Motley Fool Money - Reckless Earnings Predictions: ZM, BBY, DE

Episode Date: November 24, 2025

We enter Thanksgiving week with a plate full of reckless predictions featuring Zoom (reports today), Best Buy (reports tomorrow morning), and Deere & Co. (reports tomorrow morning). Rick Munarriz, David Meier, and Tim Beyers: - Forecast a “miss, beat, or beat and raise” for ZM, BBY, and DE earnings reports this week. - Look at the potential growth drivers for each. - Play another round of Faker or Breaker with three stocks stuck in turnarounds - are they in dark clouds we can see through? Don’t wait! Be sure to get to your local bookstore and pick up a copy of David’s Gardner’s new book — Rule Breaker Investing: How to Pick the Best Stocks of the Future and Build Lasting Wealth. It’s on shelves now; get it before it’s gone! Companies discussed: ZM, BBY, DE, AI, HNST, YELP Host: Tim Beyers Guests: Rick Munarriz, David Meier Producer: Anand Chokkavelu Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

In the market for some reckless earnings predictions, you've come to the right place. You're listening to Motley Fool Money. Welcome, fools. I'm your host, Tim Byers, and with me, our longtime fools, Rick Bionares, Dave Meyer. Fellas, how we doing? Fully caffeinated? Good weekends? Yes and yes. Yes to all. All right. Today we're going to be making some reckless earnings predictions for three stocks reporting this week. Zoom Communications. Best buys. So Zoom, ticker ZM, Best Buy, ticker B, B, B, Y, and Deering Company, ticker, DE. Zoom will likely have reported by the time you're listening to this. So please leave us a comment to let us know how well or poorly we did.

Now, let's get into it. The reckless predictions game is going to be pretty simple here. And we're going to start with, I'm going to give you the numbers we've got for what we should expect for each of these companies. and you guys are going to tell me, is it going to be a miss? Is it going to be a beat? Or is it going to be a beat and raise? And starting with Zoom, which again, reported this afternoon, consensus is $1.21 billion for revenue. And earnings per share, the consensus is $1.43 a share on a non-gap basis. So Rick and Dave, Rick, starting with you, miss, beat, or beat and raise? Yeah, so I'm going to go with a beat and raise on this one, and I guess I'll explain it later, but I think you just want me to say beat and raise right now.

So I'll leave that there. We're going to get into it, Dave. How about yourself? I'm going with beat. Going with beat. All right. I think I'm going to want you to explain first here, Dave. No, just to beat, no raise.

Yeah. So looking back at the last, I don't know, 10 to 12 quarters, they have beaten the revenue, they've beaten their numbers each time. And so to me, What I see, I see a little sandbagging. I was just going to say, all right? Because they're not big beats, but they are ahead of what management has been guiding. So clearly they know how to play this game, if you will.

But yeah, so that's why I say beat. I don't know enough to say if they'll continue to, if they'll raise based on expectations. So I'm very curious to hear what Rick has to say about that. Yeah. Yeah. Rick, let's talk about it. Beat and Raise, why you think the raise is coming in here? Yeah, so, so again, Zoom, it's like this toy you stashed away in the 2020 time capsule, but you forget to take out the batteries. So it's still going. And I think people don't realize

this is the fourth consecutive year of single-digit revenue growth for Zoom. So, yeah, single-digit growth, sure, but growth. And I think a lot of investors figured, oh, well, Zoom, like, there's no place for Zoom in the post-pandemic future, but it's matters. And to me, a funny thing happens when, after years of slow growth, you make sure that you have to impress on the bottom line. And as Dave points out, they have beaten in the past. And yeah, while it's usually like a slim margin, I think there's enough there where they've had enough time and they're starting to build momentum in their latest quarter. Revenue with actually started to tick up a little bit that I think business is actually

doing a little better. So I figured they still have enough room to be. Yeah, I think it'd be shocking if it doesn't happen and mention the comment section at the podcast. We'll tell how bad Dave and I may have gotten that. But I do think there's going to be enough room for a raise. So let's talk a little bit, and then we'll move on to Best Buy here of some of the key drivers here. Zoom AI companion is something that Zoom has been looking for to maybe drive some additional upsell in the seats on its enterprise plan. But this is a platform play here. And they have two parts of the business. They have the enterprise business, and then they have the regular consumer business. The consumer business is the one that's dragging. It just, you know,

they make very little, really nothing on it. It is like an anchor to margins. The enterprise business is where they get all the big customers. So if I had to ask you both, are you expecting some outperformance? Like, there's a couple ways this could go, right? If they beat, they could beat by just being very operationally efficient, or they could be beating by getting some real traction in generating some platform business, that enterprise business. So, Dave, if I ask you this, are you expecting a little bit of momentum in the enterprise business? Or is this just, hey, man, Zoom knows how to play the game? So I think, again, if we go back to what happened, like Zoom is one of the most quickly adopted

products ever, especially by enterprise, right? Like, there was a need, and it met it. And so if at that point, it's all incremental. So doing things incrementally to make their product a little better, a little more sticky. Maybe they get a little bit of incremental pricing. I think it's all incremental business is a little bit better, especially on the enterprise side. All right. A little bit better goes a long way.

Rick, you agree with that? Yeah, I do. But I think I'm expecting mostly on the operational side just because, again, when I did say raise, I'm talking about the smallest poker chip on your table. That's what you're using to raise this. To me, this is a company that I'm not expecting. great growth. And again, you are seeing sort of like, you know, go from 3% to 4% growth.

It's such a big deal. But I do think there's minor improvements. I don't think any spectacular has happened in the last three months, but I do see that they're getting better about their operations and making sure that they're delivering on the bottom line. So I think more operational than just the enterprise, you know, advancements and whatnot.

All right. Let's move on to Best Buy, ticker BBY, which has underperformed the market by close to 24% year to date. So our numbers here are 9.58 billion, that represents about one and a half percent year over year growth, so pretty meager growth here in a consensus estimate of $1.31 a share, non-gap. I'll also give you the comps here.

The estimate is for relatively similar to what we've seen recently, so at least one and a half percent. So, Rick, going back to you, miss, beat or beat and raise on those numbers for Best Buy. I'm going to go with a miss. I'm taking the long odds. and rare miss, yes. All right, Dave. Yeah, this one is hard, but I'm actually going to take the other side and go with the beat.

Okay, let's start with the miss. Rick, what makes you think that this is a miss? Yeah, okay, so I imagine Best Buy. They sold a lot of iPhone 17s during the fiscal third quarter that ended at the start of this month. What else? This is the first full fiscal quarter of Nintendo Switch 2 on the market. But that came out in early June, so most of those were sold in June and July before this quarter. I think consumers are leery of big ticket purchases like PCs and higher-end laptops.

The housing market, which is really important to Best Buy, because they do a lot of appliances and they've gotten into outdoor furniture and stuff lately, that's icy. I don't see anything improving there. And, yeah, the expectations are low, sales up 2%, the earnings up 4%, pretty sure. But even though Best Buy is three for three in its last three quarters, I think this feels like it's a perfect time for it to prove mortal right now with so many retailers, putting out some, you know, different mixed pictures lately. So, yeah, I think this is the time where Best Buy is going to, you know, in the words of Insync,

Best Buy, Buy, and not, you know, say goodbye. The last two buys were the bye-bye. Not, I'm not saying B-U-Y three times like Kramer. Yeah, very nice. All right, Dave, let me tee you up for your beat. Can you really go beat with the, you know, they've really struggled in the appliance sector here. And that's a big business for Best Buy. Tell me why you're confident in the beat.

So I don't think that their customers have really started to. feel a lot of what's happening in the economy. I think it's typically more felt by customers in lower income brackets. That being said, I get what you're saying. But the other thing I would say is this team, like, they know their business really well. And they're not going to set a target for themselves that is a high hurdle to try to jump over. They're going to try to set something that is, you know, something they can just step over, right? So I could very well be. You know, wrong. I'll admit that. But again, if I go back to the most recent history, they have played this part of the game well as well. And I think they're, I don't think that they're setting themselves.

I don't think they would do anything to set themselves up for failure. So we shall see. Good to see we're on both sides of this one. Because it literally is a coin, like a coin flip. Yeah. I mean, it's interesting. It is probably going to come down to foot traffic and comps. If I had to make my own reckless prediction here, it's probably going to come down to foot trafficking comps. And if they're able to go, let's say over 1.6%, then I think you're probably right here, Dave. But let's keep moving on to the biggest of the companies here, the big industrial monster that is John Deere. And when I started prepping to this, the John Deere song came back into my head again and took me back to the days when the kids were really small. And it was like, why did I do this? Why did I?

select this ticker. I'll tell you why. It is an important indicator for this economy. And let's go through the numbers here. 10 billion in revenue is the consent estimate. EPS, so earnings per share of $3.96. So Rick, miss, beat, or beaten raise for the big agricultural monster that is John Deere. Miss. Miss. Okay. Dave, what do you say? Miss beat or beaten raise? I'm going with Ms. as well. Wow. Okay. This is going to be fat. Let's park on this for a couple minutes here. I need a little bit more from each of you because I'll, I mean, this is interesting because this is a company that doesn't just have a lock on the ag sector.

They are introducing some AI features into some of their products, like the new C&Spray for AI-powered weed killing. So why the, why the, why, the negativity here. And I'll start with you, Dave. First of all, I think there's a whole lot of farmers out there who are struggling. Okay. So we'll see just how much they're willing to excess spending they're willing to do on technologies when some of their crops aren't even being sold. The other thing is, if I recall correctly throughout this year, there was a drop earlier,

deer adjusted and has seen some momentum, some momentum comes. back. But again, the back, the, the demand picture, at least in my 10,000 foot level view of this, it seems dicey. That's why I would be, that's why I'd be probably betting more on the missed side than the beat side. All right. Rick, what else, what you got to say for yourself here on that negativity? Yeah, I love that David Aaron. This, again, companies, more, more than likely than not, they're going to be, they're going to have a beat. That's just the norm. It's just almost a default setting with some companies. But this one, and I hate, I'm becoming like a tractor-de-tractor or an excavator-hater or whatever

rhymes with a dozer or mower. I'll work in that in next time. To me, the problem here is that this feels like a trap. Analysts, they already see profitability taking a big hit. So you're already thinking, okay, it's already discounted, it's already priced in. But just last week, just in the last seven days, three of these analysts lowered their profit targets for this quarter when you kind of see that last minute, like adjustment lower, these people, these Wall Street pros that watch a lot closer than I ever will are starting to see

some weakness. So that's why I went with the miss. I mean, I didn't expect you to go full Admiral Akbar there, but that's well done. But there is an argument for this. And I'll say this and we'll move on. They have struggled with inventory. And if that inventory problem, if that backlog of used equipment is not moving off dealer lots, it's going to be really difficult to get new equipment onto those dealer lots.

And that is a problem for deer. All right. So to summarize here, we have three earnings reports, Zoom reports this afternoon, Best Buy reports tomorrow morning, Tuesday morning, and Deere reports Wednesday morning. Our tickers are ZM, B, B, B, Y for Best Buy, and DE for Deer, the old John Deere company. Let us know what you think. Tell us, were we right, were we wrong? Do you think we're off the mark here?

and do you want more reckless earnings predictions? That's what we really want to know here. But coming up next, it's another game of faker or breaker. What does leadership really look like? On The Power of Advice, a new podcast series from Capital Group, you'll hear from athletes, entrepreneurs, and executives who've led on the field in the boardroom and in their communities. It's not about titles.

It's about impact. Discover what drives them and the advice they carry forward. Subscribe and start listening today. published by Capital Client Group, Inc. All right, welcome back to Motley Fool Money. It's another game of faker or breaker. As a reminder, the rules here are very simple. We go through three companies, and I ask you both for each of these companies.

Is it a faker or a breaker? And what we mean by a faker is a company that has plenty of growth or a lot of opportunity ahead, but that opportunity is capped or limited. It doesn't really, it looks. It looks like it might have the growth to achieve breakardom, but it just doesn't have the attributes that would make it a rule breaker. And this one's going to be a little bit different because this is kind of a turnaround addition of faker or breaker.

Some companies that have had, and we've done this before, right? Sometimes with rule breakers, you have companies where you have dark clouds you can see through, and I want to know for these companies, and I'm going to start with you, Dave, for C3, AI, ticker AI, do you think there are dark clouds we can see through for C3 AI? So in the AI space, it is nothing but clear skies, clear blue skies ahead, and this is a company that cannot navigate it, and hasn't been able to for a number of years. I mean, this is the biggest faker that there's been, right? This is a company that started right when AI was picking up. They were so well positioned, and they just haven't been able to really capture the

demand that's out there with their platform. And then- So if I give you new CEO, Stephen, I'm sure I'm but-butchering this name, but Hekeon, as a new CEO, that doesn't do anything for you? No. Like, seriously, you should, like, you're at a point where your company should be selling itself. You know what I mean? Like you should have a brand. You should have a platform. You should have all the services that people are looking for. And it's just the momentum just has not gotten there.

And in fact, I believe the next year, this year or coming up very soon, they're expecting to decline in sales. So you're going to have to shrink in order to try to reinvigorate growth. So yeah, there's a lot going on at this company. new CEO, reorganizing the sales team, reorganizing operations. This is not a rule breaker turnaround, in my opinion. Fair enough. Fair enough. All right, let's move on. Rick, I'm going to give you the honest company, ticker HNST, the Jessica Alba backed company here, lots of consumer goods. I think maybe best known for diapers. So faker or breakery here, Rick, do you see some dark clouds

we can see through? I'm going to go with a faker, but I'm going to tell you why. It doesn't feel like a faker, but it definitely doesn't feel like a breaker either. So a few years ago, like right around the pandemic, you know, I couldn't get up of the citrus vanilla, shampoo, and body wash. I mean, it's labeled as a baby product, but it's a baby-friendly product that adults can use. And you wind of smelling like orange creamsicle. And I mean this in a good way as a fan of orange and vanilla coming together. But I haven't bought it in years. And sure enough, when I looked at the financials, I'm not alone. So this is a company that had this blowout 2020 in the year before that, too, with double-digit growth. But it's been five years of single-digit revenue growth here for

the honest company. You mentioned Alba, of course, the co-founder and superstar. She stepped down as the chief creative officer last year, but she's still on the board, I believe. But it's just hard to stand out with consumer products like this. And even when your heart is in the right place. And again, you want to succeed. It's almost like the food with integrity that Chipotle has. That's their approach to consumer products, making everything clean, eco-friendly, you know, efficient, they do everything right. You want them to succeed. But there's not really a lot of growth here. It's sort of hard to stand out, even though it is, obviously, especially on the personal care and the baby products for the baby wipes and the diapers, they have that market where they

have their very fanatically devoted user base. But then we're sort of asking ourselves, if baby growth is the solution that we're talking about population rates. And I don't want to play that math. So I'm going to go with Faker. All right. Let's end with one that has been around for a really long time. And I want you both to come in with a sentence on this one. And that is Yelp. Poor Yelp. Ticker YELP.

Faker or breaker. And I'm going to give you this to tee it up to see if I can convince you that maybe there's some breakersness here. They do have a conversational AI tool that helps users book pros. There's apparently 400% increase in project submissions through the tool. so they're getting some usage there. But the numbers maybe aren't as great as we would like to see. So Dave, I will start with you, faker or breaker.

So a number of years ago, I was actually very bullish on this company from a valuation standpoint. I figured they have all sorts of data, all sorts of engagement. They should be able to continue to turn themselves around and grow. But, man, it's just, hasn't worked out how I anticipated. So I'm going with Faker. And I think the reason is,

is I don't know if they really have enough to handle the substitute products, right, that are out there that can do the job as well, if not in some cases better. So they haven't made their switching costs high enough for people to stay, in my opinion. And that hurts them over the longer term. Fair enough.

All right, Rick, faker or breaker? Any, can you see through the dark clouds here? I can eat my way through the dark clouds, but I'm going to go, again, with this case, I'm going to go also with a faker for Yelp. The conversationally, I think is interesting, but again, Dave just shot down the company that has the ticker symbol AI and has dozens of enterprise platform software solutions based on AI for a long time, just not showing growth. To me, that's Yelp has that problem.

Yelp is, Yelp elite used to mean something. Now there's so many other places you can get reviewed. used for just about anything, even AI from the actual search engines themselves. But more importantly, this is a business that's been slowing for more than a decade and a half. So before the pandemic, revenue was growth from six years, six years up to 2019, went from almost 70% growth to down to 8% growth in 2019. The pandemic happened, everything, you know, cratered. Then it picked up bounced naturally in 2021-22, but we're in the same boat. This will be the fifth consecutive year of accelerating growth. And now it's the mid-single digits. I don't see Yelp.

finding a way out of this. So I went faker as well. Fair enough. All right. Three fakers. Your tickers are AI. That's for C3AI. The Honest Company, ticker HNST, and for Yelp, Ticker YELP. Poor, poor Yelp. I mean, they have not been able to get over. I'll tell you, it's been. I was cheering for them. I was cheering hard for them. I mean, yeah, you hate to see it. All right. Up next. preview Tuesday's show. You're listening to Motley Fool Money. The old adage goes, it isn't what you say, it's how you say it, because to truly make an impact, you need to set an example and take the lead. You have to adapt to whatever comes your way. When you're that driven, you drive an equally determined vehicle, the Range Rover Sport. The Range Rover Sport blends power, poise, and

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All right, we're back. Thank you for listening to Motley Fool Money. Up tomorrow, Emily Flippen welcomes Jason Hall and Jeff Santoro. Expect plenty of stock banter and maybe a bit of Thanksgiving gratitude. As a reminder, there will be no podcast on Thursday this week, seeing as that is the Thanksgiving holiday here in the United States, allow all of us here at the Motley Fool to wish you and yours a wonderful time together. But again, tomorrow, you've got Emily Flippen, Jason Hall, Jeff Santoro. bit of banter, bit of turkey talk, and we'll have more for you next week. But for today, thank you so much to Dave Meyer and Rick Bunars. Thanks, guys. Appreciate you being here. As always, people on the program may have interests in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. For Rick Bionares and Dave Meyer, our engineer

is Dan Boyd, and our producer is Anan Chakaloo. I am her host, Tim Byers. Thank you for listening to Motley Fool Money. See you again tomorrow, Fools. Fool on.