Expectations heading into Nvidia Corp.’s Wednesday report are high, with analysts anticipating another strong consensus beat that could prompt the chipmaker to raise its profit guidance.
Nvidia is a direct beneficiary of the intense spending by companies building out artificial intelligence infrastructure, with the bonanza also set to show up in upcoming results of HP Inc. and Dell Technologies Inc.
The week will also see a decidedly divergent set of results from Canadian lenders. Royal Bank of Canada is expected to post healthy growth across its interest and non-interest income segments, while higher provisions for loan losses will eat into Bank of Montreal and Bank of Nova Scotia earnings.
Monday: Heico (HEI US) 2024 sales could come in higher than forecast if its plane replacement parts business continues to benefit from increased air traffic and an aging commercial fleet, Jefferies said. Quarterly revenue likely rose 38% versus 27% a year earlier.
Tuesday: SentinelOne (S US) hasn’t seen an influx of new customers from last month’s global tech disruptions triggered by rival CrowdStrike as the incident occurred too late in the quarter for companies to change vendors. Still, there appears to be increased interest from existing CrowdStrike customers looking to make the switch, Keybank said. The California-based firm is seen posting a 32% jump in revenue.
- Bank of Montreal’s (BMO CN) adjusted earnings per share probably shrank for a ninth quarter in a row, while Bank of Nova Scotia’s (BNS CN) likely contracted for an eighth straight quarter. Both lenders are seen raising loan loss provisions. Canadian Imperial Bank of Commerce (CM CN) is seen posting lower provisions when it reports Thursday, helping push its adjusted EPS 14% higher to beat the peer median, BI said.
Wednesday: Nvidia (NVDA US) could score a significant beat and raise its outlook for the third quarter as it continues to ride the AI momentum, BI said. Revenue and adjusted earnings are forecast to more than double from a year ago. Expect investors to seek management reassurances about possible delays affecting the development of its Blackwell chip lineup, Susquehanna said.
- Salesforce’s (CRM US) quarterly sales growth is expected to come in below double digits for the first time since its 2004 public listing as corporate spending on cloud services slows. Its adjusted operating margin may have inched higher, with lower sales and marketing costs offsetting increased AI investment, BI said. Management’s focus on margin improvement should mean large acquisitions are less likely near term, BI added.
- Royal Bank of Canada’s (RY CN) net interest income should expand 9.6% versus 6.7% a year ago, thanks to the inclusion of HSBC’s Canadian operations, BI said. Non-interest income is likely to grow 12% versus 7.2% a year earlier.
- HP Inc. (HPQ US) will chalk up its first quarterly revenue expansion in two years thanks to improved corporate PC demand, BI said. The company’s AI ramp-up should drive more meaningful sales growth in 2025, Citi said.
- NetApp (NTAP US) earnings and sales should come in at the midpoint of the company’s guidance as storage demand trends steadily improve, Citi said, adding that the company is “well-positioned” to benefit from the broader recovery.
- Five Below’s (FIVE US) full-year earnings could come in lower than consensus after comparable sales slowed post-Fourth of July, Oppenheimer said. Adding to near-term uncertainty, the discount retailer may struggle to reposition itself after the departure of CEO Joel Anderson last month. Rival Dollar General (DG US), which reports Thursday, also faces a challenging operating environment with its operating margin still under pressure, said Argus Research.
Thursday: Gap’s (GAP US) adjusted EPS is seen rising 17%, its third straight quarter of growth, with revitalized offerings at Old Navy, social-media campaigns and collaborations driving robust sales in May and June, BI said. Fresh concepts are also seen helping Abercrombie & Fitch (ANF US) post a sales beat when it reports Wednesday, BI said.
- Autodesk (ADSK US) will issue quarterly results for a second time in two months after accounting issues led to reporting delays and prompted the replacement of its CFO. Sales and EPS could beat consensus sightly, Oppenheimer said, adding that management may also address shareholder concerns over governance.
- Dell’s (DELL US) sales will expand for a second successive quarter as AI server demand continues to drive a recovery, BI said. Margin pressures faced by Dell’s Infrastructure Solutions Group — largely idiosyncratic to its storage business — should ease in the quarters ahead, Evercore noted. Recently announced layoffs may foreshadow a lowering of full-year guidance, it added.
- Lululemon’s (LULU US) sales growth may drop below double digits for the first time in almost four years. The athleisure brand risks missing guidance given challenges in inventory and the US consumer environment, William Blair said, adding that the company could steer revenue guidance for the full year lower.
Friday: No notable earnings.
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