Earnings Surprises to Expect: Salesforce, Best Buy and Peloton

The week of August 23 is light on earnings announcements: only about 100 companies will be publishing their quarterly results. Most of the big releases will come from technology companies such as Salesforce (CRM), Intuit (INTU) and Autodesk (ADSK). Sprinkled in the midst of this little “tech festival” you will also find a handful of second tier retailers: Dollar General (DG), Best Buy (BBY), Ulta Beauty (ULTA) and others. And while Gamestop (GME), the original meme stock, may also announce this week, calling this company a second tier retailer may be a bit too charitable.

Weekly highlights

Below is a brief rundown of our AI’s most important earnings estimates for this week.

  • Salesforce.com (CRM): $1.14 Proximilar AI forecast vs. $0.93 Wall St analyst estimate consensus vs. $1.09 whisper number
  • Medtronic (MDT): $1.42 Proximilar vs. $1.32 consensus EPS estimate vs. $1.38 whisper
  • Intuit (INTU): $1.76 our estimate vs. $1.58 consensus vs. $1.71 earnings whisper
  • Peloton (PTON): -$0.32 our estimate vs. -$0.44 consensus vs -$0.27 earnings whisper
  • Autodesk (ADSK): $1.23 our estimate vs. $1.12 earnings consensus
  • VMware (VMW): $1.79 our estimate vs. $1.65 consensus EPS
  • Workday (WDAY): $0.92 our estimate vs. $0.78 consensus EPS
  • Dollar General (DG): $2.79 our estimate vs. $2.60 consensus EPS
  • Marvell Technology (MRVL): $0.32 our estimate vs. $0.31 consensus EPS
  • Palo Alto Networks (PANW): $1.52 our estimate vs. $1.44 consensus EPS
  • HP Inc. (HPQ): $0.90 our estimate vs. $0.83 consensus EPS
  • Best Buy (BBY): $2.14 our estimate vs. $1.90 consensus
  • Dollar Tree (DLTR): $1.09 our estimate vs. $1.01 consensus
  • Ulta Beauty (ULTA): $3.01 our forecast vs. $2.51 consensus EPS
  • Gamestop (GME; release date unconfirmed): -$0.58 our estimate vs. -$0.67 consensus EPS

Peloton and Gamestop stand out from the rest of these names — and not in a good way — due to the large amount of risk their EPS releases carry. These two stocks put our artificial intelligence models are on high alert, with forecasted up or down overnight moves of nearly 13% and 15%, respectively. That means you can easily see a 10%-20% price change in either PTON or GME stock based on the earnings or revenue surprise. That is a lot of risk! As always, don’t put too many of your eggs into one basket.

Looking ahead to next week

The week of August 30 promises to be about as quiet as this one. Most of the large companies announcing earnings will continue to be in the tech sector. They will include Zoom Video (ZM), Broadcom (AVGO), DocuSign (DOCU) and CrowdStrike (CRWD). Out of all these, CrowdStrike looks the least likely to beat its EPS whisper. Our AI believes the companies most likely to outperform expectations will be Hewlett Packard Enterprise (HPE), PVH Corp. (PVH) and Signet Jewelers (SIG). See our latest forecasts for details.

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