The pace of quarterly earnings announcements is expected to slow in the third week of November. That being said, investors are still waiting for important announcements from some prominent companies.
The retail sector offers many highly anticipated services. Weekly report. This includes Walmart’s financial numbers (WMT), Home Depot (HD), JD.com (J.D.) and target (target).
Additionally, regular reports from TJX Companies (TJX), Ross Stores (ROST), BJ’s Wholesale Club (BJ), and Copart (CPRT) contribute to an evolving understanding of consumer trends. These reports are expected to provide valuable insights into the consumer condition.
In addition to the selection of major retailers, the performance of tech giants Alibaba (BABA) and Cisco (CSCO) will also receive significant attention. This week, Fisker (FSR), Rumble (RUM), Applied Materials (AMAT), Canoe (GOEV), XPeng (XPEV), Zim Integrated Shipping Services (ZIM), and LiCycle Holdings (LICY) have earnings results. will also be taken up.
Below is a summary of key quarterly updates expected for the week of November 13th to 17th.
Monday, November 13th
Tyson Foods (TSN)
Tyson Foods (TSN) is scheduled to release its fourth quarter update before the market opens on Monday. The Arkansas-based protein maker’s stock has fallen more than 27% so far this year and is currently trading near the low end of its 52-week range ($44.94 to $74.07).
“Tyson has a strong long-term outlook and remains in a tight economic environment despite underperformance over the past 18 months due to low margins, increased competition and climate vulnerability. “It could be a potential candidate for conservation in the current climate,” wrote SA author Mauro Solis Vázquez. Mellado, C.F.A.
- Consensus EPS estimate: $0.25
- Consensus revenue forecast: $13.72 billion
- Earnings Insights: Tyson has exceeded EPS estimates in three of the past eight quarters, and has exceeded revenue estimates in five of those reports.
Tuesday, November 14th
home depot
Home Depot (HD) will report third-quarter results before the opening bell on Tuesday. Analysts said third-quarter revenue growth was expected to rise following an upbeat second-quarter report in which the company reaffirmed its 2023 outlook and approved a new $15 billion share buyback, replacing a previous authorization. and EPS are expected to decrease year-on-year.
RBC Capital Markets last week gave Home Depot (HD) a Sector Perform rating, saying macro factors such as high interest rates, sustained inflation, and a shift from goods to services impact short-term earnings risk. He pointed out that While Home Depot appears to be well-positioned over the long term, the company believes it needs more clarity on the trajectory of interest rates to view home improvement stocks more positively.
- Consensus EPS estimate: $3.78
- Consensus revenue forecast: $37.69 billion
- Earnings Insight: Home Depot has a track record of beating EPS estimates over the past eight quarters and beating revenue estimates in six of the past eight quarters.
It also reports: Aramark (ARMK), Alcon (ALC), CAE (CAE), Canadian Solar (CSIQ), Energizer (ENR), HUYA (HUYA), Oaktree Specialty Lending Corp (OCSL), On (ONON), Paysafe (PSFE), Sally Beauty (SBH), Sea Limited (SE), Tencent Music (TME), and more.
Wednesday, November 15th
Cisco (CSCO)
Cisco Systems (CSCO) is scheduled to report its first quarter results after the closing bell on Wednesday. Analysts expect year-over-year growth in both sales and EPS based on positive momentum from the company’s strong fourth-quarter results.
Despite this positive outlook, Raymond James downgraded Cisco to Market Perform, citing expected sales declines. The bank reassessed its forecasts, projections and trends and noted that campus sales declines are expected to contribute to one-third of the sales decline in 2024. Despite the revenue concerns, the stock’s valuation remains attractive, with a forward P/E ratio below the S&P 500.
The stock is rated a “buy” by the authors of Seeking Alpha, and Wall Street analysts also rate it a “buy.” However, Seeking Alpha’s quantitative rating system rates the stock as a Hold.
- Consensus EPS estimate: $1.03
- Consensus revenue forecast: $14.63 billion
- Earnings Insight: The company has exceeded EPS estimates in the past eight quarters, and exceeded revenue estimates in six of those quarters.
Target (TGT)
Target (TGT) is scheduled to report third-quarter results before the opening bell on Wednesday. After a mixed second-quarter report, analysts expect profits to decline year-over-year. The company also lowered its full-year sales and profit forecasts.
Target was recently added to Evercore ISI’s Tactical Outperform list as investors see the company’s near-term sales pressure and earnings management capabilities as potential drivers of EPS upside. Evercore ISI recognizes its strategic strengths, despite recent stock weakness reflecting a soft consumer environment, headwinds, and management failures over the past year and a half.
The stock has been rated a Hold by the SA Quant Rating System, while Wall Street analysts have rated it a Buy.
- Consensus EPS estimate: $1.48
- Consensus revenue forecast: $25.24 billion
- Earnings Insight: The company has exceeded EPS and revenue estimates in five of the past eight quarters.
Thursday, November 16th
Walmart (WMT)
Retail giant Walmart (WMT) is scheduled to report third-quarter results before the opening bell on Thursday. Following strong second-quarter results, the company expects third-quarter sales to increase 3% year-over-year. Meanwhile, his adjusted EPS is expected to fall within the range of $1.45 to $1.50. For the full year 2023, Walmart expects sales to increase 4% to 4.5% and adjusted EPS to be in the range of $6.36 to $6.46.
SA author Larry Hall sees Walmart as a good choice as a conservative stock in a portfolio because of the low associated risk. The company’s steady growth is underlined by consistent trends in revenue and earnings per share over a significant period of time, Hall claimed.
The stock has been rated a Hold by the SA Quant Rating System, while Wall Street analysts have rated it a Buy.
- Consensus EPS estimate: $1.58
- Consensus revenue forecast: $158.4 billion
- Earnings Insights: Walmart has exceeded EPS estimates in seven of the past eight quarters and exceeded revenue estimates in all eight quarters.
Alibaba (BABA)
Chinese tech giant Alibaba (BABA) is scheduled to report its second-quarter results before the market opens on Thursday. The company’s stock price has risen as much as 26% over the past year, earning it a “Strong Buy” rating from both the SA Quant Rating System and Wall Street analysts. This positive outlook is in line with Alibaba’s restructuring plan, which includes splitting the group into six major divisions, including e-commerce and cloud.
Meanwhile, Trust Securities adjusted its forecast and target price for Alibaba stock from $135 to $126 ahead of the quarterly results, predicting that the top line will be weak due to the macro environment, but that inline profitability will be low. The company has given Alibaba a “buy” rating.
- Consensus EPS estimate: $2.07
- Consensus revenue forecast: $30.84 billion
- Earnings Insight: The company has exceeded EPS estimates in seven of the past eight quarters, and has exceeded revenue estimates in three of those reports.
Friday, November 17th
Twist Bioscience (TWST)
Twist Biosciences (TWST) is scheduled to release its fourth quarter financial update before the bell on Friday. Despite a 32% decline in 2023, the stock has a Buy rating from both sell-side analysts and Seeking Alpha’s quantitative rating system.
Twist Bioscience recently partnered with Bayer to provide antibody discovery services to the German pharmaceutical company.
- Consensus EPS estimate: -$0.95
- Consensus revenue estimate: $63.45 million
- Earnings Insight: TWST has exceeded EPS and revenue estimates in seven of the last eight quarters.
It also reports: BJ’s Wholesale (BJ), Buckle (BKE), Spectrum Brands (SPB), and more.