Earnings Previews: Broadcom, DocuSign, Manchester United

The three major U.S. equity indexes closed lower again Tuesday. The Dow Jones industrials ended the day down by 1.03%, the S&P 500 closed 1.44% lower and the Nasdaq pulled back 2.00%. Ten of 11 sectors closed lower, with energy (−2.65%) and communications services (−2.57%) falling the most. Utilities (0.66%) posted Tuesday’s only gain.

The U.S. Energy Information Administration (EIA) reported Wednesday morning that petroleum inventories fell by 5.19 million barrels last week on top of a 12.58 million barrel decline in the prior week. Domestic production rose to 12.2 million barrels per day, up 7.7% in one year. On Friday, the Bureau of Labor Statistics will issue its report on the producer price index (PPI) for November. Economists expect the index to rise by 0.2%, as it did in October. Core PPI is expected to rise by 0.2% compared to no month-over-month increase in October.

The three major indexes traded mixed after the first hour of Wednesday’s regular session.

After U.S. markets closed Tuesday, MongoDB reported adjusted earnings per share (EPS) of $0.23, while the consensus estimate had called for a loss per share of $0.17. Revenue beat the estimate by about 9.5%, and the company issued upside guidance for its fourth quarter. The stock traded up more than 17% Wednesday morning.

Toll Brothers also beat estimates on the top and bottom lines and issued guidance for the first quarter and all of fiscal 2023. For the year, the homebuilder expects sales of 8,000 to 9,000 units, with a gross margin of 27% and an average delivered price of $965,000 to $985,000 per unit. Shares traded up 5.6%.

SentinelOne reported better-than-expected revenue and a smaller-than-expected loss per share. Shares traded down about 1% Wednesday morning.

Stitch Fix missed consensus estimates for both EPS and revenue. Active client totals also fell. The company also issued downside revenue guidance for the current (second) quarter but raised its outlook for adjusted EBITDA. The stock traded up 3.8%.

Before markets opened Wednesday, Academy Sports beat the consensus EPS estimate but missed on revenue. The retailer issued mixed guidance for fiscal 2023, raising its EPS outlook above consensus but lowering the top end of revenue guidance below the consensus forecast. Shares traded up nearly 13.8% Wednesday.

Campbell Soup beat estimates on both the top and bottom lines. The venerable food producer also raised full-year EPS and revenue guidance beyond consensus estimates. Shares traded up 4.8%.

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Ciena, Express and GameStop are set to report quarterly results late Wednesday or early Thursday. Look for Chewy, Costco, Li Auto and Lululemon to post quarterly results later on Thursday or Friday morning.

Here is a preview of three more companies expected to report quarterly results after U.S. markets close on Thursday.

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