AutoZone (NYSE:AZO): A large portion of its growth has been driven by improvements in both the retail and commercial businesses combined with increasing store counts and regular buybacks. That said, Autozone should expect to see expenses rise as it plans to open 2-3 new distribution centers over the next three years. It also continues to see increasing competition from Advanced Auto Parts, PepBoys and even Wal-Mart (NYSE:WMT) and Costco (NASDAQ:COST). Wal-Mart and Costco’s business as a one-stop shop for all consumer needs might deter traffic to a highly focused store like AutoZone. Meanwhile, currency headwinds related to Mexico and Brazil along with President-elect Trump’s hardened stance on the region could spell trouble for future quarters.
Toll Brothers (NYSE:TOL): Despite beating analysts’ estimates for Toll Brothers (NYSE:TOL), the stock is still down 10% in 2016. The broader housing recovery should continue to support financial performance for the upcoming report. Housing starts and permits were both recorded at 9-year highs for the month of October, reflecting a ramp up in residential construction and a favorable sign for construction companies. Nonetheless, robust growth hasn’t resulted in favorable share price movement. Shareholders typically drop the stock by about 2% throughout the month following a report.
Dave & Buster’s Entertainment (NASDAQ:PLAY): Dave & Buster’s has been one of the few recent IPOs whose rapid growth has translated into market gains. Shares are up 16% in 2016 and 21% from a year earlier as the chain continues to exceed expectations. Management’s commitment to opening new stores will be the key lever that drives future growth. In the second quarter, the company increased its new store count in the range of 10 - 11 in fiscal 2016 from 9-10 previously guided. Given its recent string of success, it’s not surprising that the stock typically jumps by 3% immediately following a report.
Bob Evans Farms (NASDAQ:BOBE): Shares of the casual dining chain are up 18% in 2016 despite sales growth remaining challenged for second quarter. BOBE kicked off its fiscal 2017 with better-than-expected figures on the bottom line but missed its sales target by a wide margin. Key same-store sales metrics dropped 4.3% due to 5 restaurant closures during the period. Financial performance should face some of the same near-term headwinds including compressed margins from higher labor costs. Analysts at Estimize are calling for a 10% increase on the bottom line to go with a 2% decline on the top ahead of Tuesday’s report.
How do you think these names will report?