This Week’s Hot Picks: Four Noteworthy Earnings Reports
This week, all eyes will be on several notable companies as they prepare to unveil their financial results. Among them are industry giants like Lowe’s Companies, Salesforce, Baidu, and Dollar Tree, whose updates are highly anticipated by market participants.
These earnings reports can indeed still provide valuable insights into the health of various sectors and present opportunities for profit in both short-term trading and long-term investing strategies.
Let’s now delve deeper into what these reports might reveal and how traders and investors can leverage this information.
Tuesday 27th February – Can Lowe’s Companies Inc Pivot to Beat Falling Demand?
The Fortune 50 home improvement company that serves several million customers every week in the US, is expected to post soft earnings this week on Tuesday before the bell.
Last quarter’s total revenue came to $20.5 billion. A reduction in DIY discretionary spending- which accounts for around three quarters of Lowe’s income- caused comparable sales to drop by 7.4%, however this was somewhat offset by improved Pro customer comp
Spending habits among consumers have been conservative lately as a result of higher prices and interest rates. Many are delaying purchases of larger-ticket products like appliances. With its dominant market share in the appliance area, the company has been negatively impacted by this caution as well as industry-wide declines in appliance sales.
Lowe‘s is probably going to see a decline in its top line this quarter, according to the Zacks Consensus Estimate. Expectations are for revenues of just over $18 million, which is an 18.3% decrease from the reported amount for the previous year.
Lowe’s Companies Inc’s shares are up more than 6.30% since the beginning of the year.
Wednesday 28th February – Salesforce To Continue Its Steady Climb After An Interesting Year
Salesforce, the cloud-based business that provides tools and services to help companies develop meaningful connections with customers, is due to release their earnings on Wednesday after the market closes.
The company expects overall revenues for the fiscal fourth quarter to range between $9.18 billion to $9.23 billion this week, and the projected range for non-GAAP earnings per share is $2.25 to $2.26.
Revenues are expected to reach $9.21 billion, which would be 9.9% higher than the reported total from the previous quarter, according to the Zacks Consensus Estimate. An increase of 34.5% from the previous year is implied by the consensus earnings mark of $2.26 per share.
The increasing need for cloud-based solutions powered by generative artificial intelligence is expected to have contributed to Salesforce’s top-line growth in the fourth quarter. In order to stay ahead of competitors, the company is currently concentrating on integrating generative AI capabilities into all of its products.
Salesforce’s shares are up more than 14.30% since the beginning of the year.
Wednesday 28th February – Baidu Earnings Projected To Soar Ahead Of Government Tightening Its Grip On Tech
The Chinese multinational technology company Baidu, which focuses on AI, Internet products and services, is expected to announce its earnings report before the market opens on Wednesday.
The company recorded revenues of $4.72 billion in the previous quarter, showing a year over year increase of 3.2% and beating expectations.
For the current quarter, the company is predicted to report earnings of $2.75 per share, which would represent a +24.4% year over year change. The consensus profits forecast of $11.03 for the current fiscal year also indicates a large bump of +29.2% from the previous year.
The landscape for tech companies in China is ever evolving and uncertain since the regulatory crackdowns began in 2020. According to Bloomberg, China’s Communist Party will increase its involvement in guiding the country’s extensive technology sector, indicating Beijing’s intention to have more control over significant parts of the world’s second-largest economy.
Baidu’s shares in the US are down more than -3.40% since the beginning of the year.
Wednesday 28th February – Will Dollar Tree Improve On Last Quarter’s Miss?
Dollar Tree, the US variety stores network that provides discounted products at multiple price points under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada, will report its earnings on Wednesday before the bell.
The past quarter’s reported $0.97 earnings per share fell just short of analysts’ expected projections. As did the company’s quarterly earnings, which came in at $7.31 billion, in contrast to experts’ projections of $7.40 billion. On an annual basis, the company’s revenue increased by 5.4% during the quarter.
Based on projections from 12 analysts, Zacks Investment Research reports that the average EPS estimate for the quarter is $2.66, up from the same quarter last year, at $2.04.
Dollar Tree’s shares are up more than 2.30% since the beginning of the year.
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This article was originally posted on FX Empire
