Earnings week ahead: Nvidia, Walmart, Home Depot, Target and more
Yet another busy week for earnings is due in the third week of November, the final full week of trading prior to the Thanksgiving holiday.
Retail stalwarts Walmart (NYSE:WMT), Target (NYSE:TGT), Home Depot (NYSE:HD), and Lowe’s (NYSE:LOW) will headline the list of upcoming earnings releases, as retail sector players Macy’s (M), Williams-Sonoma (WSM), Kohl’s Corporation (KSS), TJX Companies (TJX), and Ross Stores (ROST) also dot the schedule.
Looking to other sectors, semiconductor players Nvidia (NVDA) and Applied Materials (AMAT) are expected to post updates alongside other closely-followed tech names like Cisco Systems (CSCO) and Palo Alto Networks (PANW). Finally, the week will hold a number of key reports from Chinese tech giants such as Tencent (OTCPK:TCEHY), Alibaba (BABA) and Baidu (BIDU).
Below is a curated list of earnings reports due in during the week of November 14 to 18:
Monday, November 14
Tyson Foods (TSN)
Protein producer Tyson Foods (TSN) is due to post its fiscal fourth quarter results prior to the opening bell. Shares of the Arkansas-based food industry leader have fallen about 25% in 2022, accelerating declines since missing analyst expectations during its early August Q3 earnings report.
Ahead of the report, the company has moved to consolidate corporate operations in Arkansas to save costs and has implemented price increases across product lines. Newly-named CFO John Tyson was arrested in the week prior to the report.
- Consensus EPS Estimates: $1.72
- Consensus Revenue Estimates: $13.49B
- Earnings Insight: Tyson has beaten EPS and revenue estimates in 7 of the past 8 quarters.
Also reporting: Buzzfeed (BZFD), Ivanhoe Mines (OTCQX:IVPAF), Arcimoto (FUV), Volta (VLTA), ThredUp (TDUP), and AMMO Inc. (POWW)
Tuesday, November 15
Home Depot (HD)
Kicking off the busy week for retailers, Home Depot (HD) is due to post its third quarter results early in Tuesday’s premarket hours. Shares of the home improvement retailer have fallen nearly 30% in 2022, outpacing the declines for the overall S&P 500. Elsewhere, a unionization effort among retail employees at Home Depot fizzled out shortly prior to the earnings.
According to Seeking Alpha surveys, HD is preferred to its chief competitor Lowe’s (LOW) by a majority of analysts, given its elevated exposure to professional customers. “We find Home Depot (HD) more attractive – at a near market multiple - for the Pro exposure and Multichannel leadership,” Evercore wrote in a note to clients comparing the two stocks about a month prior to earnings.
Lowe’s (LOW) is due to post its results one day after Home Depot, in premarket hours on Wednesday.
- Consensus EPS Estimates: $4.11
- Consensus Revenue Estimates: $37.88B
- Earnings Insight: Home Depot has exceeded both EPS and revenue expectations in 8 straight quarters.
America’s largest employer, Walmart (WMT), will also post its third quarter earnings results prior to the market open on Tuesday. Despite a steep drop in shares following its first quarter earnings report, the retailing behemoth of Bentonville, Arkansas, has recovered lately. The stock is now back to a single-digit decline on the year, compared to the over 20% drop in the S&P.
During the quarter, WMT raised prices for Sam’s Club memberships for the first time in nearly a decade. Despite bearish forecasts from Amazon (AMZN), the National Retail Federation predicts holiday spending will remain resilient despite inflationary headwinds. Walmart (WMT) has also taken direct aim at Amazon (AMZN) with promotional efforts for its Walmart+ e-commerce platform.
- Consensus EPS Estimates: $1.31
- Consensus Revenue Estimates: $146.47B
- Earnings Insight: Walmart has beaten revenue estimates in 8 consecutive quarters, beating EPS expectations in 6 of those reports.
Also reporting: Infineon (OTCQX:IFNNY), Advance Auto Parts (AAP), Faraday Future Intelligent Electric (FFIE), Krispy Kreme (DNUT), Sea Limited (SE), and Valvoline (VVV)
Wednesday, November 16
Following one day after Walmart (WMT), Target will offer its third quarter earnings report prior to Wednesday’s opening bell. Much like Walmart (WMT), Target tumbled sharply following its first quarter earnings report. However, it has not enjoyed the same recovery as its Arkansas-based peer, as the stock has remained over 30% lower for 2022 as a whole. Ahead of the results, the retailer has stepped up promotional efforts to spur demand and clear inventory.
Nonetheless, the consensus rating remains a Buy on the stock heading into the third quarter print per Seeking Alpha data.
"While margins continue to face pressure from the clearing of excess inventory as well as elevated supply chain costs and product cost inflation, we view these as largely near-term headwinds,” Jefferies told clients in the weeks ahead of the results. "Looking ahead to next year, we believe TGT’s margins are likely to benefit from lapping the self-inflicted markdown pressure related to excess inventory as well as lapping elevated supply chain and product costs as commodity prices and container costs decline."
- Consensus EPS Estimates: $2.17
- Consensus Revenue Estimates: $26.39B
- Earnings Insight: Target has beaten EPS and revenue expectations in 6 of the past 8 quarters.
Nvidia Corporation (NVDA)
Semiconductor stalwart Nvidia (NVDA) is set to post its third quarter results after the bell. Shares of the Santa Clara-based chip company have crashed over 50% in 2022, tumbling alongside much of the rest of the sector. However, shares have enjoyed a strong rebound into the fourth quarter, running about 20% higher in the month prior to its earnings release.
Ahead of the results, the company confirmed it has launched a new chip in China that adheres to increasingly stringent U.S. export rules, preserving a key region for overall revenue. Analysts have revised down EPS and revenue expectations 34 and 32 times, respectively, in the 90 days prior to the earnings announcement.
- Consensus EPS Estimates: $0.71
- Consensus Revenue Estimates: $5.83B
- Earnings Insight: Nvidia has beaten revenue estimates in 8 straight quarters, missing EPS expectations only once in that span.
Also reporting: Cisco Systems (CSCO), Tencent (OTCPK:TCEHY), Baidu (BIDU), REE Automotive (REE), TJX Companies (TJX), ZIM Integrated Shipping (ZIM), Grab Holdings (GRAB), and On Holding (ONON)
Thursday, November 17
Alibaba Group (BABA)
Chinese tech giant Alibaba (BABA) is due to report earnings prior to the bell on Thursday. Shares have fallen over 45% in 2022, largely led downward by concerns over lockdowns in China and the rapid changes in regulatory policies. The stock has slid approximately 80% from its late 2020 peak.
Shortly prior to the print, U.S. auditors were reported to have completed their first round of inspections of Chinese companies earlier than had been expected. Analysts have revised EPS estimates upward 9 times in the 90 days prior to the results, while revenue expectations have been revised downward 14 times, according to Seeking Alpha data.
- Consensus EPS Estimates: $1.61
- Consensus Revenue Estimates: $28.81B
- Earnings Insight: Alibaba has beaten EPS expectations in 6 of the past 8 quarters, beating revenue consensus in 5 of those quarters.
Palo Alto Networks (PANW)
Cybersecurity giant Palo Alto Networks (PANW) is due to post first quarter results for its 2023 fiscal year on Thursday after the bell. Shares of the California-based technology company have modestly outperformed the broader market in 2022, but have marked a double-digit decline since a 3-1 stock split took effect in mid-September.
Analysts surveyed by Seeking Alpha rate the stock a Strong Buy ahead of earnings, with Morgan Stanley “pounding the table” on the name. "The biggest estimate cuts in [the third-quarter] were from smaller companies selling predominantly point products, in our view," the analysts wrote. "This aligns with our general preference for leaning into consolidators, most of which are reporting off-calendar [such as] Palo Alto Networks (PANW) and CrowdStrike (CRWD)."
Elsewhere, the company’s rumored plans to acquire Israeli startup Apiiro fell through.
- Consensus EPS Estimates: $0.69
- Consensus Revenue Estimates: $1.55B
- Earnings Insight: Palo Alto Networks (PANW) has beaten both EPS and revenue estimates in 8 consecutive quarters.
Also reporting: Applied Materials (AMAT), NetEase (NTES), Ross Stores (ROST), XPeng (XPEV), Williams-Sonoma (WSM), BJ’s Wholesale Club (BJ), Dole (DOLE), Macy’s (M), and The Gap (GPS)
Friday, November 18
Chinese tech giant JD.com rounds out the week for earnings results in Friday’s premarket hours. Shares of the Beijing-based e-commerce company have fallen over 40% in the past year, trading alongside Alibaba (BABA) in terms of regulatory action-influenced trading patterns.
While EPS expectations have been revised upward 12 times in the 90 days prior to the report, revenue estimates have been trimmed an equal number of times, according to Seeking Alpha data. Seeking Alpha surveys also reflect a Strong Buy consensus rating among sell side analysts.
- Consensus EPS Estimates: $0.62
- Consensus Revenue Estimates: $33.95B
- Earnings Insight: JD.com has beaten EPS and revenue expectations in 8 straight quarters.
Also reporting: Foot Locker (FL), Spectrum Brands (SPB), Li Auto (LI), and Buckle Inc. (BKE)