Key Earnings Reports and Economic Data to Watch This Week

Earnings week ahead: Adobe, Oracle, Kroger, GameStop and more (NYSE:BIG)

Despite a lighter earnings calendar next week, several high-profile companies are set to report their financial figures. The results could significantly influence market sentiment across key sectors such as enterprise software and consumer staples. Notably, investors are eager for updates from Oracle (NYSE:ORCL), GameStop (NYSE:GME), Adobe (NASDAQ:ADBE), Kroger (NYSE:KR), Manchester United (NYSE:MANU) and Signet Jewelers (NYSE:SIG), among others. Below is a rundown of major quarterly updates anticipated in the week of September 9 to 13: Texas-based software giant Oracle (ORCL) is set to release its quarterly results after the market closes on Monday. Analysts anticipate 6% year-over-year growth in revenue and about 12% growth in profits. Seeking Alpha's Quant Rating system maintains a cautious approach on Oracle, assigning it a Hold rating. Meanwhile, Wall Street analysts have a consensus Buy recommendation. SA author Joseph Parrish, who rates the stock a Buy, highlights that Oracle is benefiting from the AI boom, with its stock showing robust performance, yet it still offers an attractive entry point. He notes that Oracle's competitive edge lies in its cloud business, especially its role in training large language models, supported by complementary products. In contrast, Investing Group leader Vladimir Dimitrov offers a more cautious perspective. He believes the market is overly optimistic in expecting continued share price gains for Oracle. Dimitrov argues that higher revenue growth is already priced into the stock, and he is skeptical that Oracle's margins will return to their pre-Cerner acquisition levels. Also reporting: Rubrik (NYSE:RBRK), ABIVAX Société Anonyme (NASDAQ:ABVX), Mission Produce (NASDAQ:AVO), Avid Bioservices (NASDAQ:CDMO), KalVista Pharmaceuticals (NASDAQ:KALV), Limoneira Company (NASDAQ:LMNR), Calavo Growers (CVGW), Matrix Service Company (MTRX), Skillsoft (SKIL), Prenetics Global Limited (PRE), MEI Pharma (MEIP), Phoenix Motor (PEV) and more. Video game retailer GameStop (GME) is scheduled to post its earnings after the closing bell on Tuesday. Comparable store sales are expected to decline notably, falling by approximately 23% Y/Y. GameStop's stock has rallied nearly 50% over the past six months, fueled by a resurgence of its meme stock status earlier this year, driven by Keith Gill, also known as 'Roaring Kitty.' However, the stock's volatility has diminished significantly over the summer. Wall Street analysts are generally bearish, recommending a Strong Sell, while Seeking Alpha's Quant Rating system gives the stock a Hold rating. SA contributor PropNotes states that due to declining sales, persistent headwinds and an inflated valuation, they are steering clear of the stock. In an optimistic scenario, they estimate the fair value to be around $6.50 per share, which is 72% lower than the current stock price. As a result, they give GME a Strong Sell rating. Also reporting: Academy Sports and Outdoors (ASO), Dave & Buster's Entertainment (PLAY), InnovAge Holding (INNV), Petco Health and Wellness Company (WOOF), Bioceres Crop Solutions (BIOX), SelectQuote (SLQT), Cognyte Software (CGNT), Cantaloupe (CTLP), Lilium N.V. (LILM), Mama's Creations (MAMA), Evolution Petroleum (EPM), Dynagas LNG Partners LP Common Units (DLNG) and more. Designer Brands (DBI) is slated to report Q2 results before the opening bell on Wednesday, with analysts anticipating a decline in profits on slight Y/Y growth in revenue. Following a mixed Q1, the company reaffirmed its FY2024 outlook. Seeking Alpha's Quant Rating system has assigned a Sell rating to DBI, amid a growth rate for the company that has seen its momentum weaken relative to other consumer discretionary stocks. Meanwhile, Wall Street analysts maintain a Hold recommendation. Also reporting: DouYu International Holdings (DOYU), Tsakos Energy Navigation Limited (TEN), Manchester United (MANU), Vera Bradley (VRA), MIND Technology (MIND) and more. Adobe (ADBE) is scheduled to announce its quarterly results on Thursday after the market closes. Analysts predict approximately 10% Y/Y growth in both revenue and earnings. Seeking Alpha's Quant Rating system recently downgraded ADBE from Buy to Hold, just two weeks before the earnings report. However, Wall Street analysts continue to recommend the stock as a Buy. SA Investing Group leader Danil Sereda argued that despite a recent recovery from a Q1 slump, ADBE is fully priced, assuming no major competitive disruptions in the generative AI space. Additionally, the company faces legal risks from an FTC lawsuit alleging deceptive subscription practices. Based on these factors, Sereda recommends a Hold rating for the stock. In contrast, fellow SA Investing Group leader Julian Lin points out that the market's initial fears about Adobe being negatively impacted by generative AI have subsided. Adobe was among the few software companies to deliver a "beat and raise" quarter, the analyst said, with generative AI proving to be a robust growth driver. Lin expects Adobe to achieve market-beating growth, supported by annual top-line expansion and a solid earnings yield. Also reporting: The Kroger (KR), Sibanye Stillwater Limited (SBSW), Signet Jewelers Limited (SIG), Big Lots (NYSE:BIG), Cracker Barrel Old Country Store (CBRL), Mesabi Trust (MSB), LightPath Technologies (LPTH), BEST (BEST), The Lovesac Company (LOVE) and more. Cheetah Mobile (CMCM) is one of the very few companies to confirm an earnings report on what looks to be a quiet Friday.

What To Expect in the Markets This Week

GameStop earnings lead a schedule of reports including Oracle, Adobe, and Kroger. The August report of the Consumer Price Index (CPI) will give one last look at inflation before a key Federal Reserve meeting later this month. Wholesale pricing, consumer credit, and small business optimism are among the other economic data points scheduled for this week. The Wednesday release of the August Consumer Price Index (CPI) will give Federal Reserve officials one last data point on inflation before the Sept. 17-18 meeting of the Federal Open Market Committee (FOMC). The July data showed that price increases stepped back to an annual rate of 2.9%. While the Fed is widely expected to begin cutting interest rates at the September meeting, changes in inflation data could influence the pace of the Fed's future rate cut schedule. Following the CPI data, market watchers will get insight into future inflation trends with the Thursday release of the wholesale-focused Producer Price Index (PPI). Apple will kick off the week with a product launch event on Monday, where it is expected to unveil the new iPhone 16 which includes artificial intelligence (AI) technology upgrades, and new versions of both the Apple Watch and AirPods. Also on Monday, the Goldman Sachs Communacopia & Technology Conference begins, with Advanced Micro Devices CEO Lisa Su delivering remarks on the opening day. Other top tech and finance companies are also participating in the four-day event, including Cisco (CSCO) on Tuesday, Nvidia, and Walmart on Wednesday, and Snowflake (SNOW) on Thursday. Video game retailer GameStop's Tuesday report will highlight the earnings calendar for the week. Other tech earnings include Oracle, which reports on Monday, while Adobe's report on Thursday will highlight whether the company has been able to capitalize on its AI product offerings. Oxford Industries' report on Wednesday will shine a light on sales of clothing brands like Tommy Bahama, Southern Tide and Lilly Pulitzer, while earnings from Designer Brands highlight footwear sales from Designer Shoe Warehouse, Keds and Hush Puppies. Another noteworthy report comes Thursday from grocery store chain Kroger, which is currently fighting the Federal Trade Commission's (FTC) efforts to block its proposed merger with rival Albertsons (ACI).