From Nasdaq, Inc.: 2025-02-21 19:26:00

Key retailers like Home Depot (HD), Lowe’s (LOW), and TJX Companies (TJX) are set to release quarterly results this week. Nvidia (NVDA) will also release results after the market closes on Wednesday, February 26th. Home Depot shares have outperformed Lowe’s but both have underperformed the broader market this year.

Despite challenges in the operating environment, Home Depot and Lowe’s face unfavorable interest rates affecting sales. With negative same-store sales trends, Home Depot is expected to report a -1.7% decline. Lowe’s is projected to have a -1.67% same-store sales decline.

Home Depot is forecasted to bring in $3.03 EPS on $39.02 billion in revenues, with year-over-year changes of +7.5% and +12.2%, respectively. Lowe’s is expected to report $1.82 per share in earnings on $18.29 billion in revenues, representing +2.8% in EPS and a -1.7% decline in revenues year-over-year.

The operating environment, including unfavorable interest rates, poses challenges for Home Depot and Lowe’s. With the release of Q4 earnings from 21 S&P 500 retailers, total earnings are up +36.8% year-over-year, with 71.4% beating EPS estimates and revenue estimates.

Nvidia’s upcoming release is highly anticipated due to its role in AI-focused activities. The company is expected to bring in 84 cents in EPS on $37.7 billion in revenues, with changes of +61.5% and +70.7% year-over-year, respectively. Nvidia’s stock has lagged behind the Tech sector and S&P 500 index this year.

With over 750 companies reporting this week, investors are eyeing earnings from Nvidia, Salesforce, and other notable companies. Nvidia’s release will provide insight into the demand outlook following the DeepSeek announcement. The company’s stock struggles are attributed to a shift in revisions trend.

The Q4 earnings and revenue growth expectations show promising growth rates. Excluding contributions from certain companies, the rest of the S&P 500 index is expected to see a +9% increase in earnings on +4.5% higher revenues. Double-digit earnings growth is expected in 2025 and 2026.

For a comprehensive look at the overall earnings picture, including expectations for the coming periods, investors can check out Zacks Investment Research’s weekly Earnings Trends report. The report provides insights into retail earnings and highlights 7 elite stocks for potential gains.



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