Retail Earnings On Deck As Q2 Reporting Season Enters Its Final Leg

Zinger Key Points
  • Another slew of retail earnings will drop in this week.
  • Cisco, Zoom Video and Salesforce are among the tech companies reporting this week.
Retail Earnings On Deck As Q2 Reporting Season Enters Its Final Leg

The second-quarter reporting season is winding down at the end of this week. Earnings growth of S&P 500 companies slowed to a mid-single-digit range, but this shouldn’t come as a surprise, given the multiple headwinds companies faced during the quarter.

Retail earnings released in the past week mostly came in better than feared. Walmart, Inc. WMT, Home Depot, Inc. HD, Lowe’s Companies Inc. LOW all reacted positively to their earnings reports.

Here are the key earnings scheduled for the week of Aug. 22:

More Retail Earnings On Tap: The retail earnings outlook is still clouded despite some fairly encouraging reports from the biggies in the space. High-end and luxury retailers may have underperformed during the quarter amid the economic setbacks.

Macy’s, Inc. M (Q2’FY22)

Earnings Schedule: Tuesday, before the market open
EPS Estimate: 85 cents Vs. $1.29 last year
Revenue Estimate: $5.49 billion Vs. $5.6 billion last year

Nordstrom, Inc. JWN (Q2’FY22)

Earnings Schedule: Tuesday, after the market close
EPS Estimate: 79 cents Vs. 49 cents last year
Revenue Estimate: $3.95 billion Vs. $3.7 billion last year

Urban Outfitters, Inc. URBN (Q2,FY23)

Earnings Schedule: Tuesday, after the market close
EPS Estimate: 70 cents Vs. $1.28 last year
Revenue Estimate: $1.18 billion Vs. $1.16 billion last year

Dollar General Corporation. DG (Q2’FY22)

Earnings Schedule: Thursday, before the market open
EPS Estimate: $2.93 Vs. $2.69 last year
Revenue Estimate: $9.39 billion Vs. $8.7 billion last year

Dollar Tree, Inc. DLTR (Q2’FY22)

Earnings Schedule: Thursday, before the market open
EPS Estimate: $1.58 Vs. $1.23 last year
Revenue Estimate: $6.79 billion Vs. $6.44 billion last year

Gap, Inc. GPS (Q2’FY22)

Earnings Schedule: Thursday, after the close
EPS Estimate: (-5 cents) Vs. 70 cents last year
Revenue Estimate: $3.82 billion Vs. $4.2 billion last year

Others

Palo Alto Networks, Inc. PANW (Q4’FY22)

Earnings Schedule: Monday, after the market close
EPS Estimate: $2.28 Vs. $1.60 last year
Revenue Estimate: $1.54 billion Vs. $1.2 billion last year

Cybersecurity continued to remain the most defensive within the broader IT budgets, according to Morgan Stanley analyst Hamza Fodderwala. Palo Alto, a cybersecurity company, could benefit from this trend. The company, with its broader platform, growing secular tailwinds in cloud security, and attractive valuation is a good bet, the analyst said.

Zoom Video Communications, Inc. ZM (Q2’FY23)

Earnings Schedule: Monday, after the market close
EPS Estimate: 93 cents Vs. $1.36 last year
Revenue Estimate: $1.12 billion Vs. $1.02 billion last year

The buy-side expectations for Zoom Video align with the current second-quarter consensus estimate for Zoom Video, Morgan Stanley analyst Meta Marshall said in a recent note.

“We think meeting top line with slight operating margin upside should be enough in the quarter, but would expect guidance to remain fairly conservative on both (accompanying any revenue guide down with operating upside – similar to playbook through much of software this quarter),” she added.

J.M. Smucker SJM (Q1’FY23)

Earnings Schedule: Monday, before the market open
EPS Estimate: $1.27 Vs. $1.90 last year
Revenue Estimate: $1.12 billion Vs. $1.02 billion last year

The Orville, Ohio-based food company is likely to report upside to consensus as a peanut butter recall moves into the rearview, BofA Securities analyst Peter Galbo said in a note, according to Seeking Alpha. The analyst expects the company’s more focused portfolio after years of divestitures to position it for outperformance in the long run.

JD.com JD (Q2’FY22)

Earnings Schedule: Monday, before the market open
EPS Estimate: 40 cents Vs. 45 cents last year
Revenue Estimate: $38.63 billion Vs. $38.73 billion last year

JD.com’s results are likely to reflect the soft patch witnessed by the Chinese economy amid the COVID resurgence. Bigger peer Alibaba Group Holdings Limited BABA reported an earnings beat but flat revenue performance.

Medtronic plc. MDT (Q1’FY23)

Earnings Schedule: Tuesday, before the market open
EPS Estimate: $1.12 Vs. $1.41 last year
Revenue Estimate: $7.22 billion Vs. $7.87 billion last year

Needham analyst Mike Matson expects the medical devices company to report better-than-expected quarterly results, as he believes macro factors are already incorporated in the guidance. The analyst, however, expects the company to lower its full-year guidance due to an increased currency headwind.

Nvidia Corporation NVDA (Q2’FY23)

Earnings Schedule: Wednesday, after the close
EPS Estimate: 49 cents Vs. $1.04 last year
Revenue Estimate: $8.1 billion Vs. $6.3 billion last year

Earlier this month, Nvidia issued a negative preannouncement, citing weak gaming segment performance and challenging market conditions. KeyBanc analyst John Vinh said in a recent note that he expects the company to report in line with its preannouncement. The analyst sees the second quarter marking the bottom.

Salesforce, Inc. CRM (Q2’FY23)

Earnings Schedule: Wednesday, after the close
EPS Estimate: $1.02 Vs. $1.48 last year
Revenue Estimate: $7.7 billion Vs. $6.34 billion last year

Photo: Courtesy of RosieTulips on flickr

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