1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:08,520 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:16,280 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,440 --> 00:00:18,640 Speaker 1: Let's take a look. Now, it's some stocks making news 5 00:00:18,680 --> 00:00:21,080 Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg 6 00:00:21,120 --> 00:00:25,959 Speaker 1: News Cross asset Reporterdnitza Sikova. Earnings, Denisa, let's start with 7 00:00:26,000 --> 00:00:28,600 Speaker 1: the one that's coming on Thursday, a pretty big bell 8 00:00:28,640 --> 00:00:33,120 Speaker 1: weather on economic activity. What are we expecting from FedEx? 9 00:00:33,680 --> 00:00:37,240 Speaker 3: FedEx definitely a big one. We actually had a great 10 00:00:37,280 --> 00:00:40,600 Speaker 3: story this week on the termino. FedEx has eclipsed their 11 00:00:41,159 --> 00:00:45,400 Speaker 3: rival ups and it has become the largest US parcel 12 00:00:45,479 --> 00:00:48,640 Speaker 3: carrio by market value for the first time. Definitely an 13 00:00:48,720 --> 00:00:52,080 Speaker 3: interesting thing going into the earnings. What we're seeing for 14 00:00:52,120 --> 00:00:54,920 Speaker 3: this earning season is that the company raised the low 15 00:00:55,080 --> 00:00:58,720 Speaker 3: end of its full yer adjusted EPs, so now current 16 00:00:58,840 --> 00:01:02,760 Speaker 3: is about seventeen doors and eighty cents. But it increased 17 00:01:02,760 --> 00:01:06,320 Speaker 3: the full year revenue growth range to five six percent, 18 00:01:06,760 --> 00:01:10,280 Speaker 3: so definitely some optimism there. The company is actually up 19 00:01:10,560 --> 00:01:13,800 Speaker 3: twenty four percent this year. The ticker, of course, is 20 00:01:14,200 --> 00:01:18,400 Speaker 3: FDx for FedEx. This has been the latest sign that 21 00:01:18,440 --> 00:01:21,560 Speaker 3: the company's management has won investors over with plans to 22 00:01:21,640 --> 00:01:25,200 Speaker 3: trim costs, boost margins, and spin off its freight business. 23 00:01:25,240 --> 00:01:27,839 Speaker 3: I'm sure investors will be looking for all that. Another 24 00:01:27,920 --> 00:01:32,120 Speaker 3: interesting metric analyst we're expecting is FedEx is expected to 25 00:01:32,160 --> 00:01:36,119 Speaker 3: face approximately six hundred million headwinds in the second half 26 00:01:36,160 --> 00:01:38,600 Speaker 3: of the year. About two hundred and sixty five million 27 00:01:38,680 --> 00:01:42,640 Speaker 3: are attributed to higher variable compensation. So that's one interesting 28 00:01:42,800 --> 00:01:46,600 Speaker 3: number that could perhaps way on the super positive outlook 29 00:01:46,600 --> 00:01:47,639 Speaker 3: going into the earning season. 30 00:01:47,760 --> 00:01:50,040 Speaker 1: Yeah, to your point, I mean, the outlook has been 31 00:01:50,240 --> 00:01:53,360 Speaker 1: strong and this stock has been on a tear as well. 32 00:01:53,520 --> 00:01:56,920 Speaker 1: Does that set the bar even higher for FedEx to outperform? 33 00:01:57,400 --> 00:01:57,919 Speaker 4: For sure? 34 00:01:57,960 --> 00:02:02,240 Speaker 3: And obviously we're in very high market volativity. Reporting even 35 00:02:02,280 --> 00:02:05,120 Speaker 3: just the basic earnings reports in the current marketing environment 36 00:02:05,200 --> 00:02:08,519 Speaker 3: is hard. Obviously, we talked about ups and the FedEx competition, 37 00:02:08,639 --> 00:02:12,400 Speaker 3: and investors have been reacting way more possibly to FedEx 38 00:02:12,440 --> 00:02:15,360 Speaker 3: and have been quite punishing to EPs. So I'm sure 39 00:02:15,400 --> 00:02:18,080 Speaker 3: those tides could turn quickly, But for now, you know, 40 00:02:18,280 --> 00:02:19,639 Speaker 3: up more than twenty percent this year. 41 00:02:19,840 --> 00:02:21,720 Speaker 1: Yeah, on a tair, like we say, and a day 42 00:02:21,800 --> 00:02:25,239 Speaker 1: before FedEx we're going to get results from Macy's on Wednesday. 43 00:02:25,360 --> 00:02:28,600 Speaker 1: Of course, we saw this stock drop after Coals reported 44 00:02:28,639 --> 00:02:31,160 Speaker 1: its results this past week, So what should we expect 45 00:02:31,200 --> 00:02:32,720 Speaker 1: from Macy's this week? 46 00:02:32,960 --> 00:02:36,000 Speaker 3: Quite the opposite story on Macy's. The company is down 47 00:02:36,160 --> 00:02:38,600 Speaker 3: twenty two percent this year. Of course, the ticker is 48 00:02:39,720 --> 00:02:43,560 Speaker 3: the last time reported they reported earning, shares declined rapidly 49 00:02:43,919 --> 00:02:47,280 Speaker 3: their forecasts. Their profit forecast for the quarter was disappointing, 50 00:02:47,760 --> 00:02:51,320 Speaker 3: even though the earnings reports was pretty solid. What we 51 00:02:51,639 --> 00:02:55,040 Speaker 3: expected this time is net sales are projected to be 52 00:02:55,120 --> 00:02:58,800 Speaker 3: around seven point five billion. Comparable sales are expected to 53 00:02:58,880 --> 00:03:03,200 Speaker 3: increase about one hundred two percent, potentially exceeding the consensus. 54 00:03:03,280 --> 00:03:07,639 Speaker 3: We're obviously coming into this earning system with pretty bearish 55 00:03:07,880 --> 00:03:10,360 Speaker 3: pricing of the company. Blooming Dels is expected to be 56 00:03:10,400 --> 00:03:14,240 Speaker 3: a strong performance. Sales are projected to rise approximately seven percent. 57 00:03:14,600 --> 00:03:17,560 Speaker 3: Everyone will looking for the earning scoll. It's expected to 58 00:03:17,600 --> 00:03:21,000 Speaker 3: focus on the progress of its makeover. And one thing 59 00:03:21,040 --> 00:03:23,480 Speaker 3: we've been talking a lot about is the potential sex 60 00:03:23,480 --> 00:03:26,200 Speaker 3: store acquisition, so I'm sure everyone will be listening about 61 00:03:26,200 --> 00:03:26,760 Speaker 3: that as well. 62 00:03:26,880 --> 00:03:31,240 Speaker 1: Oh definitely, that's one to scoop up after their bankruptcy 63 00:03:31,280 --> 00:03:34,840 Speaker 1: for sure, and before both those names report Deny. So 64 00:03:34,840 --> 00:03:37,960 Speaker 1: we're going to hear from Lulu Lemon on Tuesday. Talk 65 00:03:38,040 --> 00:03:41,840 Speaker 1: about struggles. This company seems to exemplify it. 66 00:03:42,160 --> 00:03:45,200 Speaker 3: Yeah, the company has really suffered a lot, anything from 67 00:03:45,320 --> 00:03:48,400 Speaker 3: just so many scandals about different leggings and whether they're 68 00:03:48,440 --> 00:03:52,080 Speaker 3: transparent or not, to just kind of broader challenges. Lul 69 00:03:52,200 --> 00:03:57,160 Speaker 3: Lemon stocks are down almost seventy percent since the start 70 00:03:57,160 --> 00:04:01,119 Speaker 3: of twenty twenty four. Activist investor Elliott Investment has amassed 71 00:04:01,120 --> 00:04:03,840 Speaker 3: a more than one billion stake in the company. We 72 00:04:03,960 --> 00:04:07,600 Speaker 3: had the company founder, Chip Wilson stepping up his campaign 73 00:04:07,640 --> 00:04:10,480 Speaker 3: against the company's board in the midst of search of 74 00:04:10,520 --> 00:04:14,160 Speaker 3: a new CEO. So we have all this tension going 75 00:04:14,400 --> 00:04:17,880 Speaker 3: into the earning season. Of course, the ticker is Lulu 76 00:04:18,360 --> 00:04:22,560 Speaker 3: lul Lemon updated guidance engineering indicating that net revenue and 77 00:04:22,640 --> 00:04:25,960 Speaker 3: diluted earnings per share for the fourth quarter will be 78 00:04:26,000 --> 00:04:29,280 Speaker 3: towards the higher ends, so definitely some optimism there. They 79 00:04:29,320 --> 00:04:31,680 Speaker 3: expect between three point five billion and a little bit 80 00:04:31,800 --> 00:04:35,880 Speaker 3: higher than this. Tariff risks, which what everyone has been 81 00:04:35,920 --> 00:04:39,760 Speaker 3: looking at, unless you're saying that tariff risks have been reduced, 82 00:04:39,760 --> 00:04:41,279 Speaker 3: so that could support the company. 83 00:04:41,720 --> 00:04:43,240 Speaker 4: But we have that CEO Search. 84 00:04:43,360 --> 00:04:45,840 Speaker 3: We have all those candles this year, so it's a 85 00:04:45,920 --> 00:04:48,880 Speaker 3: high bar for investors to be impressed. 86 00:04:49,040 --> 00:04:51,560 Speaker 1: Yeah, you know for all these companies, DENIZI you might 87 00:04:51,640 --> 00:04:54,680 Speaker 1: think that there's a risk around tariffs as well as 88 00:04:54,880 --> 00:04:57,440 Speaker 1: you know, some of the geopolitical risk that we're seeing 89 00:04:57,440 --> 00:04:59,720 Speaker 1: on the war in the Middle East as well. I mean, 90 00:04:59,760 --> 00:05:01,880 Speaker 1: how all that play out into some of these earnings 91 00:05:01,880 --> 00:05:03,040 Speaker 1: that we're expecting this way. 92 00:05:03,480 --> 00:05:05,240 Speaker 4: For sure, that's adding a lot of tension. 93 00:05:05,320 --> 00:05:08,200 Speaker 3: I feel don't how tariffs has taken a step back, 94 00:05:08,240 --> 00:05:10,719 Speaker 3: and everyone's worried about others thing. The consumers are not 95 00:05:10,760 --> 00:05:14,000 Speaker 3: doing so well. For example, Macy's in their last reports 96 00:05:14,080 --> 00:05:16,240 Speaker 3: it was all about the consumer. They said that those 97 00:05:16,320 --> 00:05:19,600 Speaker 3: low income consumers are stepping back, but still they're seeing 98 00:05:19,680 --> 00:05:21,680 Speaker 3: a lot of support from their mido income to high 99 00:05:21,720 --> 00:05:24,880 Speaker 3: income consumer. And I'm sure a lot of those brands 100 00:05:24,880 --> 00:05:27,400 Speaker 3: and companies we talked about are dealing with the same thing. 101 00:05:27,560 --> 00:05:30,400 Speaker 4: Are our low income customers coming. 102 00:05:30,200 --> 00:05:34,599 Speaker 3: Back, our middle income and high income customers spending enough to. 103 00:05:36,240 --> 00:05:38,440 Speaker 4: Compensate for that laws of low income spending? 104 00:05:40,320 --> 00:05:44,360 Speaker 2: The stock Mover's report from Bloomberg Radio. Check back with 105 00:05:44,440 --> 00:05:47,039 Speaker 2: us throughout the day for the latest roundup of companies 106 00:05:47,080 --> 00:05:50,200 Speaker 2: making news on Wall Street and for the latest market 107 00:05:50,200 --> 00:05:54,679 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. 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