Walmart and Home Depot reports beat Wall Street analysts estimates

Walmart (WMT) reported 2Q earnings per share growth of 14% to $ 1.78, up to $ 0.22 from analysts’ estimates of $ 1.56. Revenue grew 2% to $ 141 billion from an estimate of $ 136.74 billion. Walmart’s quarterly revenue and earnings statistics for the last three years are available here.

Walmart’s third-quarter earnings per share forecast are $ 1.30– $ 1.40, a range average above-market analyst estimates of $ 1.32 earnings per share.

The largest US retailer raised its annual profit forecast to $ 6.20- $ 6.35, which is higher than analysts’ expectations of $ 6.

Walmart’s online sales in the second quarter saw a sharp decline in growth to + 6%, up from + 37% in the first quarter and + 69% in the fourth quarter of 2020. Perhaps this is because consumers preferred offline purchases – online purchases with the abolition of quarantine restrictions and many vaccinated people.

Walmart visits were up 2.9% in July compared to the same month in 2019, and Target (TGT) visits to the competitive retailer (TGT) grew 15.9% over the period, according to Placer.ai.

Investors were awaiting comments from Walmart management regarding the potential impact of the Delta COVID-19 strain on Walmart’s future results.
Walmart shares gained 13.7% over the past year and 4.6% since early 2021, which have not changed significantly since the report’s release on Tuesday.

Home Depot Fiscal 2022 Q2 Report

Home Depot (HD) reported a 13% rise in 2nd quarter earnings per share to $ 4.53, up to $ 0.14 from analysts’ $ 4.39. Revenue growth slowed for the second quarter in a row to + 8% and $ 41.1 billion, but the numbers were above the analyst average of $ 40.4 billion. Home Depot’s quarterly revenue and earnings statistics are available here.

Home Depot did not provide a forecast for the year, citing uncertainties over the pandemic.

Analysts say inflation could be one of the factors driving up sales – sawn wood prices peaked in the last quarter.

The slowdown in Home Depot sales compared to similar numbers in 2020 is due to changes in consumer behavior. During the global lockdowns during the US pandemic last year, consumers have sharply increased their home improvement spending. Today, sales are growing in industries such as restaurants and tourism.

Home Depot reported a 5.8% drop in customer transactions from a year ago, but the average check was 11.3% higher.

Home Depot shares, which are up 27% YTD, reacted to the quarterly report with a 3.7% decline ahead of Tuesday trading (as of this writing).