3 out of 5 companies miss EPS estimates this week: Earnings Scorecard

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Wall Street's major averages closed at record highs on Thursday, a day after the Federal Reserve cut interest rates by 25 basis points. Stocks were propelled by gains in big tech, and cybersecurity.

Markets were helped by strong premarket action from tech firms Intel (INTC [https://seekingalpha.com/symbol/INTC]) and Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) after the firms announced [https://seekingalpha.com/news/4495994-nvidia-intel-sign-blockbuster-deal-to-co-develop-chips-nvidia-to-take-5b-stake-in-intel] a blockbuster deal to co-develop PC and data center chips. Simultaneously, Nvidia said it would take a $5B stake in Intel.

Also lifting sentiment, the FOMC on Wednesday announced its decision [https://seekingalpha.com/news/4495784-federal-reserve-lowers-rate-by-25-basis-points-first-cut-since-december], trimming its policy rate by 25 basis points to 4.00%-4.25%.

“It took the market half a day, but it realized that cutting rates in an environment of solid GDP growth and rising inflation is fuel for cyclical sectors,” Seeking Alpha analyst Leo Nelissen [https://seekingalpha.com/author/leo-nelissen#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] said.

EARNINGS ROUNDUP:

Out of the five companies that reported earnings this week, only two of them beat EPS estimates, while four of them surpassed revenue expectations.

Let’s take a look at all the companies that reported earnings this week.

FedEx Corporation (FDX [https://seekingalpha.com/symbol/FDX]) topped expectations [https://seekingalpha.com/news/4496347-fedex-rallies-after-topping-profit-expectations-updating-on-business-split-ups-also-higher] with its FQ1 earnings report. The Memphis-based shipping giant reported revenue was up 2.8% year-over-year to $22.2 billion in FQ1. EPS came in at $3.83 vs. $3.61 consensus and $3.60 a year ago.

The company said Federal Express segment operating results improved during the quarter, driven by higher U.S. domestic and international priority package yields, continued cost savings from transformation initiatives, and increased U.S. domestic package volume.

Darden Restaurants (DRI [https://seekingalpha.com/symbol/DRI]) reported sales increased by 10.4% in FQ1 [https://seekingalpha.com/news/4495983-darden-tops-same-restaurant-sales-estimates-as-olive-garden-outperforms-fine-dining-chains] to $3.0 billion, driven by a blended same-restaurant sales increase and sales from the acquisition of 103 Chuy's Tex Mex restaurants and 22 net new restaurants.

In terms of guidance, the company sees FY26 revenue growth of +7.5% to +8.5%. Full-year comparable sales growth of +2.5% to +3.5% is anticipated. The midpoint of the range is slightly below the consensus expectation of +3.1%.

Lennar Corporation (LEN [https://seekingalpha.com/symbol/LEN]) reported third quarter adjusted earnings per share of $2.00, missing estimates [https://seekingalpha.com/news/4496396-lennar-non-gaap-eps-of-2_00-misses-by-0_09-revenue-of-8_81b-misses-by-240m] by $0.09, on revenue of $8.81B, a decline of more than 6% from last year.

General Mills (GIS [https://seekingalpha.com/symbol/GIS]) posted a mixed FQ1 earnings report [https://seekingalpha.com/news/4495585-general-mills-aims-to-restore-to-positive-organic-sales-growth-after-another-soft-quarter]. The company topped profit estimates but came up short of expectations with its revenue and organic sales marks.

Sales decreased 7.7% during FQ4 to $4.5 billion for the quarter that ended on August 24, driven lower by lower pound volume and unfavorable net price realization and mix.

FactSet Research Systems (FDS [https://seekingalpha.com/symbol/FDS]) turned in fiscal Q4 earnings that missed the average analyst estimate, in addition to soft revenue guidance for fiscal 2026.

The financial digital platform said it expects FY26 GAAP revenue [https://seekingalpha.com/pr/20236646-factset-reports-results-for-fourth-quarter-and-fiscal-2025#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] of $2,423M-$2,448M vs. $2.45B consensus. Meanwhile, Q4 2025 adjusted EPS of $4.05, fell from $4.27 in Q3 but gained 8.3% from a year earlier.

EARNINGS NEXT WEEK:

Several companies are scheduled to report earnings next week, including Firefly Aerospace (FLY [https://seekingalpha.com/symbol/FLY]) and Genfit (GNFT [https://seekingalpha.com/symbol/GNFT]) on Monday, with Micron (MU [https://seekingalpha.com/symbol/MU]), AutoZone (AZO [https://seekingalpha.com/symbol/AZO]), AAR (AIR [https://seekingalpha.com/symbol/AIR]), and Apogee (APOG [https://seekingalpha.com/symbol/APOG]) on Tuesday. Meanwhile, Wednesday will see earnings reports from Cintas (CTAS [https://seekingalpha.com/symbol/CTAS]), Worthington Steel (WS [https://seekingalpha.com/symbol/WS]), Stitch Fix (SFIX [https://seekingalpha.com/symbol/SFIX]) and Comtech (CMTL [https://seekingalpha.com/symbol/CMTL]).

Names such as Costco (COST [https://seekingalpha.com/symbol/COST]), Accenture (ACN [https://seekingalpha.com/symbol/ACN]), CarMax (KMX [https://seekingalpha.com/symbol/KMX]), BlackBerry (BB [https://seekingalpha.com/symbol/BB]), and Inventiva (IVA [https://seekingalpha.com/symbol/IVA]) will report earnings on Thursday, with Deep Yellow (OTCQX:DYLLF [https://seekingalpha.com/symbol/DYLLF]), Taylor Devices (TAYD [https://seekingalpha.com/symbol/TAYD]), and Globus Maritime (GLBS [https://seekingalpha.com/symbol/GLBS]) reporting on Friday.

MORE ON RELATED STOCKS:

* Apogee Enterprises: Even In Light Of Recent Weaknesses, It Will Be Fine [https://seekingalpha.com/article/4824091-apogee-enterprises-even-in-light-of-recent-weaknesses-it-will-be-fine]
* Accenture Doesn't Deserve Such Irrational Gloom (Rating Upgrade) [https://seekingalpha.com/article/4823837-accenture-doesnt-deserve-such-irrational-gloom-upgrade]
* Micron: Riding The AI Wave As Memory Demand Unlocks Multi-Year Growth Potential [https://seekingalpha.com/article/4823752-micron-riding-the-ai-wave-as-memory-demand-unlocks-multi-year-growth-potential]
* Biggest stock movers Friday: XXII, FDX, UPS, and more [https://seekingalpha.com/news/4496445-biggest-stock-movers-friday-fdx-ups-and-more]
* Lennar shares fall after earnings miss [https://seekingalpha.com/news/4496434-lennar-shares-fall-after-earnings-miss]