5 Companies That Could Beat Earnings Estimates This Week: Rite Aid, BlackBerry And More

The shortened holiday week will see less public offerings and earnings from public companies. The week can still bring plenty of trading opportunities with headlines and catalysts. Several public companies are still reporting earnings this week, which could be worth putting on investors’ radar.

Rite Aid: Pharmacy company Rite Aid Corp RAD reports third quarter financial results before the market open on Tuesday. Analysts are expecting the company to report $6.32 billion in revenue, according to Benzinga Pro. The company reported first quarter revenue of $6.16 billion and second quarter revenue of $6.11 billion. Prior to missing street estimates for the first and second quarter, Rite Aid had beat revenue estimates from the street in six straight quarters.

Rivals CVS Health CVS and Walgreens Boots Alliance WBA reported earnings in November and October respectively and saw strong beats.

The company raised its adjusted EBITDA guidance on the last quarterly report and could see strong financials in the third quarter.

General Mills: Packaged food company General Mills GIS reports second quarter financial results before Tuesday's market open. The company saw a 4% year-over-year increase in sales to $4.5 billion in the first quarter. Analysts are expecting the company to report second quarter revenue of $4.84 billion versus $4.72 billion in the prior year’s period, a 2.5% increase.

The company is working on its Accelerate strategy to drive shareholder returns and profits, this includes acquisitions and divestitures. The food company could update further on this strategy with its earnings report.

General Mills said earlier this year that consumer behaviors are leading to increased demand for food at home, which plays into its favor across several categories.

The company has beat revenue estimates from the street in the last six quarters, a streak that could continue this week.

BlackBerry: Software company BlackBerry BB reports third quarter financial results after the market close on Tuesday. Well-known for years as a smartphone company, BlackBerry now generates money from licensing and various sectors. The company’s most recent quarter saw Internet of Things sector revenue of $40 million, cybersecurity revenue of $120 million and licensing revenue of $15 million.

Blackberry said all its business lines beat expectations in the most recent quarter. The company’s second quarter revenue of $175 million beat the street estimate by 7% and marked two straight quarterly revenue beats.

BlackBerry announced it made John Giamatteo, the former President at McAfee, its President of cybersecurity. Demand for both segments could continue for the company with a strong quarterly report and guidance.

The street is estimating third quarter revenue of $177.3 million.

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CarMax: The nation’s largest retailer of used autos, CarMax Inc KMX could continue to see strong demand with a shift to increased market share for online car buying and selling. The company has beat street estimates in nine of the last ten quarters.

The street estimate for CarMax’s third quarter is $7.46 billion in revenue, which would be down from the $7.7 billion and $8.0 billion reported in the first and second quarters, respectively. CarMax reports third quarter financial results Wednesday before market open.

The company has two back-to-back double-digit beats for revenue versus street consensus, including the company’s record $8 billion in the second quarter, which was up 48.7% year-over-year.

Carmax bought over 364,000 vehicles in the second quarter, up 59% year-over-year. Assuming strong demand from consumers, the increased inventory could help boost the company’s third quarter and lead to a beat.

Paychex: Leading payroll company Paychex Inc PAYX reports second quarter financial results before market open Wednesday. The street is estimating second quarter revenue of $1.06 billion. The company has turned in nine straight revenue beats versus street estimates.

Paychex reported first quarter revenue growth of 16% year-over-year, and sees full year revenue increasing 8% year-over-year. If the company’s second quarter looks closer to the first quarter for growth and operations, Paychex could bump up its guidance.

Paychex reported second quarter revenue of $983.7 million in last year’s second quarter.