Earnings This Week: Nvidia, XPeng, Kingfisher, More

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Earnings Calendar: May 22 - 26

US earnings season quietens down this week. The headline event to watch out for is quarterly earnings from the world’s most valuable semiconductor stock Nvidia (NVDA), alongside memory chipmaker Marvell Technology (MRVL). Retailers will also remain in play with updates due out from Lowe’s (LOW), Kohl’s (KSS), Best Buy (BBY), and Dollar Tree (DLTR). Other notable ones to watch include video comms company Zoom Video (ZM).

Chinese firms with US listings including shopping platform Meituan, electric carmaker XPeng, and online services firm NetEase are also pencilled-in.

The UK calendar remains busy, headlined by insurer Aviva, grocer Marks & Spencer Group, DIY retailer Kingfisher and pet supply store Pets at Home. We will also have results out from food companies Cranswick and SSP Group, water companies United Utilities and Seven Trent, as well as energy provider SSE

Below is a calendar outlining all the key earnings to watch out for this week:

Monday, May 22

Weds May 24 Cont'd….

Ryanair H1

Severn Trent FY

SSP Group H1

Snowflake Q1

Kainos Group FY

Splunk Q1

Big Yellow Group FY


Tuesday, May 23

XPeng Q1

Agilent Technologies Q2

Thursday, May 25

Assura FY

AJ Bell H1

BJs Wholesale Q1

Autodesk Q1

Cranswick FY

Best Buy Q1

Dick's Sporting Goods Q2

Burlington Stores Q1

Intuit Q3

Deckers Brands Q4

Lowe's Q1

Dollar Tree Q1

Nordson Q2

Johnson Matthey FY

Palo Alto Networks Q3

Marvell Technology FY

Zoom Video Q1

Medtronic Q4

Wednesday, May 24

Meituan Q1

Analog Devices Q2

NetEase Q1

Aviva Q1

Pets at Home FY

Bank of Montreal Q2

QinetiQ FY

Close Bros Q3


Great Portland FY

Tate & Lyle FY

HICK Infrastructure FY

Toronto-Dominion Bank Q2

Kingfisher Q1

Ulta Beauty Q1

Kohl's Q1

United Utilities FY

Lenovo FY

Workday Q1

Marks & Spencer FY

Workspace FY

Nvidia Q1

Friday, May 26

Petershill Partners Q1

IntegraFin H1

Nvidia stock: Q1 earnings preview

Nvidia (NVDA) has been the best performer in the Nasdaq 100 this year after more than doubling in value, significantly outperforming its peers and now trading at a huge premium to its rivals. In fact, its blended forward price-to-earnings ratio sits at 61.0x – more than double the industry average! That stellar performance has happened despite the fact revenue and earnings continue to decline thanks to the unravelling of demand we have seen in gaming and other markets and slower growth from its core data centre business (although there are hopes the latter will see growth improve following the launch of its new, advanced H100 chip). Revenue is forecast to experience a year-on-year fall of 21.5% to $6.5 billion, marking the third consecutive quarterly decline. Adjusted EPS is expected to suffer its fourth consecutive quarterly drop and fall 32.5% to $0.92. The rally in Nvidia shares this year reflects the fact that markets have banked on a recovery in the second half of 2023 and the huge excitement about the prospects coming from artificial intelligence, with Nvidia being touted as a major beneficiary as it provides the computing power needed for the energy-hungry technology. Nvidia has said it expects to be generating significant revenue from AI applications over the coming year, so investors will want to see evidence that it is gaining traction. Analysts anticipate both revenue and earnings will return to growth in the current quarter, which will place pressure on the outlook in order to keep the recovery story alive. Wall Street is looking for Nvidia to target $7.1 billion in revenue in the second quarter. Nvidia’s valuation is bloated and that sets the bar high for Nvidia to deliver if it is to avoid the rally, which has sent shares to their highest level since early 2022, from reversing. Any signal that its core markets will recover at a slower pace or a failure to demonstrate that AI is starting to be a game-changer would not be well-received by markets.

Snowflake stock: Q1 earnings preview

Database architect and cloud computing firm Snowflake (SNOW) is expected to keep posting strong double-digit growth in sales and orders in the first quarter, although things have been slowing down over the past year amid tougher comparatives and a pullback in spending. Wall Street forecasts Snowflake will report a 45% year-on-year rise in product revenue to $571.9 million while remaining performance obligations, representing the amount of work secured but yet to be paid for, to jump 53% to breach the $4 billion threshold. Although growth is slowing, Snowflake has proven adept at retaining customers, with analysts anticipating a net revenue retention rate of over 139% in the period and it is still growing markedly faster than its rivals. Its operating loss, its key earnings measure, is expected to widen from last year and come in at $243.5 million as its margin contracts to just 1.6%, although this is forecast to recover to over 4% in the current quarter as it wields operating leverage. Adjusted free cashflow should improve by 36% to $246.9 million. Markets believe losses will widen over the full year despite strong revenue growth and margin improvement, but it should remain cash generative.

XPeng stock: Q1 earnings preview

We already know that XPeng (XPEV) delivered 18,230 vehicles in the first quarter, down 47% from the year before, which will be reflected in its results. As a result, analysts forecast revenue will be down over 30% year-on-year at RMB5.2 billion and anticipate its net loss will widen to RMB1.9 billion. The drop in output will also prevent it from benefiting from scale and delay a recovery in margins at a time when markets are increasingly focused on profitability. Output is heading in the right direction considering it rose from 5,218 cars in January to 6,010 in February and we saw output hold steady at just over 7,000 cars per month during March and April. The introduction of the P7i sports sedan in March and the Ultra Smart Coupe SUV G6 in April is refreshing its product line and provides hopes that they can drive more demand going forward, although this may not offer the same tailwind to margins as XPeng spends on new models and competes in the price war that has erupted in China. Its gross margin is set to tighten to just 7.4% in the first quarter, the tightest seen since it launched production – although markets see this recovering back up to almost 13% by the end of 2023. Markets believe revenue and earnings will start to grow again in the second quarter before accelerating markedly in the third and fourth quarters, so XPeng needs to demonstrate demand is improving, that production can ramp-up to meet it, and that it can get a grip on costs and improve profitability.

Kingfisher share price: Q1 earnings preview

Kingfisher (KGFHF) has made retaining and growing its market share gained during the boom in demand for DIY and home improvement during the pandemic a priority even as conditions become more challenging. The update will focus on the topline and analysts are forecasting a 4.7% decline in same store sales as all of its units, from the UK & Ireland to France and Poland, come under pressure. They expect revenue to come in at £3.28 billion, slightly up from the £3.25 billion reported the year before thanks to higher prices. That suggests things have become tougher in recent months considering it said like-for-likes were up 0.5% and revenue up 1.9% in February. Updates from US rivals suggest demand for big ticket items and large renovations is starting to wane, so investors will be keen to hear if this trend is occurring in the UK too. Keep an eye on the outlook. Kingfisher said earlier this year that it was comfortable with market expectations it can deliver adjusted pretax profit of £633 million over the full year, which would represent a sharp fall from the £758 million delivered in the last financial year as they continue to unravel from the peak we saw in the 2021/2022 financial year. It is also targeting at least £500 million in free cashflow.

Marks & Spencer’s share price: FY earnings preview

Marks & Spencer Group has provided some certainty ahead of its annual results after confirming in January that trading remained buoyant during the peak final quarter that included the busy holiday shopping season, with food, clothing and homeware sales all continuing to grow. As a result, analysts forecast annual adjusted revenue will rise 8% to £11.78 billion. However, they anticipate profit after tax will dip 0.7% to £307 million as costs rise and margins tighten. Marks & Spencer’s is understandably leaning more into food in the current climate as demand for discretionary goods wanes, although demand for its clothing and homeware has kept growing despite its determination to limit discounts and drive full price sales. The company has already warned that conditions will be more challenging in the new financial year but said the many changes implemented in recent years means it has a strong product offering and offers better value for money without compromising quality to provide ‘some insulation from the gathering storm’. Cost-control efforts should also help on the margin front, with an ambition to deliver another £150 million worth of cost-savings in the 2023/2024 financial year. Investors will also be keen to hear about dividends and buybacks after Marks & Spencer’s said it would consider reinstating capital returns when it announces full year results this week, although it has warned the uncertain outlook is making this difficult. 

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