Wal-Mart Stores, Inc. , Hewlett-Packard Company and Target Corporation will report quarterly earnings this week. Here’s what investors can expect:
Wal-Mart Stores, Inc. Earnings
Wal-Mart is all set to report second-quarter numbers before the start of trade on Tuesday. The current quarter will most likely turn out to be mixed, with analysts expecting gains in disposable income to be offset by consumer propensity to save.
The average analysts’ estimate is for earnings of $1.12 per share, compared to $1.21 a year earlier. Wal-Mart Stores, Inc. ’s sales are forecast to fall to $119.8 billion from $120.1 billion in the same quarter last year. Same-store sales are projected to witness an increase of around 1 percent.
Last month, Amazon overtook Wal-Mart Stores, Inc. as the world’s most valuable retailer after surprising with a second-quarter profit. As a result, the e-commerce giant has become Wal-Mart’s biggest competitor, with the latter trying to woo back customers with everything from promotional deal days to shipping rates.
Shares of Wal-Mart Stores, Inc. are down close to 16 percent year-to-date, versus a drop of 1.6 percent in the Dow Jones Industrial Average. Amazon’s stock, in contrast, has soared more than 70 percent during the same period.
Hewlett-Packard is scheduled to report fiscal third-quarter earnings after the close of trade on Thursday. The consensus is for earnings of 85 cents per share, down from 89 cents per share in the year-ago period.
Hewlett-Packard Company ’s revenue is expected to come in at $25.5 billion, down from $27.6 billion a year earlier. The company has missed consensus sales forecasts in each of the last three consecutive quarters.
Hewlett-Packard Company ’s huge exposure to the troubled PC market has prompted several analysts to slash their quarterly sales estimates ahead of the quarterly results. Morgan Stanley last week lowered its 2015 PC-growth estimates, citing projections for tepid demand for Windows 10; offered by H-P on its laptops.
Shares of Hewlett-Packard Company have tumbled 15 percent in the past three months, underperforming the S&P 500’s 1 percent decline. Over a 12-month horizon, the S&P 500 has climbed 8 percent, while HP’s shares are down 18 percent.
Target Corp will post second-quarter earnings on before the marker opens on Wednesday. The consensus of analysts covering the stock is for earnings of $1.11 per share, up from 78 cents per share in the year-earlier period.
Target Corporation ’s second quarter sales are expected to total $17.4 billion, in line with the year-ago sales figure. Same-store sales are projected to rise 2.3 percent for the quarter.
A number of analysts are upbeat about the direction and pace of changes happening at Target Corporation . Sterne Agee CRT has forecast earnings of $1.10 per share and a 2 percent same-store sales increase. The brokerage also has a neutral rating on the stock. MKM Partners has also reaffirmed its neutral rating, and expects earnings of $1.09 per share, and a same-store sales increase of 2.3 percent for the quarter.
Shares of Target Corporation have gained 4 percent since the start of the year, through the close on Monday’s close. During the same period, the S&P 500 has gained 2.1 percent, while rival Wal-Mart Stores, Inc. ’s stock has tumbled 16 percent.