3 Companies To Watch That Report Earnings Tomorrow

 

Autozone (AZO): Autozone has seen relatively stable earnings and revenue for over two years. This is a name that consistently meets its expectations but rarely falls short or tops estimates. Expectations for the quarter to be reported are right line with past trends. Analysts are calling for mid-single digit revenue growth and double-digit earnings growth. Margins and operating expenses could see some pressure moving forward as the management pushes to open multiple new distribution centers. Meanwhile, currency headwinds related to the Mexican Peso, where Autozone has a large exposure, could have an additional adverse impact.

Rite Aid (RAD): Rite Aid’s earnings last quarter were sluggish mainly due to weakness and inefficiencies in their pharmacy business. Nonetheless, Rite Aid’s focus on expanding its portfolio of health and wellness services and ongoing efforts to enhance its pharmacy business still bode well. Pending approval from the FTC over approval of the Walgreens-Rite Aide merger will likely be a talking point in the company’s conference call. The deal was agreed upon earlier this year but still, hasn’t been passed through regulations.

Coca-Cola Enterprise (CCE): Coca-Cola Enterprises is the most prone to British and European volatility. The enterprise brand is a trademark of Coca-Cola that produces and manufactures products for European markets, hence getting 100% of revenues from Europe. Earnings have been under considerable pressure in recent years notwithstanding Brexit. Last quarter, volumes decreased 5% in Great Britain and 3.5% in mainland Europe due to difficult macroeconomic trends. Post Brexit, currency headwinds are expected to exacerbate these issues moving forward. Earnings estimates for Q2 have roughly remained the same over the last 3 months, but expectations for the second half of 2016 have steadily moved lower.

 

Disclosure: Each week, Forcerank runs a variety of games covering different industries. What we have found, is that the highest ranked companies in their ...

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