Key Earnings Reports to Watch as We Head into the Holidays

As we head into the end of the year, all eyes are on the earnings reports of Nike, FedEx, and General Mills. These reports will give us insight into the state of the economy as we head into the holiday season.

Nike (NYSE:NKE) is expected to report EPS of 65 cents with revenue of $12.57 billion. Investors are hoping to see improved performance in China, where Nike’s revenue in greater China dropped by -13% last quarter and -20% the quarter before that. However, Citi has revealed that it expects Nike to exceed earnings expectations due to recent sales and margin momentum, especially given the recently relaxed Covid restrictions in China.

This marks the first investor report for FedEx (NYSE:FDX) since the company announced plans in September to cut costs between $2.2-$2.7 billion this fiscal year. Additionally, FedEx has a program in place to accelerate progress toward $4 billion in cost savings by 2025. This report is particularly critical for FedEx, as investors are eager to hear about the company’s progress during its busiest time of the year – the holidays. Analysts expect EPS of $2.83 on $23.7 billion in revenue, a significant drop from the same quarter last year which saw EPS of $4.83 on $23.5 billion in revenue. FedEx is in a tough spot as it faces pressure to deliver strong results.

On the other hand, General Mills (NYSE:GIS) has consistently performed well this year, with a steady uptrend in the stock market and a new all-time-high share price of $88 last week. It is estimated that adjusted earnings grew +7% to $1.06 per share on revenues of $5.19 billion, a 3.4% increase YoY. Management has also recently raised full-year sales guidance, though they have admitted that there may be a strain on margins. Expectations are high for General Mills, and investors will be watching to see if the company can live up to the recent surge in its share price.

Overall, these earnings reports from Nike, FedEx, and General Mills will give us a better understanding of the state of the economy heading into the end of the year. While Nike and General Mills are expected to perform well, FedEx is facing some challenges and pressure to deliver strong results. Regardless, all three companies will be closely watched as we head into the holiday season.

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