Q2 Retail Earnings Preview: Walmart, Home Depot, Lowe's, Target, BJ's, Kohl's And More

The second-quarter reporting season is entering its final leg.

The past week’s earnings were largely skewed to the negative side. Out of the S&P 500 companies that have reported earnings thus far, roughly 62.3% have beat earnings estimates, 1.4% posted in-line results and 36.3% missed expectations, according to Benzinga Pro data.

The likes of Coinbase Global Inc. COIN, Roblox Inc. RBLX and Palantir Technologies Inc. PLTR all reported disappointing earnings.

Meanwhile, Disney DIS supported the market with a forecast-beating quarterly performance, with strong domestic park attendance lending support.

Here are the key earnings scheduled for the unfolding week:

Retail Earnings On Tap

Retailer earnings reports help gauge the pulse of consumer spending, which is an important component of economic growth. After all, consumer spending accounts for about two-thirds of the U.S. gross domestic product (GDP).

Consumers remained cash-strapped as inflationary pressure ruled high in the second quarter and ate into nominal income. Headline inflation was hitting fresh 40-year highs in each of the three months of the quarter before cooling off in July.

Investors received a foretaste of what is to come when retail giant Walmart, Inc. WMT preannounced second-quarter and full-year shortfall, citing food and fuel inflation.

Home improvement retailers such as Home Depot Inc. HD could have been insulated from some of the weaknesses. Given higher home prices, more dollars are likely to funnel through for home improvement and remodeling.

Home Depot

• Earnings Schedule: Tuesday, before the market open
• EPS Estimate: $4.05 vs. $4.53 last year
• Revenue Estimate: $43.36 billion vs. $41.1 billion last year
• “Home Depot should remain a winner in retail, given its best-in-class execution, digital prowess, and permanent and hybrid work-from-home arrangements causing more maintenance and repair activity, said Joseph Feldman, an analyst at Telsey Advisory Group.

Walmart

• Earnings Schedule: Tuesday, before the market open
• EPS Estimate: $1,60 vs. $1.78 last year
• Revenue Estimate: $150.75 billion vs. $141 billion last year

See Also: How Sell-Side Views Walmart’s Negative Preannouncement

Lowe's Companies, Inc. LOW

• Earnings Schedule: Wednesday, before the market open
• EPS Estimate: $4.62 vs. $4.25 last year
• Revenue Estimate: $28.14 billion vs. $27.6 billion

Target Corporation TGT (discount store retailer)

• Earnings Schedule: Wednesday, before the market open
• EPS Estimate: 73 cents Vs. $3.64 last year
• Revenue Estimate: $26.06 billion vs. $25.08 billion last year

The TJX Companies, Inc. TJX (off-price department chain)

• Earnings Schedule: Wednesday, before the market open
• EPS Estimate: 67 cents Vs. 64 cents last year
• Revenue Estimate: $12.08 billion vs. $12.08 billion last year

BJ’s Wholesale Club Holdings, Inc. BJ (membership-only warehouse club retailer)

• Earnings Schedule: Thursday, before the market open
• EPS Estimate: 78 cents vs. 82 cents last year
• Revenue Estimate: $4.61 billion Vs. $4.2 billion last year

Kohl's Corporation KSS (department store chain)

• Earnings Schedule: Thursday, before the market open
• EPS Estimate: $1.14 vs. $2.48 last year
• Revenue Estimate: $3.85 billion vs. $4.5 billion last year

Other Key Earnings

Sea Limited SE

• Earnings Schedule: Tuesday, before the market open
• EPS Estimate: (-$1.19) vs. (-83 cents) last year
• Revenue Estimate: $2.97 billion Vs. $1.94 billion last year
• Singapore-based Sea is an internet company focused on digital entertainment, e-commerce, and digital financial services.

Analog Devices, Inc. ADI (Q3’22 results)

• Earnings Schedule: Wednesday, before the market open
• EPS Estimate: $2.43 vs. $1.72 last year
• Revenue Estimate: $3.05 billion vs. $1.76 billion last year
• Analog Devices is a manufacturer of ICs, software, and subsystems using analog, mixed-signal, and digital signal processing technologies. The company is expected to benefit from across-the-board strength in its end markets such as consumer, communication, industrial, and automotive.

Cisco Systems, Inc. CSCO (FY'22 Q4)

• Earnings Schedule: Wednesday, after the close
• EPS Estimate: 82 cents vs. 84 cents last year
• Revenue Estimate: $12.73 billion Vs. $13.13 billion last year
• Ahead of Cisco's results, Rosenblatt Securities analyst Mike Genovese said he expects in-line quarterly results but expects variance in product order rate and guidance. The analyst remains sidelined on the stock, given the company is in a product order growth phase and has been bleeding share in the Ethernet Switch market.

Applied Materials, Inc. AMAT (FY’22 Q3)

• Earnings Schedule: Thursday, after the close
• EPS Estimate: $1.79 vs. $1.90 last year
• Revenue Estimate: $6.28 billion vs. $6.20 billion last year

Deere & Company DE (FY’22 Q3)

• Earnings Schedule: Friday, before the market open
• EPS Estimate: $6.65 vs. $5.32 last year
• Revenue Estimate: $12.87 billion vs. $11.5 billion last year