From Nasdaq: 2024-05-10 18:41:00

Walmart shares remained resilient in a weak market, outperforming Target and Home Depot from March 28th to end of April 2024. Walmart’s focus on values and groceries helped it gain market share, but its exposure to lower-income consumers could impact same-store sales in the upcoming quarterly release on May 16th.

Target and Home Depot are also reporting earnings soon. Target has shown strong growth in the past, while Home Depot is susceptible to interest rate changes. This quarter, online retailers like Amazon and restaurants have struggled to meet EPS and revenue estimates, impacting the overall retail sector.

So far, 21 retailers in the S&P 500 have reported Q1 results, with a strong growth rate of +54.5% in earnings and +7.4% in revenues year-over-year. The historical comparison of beats percentages for these retailers shows that online players and restaurants are performing below average.

In the upcoming earnings releases, the retail sector is expecting a boost from companies like Walmart and Home Depot, as well as other major players like Cisco and Alibaba. Despite a challenging quarter for the industry, the overall S&P 500 earnings are projected to grow by +9% in 2024, with positive revisions for Q2 estimates.



Read more at Nasdaq:: Retail Earnings Loom: What to Expect