US Earnings Preview: Carnival, FedEx, Darden (with Nathan Hager)

Carnival earnings are tied to Middle East war resolution; FedEx enters a new era post-spinoff; Darden shows resilient consumer spending. Options imply 4-7% moves post-earnings.

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US Earnings Preview: Carnival, FedEx, Darden (with Nathan Hager)

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Earnings reports are company-specific; no broad market direction implied.

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Consumer discretionary and transport stocks are mixed; no clear small-cap direction.

Carnival earnings are key given Middle East headlines driving cruise stocks.

Nathan Hager
Avalon Pernell

Carnival earnings hinge on the Iran war resolution. Wall Street is cautiously optimistic; Stifel says trading cruise stocks is about your view on the war ending. No deterioration in customer spending seen.

Options imply a 6% move post-earnings. 85% of capacity already sold as of March.
FedEx is entering a new era after its freight spinoff and CFO change.

Nathan Hager
Avalon Pernell

FedEx earnings will be the first with new interim CFO. Barclays expects solid retail and industrial performance. The spinoff allows focus on higher-margin businesses and European results.

Options imply a 7% move post-earnings. The freight spinoff will also report later that week.
Darden Restaurants (Olive Garden, LongHorn, etc.) reports Thursday.

Nathan Hager
Avalon Pernell

Darden continues to outperform the consumer discretionary sector. Citi and Raymond James expect another solid quarter. GLP-1 drugs may shift menu preferences toward smaller plates and protein options.

Options imply a 4% move post-earnings. The K-shaped economy and consumer pullback risk are noted, but Darden's casual dining segment trends remain strong.

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