Imilian
In the third week of November, the pace of quarterly earnings releases is expected to slow down. That said, investors are still eagerly awaiting significant announcements from several prominent companies.
The retailing sector will provide many of the highly anticipated reports during the week. This includes financial figures from Walmart (WMT), Home Depot (HD), JD.com (JD) and Target (TGT).
Additionally, scheduled reports from TJX Companies (TJX), Ross Stores (ROST), BJ’s Wholesale Club (BJ), and Copart (CPRT) will contribute to the evolving understanding of consumer trends. These reports are expected to provide valuable insights into the state of the consumer.
In addition to the selection of major retailers, tech giants Alibaba (BABA) and Cisco (CSCO) will also draw significant attention with their results. The week will also feature earnings results from Fisker (FSR), Rumble (RUM), Applied Materials (AMAT), Canoo (GOEV), XPeng (XPEV), Zim Integrated Shipping Services (ZIM) and Li-Cycle Holdings (LICY).
Below is a rundown of major quarterly updates anticipated in the week of November 13 to 17:
Monday, November 13
Tyson Foods (TSN)
Tyson Foods (TSN) is set to unveil its Q4 update on Monday before the market opens. The shares of the Arkansas-based protein producer have dropped by more than 27% so far this year, and are currently trading close to the lower limit of its 52-week range, which spans from $44.94 to $74.07.
“Tyson, despite its poor performance over the past 18 months due to slim margins, growing competition, and climate change vulnerability, has strong long-term prospects and may be a protective pick in a tightening economic environment,” writes SA author Mauro Solis Vazquez Mellado, CFA.
- Consensus EPS Estimates: $0.25
- Consensus Revenue Estimates: $13.72B
- Earnings Insight: Tyson has topped EPS expectations in 3 of the past 8 quarters, and revenue estimates in 5 of those reports.
Tuesday, November 14
The Home Depot
The Home Depot (HD) will release its Q3 earnings results before the opening bell on Tuesday. Analysts expect revenue and EPS to decline Y/Y in Q3 following an upbeat Q2 report, in which the company reaffirmed its 2023 outlook and authorized a new $15B share repurchase, replacing its previous authorization.
Last week, RBC Capital Markets gave a Sector Perform rating to The Home Depot (HD), citing macro factors such as high rates, persistent inflation, and the shift from goods to services as impacting near-term earnings risk. While Home Depot is seen as well-positioned for the long term, the firm believes increased clarity around the trajectory of rates is needed to be more constructive on the home improvement stock.
- Consensus EPS Estimates: $3.78
- Consensus Revenue Estimates: $37.69B
- Earnings Insight: Home Depot has a track record of beating EPS estimates in the past eight quarters and revenue estimates in 6 of the past eight quarters.
Also reporting: 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 15
Cisco (CSCO)
Cisco Systems (CSCO) is set to announce its Q1 results on Wednesday, after the closing bell. Analysts are anticipating Y/Y growth for both revenue and EPS, building on the positive momentum from the firm’s upbeat Q4 results.
Despite this positive outlook, Raymond James has downgraded Cisco to Market Perform, citing an expected sales decline. The bank reevaluated estimates, expectations and trends, noting that declining campus sales are anticipated to contribute to a third of the sales decline in 2024. Despite the sales concerns, the stock’s valuation remains attractive with a forward PE ratio below the S&P 500s.
The stock holds a Buy rating from Seeking Alpha authors, and Wall Street analysts also rate it as a Buy. However, Seeking Alpha’s Quant Rating system rates the stock as a Hold.
- Consensus EPS Estimates: $1.03
- Consensus Revenue Estimates: $14.63B
- Earnings Insight: The company has beaten EPS estimates in the past 8 quarters and revenue estimates in 6 of those quarters.
Target (TGT)
Target (TGT) is due to release its Q3 earnings results before the opening bell on Wednesday. Following a mixed Q2 report, analysts are expecting a Y/Y decline in earnings. The company has also lowered its full year sales and profit expectations.
Recently, Target has been added to Evercore ISI’s Tactical Outperform List, citing investors’ understanding of its near-term sales pressures and its ability to manage earnings as potential drivers of EPS upside. Despite a recent downturn in the stock, reflecting a softer consumer backdrop, headwinds, and operational missteps over the past year and a half, Evercore ISI recognizes strategic strengths.
The stock receives a Hold rating from the SA Quant Rating system, while Wall Street analysts rate it as a Buy.
- Consensus EPS Estimates: $1.48
- Consensus Revenue Estimates: $25.24B
- Earnings Insight: The company has beaten EPS and revenue estimates in 5 of the past 8 quarters.
Thursday, November 16
Walmart (WMT)
Retail giant Walmart (WMT) is all set to release its Q3 results before the opening bell on Thursday. Following a positive performance in Q2, the company has projected a 3% Y/Y increase in Q3 sales. Meanwhile, adjusted EPS is expected to come in within the range of $1.45 and $1.50. For the full fiscal year 2023, Walmart forecasts a sales increase of 4% to 4.5%, with adjusted EPS in the range of $6.36 and $6.46.
SA author Larry Hall views Walmart as an excellent choice for a conservative stock in a portfolio due to its low associated risks. The company’s steady growth is highlighted by consistent trends in revenue and earnings per share over significant periods of time, Hall argued.
The stock receives a Hold rating from the SA Quant Rating system, while Wall Street analysts rate it as a Buy.
- Consensus EPS Estimates: $1.58
- Consensus Revenue Estimates: $158.4B
- Earnings Insight: Walmart has topped EPS estimates in 7 of the past 8 quarters and revenue expectations in all the 8 quarters.
Alibaba (BABA)
Chinese tech giant Alibaba (BABA) is slated to release its Q2 results before the market opens on Thursday. Over the past year, the company’s shares have surged by as much as 26%, prompting a Strong Buy rating from both the SA Quant Rating system and Wall Street analysts. This positive outlook coincides with Alibaba’s restructuring plans, which involve dividing the group into six main units, including e-commerce and cloud.
Meanwhile, Truist Securities adjusted its estimates and price target on Alibaba’s shares to $126 from $135 ahead of the quarterly results, expecting a soft top-line due to macro conditions but in-line profitability. The firm has a Buy rating on Alibaba.
- Consensus EPS Estimates: $2.07
- Consensus Revenue Estimates: $30.84B
- Earnings Insight: The company has beaten EPS estimates in 7 of the past 8 quarters and revenue estimates in 3 of those reports.
Friday, November 17
Twist Bioscience (TWST)
Twist Bioscience (TWST) is all set to release its Q4 financial update on Friday, before the bell. While witnessing a 32% drop in 2023, the stock has attracted a Buy rating from both sell-side analysts and Seeking Alpha’s Quant Rating system.
Recently, Twist Bioscience has partnered with Bayer to offer antibody discovery services for the German drugmaker.
- Consensus EPS Estimates: -$0.95
- Consensus Revenue Estimates: $63.45M
- Earnings Insight: TWST has topped EPS and revenue expectations in 7 of the past 8 quarters.
Also reporting: BJ’s Wholesale (BJ), Buckle (BKE), Spectrum Brands (SPB) and more.
