Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look now at some stocks making news
Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg
Speaker 1: Equities reporter Alexandra Semenova, getting us ready for some stocks
Speaker 1: that are going to make news on earnings, starting this Tuesday.
Speaker 2: With Nike.
Speaker 1: You know, alex that the struggle for this company has
Speaker 1: been real.
Speaker 2: Yeah, Nathan.
Speaker 3: It is going to be an important company for investors
Speaker 3: to watch, giving its role as a retail and consumer bellweather.
Speaker 3: Its results will test whether its long promise turnaround is
Speaker 3: gaining traction or not. So all in all, Nike anticipates
Speaker 3: low single digit revenue declines in a gross margin contraction
Speaker 3: year over year for the fiscal third quarter, and analysts
Speaker 3: are also anticipating soft global sales inventum through March. China,
Speaker 3: of course, remains the swing factor for this company. Its
Speaker 3: turnaround still runs through China, where sales have been deeply
Speaker 3: negative and remain a major drag on both revenue and earnings.
Speaker 3: So any sign of stabilization for that sector, even something
Speaker 3: that is just less bad could shifts sentiment quickly. Sales
Speaker 3: in China are estimated to be down sixteen percent, with
Speaker 3: operating margin down five hundred basis points, and in North
Speaker 3: America there are early signs of improvement helping offset some
Speaker 3: of the weakness in direct to consumer and international markets.
Speaker 3: When it comes to the stock reaction that people anticipate
Speaker 3: on the earnings, options markets are implying a seven point
Speaker 3: six percent share move post earning, so going to be
Speaker 3: interesting to see the market reaction to its results. And
Speaker 3: looking at some of the Wall Street analyst reactions ahead
Speaker 3: of the reports, UBS lowered its price target on the company.
Speaker 3: Deutsche Bank did as well.
Speaker 1: Okay, so it sounds like the bar is pretty low
Speaker 1: when it comes to Nike, right, I mean, if they
Speaker 1: can come out and you know, beat earnings, does that
Speaker 1: imply that we could see a pretty significant boom for Nike.
Speaker 3: It certainly does, you know, indicate that if they do
Speaker 3: surprise to the upside, if they say anything positive, then
Speaker 3: we could see a pretty strong reaction from the results.
Speaker 3: Hence that nearly eight percent move that investors are pricing in.
Speaker 1: Also on Tuesday, we hear from beyond Meat or are
Speaker 1: they calling themselves beyond now? Did they drop the meat
Speaker 1: from that? I can't remember, Yeah, I can't remember.
Speaker 3: It's hard to keep up. So they have a new
Speaker 3: overhand that we are monitoring, which is accounting and control issues.
Speaker 3: So they delayed their earnings results after identifying accounting errors
Speaker 3: and material weakness tied to inventory. That's raised questions about
Speaker 3: its internal controls and for investors now the focus isn't
Speaker 3: just on the fundamentals from the earnings report, but about
Speaker 3: governance and execution risk as well, depending on what they
Speaker 3: say about those issues. So the company had found errors
Speaker 3: and it's previously issued financial statements for the first three
Speaker 3: quarters of twenty twenty five. Management had tried to assure
Speaker 3: investors that these aren't material errors and they're going to
Speaker 3: get them fixed pretty quickly. But investors will be keen
Speaker 3: to hear what they say during the earnings call about
Speaker 3: those accounting mishaps. And then on the fundamental side, Beyond
Speaker 3: Me is facing shrinking sales and ongoing losses. The company
Speaker 3: expects preliminary net revenues of about sixty one million for
Speaker 3: the fourth quarter of twenty twenty five. That aligns with
Speaker 3: prior guidance of between sixty million and sixty five million dollars,
Speaker 3: and the company is still expecting to post a loss,
Speaker 3: highlighting how far it remains from any sustained profitability. This comes,
Speaker 3: of course, as consumers just pull back from their product
Speaker 3: due to higher prices, competition from cheaper animal protein, and
Speaker 3: a broader shift toward less processed food.
Speaker 1: Yeah, I mean it's it's got to be tough, just
Speaker 1: from the fact that traditional meats have gotten more expensive
Speaker 1: these days as well, So definitely keeping an eye on
Speaker 1: that stock as well. And then on Thursday we get
Speaker 1: results from ourh I think a lot of us might
Speaker 1: remember this one better is restoration Hardware, but this could
Speaker 1: be really interesting to hear from a furniture maker in
Speaker 1: this environment.
Speaker 3: It certainly will be because this company was kind of
Speaker 3: at the center of some of the tariff volatility last year.
Speaker 3: So our Age is expected to experience sales gains extending
Speaker 3: into twenty twenty six, a positive they are given its
Speaker 3: unique position with high end consumers and a small share
Speaker 3: of the home furnishings market, and sales growth is projected
Speaker 3: to slow a bit to a six quarter low in
Speaker 3: the fiscal fourth quarter falling a slight softening in twenty
Speaker 3: twenty five. Our Age is moving forward with its hospitality
Speaker 3: and international expansion strategies, so investors will be keen to
Speaker 3: hear what updates they have on that. Those of course,
Speaker 3: could lead to stronger market share, but they also involve
Speaker 3: execution risk and concerns still remain about the impact from
Speaker 3: tariffs and any ongoing investment spending. You might remember that
Speaker 3: the company had trimmed its fullier outlook before citing pressures
Speaker 3: from tariffs, and famously, last April, its CEO drew attention
Speaker 3: during the company's earnings call after blurting out a curse
Speaker 3: word watching their stock decline as tariffs were implemented. So
Speaker 3: that's an interesting one to remember, and it's going to
Speaker 3: be really important to hear what they say about tariffs.
Speaker 1: Yeah, a lot of potential headwinds still for all of
Speaker 1: these companies. It sounds like the bar is pretty high
Speaker 1: all around.
Speaker 3: Yeah, I mean, the earnings reports will be a make
Speaker 3: or break moment for equity investors given all the updates
Speaker 3: we're expected to get on the impact of oil prices
Speaker 3: on their businesses and on the continued unwind of tariffs.
Speaker 2: This stock mover's report from Bloomberg Radio. Check back with
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