S&P 500 Earnings Preview – Walmart and Home Depot Headline Tuesday’s Earnings ReleasesKohl’s is expected to lose money
There are several large retail giants scheduled to release financial results this week. Tuesday will see some of the biggest retailers kick off the week.
Walmart (WMT) is scheduled to release financial results on Tuesday, May 19. The retail giant is expected to report earnings of $1.17 per share on 130.31 billion in revenue. This compares to 1.43 per share in the quarter prior. Earnings forecasts are unchanged over the last 30-days, which is a positive sign given the recent declines in most forecasts. Growth estimates are expected to increase by 3.5%. The company reported in April that Alcohol sales increased 350% year over year and grocery sales were up more than 30% year over year.
The stock price is approximately $5 per share off the all-time highs, and a beat will likely propel the retail giant to fresh highs.
Home Depot (HD) the home improvements conglomerate is scheduled to release financial results on Tuesday, May 19. The company is expected to earn $2.26 per share on $27.38 billion in revenue. This compares to $2.1 in earnings in the quarter prior. Analyst forecasts of earnings have declined $0.03 during the past 30-days. Growth estimates are for a decline of less than 1%.
The stock price broke out to fresh all-time highs just before the earnings release. With home prices remaining at elevated levels, the stock should continue to benefit from robust revenues rising as the trend pushes higher.
Kohl’s (KSS) is expected to release financial results on Tuesday, May 19. The company is expected to earn -$1.75 per share on $2.16 billion in revenues. This compares to $2.88 in earning in the prior quarter. Earnings forecasts have declined by more than $1.02 per share over the last 30-days.
Most of Kohl’s stores were closed during the “shelter in place” orders. Its customers are generally middle-income customers, that have lost jobs over the past 8-weeks. The shares are unlikely to see a positive upside until a vaccine is released.