Pre-Market Earnings Report for May 29, 2025 : RY, CM, HRL, BBY, BURL, ROIV, HLNE, BBWI, FL, DOOO, KSS, SPTN

Several companies are set to report earnings before market open on May 29, 2025. Royal Bank of Canada (RY) is expected to report a 4.65% EPS increase to $2.25, while Canadian Imperial Bank of Commerce (CM) is expected to report a 3.88% EPS increase to $1.34. Hormel Foods Corporation (HRL) is anticipated to report a 10.53% EPS decrease to $0.34, and Best Buy Co., Inc. (BBY) is expected to report a 9.17% EPS decrease to $1.09.

Analysis

Multiple firms are scheduled to release earnings on May 29, 2025, presenting a varied landscape. Royal Bank of Canada (RY) and Canadian Imperial Bank of Commerce (CM) are anticipated to report year-over-year (YoY) EPS growth of 4.65% (to $2.25) and 3.88% (to $1.34) respectively, supported by consistent past earnings beats and 2025 Price-to-Earnings (P/E) ratios (RY: 13.62, CM: 12.17) above their industry's 10.70, indicating expectations of superior future earnings growth. Conversely, significant EPS declines are projected for Hormel Foods (HRL) by 10.53% (to $0.34), Best Buy (BBY) by 9.17% (to $1.09), Foot Locker (FL) by 131.82% (to -$0.07), and BRP Inc. (DOOO) by 58.57% (to $0.29), with HRL, BBY, and FL having also recently missed consensus. In contrast, Bath & Body Works (BBWI) stands out with an expected 23.68% YoY EPS increase (to $0.47), a history of beating estimates, and a 2026 P/E of 8.58, considerably below its industry's 32.80. Burlington Stores (BURL) forecasts flat YoY EPS at $1.42 but has a track record of outperforming expectations. Roivant Sciences (ROIV) and Kohl's (KSS) expect negative EPS ($-0.23 and $-0.22), though these figures represent YoY improvements of 17.86% and 8.33% respectively. Notably, Zacks Investment Research suggests that many reporting companies, including those facing current EPS headwinds such as HRL and BBY, possess P/E ratios implying stronger future earnings growth than their industry peers, a key factor for investors to consider alongside current performance.

Key Decisions for Investors

• Consider Royal Bank of Canada and Canadian Imperial Bank of Commerce for potential continued outperformance given their positive EPS growth forecasts, consistent historical beats, and favorable P/E ratios.
• Approach Hormel Foods, Best Buy, Foot Locker, and BRP Inc. with caution due to anticipated significant EPS declines; closely evaluate actual results against lowered expectations and assess management commentary on the P/E-implied future growth.
• Evaluate Bath & Body Works for potential upside, given its strong projected EPS growth, consistent past beats, and comparatively low P/E ratio, and monitor Burlington Stores for a potential earnings beat despite flat YoY EPS guidance.
• For companies with mixed signals like Roivant Sciences (improving but negative EPS), Kohl's (improving but negative EPS), and Hamilton Lane (YoY EPS decline despite past beats), prioritize management's forward-looking statements to gauge recovery prospects and the sustainability of P/E-implied growth.