Economic reports in the week ahead
The earnings calendar is almost bare in the week ahead, although reports from FedEx (NYSE:FDX) and Nike (NYSE:NKE) could resonate across their respective sectors. The FDA’s Vaccines and Related Biological Products Advisory Committee will review the safety and efficacy data package for Moderna’s (NASDAQ:MRNA) mRNA-1273 COVID-19 vaccine on December 17 and the Federal Reserve will be in the spotlight with a FOMC announcement on December 16 and stress tests on big banks arriving after the close on December 18. The euphoria from investors over recent IPOs and SPAC will also be closely watched for any signs of cracking.
HEXO (NYSE:HEXO) on December 14; American Outdoor Brands (NASDAQ:AOUT) on December 15; Lennar (NYSE:LEN) on December 16; General Mills (NYSE:GIS), Sanderson Farms (NASDAQ:SAFM), Rite Aid (NYSE:RAD) and FedEx (FDX) on December 17; Darden Restaurants (NYSE:DRI), Winnebago (NYSE:WGO) and Nike (NKE) on December 18.
Consensus estimates on FedEx are for the shipper to report revenue of $19.40B and EPS of $3.94. Bank of America expects FDX to beat on both lines. “We see additional upside this quarter driven by domestic and international Express volumes, which were trending 700 bps ahead of our prior estimates, based on Memphis air cargo data, prior to our upticks yesterday,” previews BofA. For F2021 and F2022, the firm forecasts EPS of $15.95 and $17.05, paving the way for a potential $20 EPS outlook over the medium term. FedEx and rival UPS (NYSE:UPS) are seen as beneficiaries from COVID-19 vaccine shipments of as much as $300M domestically and much more internationally.
Oriental Culture Holdings (OCG) is expected to price its IPO on December 14, while Upstart Holdings (UPST) and Context Logic’s (WISH) are slated to price their IPOs on December 15. Partial IPO lockups expire on JFrog (NASDAQ:FROG), VerifyMe (NASDAQ:VRME) and Snowflake (NYSE:SNOW) on December 15. Quiet periods expire during the week on Olema Pharma (NASDAQ:OLMA), Neogames (NASDAQ:NGMS) and Telos (NASDAQ:TLS). It also week two of trading on DoorDash (NYSE:DASH) and Airbnb (NASDAQ:ABNB) after both made dizzying runs higher in their debuts.
British grocer J Sainsbury (OTCQX:JSNSF) has invited potential bidders to submit first-round offers for its banking unit next week. The M&A rumor mill was stirred up quite a bit heading into next week when The Information laid out Dropbox (NASDAQ:DBX), Box (NYSE:BOX), New Relic (NYSE:NEWR) and MongoDB (NASDAQ:MDB) as potential high-profile takeover targets for a bigger company like Microsoft, Oracle, IBM or Dell.
There is a FDA Cardiovascular and Renal Drugs AdCom meeting to discuss sNDA for Novartis’ Entresto. FDA action dates arrive on MacroGenics’ (NASDAQ:MGNX) Margetuximab on December 18 and for FibroGen (NASDAQ:FGEN) and AstraZeneca’s (NASDAQ:AZN) Roxadustat for chronic kidney disease on December 19.
Caterpillar (NYSE:CAT) should be out with its monthly machinery sales report during the first few days of the week and the trucking sector will be on watch to see if the Cass Freight Index can record a positive reading for the second straight month. In the banking sector, credit card chargeoff reports are due in from American Express (NYSE:AXP), Bank of America (NYSE:BAC), Citigroup (NYSE:C), Capital One (NYSE:COF), Discover Financial (NYSE:DFS) and JPMorgan (NYSE:JPM).
Analyst meetings and business updates: Algonquin Power & Utilities (NYSE:AQN), Phototronics (NASDAQ:PLAB) and Phathom Pharmaceuticals (NASDAQ:PHAT) will hold investor day events on December 14. Credit Suisse (NYSE:CS) has an investor update scheduled for December 15 and Eli Lilly (NYSE:LLY) will post its 2021 financial guidance on the same day. Lennox International (NYSE:LII) and Bloom Energy (NYSE:BE) have investors events on December 16. Centene Corporation (NYSE:CNC) is scheduled to provide an update at its 2021 Financial Guidance and Investor Meeting on December 18. Due to COVID-19, Centene will adopt a hybrid presentation approach, which will include the use of pre-recorded management presentations with live Q&A sessions.
Conferences rundown: The conference schedule for the week ahead includes the Cowen Networking Summit, LD Micro Main Conference, DA Davidson Virtual Semicap, Laser and Optical Conference, Cantor Fitzgerald Virtual Cannabis MSO Summit, Oppenheimer 5G Summit, BofA Securities 2020 Virtual Hydrogen Conference, MKM Partners Virtual Conference: The Road Ahead, Preparation for 2021 and the JMP Securities Hematology Summit.
Chinese electric vehicles Nio (NYSE:NIO), Li Auto (NASDAQ:LI) and XPeng (NYSE:XPEV) make the cover this week, although the recommendation to investors is to sell due to rich valuation. “XPeng trades for more than 15 times 2021 estimated sales. NIO fetches 11 times sales, and Li, about 10 times sales. None will have substantial profits for at least a couple more years,” reads the warning. On the other side of the ledger, Warren Buffett’s Mercury General (NYSE:MCY) is called attractive and in the exploding SPAC world – Ajax (NYSE:AJAX), Omnichannel (NYSE:OCA), Dragoneer Growth Opportunities (OCA), Altimeter Growth (AGC) and Ribbit Leap (NYSE:LEAP) are said to stand out for having seasoned industry managers in place.
Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital