US earnings preview: what to expect from Costco, Micron, and Nike
Three stocks to watch this week ahead of earnings updates include Micron, Nike and Costco Wholesale.
(Video summary)
This week in the US, there are three stocks that everyone is talking about: Costco Wholesale, Micron Technologies, and Nike.
Costco
Let's dive into what's happening with each of them. First up, we have Costco. They're going to report their earnings on Tuesday, and it's expected that their profits will go up by 13% to $4.79 per share. In addition, their rent is expected to go up by 7.8% to $77.78.
Last year, Costco saw a big increase in revenue of 15%, and this good performance is reflecting in their stock price, which has gone up by 22% so far this year.
Micron
Now let's talk about Micron Technologies. They're having a tough time right now. They're scheduled to report their earnings on Wednesday, and it's predicted that their revenue will fall for the fifth quarter in a row by a whopping 41% to $3.89 billion. Micron has been losing money for the past three months, and Wall Street doesn't expect them to start making a profit again until the second half of the year. But here's the surprising part - despite all these challenges, their stock has actually gone up by almost 40% since the end of December.
Nike
Lastly, we have Nike. They're also set to report their earnings, and things haven't been going too well for them recently. Their earnings are expected to go down for the third quarter in a row to $0.75 per share, compared to $0.93 per share the previous year. However, their revenue is expected to go up by 2.5% to $13.01 billion.
Investors will be keeping a close eye on Nike's revenue in different regions, especially since the North American market is struggling. Nike is counting on other markets like Latin America and China to bring in more revenue. They're hopeful about China, where they expect revenue to grow. At the moment, their stock is trading at a low point compared to the past 11 months.
In a nutshell, these are the stocks to keep an eye on this week in the US. While Costco is expected to do well, Micron Technologies is facing some challenges, and Nike is seeing a decline in earnings but has hopes for growth in other markets.
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