One of the companies set to report financial results in the coming days is Starbucks, a popular coffee chain that has faced some challenges leading up to its earnings release. Analysts have revised their earnings estimates for Starbucks downward a total of 43 times in the past three months, indicating a lack of confidence in the company’s performance. The estimated earnings per share for the current quarter have fallen by more than 16% to 94 cents a share. Additionally, the average analyst price target for Starbucks has declined by 16.5% in the past three months, further signaling concerns about the company’s future prospects. Despite efforts to attract customers with value deals such as a $5 food and beverage combo option, Starbucks stock has dropped by 11.6% in the past three months and is down more than 21% year-to-date. The company is expected to release its fiscal third-quarter results on July 25, with investors closely watching to see if Starbucks can turn things around.
Southwest Airlines is another company that investors should keep an eye on as it prepares to report its financial results. The Dallas-based carrier has received 28 downward earnings per share revisions in the past three months, resulting in a consensus estimate that fell by 35.1% during this period. Despite a modest 2.4% increase in its stock price in the past three months, Southwest Airlines is down by 0.6% year-to-date. Shareholders, including activist investor Elliott Management, have expressed dissatisfaction with the company’s performance and growth prospects. Elliott Management has threatened to mount a proxy fight to oust CEO Bob Jordan and executive chairman Gary Kelly over the company’s lagging performance. Southwest Airlines is scheduled to post its second-quarter results before the market opens on July 25, with investors eager to see if the company can address its shareholders’ concerns.
Nucor, a Charlotte-based steelmaker, is also set to release its second-quarter earnings results, with investors watching closely following a cut in its earnings guidance. The company’s second-quarter earnings guidance was reduced, leading to 21 earnings estimate cuts by analysts in the past three months. Nucor’s earnings for the latest quarter are now estimated at $2.53 per share, representing a significant 30% decline from previous estimates in April. The company’s stock has declined by about 13.5% in the past three months and is down more than 4.5% year-to-date. Nucor, which uses electric arc furnaces to melt scrap steel and make new steel, faces challenges in a competitive market environment. The company is scheduled to release its results after the market close on July 22, with investors eager to see how Nucor addresses its recent earnings guidance cut.
Other Companies to Watch
In addition to Starbucks, Southwest Airlines, and Nucor, other companies have made the list of possible earnings “blow-ups.” Old Dominion Freight Line has seen 35 downward earnings per share revisions in the past three months, indicating potential challenges ahead of its earnings release. Intel Corp. has also suffered a significant decline in EPS estimates over the past three and six months, tumbling by 56.5% and 74%, respectively. These companies, along with Starbucks, Southwest Airlines, and Nucor, represent a diverse range of industries facing challenges in the current market environment. Investors should closely monitor these companies as they prepare to report their financial results and address any concerns raised by analysts and shareholders alike.