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Walmart, Costco, CVS, and Target are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – May 16, 2022 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Walmart (WMT - Free Report) , Costco (COST - Free Report) , CVS (CVS - Free Report) , and Target (TGT - Free Report) .
Previewing Retail Sector Earnings as Inflation Climbs
Walmart shares have been a rock of stability in the ongoing market turmoil. You can see this in the chart below that shows the year-to-date performance of Walmart shares relative to the S&P 500 index (green line) and the Zacks Retail sector (red line).
Part of the explanation for Walmart's stock market stability is the nature of its business that offers a high degree of defense during periods of economic instability and uncertainty. This almost 'staple' aspect of Walmart's business can also be seen in the recent stock market behavior of peers like Costco, CVS, Target and others. That said, Walmart shares have fared better than its peers in the year-to-date period.
It will be interesting to see if Walmart and Target can sustain their recent performance momentum after quarterly reports this week, with Walmart reporting before the market's open on Tuesday, May 17th and Target the following morning.
Walmart shares were up following the last quarterly release on February 17th, even though it had to spend more to keep shelves stocked and stores staffed, with supply-chain costs coming in $400 million more than it had budgeted and the Omicron surge significantly adding to its Covid-specific paid-leave costs.
Estimates for Walmart's April quarter had come down following the last quarterly release, but have since remained stable, reflecting a greater degree of confidence in the company's ability to navigate the prevailing logistical challenges.
With respect to the Retail sector's 2022 Q1 earnings season scorecard, we now have results from 21 of the 34 retailers in the S&P 500 index. Total Q1 earnings for these retailers are down -24.1% from the same period last year on +10.9% higher revenues, with 61.9% beating EPS estimates and 76.2% beating revenue estimates.
With respect to the earnings and revenue growth rates, Amazon's weak numbers play a significant role in the strong year-over-year growth rate for the sector (Amazon is part of the Zacks Retail sector, and not the Zacks Technology sector).
This Week's Reporting Docket
We have more than 200 companies on deck to report results this week, including 16 S&P 500 members.
The 2022 Q1 Earnings Season Scorecard
We now have Q1 results from 459 S&P 500 members or 91.8% of the index's total membership. Total earnings for these companies are up +9.9% from the same period last year on +14.8% higher revenues, with 78.4% beating EPS estimates and 74.9% beating revenue estimates.
The beats percentages were earlier tracking at their lowest levels in recent quarters, but they have notably improved since then.
Looking at Q1 as a whole, with actuals for these 459 index members and estimates for the still-to-come companies, total earnings are expected to be up +9.3% on +13.3% higher revenues.
Excluding the -15.1% decline in Finance sector earnings, the growth rate for the index improves to +17%. On the other hand, the Energy sector has a very robust earnings profile at present, with the sector bringing in +239% more earnings than the year-earlier period on +60.1% higher revenues.
Excluding the hefty Energy sector contribution, earnings for the remainder of the index would be up only +3.3% on +9.9% higher revenues.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Walmart, Costco, CVS, and Target are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – May 16, 2022 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Walmart (WMT - Free Report) , Costco (COST - Free Report) , CVS (CVS - Free Report) , and Target (TGT - Free Report) .
Previewing Retail Sector Earnings as Inflation Climbs
Walmart shares have been a rock of stability in the ongoing market turmoil. You can see this in the chart below that shows the year-to-date performance of Walmart shares relative to the S&P 500 index (green line) and the Zacks Retail sector (red line).
Part of the explanation for Walmart's stock market stability is the nature of its business that offers a high degree of defense during periods of economic instability and uncertainty. This almost 'staple' aspect of Walmart's business can also be seen in the recent stock market behavior of peers like Costco, CVS, Target and others. That said, Walmart shares have fared better than its peers in the year-to-date period.
It will be interesting to see if Walmart and Target can sustain their recent performance momentum after quarterly reports this week, with Walmart reporting before the market's open on Tuesday, May 17th and Target the following morning.
Walmart shares were up following the last quarterly release on February 17th, even though it had to spend more to keep shelves stocked and stores staffed, with supply-chain costs coming in $400 million more than it had budgeted and the Omicron surge significantly adding to its Covid-specific paid-leave costs.
Estimates for Walmart's April quarter had come down following the last quarterly release, but have since remained stable, reflecting a greater degree of confidence in the company's ability to navigate the prevailing logistical challenges.
With respect to the Retail sector's 2022 Q1 earnings season scorecard, we now have results from 21 of the 34 retailers in the S&P 500 index. Total Q1 earnings for these retailers are down -24.1% from the same period last year on +10.9% higher revenues, with 61.9% beating EPS estimates and 76.2% beating revenue estimates.
With respect to the earnings and revenue growth rates, Amazon's weak numbers play a significant role in the strong year-over-year growth rate for the sector (Amazon is part of the Zacks Retail sector, and not the Zacks Technology sector).
This Week's Reporting Docket
We have more than 200 companies on deck to report results this week, including 16 S&P 500 members.
The 2022 Q1 Earnings Season Scorecard
We now have Q1 results from 459 S&P 500 members or 91.8% of the index's total membership. Total earnings for these companies are up +9.9% from the same period last year on +14.8% higher revenues, with 78.4% beating EPS estimates and 74.9% beating revenue estimates.
The beats percentages were earlier tracking at their lowest levels in recent quarters, but they have notably improved since then.
Looking at Q1 as a whole, with actuals for these 459 index members and estimates for the still-to-come companies, total earnings are expected to be up +9.3% on +13.3% higher revenues.
Excluding the -15.1% decline in Finance sector earnings, the growth rate for the index improves to +17%. On the other hand, the Energy sector has a very robust earnings profile at present, with the sector bringing in +239% more earnings than the year-earlier period on +60.1% higher revenues.
Excluding the hefty Energy sector contribution, earnings for the remainder of the index would be up only +3.3% on +9.9% higher revenues.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>A Stable Earnings Picture Despite the Market Selloff
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.