LOW - Earnings week ahead: Walmart Target Home Depot Cisco Li Auto Deere and more

With the heart of earnings season now in the past, the pace of quarterly releases slows down next week. However, key reports are still due out from a number of closely watched firms.

This includes retail giants Walmart ( NYSE: WMT ), Target ( NYSE: TGT ), and Home Depot ( NYSE: HD ). Financial figures are also due out from companies like Cisco Systems ( NASDAQ: CSCO ), NetEase ( NTES ), Li Auto ( LI ) and Deere ( DE ).

Below is a curated list of reports due in during the week of August 15 to August 19:

Monday, August 15

Li Auto ( LI )

Chinese automaker Li Auto ( LI ) is due to announce its second quarter earnings result prior to Monday’s market open. Ahead of the quarterly report, the Beijing-based auto manufacturer revealed that it delivered 10,422 Li ONEs in July, up 21.3% from the same period last year, but down 20% from a particularly strong June figure.

The stock has surged over 20% higher since the start of April, with a significant jump since the relaxing of China’s most stringent pandemic restrictions in the summer. According to the China Association of Automobile Manufacturers, passenger car sales in China reached record levels in July as regulators pursue significant stimulus packages . Shortly before the report, a ride-hailing joint venture between Didi Global ( OTCPK:DIDIY ) and Li Auto ( LI ) applied for bankruptcy protection in Beijing .

• Consensus EPS Estimates: $-0.04
• Consensus Revenue Estimates: $1.41B
• Earnings Insight: Li Auto ( LI ) has beaten EPS estimates in 5 of the past 7 quarters, exceeding revenue estimates in 6 of those reports.

Weber ( WEBR )

Following on the heels of a disappointing report from key competitor Traeger ( COOK ), Weber ( WEBR ) is set to announce its second quarter report. Shares of the grill maker have declined over 40% since the start of 2022, falling most sharply after a late-July earnings preannouncement that included news that then-CEO Christ Scherzinger would depart immediately . Short interest on Weber ( WEBR ) remains elevated, with 55.86% of its float held short.

• Consensus EPS Estimates: $-0.04
• Consensus Revenue Estimates: $526.84M
• Earnings Insight: Weber has beaten revenue and EPS estimates in just 1 of the past 4 reports.

Also reporting: Niu Technologies ( NIU ), F45 Training Holdings ( FXLV ), and Tencent Music Entertainment Group ( TME )

Tuesday, August 16

Walmart ( WMT )

In likely the most closely followed report of the week, Walmart ( WMT ) will announce earnings for the first time since bloated inventory levels reflected in its first quarter report sent shares spiraling in May. Additionally, in the weeks ahead of the report, the Arkansas-based retail behemoth warned that profits for the second half of 2022 are due to fall amid inflationary impacts .

“WMT confirmed investor's biggest fear after the Q1 guide down; it didn't cut deep enough to reflect the risk associated with its excess inventory position and a slowing consumer,” Wells Fargo analyst Edward Kelly told clients in late July. “WMT's news suggests the retail backdrop has continued to soften.”

Shares have fallen sharply since late May, marking about a 13% decline since the release of its last quarterly update. However, analyst Brian Gilmartin called the recent downturn “an inventory issue” rather than “a revenue problem.”

• Consensus EPS Estimates: $1.60
• Consensus Revenue Estimates: $149.78B
• Earnings Insight: Walmart has beaten EPS estimates in 6 of the past 8 quarters, exceeding revenue expectations in 100% of those reports.

Home Depot ( HD )

Home Depot ( HD ) represents another key retailing name to announce results before Tuesday’s open. Shares of the Atlanta-based specialty retailer have rebounded sharply from their 52-week low in mid-June , rising over 15% in the two months prior to the earnings announcement.

Shortly ahead of the report, Citi named HD among the thirty stocks it finds “most attractive on fundamentals, sentiment and valuation” into the second half of 2022. By contrast, Morgan Stanley pared estimates on the stock ahead of earnings amid a weaker consumer.

• Consensus EPS Estimates: $4.93
• Consensus Revenue Estimates: $43.33B
• Earnings Insight: Home Depot has beaten earnings expectations on top and bottom lines in 8 straight quarters.

Also reporting: Sea Limited ( SE ), On Holding ( ONON ), and REE Automotive ( REE )

Wednesday, August 17

Target Corporation ( TGT )

Following up on WMT’s results from the day before, Target ( TGT ) will offer its own update prior to the market open on Wednesday. Much like Walmart, a disappointing first quarter report hit shares hard in the late spring and early summer. Target has also reduced full-year guidance again in the summer despite already paring forecasts in its first quarter earnings.

However, Wells Fargo analyst Edward Kelly commented that the pre-announcement is likely to quell concerns about another guide-down in this coming earnings report.

• Consensus EPS Estimates: $0.72
• Consensus Revenue Estimates: $26.10B
• Earnings Insight: Target has exceeded EPS and revenue estimates in 7 of the past 8 quarters.

Lowe's Corp. ( LOW )

Lowe’s ( LOW ) will offer its quarterly update a day after rival HD, with its results set to come out in Wednesday’s premarket hours. The stock has slightly outperformed HD year-to-date, although its rebound from June lows has been less significant. Additionally, Citi analyst Steven Zaccone advised clients that slowing housing demand is likely to promote an earnings miss .

• Consensus EPS Estimates: $4.59
• Consensus Revenue Estimates: $28.17B
• Earnings Insight: Lowe’s has beaten EPS estimates in 8 straight quarters, missing revenue expectations only once in that span.

Cisco Systems ( CSCO )

Breaking up a retail-heavy earnings week, tech conglomerate Cisco Systems ( CSCO ) will post its fiscal fourth quarter results after Wednesday’s close. During the quarter, the California-based networking giant exited its Russia business and encountered issues amid lockdowns in China. Still, CEO Chuck Robbins indicated he remains “ fairly optimistic ” on China in interviews ahead of the quarterly report.

Following its fiscal third quarter report, shares fell sharply due to lowered guidance, with Wall Street remaining skeptical of the demand environment in the fourth quarter – the three-month period covered in its coming earnings report. The company has also dealt with cyberattacks in recent weeks . Meanwhile, Mott Capital Management gave an upbeat assessment, saying in late July that beaten-down CSCO may move “sharply higher.”

• Consensus EPS Estimates: $0.82
• Consensus Revenue Estimates: $12.78B
• Earnings Insight: Cisco has beaten EPS estimates in 8 straight quarters, while exceeding revenue expectations in 6 of those reports.

Also reporting: TJX Companies ( TJX ), Analog Devices ( ADI ), Krispy Kreme ( DNUT ), ZIM Integrated Shipping ( ZIM ), and Performance Food Group Company ( PFGC )

Thursday, August 18

Kohl’s Corporation ( KSS )

After fielding takeover offers throughout much of 2022, Kohl’s ( KSS ) will publish its second quarter earnings on Thursday before the market open. Despite deep declines in the past year, shares of the Minnesota-based department store chain rebounded notably in the week ahead of its release amid a stronger-than-anticipated report from Dillard’s ( DDS ) and lighter-than-anticipated inflation data.

Also, the retailer expanded pickup services ahead of the report in pursuit of convenience-focused consumers. Still, worries about slowing consumer spending data caused Cowen to downgrade the stock shortly before the report .

• Consensus EPS Estimates: $1.12
• Consensus Revenue Estimates: $3.91B
• Earnings Insight: Kohl’s has exceeded EPS estimates in 7 of the past 8 quarters, beating expectations in 5 of those quarters.

NetEase ( NTES )

Chinese entertainment company NetEase ( NTES ) is set to report on Thursday. About a month prior to the report, Macquarie called the company "best in class integrated gaming company" in China. Also of note, the company released the long-awaited Diablo Immortal game, which it developed alongside ActivisionBlizzard. Still, the firm is among the US-listed names under review for delisting by the SEC.

• Consensus EPS Estimates: $1.05
• Consensus Revenue Estimates: $3.44B
• Earnings Insight: NetEase has beaten EPS estimates in 6 of the past 8 quarters, exceeding sales expectations in 7 of those reports.

Also reporting: BJ’s Wholesale Club ( BJ ), Tapestry ( TPR ), Estee Lauder ( EL ), and Canadian Solar Inc. ( CSIQ )

Friday, August 19

Deere & Co. ( DE )

The Illinois-based farm equipment manufacturer is set to report its fiscal third quarter on Friday prior to the market open. Evercore ISI upgraded the stock shortly before its earnings release, as the firm surmised prices and costs are stabilizing in manufacturing . Meanwhile, analyst Vladimir Dimitrov gave a more bearish take, saying the stock would likely underperform the market .

Shares have rocketed nearly 25% in the month ahead of its earnings release, accelerating sharply from a 52-week low marked in early July. The stock has also significantly outperformed the broader market in 2022, falling only about 2% in the first 8 months of the year against a more than 12% decline for the S&P.

• Consensus EPS Estimates: $1.05
• Consensus Revenue Estimates: $3.44B
• Earnings Insight: Deere has beaten EPS estimates in 6 of the past 8 quarters, while exceeding revenue expectations in 7 of those quarters.

Foot Locker ( FL )

New York-based footwear-focused retailer Foot Locker ( FL ) is due to round out earnings week with its quarterly report in premarket hours on Friday. Shares had gained sharply after the retailer’s first quarter report, in which the company notched better-than-expected profits and issued an upbeat forecast .

At the close of the second quarter, the company offloaded its Team Sales business for an undisclosed sum . Foot Locker ( FL ) has risen nearly 30% in the month prior to its earnings. Even with this rebound, shares have declined more than 30% year to date.

• Consensus EPS Estimates: $0.85
• Consensus Revenue Estimates: $2.09B
• Earnings Insight: Foot Locker has beaten EPS estimates in 8 straight quarters, exceeding revenue expectations in 6 of those reports.

Also reporting: Buckle Inc. ( BKE ) and Vipshop Holdings ( VIPS )

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