Equity Briefing: Carnival, Crest Nicholson, Nike, FedEx and Blackberry

UK housebuilder Crest Nicholson reports interim results this morning, Carnival will provide an update later today, and Nike, FedEx and Blackberry are all due to release earnings after US markets close. We explain what to expect.

Stocks (2)

Carnival

Carnival, the largest cruise company in the world, will release a second-quarter trading update this afternoon at 1500 BST (1000 EDT).

The cruise industry has been among the worst-hit by the pandemic and the recovery will be gradual. Eight of Carnival’s brands have now announced plans to resume operations across the US, Caribbean and Europe this year, but it has warned it is taking a ‘gradual, phased-in approach’.

This means the focus is entirely on the outlook. The recovery potential of Carnival has seen its shares rise over 37% since the start of 2021, but they remain well below their pre-pandemic levels.  

Analysts are expecting for business to have picked up compared to the previous three months but for revenue to remain virtually minimal with cruises only just starting to resume. The GAAP net loss is expected to remain broadly flat at $1.86 billion from $1.97 billion the year before, while the adjusted net loss should follow at $1.88 billion.

Crest Nicholson

Beforehand, Crest Nicholson will be releasing interim results covering the six months to the end of April this morning.

The housebuilder was initially disrupted when the pandemic hit but has seen activity improve as time has gone on, partly thanks to construction being allowed to continue during lockdown, the Stamp Duty holiday and the introduction of new 95% mortgages to bring more demand into an already undersupplied market.

Its sale rate jumped to 0.81 in the eight weeks to March 22 from 0.59 in the last financial year, while its order book was over 70% covered compared to just 55% before. Investors will hope it has been able to continue to capitalise on the strong market fundamentals.

Watch for any changes to the outlook after Crest Nicholson raised its full-year guidance in March and said it expected to deliver annual adjusted pretax profit of around £85 million. Notably, it has since said it will book a further £10 million boost to profit after selling its interest in the Longcross film studio last month. That will mark a significant improvement from the £45.9 million profit reported in the last financial year, but still below the £121.1 million reported the year before prior to when the pandemic hit.

Nike, FedEx and Blackberry

A number of stocks will release results after US markets close later today.

Nike will be releasing fourth-quarter results and analysts are expecting revenue to jump to just over $11.00 billion from only $6.31 billion the year before and for it to turn to diluted earnings per share of $0.51 from a $0.51 loss as it comes up against weak comparatives. A strong performance is expected in North America but there are concerns about how sales have fared in China since it was hit by a boycott. Share buybacks are also scheduled to resume.

FedEx will also report fourth-quarter results and Wall Street anticipates revenue will rise to $21.5 billion from $17.4 billion the year before and for adjusted EPS to almost double to $4.99 from $2.53. FedEx has said it expects the boom in demand from the pandemic to be sustainable, but there are concerns about whether it could unwind as stores reopen while rising costs threaten profitability.

We will also have first-quarter results from Blackberry and Wall Street is expecting revenue to fall to $171.25 million from $214.0 million the year before, and for it to turn to a non-GAAP loss per share of $0.05 from earnings of $0.02.

How to trade top stocks

You can trade a variety of stocks with Forex.com by following these four steps:

  1. Open a Forex.com account, or log-in if you’re already a customer.
  2. Search for the company you want to trade in our award-winning platform
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade 

More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.