As the earning season comes to a close, there are still some key names that are set to report their quarterly figures. Home Depot is one of those names, with expectations that their earnings may have fallen more than 5% from the year-earlier period. The home improvement giant has struggled this year, and analysts are watching closely to see if the upcoming numbers can help lift the stock out of its current situation. Home Depot has a history of beating earnings estimates, with Bespoke Investment Group reporting an 87% success rate in the past. The stock has also seen positive movement after recent earnings reports.
Another key player set to report earnings this week is Cisco Systems. Last quarter, the company posted results that beat expectations, but also announced a layoff of 5% of its workforce. Analysts are expecting double-digit declines in both earnings and revenue from this legacy tech giant. While Cisco shares are down 5% year to date, JPMorgan believes that the valuation is currently “inexpensive.” However, there are concerns about the medium-to-long-term earnings outlook for the company, which could be reflected in the upcoming report. Cisco shares have shown a positive trend after the last six earnings releases, according to Bespoke data.
Walmart is also on the list of companies scheduled to report earnings this week. Last quarter, the retail giant surpassed analysts’ estimates, driven by soaring e-commerce sales. Analysts are now expecting mid-single digits earnings and revenue growth from Walmart in the current quarter. The company’s strong momentum is anticipated to have continued, with gross margin expansion projected to counterbalance ongoing mix shift headwinds. Bank of America analyst Robert Ohmes is optimistic about Walmart’s performance in the first fiscal quarter. Walmart has a history of beating bottom-line forecasts, with a success rate of 71% according to Bespoke. However, shares have fallen in two of the last three earnings days.
The upcoming earnings reports from Home Depot, Cisco Systems, and Walmart are highly anticipated and will provide valuable insights into the health of the consumer market. Analysts will be closely watching these reports to gauge the performance of these key players in their respective industries. Based on historical data and current market trends, there is a mix of expectations and concerns surrounding these earnings reports. Investors will need to carefully analyze the results to make informed decisions about their investments in these companies.
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