ORCL, CNM, HYZN, ADBE: Earnings Preview

By Duncan Ferris

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This week's earnings updates include Oracle Corporation (NYSE: ORCL), Planet Labs (NYSE: PL) Core & Main Inc (NYSE: CNM), Hyzon Motors (NASDAQ: HYZN) and Adobe (NASDAQ: ADBE).

Here are some key earnings previews for the week ahead: 

Oracle Corporation

This business is a giant of software for enterprise information management. Oracle Corporation (NYSE: ORCL) saw success with its most recent earnings, with cloud revenue growth of 22% on a constant currency basis.

The business’ Fusion and NetSuite cloud applications, as well as its infrastructure cloud business, were highlighted for praise after the period. For the coming year, the business expects revenue growth in its cloud business to accelerate substantially.

As such, continued cloud growth in the first quarter is a key factor for investors to look out for.

Indeed, the business has been working to expand its cloud capabilities, securing new capacity and capabilities for its database and application workloads running in Oracle Cloud during the latest period with the renewal of a deal with AT&T.

Another key thing for investors to look out for is the impact of Oracle’s acquisition of Cerner, which is expected to bolster its healthcare cloud offering.

The earnings release is scheduled for Monday evening.

Planet Labs

Also releasing its next earnings update late on Monday is planetary data and insight specialist Planet Labs (NYSE: PL).

The company’s most recent earnings update, which covered the first quarter, showed its revenue increased 26% year-over-year to $40.1m.

For the coming results, the business has said it expects to see revenue come in between $41m and $43m, representing 38% year-over-year growth at the midpoint. Additionally, adjusted EBITDA loss is expected to be between approximately $18m and $16m.

The company has recently inked an agreement with SES Government Solutions and Telesat Government Solutions to work on space-to-space connectivity solutions for low-earth orbit and spacefaring satellites as part of NASA’s Communication Services Project.

The company has expressed optimism that this programme will enhance its reputation with NASA, while also allowing the business to accelerate its research and development for near-Earth space communication capabilities on its future earth-observation satellites.

Further updates relating to this deal, as well as its potential impact on earnings, could feature in Planet Labs’ quarterly results.

Core & Main Inc

Core & Main Inc (NYSE: CNM) is a specialist in providing water, sewer and fire protection products based in Missouri.

The business has been active in mergers and acquisitions in recent months, completing acquisitions of Lock City Supply Inc and Earthsavers Erosion Control during the three-month period ended 1 August.

It has since also completed the acquisition of Inland Water Works Supply Co. and signed an agreement to snap up the municipal waterworks division of Trumbull Industries.

Investors should be on the lookout for information about how the newly acquired businesses will be integrated and how they will affect its financials.

Additionally, the business increased its guidance for full year adjusted EBITDA to be in a range of $710m to $750m, up from prior expectations for between $595m to $635m.

CEO Steve LeClair had commented:

“We are confident in the long-term growth prospects of our business, including the undersupply of housing and ongoing demand for non-discretionary municipal repair and replacement activity.”

As such, continued earnings growth and outlook optimism are key signs to look out for, with the business clearly having been riding a positive wave. Look out for this company’s update on Tuesday morning.

Hyzon Motors

This provider of hydrogen fuel cell powered heavy vehicles has been through the ringer over recent months. Hyzon Motors (NASDAQ: HYZN) failed to release its second quarter financial filings by the 15 August deadline, an issue which the company attributed to “revenue recognition timing issues in China”. 

Additionally, the company has warned that it identified “operational inefficiencies at Hyzon Motors Europe B.V., the company’s European joint venture with Holthausen”. As such, Hyzen says that financial statements and guidance previously issued by the company can no longer be relied upon by investors.

This has been poor news for the business’ share price, which plummeted in early August following the news and has now dropped by more than 70% across the year to date.

Potentially as part of a response to the difficulties, the business announced a leadership transition on 17 August.

This isn’t the first time Hyzon has faced controversy, with short seller Blue Orca Capital alleging last September that one of the business’ largest customers was a fake business. The claims led to a subpoena issued to Hyzon Motors by the U.S. Securities and Exchange Commission (SEC) in January.

Investors will be hoping that the update expected in the week ahead will shed more light on the situation and add some much needed stability. The company’s earnings are reportedly set for release on Wednesday this week.

Adobe Inc

Software development firm Adobe Inc (NASDAQ: ADBE) has laid out third quarter targets which include:

  • Total revenue of approximately $4.43bn.

  • Approximately $430m of net new Digital Media annualized recurring revenue.

  • Digital Media segment revenue growth of 13%.

  • Digital Experience segment revenue growth of 12%.

The business expects summer seasonality to affect its third quarter performance, though a strong showing is anticipated in the final quarter. As such, these targets constitute a slight slowdown from the growth seen in the prior quarter, with the Digital Media and Digital Experience segments having seen 15% and 17% growth respectively in the second quarter.

It’s worth noting that Adobe’s full-year forecasts have already taken a hit due to its withdrawal of products from Russia and Belarus, as well as currency fluctuations.

Investors can expect to see Adobe’s earnings on Thursday after the closing bell.

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In this article:

Topics:
Quarterly Earnings
Software
Data
Renewables
Energy Equipment and Services
Industries:
Information Technology
Industrials
Energy
Companies:
Oracle
Core & Main
Hyzon Motors
Adobe

Author: Duncan Ferris

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.

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

Duncan Ferris 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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