Three Big Earnings Reports to Watch This Week: Oracle (ORCL), Adobe (ADBE), Kroger (KR)

There are still a few standout earnings reports for traders to watch this week including Oracle (ORCL), Adobe (ADBE), and Kroger (KR).

Oracle, a powerhouse in the digital storage system and cloud computing arenas, reports earnings during the postmarket on Thursday, Sept. 10 alongside Adobe, the software company known for its iconic creative suite including the Photoshop and Illustrator apps. Meanwhile, Kroger, one of the largest grocery chains in the country, will round out the week in the premarket session on Friday, Sept. 11.

Here are things to think about for three of the biggest earnings names this week:

Oracle: The biggest market cap name of the three at $457.3 billion, Oracle is down about 54% from its all-time highs almost a year ago. Share prices have been largely rangebound between roughly the high 130s to around 160 since early August. The most obvious thing traders will be looking for is whether Oracle’s tremendous artificial intelligence data center spending will pay off and transition into revenue gains. Oracle projected AI data center spending to come in at $70 billion this fiscal year, during their last earnings event. Analysts are looking for earnings-per-share of $1.74 against $1.47 year-over-year (+18.4%) and for revenue of $19.14 billion vs. last year’s figure of $14.93 billion (+28.2%). The options market as of the Sept. 11 weekly close showed a possible expected range of about +/-$18 (11%), the lower boundary of which lined up with the aforementioned range lows.

Adobe: The beleaguered software company recently saw a notable recovery from its 52-week lows of 190.12 on Jun. 18, rallying about 40% as of Friday’s close. However, that also factors in a -6.8% one-day plunge on Friday as news broke that its next CEO would be company insider Anil Chakravarthy. The broader question facing software makers as a whole is still how they will grapple with the double-edged sword that is AI, in that it can unleash major productivity boosts, while simultaneously opening the door to extreme competition. Adobe investors in particular likely will be watching how the company plans to transition the 90-plus million “freemium” Creative Cloud users into paid subscriptions. The Street’s expectations are for Adobe EPS of $6.08 compared to $5.31 last year (+14.5%) and for revenue of $6.69 billion vs. $5.99 billion (+11.8%) in the same period. Meanwhile, the options market projects a possible expected move of about +/-$18.25 (7%) for Friday’s expiration, which would take price roughly back up to Thursday’s close before the severe gap down to close last week.

Kroger: Share prices have been trending sideways since the last earnings event on Jun. 18 that resulted in a -8.4% downside swoon to a 52-week low of 54.15 on Jul. 1. Citi recently cut its price target on Kroger to $57 from $61 while keeping a neutral rating. Analysts said they see the company reporting inline 2Q results but also there could be concerns about management cutting guidance amid competitive pressure to cut prices. Expectations for EPS are at $1.05 against $1.04 last year (+0.96%) and for revenue of $34.68 billion compared to $33.94 billion in the same time frame (+2.2%). The +/-$3.3 (5.7%) possible range for Friday’s expiration shown by the options market largely aligns with the rangebound trading that has been in play since the last earnings event between roughly 55 to 61.

For this week's economic and earnings calendars, see Week Ahead: Key Inflation Data, Apple Reveal in Holiday-Shortened Week

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