Tuesday (December 21)

IN THE LIGHT: GENERAL MILLS

General Mills, based in Minneapolis, Minnesota, is expected to post tax profit of $ 1.05 per share in the second quarter, down from $ 1.06 per share in the same period a year ago.

Revenue for the consumer food maker is expected to decline more than 2% year-on-year to about $ 4.8 billion, from $ 4.72 billion a year earlier. In the past two years, the company has only missed its earnings per share estimate once.

“While growth abounded for domestic food manufacturers as consumers rushed to stock up on essentials as COVID-19 took hold, it has not been a pure panacea for this intensely space. competitive. And we believe the future trajectory depends on which of the trends that have taken center stage in recent years will continue, ”said Erin Lash, Area Director at Morningstar.

“In this context, as we recognize that many consumers have honed their cooking skills while taking shelter at home, as busy schedules resume, we believe that food consumption will return in such a way that greater part of the budgets are spent outside the home, in accordance with the pre-pandemic period. levels. Additionally, while grocers have simplified shelving assortments to maximize productivity during peak demand, we believe variety will return as supply chains standardize.

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Wednesday (December 22)

IN THE SPOTLIGHT: CARMAX

Used-car retailer CarMax is expected to report third-quarter tax profit of $ 1.49 per share, representing about 5% year-over-year growth, from $ 1.42 per share at the same time a year ago.

The Richmond, Va.-Based used car giant is reportedly showing year-over-year revenue growth of nearly 50% to $ 7.63 billion in the quarter ended November 2021. Over Over the past two years, the company has exceeded expectations for earnings per share with a surprise average of over 80%.

“Based on historical and current data, we expect to see growth in used car sales as we move forward, particularly given the shortage of new car inventory, manufacturers removing incentives and potential tailwinds from de-urbanization, public transport, commuting. sharing and travel. We expect CarMax (KMX) to successfully execute its omnichannel strategy, providing consumers with online and physical reseller options, ”noted Adam Jonas, equity analyst at Morgan Stanley.

“KMX has consistently generated over $ 2,000 worth of GPUs and has one of the strongest balance sheets among dealers. Over the long term, we see strong same-store sales growth alongside new store openings, allowing KMX to achieve operational leverage, with the benefit of omnichannel deployment. “

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Thursday (December 23)

No major profit is expected for the release.

Friday (December 24)

New York Stock Exchange and Nasdaq celebrate Christmas, markets will be closed on Friday.