Earnings Previews: Walmart, Palo Alto, NVIDIA & Moderna

The week of February 19 holds crucial information about the state of the stock market as key companies from various industries are set to release their financial earnings reports. 

From Walmart to Palo Alto and NVIDIA to Moderna, here are this week’s anticipated earnings releases:

Walmart: How Is the Retail Giant Faring?

Walmart (WMT) is scheduled to release its earnings report on Tuesday, February 20 before the ring of the bell. 

Whereas the overall US retail sector showed signs of a slowdown in the face of economic hurdles like rising inflation, it seems that Walmart has performed well in the past month and year as some even deemed its performance an “impressive run.” The company has gained 6.8% since the start of 2024 about 1.2% since the beginning of this month. 

Some Wall Street analysts expect the retail giant to report a revenue of $149.82 billion and an earnings per share (EPS) of $1.41. If these predictions materialize then it would be higher than the year-ago quarter’s revenue of $151.47 billion and lower than that period’s EPS of $1.50.

Nonetheless, despite the positive outlook, it is crucial to note that Walmart is still facing challenges such as higher input and operating costs. In addition, it was recently disclosed that Walmart has been shutting down some of its stores in San Diego and Ohio, thus continuing the trend from 2023 of closing around 23 stores in thirteen US states.

Moreover, it may be worth noting that in this earnings report, the main focus will be on core segments such as e-commerce and groceries, as well as consumer behaviors as these can provide valuable insights about the company’s health. (Source: Nasdaq)

Only time will reveal how this retail giant will actually fare.

Will Palo Alto Networks Shine?

Cybersecurity company Palo Alto Networks (PANW) is scheduled to report its earnings on Tuesday, February 20, after the ring of the bell. 

The company is expected to report robust earnings with an EPS of $1.16 and a revenue of $1.84 billion, whereas in the year-ago quarter, it reported an EPS of 83 cents and a revenue of $1.55 billion. This may not be surprising given that the company has been performing above expectations for a while now as it continues to be at the forefront of the cybersecurity field. 

Additionally, the company is expected to benefit from “deal wins,” rising demand for its machine-learning hardware, and higher adoption of cloud services in hybrid workspaces warranting the need for further protection against cybersecurity threats.

The strong growth can be seen in the company’s stock price as it gained a whopping 26.7% since the start of the year. But whether or not it will sustain this growth and adhere to the expectations is yet to be determined.

Will the AI Boom Boost NVIDIA Further?

Tech leader NVIDIA (NVDA) is scheduled to report its earnings on Wednesday, February 21, after market close. 

According to some analysts, the company is projected to report strong earnings growth of $4.56 per share on revenue of $20.38 billion notably above the year-ago’s figures of 88 cents a share and $6.05 billion revenue. 

Perhaps unsurprisingly, one of the biggest drivers of this strong growth is the increasing demand for NVIDIA’s artificial intelligence (AI) chips as more and more companies work toward adopting AI and integrating it into their services.

NVIDIA has gained over half of its value so far this year and has even become the third biggest company by market valuation in the world succeeding FAANG companies Apple (AAPL) and Microsoft (MSFT). 

This earnings release will not only reflect NVIDIA’s performance and show its prowess but is also expected to shed light on the company’s new business segments such as its new custom chips project.

Moderna’s Post-Covid Performance

Big pharma company Moderna (MRNA) is expected to report its earnings on Thursday, February 22, before the market opens.

The company, which was indefinitely among COVID’s biggest winners is projected to report a YoY earnings and revenue decline. According to the Zacks Consensus Estimate, the company’s EPS is expected to drop to $0.82 which would be a YoY fall of 122.7% while revenues are projected to fall over 50.8% from the year-ago quarter to land at $2.5 billion.

Moreover, since the start of 2024, Moderna has lost 21.4% of its value and it will be interesting to see how it will perform following its earnings report on Thursday.

Conclusion

This week is set to be eventful for the stock market as companies from various industries are set to release their earnings, hence providing valuable information about the state of the markets and the economy. Traders and investors will have to wait and see what the aforementioned companies will reveal in their earnings releases.