The second-quarter reporting season is entering its final leg.
The past week’s earnings were largely skewed to the negative side. Out of the S&P 500 companies that have reported earnings thus far, roughly 62.3% have beat earnings estimates, 1.4% posted in-line results and 36.3% missed expectations, according to Benzinga Pro data.
The likes of Coinbase Global Inc. (NASDAQ:COIN), Roblox Inc. (NYSE:RBLX) and Palantir Technologies Inc. (NYSE:PLTR) all reported disappointing earnings.
Meanwhile, Disney (NYSE:DIS) supported the market with a forecast-beating quarterly performance, with strong domestic park attendance lending support.
Here are the key earnings scheduled for the unfolding week:
Retail Earnings On Tap
Retailer earnings reports help gauge the pulse of consumer spending, which is an important component of economic growth. After all, consumer spending accounts for about two-thirds of the U.S. gross domestic product (GDP).
Consumers remained cash-strapped as inflationary pressure ruled high in the second quarter and ate into nominal income. Headline inflation was hitting fresh 40-year highs in each of the three months of the quarter before cooling off in July.
Investors received a foretaste of what is to come when retail giant Walmart, Inc. (NYSE:WMT) preannounced second-quarter and full-year shortfall, citing food and fuel inflation.
Home improvement retailers such as Home Depot Inc. (NYSE:HD) could have been insulated from some of the weaknesses. Given higher home prices, more dollars are likely to funnel through for home improvement and remodeling.
Home Depot
- Earnings Schedule: Tuesday, before the market open
- EPS Estimate: $4.05 vs. $4.53 last year
- Revenue Estimate: $43.36 billion vs. $41.1 billion last year
- “Home Depot should remain a winner in retail, given its best-in-class execution, digital prowess, and permanent and hybrid work-from-home arrangements causing more maintenance and repair activity, said Joseph Feldman, an analyst at Telsey Advisory Group.
Walmart
- Earnings Schedule: Tuesday, before the market open
- EPS Estimate: $1,60 vs. $1.78 last year
- Revenue Estimate: $150.75 billion vs. $141 billion last year
See Also: How Sell-Side Views Walmart’s Negative Preannouncement
Lowe's Companies, Inc. (NYSE:LOW)
- Earnings Schedule: Wednesday, before the market open
- EPS Estimate: $4.62 vs. $4.25 last year
- Revenue Estimate: $28.14 billion vs. $27.6 billion
Target Corporation (NYSE:TGT) (discount store retailer)
- Earnings Schedule: Wednesday, before the market open
- EPS Estimate: 73 cents Vs. $3.64 last year
- Revenue Estimate: $26.06 billion vs. $25.08 billion last year
The TJX Companies, Inc. (NYSE:TJX) (off-price department chain)
- Earnings Schedule: Wednesday, before the market open
- EPS Estimate: 67 cents Vs. 64 cents last year
- Revenue Estimate: $12.08 billion vs. $12.08 billion last year
BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) (membership-only warehouse club retailer)
- Earnings Schedule: Thursday, before the market open
- EPS Estimate: 78 cents vs. 82 cents last year
- Revenue Estimate: $4.61 billion Vs. $4.2 billion last year
Kohl's Corporation (NYSE:KSS) (department store chain)
- Earnings Schedule: Thursday, before the market open
- EPS Estimate: $1.14 vs. $2.48 last year
- Revenue Estimate: $3.85 billion vs. $4.5 billion last year
Other Key Earnings
Sea Limited (NYSE:SE)
- Earnings Schedule: Tuesday, before the market open
- EPS Estimate: (-$1.19) vs. (-83 cents) last year
- Revenue Estimate: $2.97 billion Vs. $1.94 billion last year
- Singapore-based Sea is an internet company focused on digital entertainment, e-commerce, and digital financial services.
Analog Devices, Inc. (NYSE:ADI) (Q3’22 results)
- Earnings Schedule: Wednesday, before the market open
- EPS Estimate: $2.43 vs. $1.72 last year
- Revenue Estimate: $3.05 billion vs. $1.76 billion last year
- Analog Devices is a manufacturer of ICs, software, and subsystems using analog, mixed-signal, and digital signal processing technologies. The company is expected to benefit from across-the-board strength in its end markets such as consumer, communication, industrial, and automotive.
Cisco Systems, Inc. (NASDAQ:CSCO) (FY'22 Q4)
- Earnings Schedule: Wednesday, after the close
- EPS Estimate: 82 cents vs. 84 cents last year
- Revenue Estimate: $12.73 billion Vs. $13.13 billion last year
- Ahead of Cisco's results, Rosenblatt Securities analyst Mike Genovese said he expects in-line quarterly results but expects variance in product order rate and guidance. The analyst remains sidelined on the stock, given the company is in a product order growth phase and has been bleeding share in the Ethernet Switch market.
Applied Materials, Inc. (NYSE:AMAT) (FY’22 Q3)
- Earnings Schedule: Thursday, after the close
- EPS Estimate: $1.79 vs. $1.90 last year
- Revenue Estimate: $6.28 billion vs. $6.20 billion last year
Deere & Company (NYSE:DE) (FY’22 Q3)
- Earnings Schedule: Friday, before the market open
- EPS Estimate: $6.65 vs. $5.32 last year
- Revenue Estimate: $12.87 billion vs. $11.5 billion last year
