the office in the same way as those who work in the physical building, reducing proximity bias.

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If you liked our earnings preview, read our IPO coverage next.

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In this article:

Topics:
Quarterly Earnings
Industries:
Information Technology
Real Estate
Industrials
Companies:
Core & Main
Lennar
Adobe
Darden Restaurants
Accenture

Author: Kirsteen Mackay

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Kirsteen Mackay does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Kirsteen Mackay has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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