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Earnings Preview For The Week Of April 5

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Earnings Preview For The Week Of April 5

After a shortened Easter week, both the Dow Jones Industrial Average and the S&P 500 are sitting at all-time highs as we enter the second quarter of 2021. Stock markets bounced back amid encouraging macroeconomic cues that raised hopes of faster global recovery with the multi-billion-dollar development plan announced by the government that is focused on building a greener infrastructure. However, jobless claims stayed elevated last week as the pandemic continues to weigh heavily on the labor market.

This week, several popular companies will announce their  earnings results with Paychex (NASDAQ: PAYX) on Tuesday, followed by Simply Good Foods (NASDAQ: SMPL)  Constellation Brands (NYSE: STZ) and Levi Strauss (NYSE: LEVI).

Constellation Brands

On Thursday, the alcoholic-beverage giant wrapped up its fiscal year with a fourth-quarter earnings report and investors are hoping to hear good news. During its last reported quarter, the giant posted a surprisingly strong sales growth as robust home beer consumption managed to offset the impact of closed bars and restaurants. Along with Boston Beer, Constellation Brands accounted for most of the industry's growth last year.

Simply Good Foods

Investors are expecting the health-focused food and snack specialist to post strong growth after the recent acquisition of the Quest Nutrition franchise, with sales expected at around $230 million. Detailed organic sales estimates are expected as earlier in January, the company said that growth was in the mid-single digits.

For the stock to keep rallying, Simply Good Foods will need to show steady demand in its Atkins and Quest brands is persevering even as the threat of the pandemic is withdrawing. What investors are hoping for is that profitability will improve thanks to the higher sales base. Imported beer brands like Modelo and Pacifico are expected to report strong growth figures, along with modest success in Corona hard-seltzer launch that is directly up against Boston Beer's Truly franchise. Although sales gains are expected to slow down compared to the previous quarter because of shipping and inventory shifts, the consumption metric should remain solidly positive.

Levi Strauss

On Thursday afternoon, jeanswear specialist Levi Strauss will announce its fiscal first-quarter results and its outlook depends on the brand further differentiating its small but quickly growing e-commerce platform. The legendary denim company is also working at expanding its core business into complementary categories. Progress in these two areas might soften the blow from weak sales which are expected to fall further by 17% this quarter after last quarter's 12% drop. The rally over the recent months shows that investors are hoping for a positive annual outlook following last year's 23% decline in sales.

This article is not a press release and is contributed by IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post This Week's Earnings Preview appeared first on IAM Newswire.

 

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