A Guide to Earnings: Navigating Walmart’s Reports and More in a Crucial Week

The earnings season is coming to a close, but there are still some key names remaining to report their quarterly figures, offering valuable insight into the health of the consumer. Only seven S&P 500 companies are set to report, including major retailers like Home Depot and Walmart. So far, 92% of the S&P 500 has reported, with nearly 80% of those companies surpassing expectations, according to FactSet. CNBC Pro has provided a breakdown of what to expect from these key reports this week.

On Tuesday, Home Depot is scheduled to report earnings before the bell, with a conference call following at 9 a.m. Last quarter, Home Depot exceeded expectations despite consumers focusing on smaller home improvement projects. However, this quarter, the home improvement giant is expected to see a more than 5% decline in earnings compared to the same period last year. Home Depot has faced challenges this year, and analysts are eager to see if the upcoming numbers can boost the company’s stock performance, which has been lackluster recently.

Cisco Systems will be reporting earnings after the market closes on Wednesday, with a call at 4:30 p.m. Last quarter, Cisco outperformed expectations, but announced layoffs of 5% of its workforce. Analysts predict double-digit declines in earnings and revenue for the legacy tech giant this quarter. Although Cisco’s shares have fallen this year, JPMorgan suggests the company’s valuation is attractive in the short term. However, the medium to long-term earnings outlook may be muted, as reflected in the upcoming report.

On Thursday, Walmart is set to report earnings before the market opens, with a call at 8 a.m. Last quarter, Walmart’s earnings beat estimates, driven by strong e-commerce sales. Analysts anticipate mid-single digits growth in earnings and revenue for the retail giant this quarter. Walmart’s momentum is expected to have continued in the fiscal first quarter, with ongoing gross margin expansion offsetting mix shift headwinds. While Walmart has historically exceeded earnings forecasts 71% of the time, the stock has declined in two of the last three earnings days.

In conclusion, the remaining earnings reports from companies like Home Depot, Cisco Systems, and Walmart offer valuable insights into the consumer landscape and overall market health. Analysts are closely watching these reports for signs of recovery and growth, particularly in the retail and tech sectors. As the earnings season wraps up, investors will be looking for opportunities to capitalize on any positive performance from these key companies. Stay tuned for updates on these earnings reports as they are released and analyzed.