Market Minute: Earnings Previews: FIVE, DRI, PDD
Five Below (FIVE) reports after the bell today, while Darden Restaurants (DRI) and PDD (formerly Pinduoduo) report tomorrow morning.
Zacks expects Five Below to report EPS of $3.38 (-7.4% year-over-year) and revenue of $1.38 billion (+3% year-over-year). The stock has had a rough time, down over 60% over 52 weeks and 30% since the start of this year. The options market is implying a $2 move, or about 3% up or down. After the last Retail Sales report, Schwab Network guests emphasized the consumer shift towards cheaper alternatives, which could benefit FIVE.
Looking to Thursday morning, Darden Restaurants (DRI) is up 9% over the last 52 weeks but basically flat for the year despite making an all-time high early this month. Zacks anticipates EPS of $2.81 (+7%) and revenue of $3.21 billion (+8%.) The parent company of Olive Garden, LongHorn Steakhouse, Cheddar’s & more, same-restaurant sales will be an important metric to watch – as well as the makeup of their consumers. Are more high earners choosing Darden like they’re choosing Walmart (WMT)? Or are consumers shying away from eating out? The options market is implying a $11 move, or about 6% either way.
Lastly, PDD Holdings (PDD) is up 2% over the last year but has rallied in 2025, up 31% since January 1. Keep in mind that PDD is a Chinese company and is listed as an ADR, which trades differently from U.S. equities. The parent company of ultra-cheap Temu, it may be able to get around tariffs due to the low value of individual packages. Zacks estimates EPS of $2.56 (+6.7%) and revenue of $15.68 billion (+25%); the options market implies an $10 move, or around 8%.
With big swings possible for all three names, investors can take advantage of high volatility but should be aware of risk. Tune into the Schwab Network for earnings breakdowns and more!
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