Forecasts Wall Street for major retail networks of the USA are mostly positive, as in the case of Nvidia. Analysts expect revenue growth and earnings per share in the reporting quarter and in the future the holiday quarter.
Last week, the S&P 500 index received the largest increase of 5.63% among the Dow Jones (+4,08%) and Nasdaq Composite (-0,55%). Today begins a week of financial reports of large companies whose shares enter the S&P 500 index. The results of the quarter and forecasts may be impacted as the shares of the companies, and will affect the entire index.
Walmart
Walmart (WMT) will report its third quarter Tuesday before the market open.
Analysts predict a rise compared to the third quarter of 2019:
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earnings per share will grow from $1.16 to $1,18;
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the amount of profit (net income) with a $3.6 billion fall to $3.4 billion;
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total revenues will grow from $128 billion to $132 billion.
Average analysts ‘ expectations regarding next year are: of $1.42 earnings per share, amount net profit of $4 billion and revenues of $145,3 billion.
Walmart’s shares, increased by 26.7% since the beginning of the year increased by 9.9% since the last report of the company on August 18. Previous second quarter, Walmart was strong (exceeded analysts ‘ forecasts), which, among other things, contributed to the programme of additional unemployment benefits.
However, forward-looking statements regarding future Walmart report was cautionary. Management noted that the termination of additional payments for unemployment and low school season can affect the consumers ‘ purchases.
The company also talked about the problems of supply chain management due to high demand
Home Depot
Home Depot (HD), as well as Walmart, will report its third quarter Tuesday before the market open.
Analysts expect growth compared with the third quarter of last year:
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earnings per share will grow from $2,53 to us $3,03;
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the amount of profit (net income) from $3.5 billion will decline to $3.3 billion;
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total revenues will grow from $27,2 billion to $31.6 billion.
Average expectations of analysts about next year amount to: $to 2.37 earnings per share, amount net profit of $2.6 billion and revenues of $28.1 billion
Home Depot shares has increased almost 27% since the beginning of the year, fell 2.5% since the last report of the company on August 18. The company reported record quarterly sales, exceeding the expectations of wall Street.
The leadership of the Home Depot noted that the increased demand among consumers was due to the fact that the Americans were engaged in landscaping their homes during a pandemic COVID-19.
Strategy digital sales One Home Depot has also borne fruit and should help the company to increase sales in the future. Although forecasts, in General, is high, the company will be difficult to surpass the result achieved.
Target
Target (TGT) will report on the results of the third quarter fin. 2021 Wednesday before market open, the reaction of investors indirectly will affect the records of Walmart and Home Depot, which will demonstrate the General trend in the market.
Analysts expect growth in quarterly revenue and earnings per share compared with the third quarter of last year:
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earnings per share will increase from $1,36 to $1.60;
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the amount of profit (net income) from $938 million will be reduced to $812,9 million;
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total revenues will grow from $18.7 billion to $20.8 billion.
Average analysts ‘ expectations regarding next year are: to be $1.78 earnings per share, amount net profit of $889 million and earnings of $25 billion.
Shares of Target, an increase of 27% since the beginning of the year increased by 3.6% since the last report of the company on August 19.
Nvidia
Nvidia (NVDA) will report its third quarter fin. 2021 Wednesday after the market closes.
Wall Street analysts expect continued growth in revenues and earnings per share (compared to value) for the third consecutive quarter:
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earnings per share will increase from $1.78 to $2.57 m;
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the amount of profit (net income) from $552 million to increase by more than three times to $1.6 billion;
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total revenues will grow from $3 billion to $4.4 billion
Average analysts ‘ expectations regarding next year are: us $2.54 earnings per share, amount net profit of $1.6 billion and revenues of $4.4 billion.
Nvidia shares, an increase of 126% since the beginning of the year, grew by 10.5% since the last report of the company on August 19. The company reported strong growth in its two key units (server and graphics chips), the segment “Datacenter” for the first time exceeded “Games” on the family’s income.
Given the completion of the transaction is a major acquisition Mellanox in the last quarter (and the company contributed about 14% of total revenue and 30% of segment earnings data centers), sales of new high performance server processors NVIDIA Ampere A100, as well as increased demand for cloud services during a pandemic, the income segment can show a new record.
The segment “Games” is expected to grow in the holiday quarter as Microsoft (MSFT) and Sony have already released their new game consoles with Nvidia graphics processors.
