Michael Lasser, UBS Analyst Michael Lasser expects mixed signals as Walmart Inc. (NYSE WMT) (NYSE HD) (NYSE) prepares to announce their quarterly earnings this week.
Walmart is likely to perform better than Home Depot, despite its conservative outlook, as a result of recent strategic initiatives.
Home Depot: conservative outlook, but with long-term potential
Home Depot will announce its results on August 13th.
Lasser believes that the retailer of home improvements will continue to maintain a conservative outlook, reflecting an optimistic but cautious outlook in the near term.
Home Depot, however, is still a strong contender for growth in the future.
Home Depot is currently experiencing a stagnation period.
Lasser is still optimistic, however, about the long-term prospects of his company.
Home Depot is a good investment despite its muted forecasts due to the strong position it holds in the market and the resilience of the consumer industry.
Walmart’s strong performance and optimism for the future
Walmart, on the other hand, will report its quarterly earnings to investors on 15th August, and analysts are predicting a good performance.
Walmart Q2 consensus earnings estimate is 65 cents adjusted per share on revenues of 168.5 billion dollars.
The increase is a result of a 5,0% growth in profits and a 4,0% revenue rise year over year.
Walmart’s previous quarterly revenue was $161.5 Billion. This equated to 60 cents per stock.
Management has stated that they expect to exceed or meet their previous guidance. This contributes to the positive outlook.
In a recent interview with CNBC, Lasser highlighted Walmart’s potential for growth, praising its advertising efforts in particular.
Lasser projects a $74 target price for Walmart stock.
Walmart was able to add $3.4 billion in revenue last year by leveraging its consumer data.
Walmart is expecting its financial performance to improve over time, as advertising has a very high margin.
Lasser is still optimistic about the future of Home Depot despite the conservative outlook.
Home Depot is a good investment for anyone looking to gain exposure in the consumer industry.
UBS set the price target at $400 for Home Depot, which indicates a possible 14% increase.
Earnings of $4.59/share represent a decline by 1.3% from last year, and revenue will be expected at $42.6 billion (down 0.8%).
Walmart and Home Depot will likely have different strategies to manage the coming earnings season.
Home Depot is cautious and Walmart has taken proactive steps. Both companies will have a significant impact on the retail industry.
The post Walmart and Home Depot Earnings Next Week? This post may be updated as new information unfolds
