Earnings Announcement (Aug 31-Sep 4): Zoom, Broadcom, DocuSign, H&R Block, and more

Retail Brands: Expected Negative Earnings (EPS) 

This week earnings announcement will be dominated by clothing, apparel, jewelry, beauty, footwear, and retail brand companies such as:

Macy’s (NYSE: M), Guess (NYSE: GES), Vera Bradley (NYSE: VRA), Designer Brands (NYSE: DBI), Regis (NYSE: RGS), Charles & Colvard (NYSE: CTHR), PVH (NYSE: PVA), Tillys (NYSE: TLYS), Caleres (NYSE: CAL), and Shoe Carnival (NASDAQ: SCVL).

The retail sector has been hit hard by coronavirus pandemic especially in-store brands with a small online presence. The expected earnings for retail sectors are forecasted to be negative for Q2 2020. 

The expected earning per share (EPS): Macy’s -$0.45, Guess -$0.57, Vera Bradley -$0.07, Designer Brands -$0.9, Regis -$0.66, Charles & Colvard -$0.07, PVH -$2.52, Tillys -$0.17, Caleres -$1.02, and Shoe Carnival $0.61.

Shoe Carnival is the only company that will be expected to have positive earnings as the company has a stronger online and e-commerce presence.  

Technology: Expected Strong Earnings (EPS)

Zoom Video Communications (NASDAQ: ZM) is the star company for the earnings announcement this week. Since the coronavirus pandemic started, Zoom has been the sought after video conferencing platform for work, school, and social activities surpassing Skype, WebEx, FaceTime, WhatsApp, and others. Zoom’s success was driven by its commitment to providing reliable, high quality, cost-effective, and friendly video conference platform for everyone.

Zoom is expected to earn $0.45 per share (EPS) after the market close which usually indicates strong expected earnings. Zoom’s YTD 12 days moving average exceeded 26 days moving average since Aug 17, 2020, which indicates a strong buying signal and momentum prior to earning announcement. Zoom’s EPS in previous quarters was $0.09 (Q1 2020), $0.05 (Q4 2019), and $0.01 (Q3 2019). The Zoom’s stock price is $299.27 per share or 381% gain (less than a year) since the IPO on Oct 22, 2019. Zoom’s market capitalization today is $84. 42 billion. 

Broadcom (NASDAQ: AVGO) is the company that designs, develops, and distributes semiconductor products and infrastructure for data center, networking, wireless, and broadband. Broadcom is expected to earn $5.23 per share. Broadcom’s  earnings were $1.17 (Q1 2020), $0.74 (Q4 2019), and $1.97 (Q3 2019). Broadcom’s stock is trading at $344.82 per share with a market capitalization of $138.68 billion. The demand for semiconductor products and connectivity will continue to rise as more people will move to a virtual workplace and classroom. 

DocuSign (NASDAQ: DOCU) is a software company that provides e-signature solutions for contract agreement preparations and execution. The software is widely used in real estate and continually growing to other sectors. DocuSign is expected to earn $0.08 per share. DocuSign’s earnings were -$0.26 (Q1 2020), -$0.26 (Q4 2019), and -$0.26 (Q3 2019). 

H&R Block (NYSE: HRB) provides services in tax preparation both in-person and online. The company produces a software and online platform for both individuals and small businesses to file their income tax returns. H&R Block is expected to earn $0.49 per share (EPS). H&R Block’s EPS were $2.38 (Q1 2020), -$0.67 (Q4 2019), and -$0.95 (Q3 2019). H&R Block’s stock is trading at $14.89 per share with a market capitalization of $2.87 billion.