Earnings Previews: Home Depot, JD.com, Sea, Walmart
Once again, the ratio of companies beating earnings to companies missing earnings was fairly narrow for firms reporting after markets closed Thursday. No companies of note are reporting June-quarter results either Friday afternoon or Monday morning.
There are, however, several interesting reports due out late Monday and Tuesday morning. Here’s our preview of three company reports due Monday afternoon from Roblox, StoneCo and Tencent Music.
The following four companies, including two Dow Jones industrial average components, report results before Tuesday’s opening bell.
Home Depot
Home improvement giant Home Depot Inc. (NYSE: HD) is a Dow 30 component that plunged by about 30% in late March last year and still finished the year up nearly 25%. So far in 2021, the stock has added nearly 27% more. The company is expected to report continued strong growth that began during the pandemic lockdowns of last year.
Of 34 analysts covering the stock, 24 give Home Depot a Buy or Strong Buy rating and nine of the rest have Hold ratings. At a recent price of around $332.30, the stock’s implied upside based on a median price target of $350 is about 5.3%. At the high price target of $391, the upside potential is nearly 18%.
Analysts expect Home Depot to report fiscal 2022 second-quarter earnings per share (EPS) of $4.41, up by more than 14% year over year, on revenue of $40.67 billion, or about 8.5% higher. For the full fiscal year, EPS are forecast at $14.31, up about 19%, on sales of $143.77 billion, up 8.8% year over year.
Home Depot stock trades at 18.5 times expected 2022 EPS, 18.1 times estimated 2023 earnings and 17.4 times estimated 2024 earnings. The stock’s 52-week range is $246.59 to $345.69. Home Depot pays an annual dividend of $6.60 (yield of 1.98%).
JD.com
Beijing-based JD.com Inc. (NASDAQ: JD) is the second-largest Chinese e-commerce company, but a distant second to Alibaba and in a virtual tie with Pinduoduo. Over the past 12 months, the stock has gained about 11%, including a drop of almost 21% in 2021. Two of Cathie Wood’s ARK Invest funds include shares of JD.com: ARK Fintech Innovation ETF and ARK Autonomous Technology & Robotics ETF. Two other ARK funds, ARK Next Generation Internet ETF and ARK Space Exploration & Innovation ETF, have exited their positions in the stock. At the end of June, the ARK funds held a total of nearly 6.3 million shares in JD.com. As of Thursday’s close, the holding had shrunk to around 2.2 million shares.
Of 22 analysts covering the stock 21 give the company a Buy or Strong Buy rating. At a price of around $69.60, the stock’s implied upside based on a median price target of $96.60 is about 39%. At the high price target of $130.12, the upside potential is nearly 87%.
Analysts expect JD.com to report second-quarter EPS of $0.35, up by about 128% sequentially and down 30% year over year, on revenue of $38.32 billion, up about 24% sequentially and up about 28% year over year. For the full fiscal year, EPS are forecast at $1.34, up about 65%, on sales of $147.03 billion, up about 29% year over year.
JD.com stock trades at 53.0 times expected 2021 EPS, 32.2 times estimated 2022 earnings and 22.5 times estimated 2023 earnings. The stock’s 52-week range is $60.94 to $108.29, and the company does not pay a dividend.
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