Earnings Previews: Canopy Growth, DR Horton, Hecla Mining

The three major U.S. equity indexes closed higher Friday. The Dow Jones industrials ended the day up 1.26%, the S&P 500 closed 1.36% higher and the Nasdaq saw a gain of 1.28%. All 11 sectors closed higher, with materials (3.41%) and financials (1.87%) posting the biggest gains. Utilities and healthcare (both 0.57%) had the smallest gains.

This week’s economic calendar includes the monthly report on the consumer price index (CPI). Economists are expecting the Thursday morning release to show that the index increased month over month in October by 0.7%. Core CPI (excluding food and energy) is expected to tick down from 0.6% to 0.5%. The weekly report on new claims for unemployment insurance will be released Wednesday. New claims are expected to rise from last week’s 217,000 to 220,000.

The three major indexes traded mixed during the noon hour Monday.

Before markets opened, Palantir Technologies reported a one-penny miss on EPS and revenue in line with expectations. The company lowered fourth-quarter revenue guidance to a new range of $603 to $505 million. Analysts had a consensus estimate of $506.6 million. The stock traded down more than 12% in Monday’s premarket.

NiSource reported adjusted earnings per share (EPS) that met the consensus estimate, while revenue of $1.09 billion was better than expected. The company lowered full-year EPS guidance from a prior range of $1.50 to $1.57 to a new range of $144 to $1.46. NiSource also announced a growth plan that it expects to boost adjusted EPS by 6% to 8% annually through 2027. Shares traded down 5.6% Monday.

Ballard Power reported inline EPS and missed on revenue. Shares traded down by 1.1% Monday.

Activision Blizzard and Lyft take their turns in the earnings spotlight after U.S. markets close on Monday. Before U.S. markets open on Tuesday, Constellation Energy and GlobalFoundries are on deck to report quarterly earnings.

Our first of two stories on companies reporting quarterly results after markets close on Tuesday included previews of Affirm, AMC Entertainment and Disney. The second covered what analysts expect to hear when Lucid, Occidental Petroleum and Plug Power report.

Here is a preview of three companies set to report quarterly results first thing Wednesday morning.

Canopy Growth

Marijuana grower and cannabis products maker Canopy Growth Corp. (NASDAQ: CGC) has seen its share price drop by nearly 73% over the past 12 months. The stock added 22% on October 6, the day President Biden announced a general pardon for small-time drug offenses and directed the Department of Justice to review the classification of marijuana as a dangerous drug. All that gain was gone by the end of the month.

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