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