The earnings season is nearly over, but there are still important names set to post their quarterly figures, providing insight into the health of the consumer. Home Depot, one of the key S & P 500 companies, is scheduled to report earnings before the bell. Last quarter, Home Depot reported better-than-expected earnings and revenue, despite consumers taking on smaller home improvement projects. However, this quarter, the home improvement giant’s earnings are forecasted to have fallen more than 5% from the year-earlier period.
Analysts and investors are keeping a close eye on Home Depot, as the stock has struggled this year, hovering around the flatline. With the triple threat of a rate overhang, a potentially dilutive deal, and negative comp trends, Home Depot’s upcoming numbers are crucial in determining the company’s future trajectory. Despite these challenges, history shows that Home Depot has beaten earnings estimates 87% of the time, and the stock has risen in three of the last four earnings days.
Cisco Systems
Another key player set to report earnings is Cisco Systems, with the results scheduled to be released after the market closes. Last quarter, Cisco posted results that beat expectations but also announced a 5% reduction in its workforce. However, this quarter, analysts expect double-digit declines in earnings and revenue from the legacy tech giant.
Cisco shares are down about 5% year to date, making the valuation “inexpensive” in the near term, according to JPMorgan. However, the medium-to-long term earnings outlook for the company is muted, which could be reflected in this upcoming report. Despite this, history shows that Cisco shares have risen after the last six earnings releases, indicating potential resilience in the face of challenges.
Walmart
Lastly, Walmart is set to report earnings in the premarket, with analysts expecting mid-single digits earnings and revenue growth from the retail giant. Last quarter, Walmart’s earnings exceeded analysts’ estimates, driven by soaring e-commerce sales. The strong momentum is expected to have continued in the fiscal first quarter, with Bank of America analyst Robert Ohmes anticipating continued gross margin expansion for Walmart.
However, despite the positive outlook, history shows that Walmart has beaten bottom-line forecasts 71% of the time, but shares fell in two of the last three earnings days. This indicates that while Walmart may have a strong business performance, market reactions to earnings reports can be unpredictable.
The upcoming earnings reports from Home Depot, Cisco Systems, and Walmart are critical in assessing the health of these key companies and the overall market sentiment. Investors and analysts will be closely monitoring the results to gauge future performance and potential stock movements. It is essential to analyze both the forecasted numbers and historical data to make informed decisions in the ever-changing landscape of the stock market.