Many major U.S. retailers announced their first quarter results this week. How do the earnings of retailers like Home Depot and Walmart serve as a bellwether for the current financial climate? Yahoo Finance features recent earnings reports for Q1 2024.
video transcript
It comes down to consumer psychology.
It fell on Friday as high prices continued to weigh on shoppers.
Well, big retailers like Home Depot and Walmart are releasing reports this week, but will this trend continue?
That's what everyone wants to know.
Take a look at the stocks that are trending here this morning. Home Depot stock is under a little pressure.
Revenue forecasts were not met.
We see the stock down about 1% in pre-market trading here as investors took in another quarter of the stock than expected.
From what I've heard from home improvement retailers, I think this was another pretty solid quarter given the challenges facing the economy.
I think what's happening is that some of the discretionary projects that were done during the coronavirus pandemic have been postponed.
I mean, they've been through this before.
You know, we're living in the year 2000 and they're going to come out the other side.
Alibaba's very powerful chair sank this morning after profits plummeted 86% year-on-year.
Looking at the stock price, it has fallen by about 5.2%.
Sean.
I don't print too many earnings reports.
But I printed this for Alibaba here today.
Of course, one of the big things is the decline in profits.
It was so impressive that I thought it was worth the paper and ink it was printed on.
Well, a big moving company came here today.
Walmart Blood stock is expensive.
I started getting really excited after these Walmart results, but it was a strong quarter, with Walmart stock up almost 7% pre-market.
This quarter is absolutely 1000% worth it in terms of share price appreciation.
I really want to know, guys, if Wal-Mart is doing so well and high-income households are going to Wal-Mart, what's going on in the economy?
why?
I don't sell crappy products anymore.
They sell luxury goods.
This isn't the clunky, awful shopping experience it was a decade ago.
I'm really happy with this result.
Operating profit more than doubled to 13.7% in the quarter, and sales rose 6%.
That way, you know that customers continue to go to Walmart for convenience, not just value.
Well, if executed well, I think we'll continue to see Sharegate.
Okay.
Well, Under Armor stock is actually trending higher here.
We expect an increase of only about 1%.
Well, this upward movement is coming.
Despite the fact that the company reported weaker than expected results.
Fiscal Year 2025 Under Armor was a very large business, and they were selling, but many of their products weren't very profitable.
This is a brand with $6 billion in revenue.
And in terms of market capitalization, it's less than half that, or about half that, so there's a discrepancy.
Investors are now focused on NVIDIA's earnings next week, which could add to the current market rally momentum.
Along with this idea, there may be an underlying reason why the view that 910 will decline 15% this year has completely faded in investors' minds.
Will all the pullbacks we saw at the beginning of earnings season, the TSM S's of the world, come back to NVIDIA?
But will the market continue to move?
anyway?
If you take a step back and look at this fiscal year's earnings, I think it was a very strong financial year overall.
The average company beats earnings estimates by about 8-9%.
Well, there are some very large companies that have had a big impact on it.
The scope of improvement in profitability is broad and continues to improve.
And I think that's helping to expand the market a little bit.
