Home Depot is gearing up to release its earnings before the bell, with a call scheduled at 9 a.m. In the previous quarter, HD reported better-than-expected earnings and revenue despite consumers focusing on smaller home improvement projects. However, this quarter, the home improvement giant is predicted to see a decline of more than 5% in earnings compared to the same period last year. With the struggles Home Depot has faced this year, investors are anxiously waiting to see if the upcoming numbers can lift the stock from its stagnant state.
On Wednesday, Cisco Systems is expected to report its earnings after the market’s close, with a call scheduled for 4:30 p.m. Last quarter, Cisco exceeded expectations with its fiscal second-quarter results but also announced a 5% reduction in its workforce. Analysts anticipate double-digit declines in both earnings and revenue for this quarter. Although Cisco’s shares have dropped approximately 5% year to date, making the valuation seem attractive in the short term, there are concerns about the company’s medium-to-long term earnings outlook. The recent surge in demand for Campus Networking products may not be enough to offset these concerns.
On Thursday, Walmart is set to reveal its earnings in the premarket, with a call scheduled for 8 a.m. In the last quarter, Walmart managed to surpass analysts’ estimates, primarily due to the significant increase in e-commerce sales. For this quarter, analysts are expecting mid-single digits growth in both earnings and revenue from the retail giant. Bank of America analyst Robert Ohmes predicts that Walmart’s positive momentum will persist in the fiscal first quarter, with continued gross margin expansion driven by various profit streams. Despite this optimistic outlook, there is a risk factor as Walmart has experienced share price declines in two out of the last three earnings days.
Overall, as the earnings season comes to a close, these reports from key companies like Home Depot, Cisco Systems, and Walmart will give investors valuable insights into the consumer market’s health and performance. The anticipation surrounding these reports reflects the importance of these companies in driving economic trends and influencing investor sentiment. It will be interesting to see how these companies navigate through the challenges and opportunities presented in the current economic landscape.
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