The fourth-quarter earnings season is in the books. Investors now focus their attention on important analyst conferences and investor days hosted by the world’s most prominent companies. March is among the busiest months for these corporate events. Now more than ever, stockholders must stay tuned to the latest happenings and announcements at investor events. News breaks, product and market trend updates are shared, and executives give pivotal outlooks. In addition, amid geopolitical uncertainty and a waning pandemic, analysts and investors are seeking guidance from the world’s top executives on how 2022 will evolve.
Analyst meetings are often annual gatherings where Wall Street sell-side analysts confer with company management to get new clues on a firm’s operating outlook. CEOs and CFOs also provide a bit of a health checkup to the public. Investor conferences, on the other hand, are intended for shareowners, but analysts often attend as well. These corporate events can move stock and options prices.
In early March, shares of Citigroup fell sharply following its investor day. The major U.S. bank set a return forecast that missed analyst estimates. Often, investor events can be just as market-shaking as a corporate earnings release. At the very least, traders should mark the event on their calendars for potential volatility spikes.
On the bright side, as we enter springtime in the U.S., Minnesota-based 3M Company (MMM) emphasized a “back-to-normal” theme during its 2021 analyst day. It feels like firms have been hopeful for a true shift to the post-pandemic world for months on end, but it appears we are finally getting our wish. 3M’s analyst day on February 14 painted a somewhat rosy picture but shares still slid. Management affirmed consensus 2022 earnings estimates in the $10.15-$10.65 range. Unfortunately, the major industrials firm underscored continued challenging logistical issues and potential elevated costs.
According to Wall Street Horizon, here are some of the key analyst, investor, and capital markets days on the docket.
Supply chain woes are seen perhaps most starkly in the auto industry. New and used car prices are through the roof as semiconductor chip shortages persist. The German automaker may shed light on when the global car market will return to normalcy, but geopolitics risks make the future picture less clear. Moreover, surging oil and gasoline prices make a case for accelerated electric vehicle development. BMW noted a strong 32% xEV penetration rate back in November, according to BofA Securities. Amid the tough business environment, BMW shares fell to 52-week lows earlier this month.
Speaking of chips, NVIDIA will move markets later this month. The largest and fast-growing semiconductor innovator in the U.S. might give new glimpses into its software subscription business and its new line of silicon chips—3nm products—used in gaming and data centers. Details on its omniverse operations and automotive supply chain business will be of particular interest to market watchers. Traders should mark this event on their calendars for its potentially wide-reaching volatility impacts.
A major Covid trend was a jump in demand for pets. Bank of America credit and debit card data show that retail spending on pets was up a whopping 35% in early February versus the same time two years ago—right before the pandemic began. We will find out just how strong the consumer is with respect to pet spending on March 8 when Petco Health & Wellness Co. reports its fourth-quarter 2021 earnings. The stock has struggled since its January 2021 IPO despite strong same-store sales growth. You and Fido can log in to the investor event on the morning of March 23.
It is prime time for investor and analyst days on Wall Street now that we are between earnings seasons. Amid a volatile stock market so far in 2022 and new geopolitical risks, stakeholders clamor to hear the latest business outlooks from executives of multinational firms. Investors need to keep tabs on key corporate event data to help manage risk and volatility.
This article first appeared on the Wall Street Horizon website.
Disclaimer: This blog post has been written by a third-party contributor and does not necessarily reflect the opinion of FactSet. The information contained in this blog post is not legal, tax, or investment advice. FactSet does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.