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Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look. Now, it's some stocks making news
Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg
Speaker 1: News Cross asset Reporterdnitza Sikova. Earnings, Denisa, let's start with
Speaker 1: the one that's coming on Thursday, a pretty big bell
Speaker 1: weather on economic activity. What are we expecting from FedEx?
Speaker 3: FedEx definitely a big one. We actually had a great
Speaker 3: story this week on the termino. FedEx has eclipsed their
Speaker 3: rival ups and it has become the largest US parcel
Speaker 3: carrio by market value for the first time. Definitely an
Speaker 3: interesting thing going into the earnings. What we're seeing for
Speaker 3: this earning season is that the company raised the low
Speaker 3: end of its full yer adjusted EPs, so now current
Speaker 3: is about seventeen doors and eighty cents. But it increased
Speaker 3: the full year revenue growth range to five six percent,
Speaker 3: so definitely some optimism there. The company is actually up
Speaker 3: twenty four percent this year. The ticker, of course, is
Speaker 3: FDx for FedEx. This has been the latest sign that
Speaker 3: the company's management has won investors over with plans to
Speaker 3: trim costs, boost margins, and spin off its freight business.
Speaker 3: I'm sure investors will be looking for all that. Another
Speaker 3: interesting metric analyst we're expecting is FedEx is expected to
Speaker 3: face approximately six hundred million headwinds in the second half
Speaker 3: of the year. About two hundred and sixty five million
Speaker 3: are attributed to higher variable compensation. So that's one interesting
Speaker 3: number that could perhaps way on the super positive outlook
Speaker 3: going into the earning season.
Speaker 1: Yeah, to your point, I mean, the outlook has been
Speaker 1: strong and this stock has been on a tear as well.
Speaker 1: Does that set the bar even higher for FedEx to outperform?
Speaker 4: For sure?
Speaker 3: And obviously we're in very high market volativity. Reporting even
Speaker 3: just the basic earnings reports in the current marketing environment
Speaker 3: is hard. Obviously, we talked about ups and the FedEx competition,
Speaker 3: and investors have been reacting way more possibly to FedEx
Speaker 3: and have been quite punishing to EPs. So I'm sure
Speaker 3: those tides could turn quickly, But for now, you know,
Speaker 3: up more than twenty percent this year.
Speaker 1: Yeah, on a tair, like we say, and a day
Speaker 1: before FedEx we're going to get results from Macy's on Wednesday.
Speaker 1: Of course, we saw this stock drop after Coals reported
Speaker 1: its results this past week, So what should we expect
Speaker 1: from Macy's this week?
Speaker 3: Quite the opposite story on Macy's. The company is down
Speaker 3: twenty two percent this year. Of course, the ticker is
Speaker 3: the last time reported they reported earning, shares declined rapidly
Speaker 3: their forecasts. Their profit forecast for the quarter was disappointing,
Speaker 3: even though the earnings reports was pretty solid. What we
Speaker 3: expected this time is net sales are projected to be
Speaker 3: around seven point five billion. Comparable sales are expected to
Speaker 3: increase about one hundred two percent, potentially exceeding the consensus.
Speaker 3: We're obviously coming into this earning system with pretty bearish
Speaker 3: pricing of the company. Blooming Dels is expected to be
Speaker 3: a strong performance. Sales are projected to rise approximately seven percent.
Speaker 3: Everyone will looking for the earning scoll. It's expected to
Speaker 3: focus on the progress of its makeover. And one thing
Speaker 3: we've been talking a lot about is the potential sex
Speaker 3: store acquisition, so I'm sure everyone will be listening about
Speaker 3: that as well.
Speaker 1: Oh definitely, that's one to scoop up after their bankruptcy
Speaker 1: for sure, and before both those names report Deny. So
Speaker 1: we're going to hear from Lulu Lemon on Tuesday. Talk
Speaker 1: about struggles. This company seems to exemplify it.
Speaker 3: Yeah, the company has really suffered a lot, anything from
Speaker 3: just so many scandals about different leggings and whether they're
Speaker 3: transparent or not, to just kind of broader challenges. Lul
Speaker 3: Lemon stocks are down almost seventy percent since the start
Speaker 3: of twenty twenty four. Activist investor Elliott Investment has amassed
Speaker 3: a more than one billion stake in the company. We
Speaker 3: had the company founder, Chip Wilson stepping up his campaign
Speaker 3: against the company's board in the midst of search of
Speaker 3: a new CEO. So we have all this tension going
Speaker 3: into the earning season. Of course, the ticker is Lulu
Speaker 3: lul Lemon updated guidance engineering indicating that net revenue and
Speaker 3: diluted earnings per share for the fourth quarter will be
Speaker 3: towards the higher ends, so definitely some optimism there. They
Speaker 3: expect between three point five billion and a little bit
Speaker 3: higher than this. Tariff risks, which what everyone has been
Speaker 3: looking at, unless you're saying that tariff risks have been reduced,
Speaker 3: so that could support the company.
Speaker 4: But we have that CEO Search.
Speaker 3: We have all those candles this year, so it's a
Speaker 3: high bar for investors to be impressed.
Speaker 1: Yeah, you know for all these companies, DENIZI you might
Speaker 1: think that there's a risk around tariffs as well as
Speaker 1: you know, some of the geopolitical risk that we're seeing
Speaker 1: on the war in the Middle East as well. I mean,
Speaker 1: how all that play out into some of these earnings
Speaker 1: that we're expecting this way.
Speaker 4: For sure, that's adding a lot of tension.
Speaker 3: I feel don't how tariffs has taken a step back,
Speaker 3: and everyone's worried about others thing. The consumers are not
Speaker 3: doing so well. For example, Macy's in their last reports
Speaker 3: it was all about the consumer. They said that those
Speaker 3: low income consumers are stepping back, but still they're seeing
Speaker 3: a lot of support from their mido income to high
Speaker 3: income consumer. And I'm sure a lot of those brands
Speaker 3: and companies we talked about are dealing with the same thing.
Speaker 4: Are our low income customers coming.
Speaker 3: Back, our middle income and high income customers spending enough to.
Speaker 4: Compensate for that laws of low income spending?
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