Will earnings accelerate the recovery in Kroger Co (NYSE:KR) stock?
flickr [Update: Kroger stock is soaring after the company delivered a strong performance in its latest earnings with a beat on both top line and bottom line numbers. The retailer posted an EPS of 44 cents per share on revenue of $27.75 billion. The company's same-store sales rose 1.1% during the quarter to bettering the analyst estimate of 0.9%. The top management also stated the company had strong holiday sales during the thanksgiving weekend. ]
Retailer Kroger Co (NYSE:KR) is one of the major companies to report earnings today. The retail company is set to report earnings before market opens. With Kroger stock on an uptrend heading into earnings having rallied more than 18% in the last one month, investors would be hoping that the latest earnings will further boost the recovery in second biggest retailer's stock price, which is down nearly 30% in the year-to-date period. Kroger's third-quarter earnings are very crucial if the stock has to sustain the recently gained momentum.
Coming to analyst estimates, the retailer has a mixed track record when it comes to beating analyst estimates. Kroger Co has delivered an earnings beat in 5 out of the last 8 quarters as per estimize database and has beaten revenue estimates in only 4 out of the previous 8 quarters, with the revenue beat coming in the last four quarters. On the top line front, Wall Street expects Kroger to report revenues of $27.46 billion, 3.4% higher than what the company had reported last year. Analysts expect the company to report an EPS of 40 cents per share, while the company had reported a similar EPS of 41 cents in the third quarter last year. With brick and mortar retail behemoth Walmart (NYSE:WMT) delivering strong results, there are also high expectations from the Cincinnati, Ohio based supermarket chain. The guidance will be crucial with the holiday season around. Kroger stock is on a steady uptrend and investors would be hoping for a post-earnings pop. The earnings whisper number is at 43 cents per share, which suggests a 3 cents beat. However, investors need to be cautious as the KR stock technical chart suggests the stock is overbought zone. Both popular momentum indicators Relative Strength Index (RSI) and Bollinger Bands suggest that Kroger shares are overbought. Generlly, the combination of the above two indicators is considered as a strong signal. This could mean the upside from here could be limited.
Can Q3 earnings lift Ambarella Inc (NASDAQ:AMBA) stock?
Shares of semiconductor design company Ambarella Inc (NASDAQ:AMBA) are sliding down ahead of earnings, closing in the red for consecutive three straight trading sessions. The company whose technology is behind the low power, high-definition and ultra HD video compression and image processing products, is scheduled to report its fiscal 2018 third-quarter earnings today after the closing bell. AMBA stock has not gone anywhere since its last earnings release and is almost flat but it is losing momentum going into earnings, down nearly 7% in the last 5 trading days. This brings us to the question, can earnings lift Ambarella stock? The technical setup has also turned little bearish recently. Will earnings help stem the downtrend in Ambarella stock? Well, first, let's take a look at the analyst estimates.
The Wall Street consensus estimates for the camera tech company's fiscal third quarter are a non-GAAP EPS of 67 cents per share on revenue of $88.97 million. The analyst estimates imply a significant 40% year-on-year(YoY) EPS decline, but, on the top line front, revenues are expected to fall only by 11.5% YoY. The last year quarter comparables are tough ones as the company achieved the milestone of $100 million revenue in a quarter in Q3 FY 2017. The management had given a revenue guidance of $87.5 and $90.5 million. Ambarella has a strong history of beating earnings estimates. The earnings whisper number of 69 cents also suggests that a beat is on the cards again. However, that has not resulted in an uptick in share price after earnings in some cases if you go by the AMBA stock history. Given the recent decline in AMBA stock, investors would be expecting the earnings release could change the AMBA shares' fortunes. Having said all this, the Ambarella stock technical chart saw few bearish crossovers recently. AMBA stock made a bearish Moving Average Convergence Divergence (MACD) crossover earlier this week and yesterday the share price fell below its 20-day simple moving average (SMA) in a bearish move. Ambarella stock has its next support level at the 50-day SMA, breach of which may aggravate the downtrend. With GoPro having a strong quarter, there could be surprises on the revenue front. AMBA stock is a risky bet going into earnings.
Can Nutanix Inc (NASDAQ:NTNX) stock still rise higher post-earnings after more than 46% gains in the last three months?
The third earnings for the day is of Dheeraj Pandey led Nutanix (NASDAQ:NTNX), also scheduled after the market close. Shares of the San Jose, California-based based hyperconverged infrastructure company have seen a strong bullish rally after the last quarter earnings and Nutanix stock is up by more than 46% over the last three months. This has been very unlike Nutanix stock from the first half of 2017 when it underperformed massively. The question now is, whether the latest Q3 earnings will set the Nutanix stock on a new rally or not?
First things first, we shall have a look at the Street estimates. The average analyst EPS estimate for the cloud computing company in Q1 2018 is 26 cents loss per share, near 30% higher than the last year same quarter EPS number. The company is expected to deliver a revenue of $266.9 million which translates to a good 60% YoY increase. The top management guidance was for a revenue of $240-$250 million and earnings estimate of 37 cents loss per share. There's little doubt in concluding that Nutanix stock could see another massive correction if the company's latest financial results fall short of expectations given the recent run-up in Nutanix shares.
Nutanix shares fell by more than 6% in yesterday's trade. For a detailed preview of the NTNX stock's Q1 earnings and more insights about how to play Nutanix stock ahead of earnings, please go through our Nuatnix earnings preview.
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