Earnings week ahead: TLRY, WBA, DAL, STZ, CALM and more

The upcoming week will see a pick-up in earnings releases after little activity over the past couple holiday-shortened weeks. Several major companies are set to report their quarterly financial results, offering key insights across different sectors.

Notable firms taking center stage include Delta Air Lines (DAL), Tilray (TLRY), Tilray (TLRY) and Walgreens Boots Alliance (WBA).

Below is a rundown of major quarterly updates anticipated in the week of January 6-10:

Monday, January 6

Commercial Metals (CMC)

Commercial Metals (CMC) will release its earnings on Monday, with analysts forecasting a more than 50% profit decline.

Despite strong results in its last earnings report, CEO Peter Matt warned that macroeconomic uncertainty and softened construction sentiment would affect Q1 results. While finished steel shipments in North America are expected to follow seasonal trends, adjusted EBITDA margins will likely decrease due to lower steel product margins. However, the Europe Steel Group is projected to see a notable increase in adjusted EBITDA, driven by an annual CO2 credit. The Emerging Businesses Group is expected to decline due to seasonality and economic uncertainty.

However, Matt emphasized that the current market softness is temporary, driven by uncertainty over funding costs and government policies, but expressed optimism that clarity will restore strength in core markets.

Seeking Alpha contributor Douglas McKenny points out that CMC’s attractive valuation provides an opportunity to invest in a shareholder-friendly business, highlighting the company’s long-term progress in growing its return on invested capital, from over 6% in 2019 to just over 9% in 2024.

Both sell-side analysts and Seeking Alpha's Quant Rating system take a cautious stance on the stock, rating the company as a Hold.

• Consensus EPS Estimates: $0.79
• Consensus Revenue Estimates: $1.87B
• Earnings Insight: The company has exceeded EPS expectations in 7 of the past 8 quarters, surpassing revenue expectation in 100% of those reports.

Also reporting: Hurco Companies (HURC), Evergreen (EVGR), EpicQuest Education Group International Limited (EEIQ), Trio Petroleum (TPET) and more.

Tuesday, January 7

Cal-Maine Foods (CALM)

Cal-Maine Foods (CALM) is set to report its FQ2 results after the closing bell on Tuesday. Following mixed FQ1 results, the company announced a $40M investment to expand its cage-free egg production, which will add capacity for about 1 million cage-free layer hens, replacing recently decommissioned caged hen houses.

While sell-side analysts have a consensus Buy rating on the stock, Seeking Alpha's Quant Rating system has rated the stock as a Hold, showing caution.

SA author Albert Anthony maintains a Hold rating on Cal-Maine Foods, noting the stock's current price, at a 10-year-high, limits its upside potential. Despite the company's potential to benefit from expected consumer resilience, increased egg demand, and higher prices due to supply challenges and avian flu, the stock's overvalued P/B ratio compared to peers and only slightly undervalued forward P/E raise concerns. 

• Consensus EPS Estimates: $3.68
• Consensus Revenue Estimates: $751.50M
• Earnings Insight: Cal-Maine Foods has exceeded revenue estimates in 5 of the past 8 quarters, beating EPS expectations in 3 of those reports.

Also reporting: RPM International (RPM), Inspire Medical Systems (INSP), AZZ (AZZ), AAR (AIR), Apogee Enterprises (APOG), Lindsay Corporation (LNN), Kura Sushi USA, Inc. (KRUS), Simulations Plus (SLP), Richardson Electronics (RELL) and more.

Wednesday, January 8

Albertsons Companies (ACI)

Albertsons Companies (ACI) is due to report its FQ3 results before the opening bell on Wednesday, with analysts expecting a modest revenue increase but an 18% decline in profits.

Recently, Albertsons terminated its $25B merger deal with Kroger (KR) after a federal judge blocked the deal, following opposition from the FTC. Albertsons sued Kroger for breach of contract, seeking a $600M termination fee and damages to compensate shareholders. The company accused Kroger of failing to offer an adequate divestiture package and ignoring regulatory concerns. Kroger, in turn, dismissed the claims and stated that Albertsons breached the agreement. 

Wall Street analysts have given the stock a Buy rating, while Seeking Alpha's Quant Rating system recommends holding the stock.

Seeking Alpha author J.G. Collins suggests holding both Albertsons (ACI) and Kroger (KR) stocks until a clearer path emerges while continuing to hold Walmart stock, as these companies dominate the traditional grocery space.

• Consensus EPS Estimates: $0.65
• Consensus Revenue Estimates: $18.85B
• Earnings Insight: The company has exceeded revenue estimates in 6 of the past 8 quarters, beating EPS expectations in 50% of those reports.

Also reporting: Jefferies Financial Group (JEF), Acuity Brands (AYI), MSC Industrial Direct (MSM), UniFirst Corporation (UNF), The Greenbrier Companies (GBX), Helen of Troy Limited (HELE), Penguin Solutions (PENG), Franklin Covey (FC), AngioDynamics (ANGO), Saratoga Investment (SAR), Pure Cycle Corporation (PCYO), Park Aerospace (PKE) and more.

Thursday, January 9

U.S. stock markets will be closed on January 9 to honor former President Jimmy Carter, continuing a Wall Street tradition of mourning the nation's leaders. Both the New York Stock Exchange and Nasdaq announced they will close their equity and options markets in observance of a National Day of Mourning for the 39th president, who passed away last week at his home in Plains, Georgia, at the age of 100. 

Friday, January 10

Walgreens Boots Alliance (WBA)

Walgreens Boots Alliance (WBA) is slated to release its results before the market opens on Friday, with analysts predicting a 44% decline in profits compared to the previous year.

Both Wall Street analysts and Seeking Alpha's Quant Rating system have given the stock a Hold rating. Shares of WBA experienced a 65.5% decline over the past year.

SA author Mike Zaccardi downgraded his rating on WBA from a Buy to a Hold, citing balanced risks and a less compelling valuation. Despite a 10% gain since his September Buy call, Zaccardi points to recent fundamental developments and weak M&A trends as reasons for his cautious stance. 

• Consensus EPS Estimates: $0.37
• Consensus Revenue Estimates: $37.37B
• Earnings Insight: WBA has beaten revenue estimates in 8 consecutive quarters and EPS estimates in 5 of those reports.

Tilray Brands (TLRY)

Tilray Brands (TLRY) is scheduled to report its FQ2 earnings results before Friday's opening bell.

The Canadian cannabis company, which has seen a 10% rise in its share price over the past month, has attracted a Buy rating from Wall Street analysts, while Seeking Alpha's Quant Rating system maintains a Hold on the stock.

SA author Alan Sumler highlighted that Tilray has expanded its business operations since 2023, and the positive impact is now evident in its financial performance. The outlook for 2025 is positive, Sumler stated, suggesting potential for improved financial performance. However, the analyst noted that uncertainty in the US cannabis market and broader stock market volatility could keep the undervalued stock on a downtrend. 

• Consensus EPS Estimates: -$0.01
• Consensus Revenue Estimates: $216.33M
• Earnings Insight: Tilray has exceeded revenue expectations in just 3 quarters, and EPS in 5 of the past 8 quarters.

Also reporting: Constellation Brands (STZ), Delta Air Lines (DAL), Wipro Limited (WIT), WD-40 Company (WDFC), MV Oil Trust (MVO), Lexaria Bioscience (LEXX), Glen Burnie Bancorp (GLBZ), SemiLEDs Corporation (LEDS) and more.

More on related stocks:

• Delta Air Lines: Examining Smart Money's Activities To Assess Potential Earnings Moves
• US Delta-9 THC Markets And German Medical Cannabis Synergize Tilray's Potential
• Why Delta Air Lines Stands Out As An Investment Opportunity
• Commercial Metals Q1 2025 Earnings Preview
• Albertsons lays out plans for prosperous Kroger-less future