Walmart and Home Depot Earnings Preview – 20th February 2024


Why are Walmart’s Earnings so Important?

Walmart, the world’s largest retailer by revenue, is a multinational retail corporation headquartered in Bentonville, Arkansas, USA. Founded in 1962 by Sam Walton, Walmart operates a chain of hypermarkets, discount department stores, and grocery stores across the globe. With a presence in 27 countries and e-commerce operations in 10 countries, Walmart serves millions of customers daily through its physical stores and online platforms.


The significance of Walmart’s earnings releases extends beyond its status as a retail giant, being a barometer of consumer spending and economic health. Their earnings reports provide key metrics such as revenue, same-store sales growth, and earnings per share (EPS) offering a comprehensive view of its financial performance. These metrics are not only indicators of Walmart’s success but also reflective of consumer sentiment, purchasing power, and overall economic conditions.

Moreover, Walmart’s earnings calls and accompanying commentary from its executives provide crucial insights into the company’s strategic initiatives, expansion plans, and competitive positioning. Analysts and investors scrutinise these updates to gauge Walmart’s ability to adapt to changing market dynamics, innovate in the retail sector, and drive future growth.

What to expect from Walmart’s Earnings

As the anticipation builds for Walmart’s upcoming Q4 2023 earnings call on Tuesday, February 20th, 2024, investors eagerly await insights into the retail giant’s financial performance. With a current market capitalization of $458.65 billion, Walmart is poised to announce its expected earnings per share (EPS) of $1.64 for the quarter, reflecting a year-over-year (YoY) growth of 8%. Forecasts also suggest a revenue of $170.81 billion, marking a YoY growth of 6%, along with operating income of $6.761 billion, indicating a 12% YoY increase. 

These figures come on the heels of Walmart’s previous quarter, where it reported revenue growth of 5%, flat year-over-year operating income growth, and a 2% year-over-year increase in EPS. Looking ahead, fiscal year 2025 estimates project robust growth, with anticipated EPS, revenue, and operating income growth rates of 9%, 3%, and 11% respectively, year-over-year. With the markets closed on President’s Day, all eyes will be on Walmart’s financial results as they are unveiled before the opening bell on February 20th, 2024.

Why are Home Depot’s Earnings so Important?

Home Depot is a leading home improvement retailer in the United States, offering a wide range of products and services for DIY enthusiasts, professional contractors, and homeowners alike. With a presence spanning over four decades, Home Depot has established itself as a one-stop destination for everything related to home improvement, from building materials and tools to appliances, décor, and gardening supplies. 

Home Depot

As one of the largest retailers in the country, Home Depot’s earnings releases hold significant weight in the financial world and beyond. Investors closely monitor these reports, to see if they can find any opportunity to trade the news. These earnings releases provide insights into consumer spending trends, the health of the housing market, and overall economic sentiment. Given Home Depot’s extensive reach and influence in the home improvement sector, its earnings releases serve as a barometer for the broader retail industry and are eagerly awaited by analysts, investors, and stakeholders alike.

What to expect from Home Depot’s Earnings

Home Depot Inc. is poised to release its fiscal fourth-quarter earnings report on Tuesday, February 20th, 2024. Analysts anticipate a notable decline in both net income and revenue, with expected earnings per share (EPS) for Q4 projected at $2.77 and forecasted revenue at $34.64 billion. This follows a challenging quarter for the retailer, marked by an anticipated 18% drop in net income and nearly a 4% decline in revenue. 

The company’s average sales per square foot are projected to decrease by 4%, reflecting shifting consumer preferences away from big-ticket purchases. Additionally, Home Depot is expected to announce its fifth consecutive quarter of declining comparable store sales. Despite surpassing earnings expectations in the previous quarter, Home Depot grapples with softer consumer demand, leading to a downward revision in revenue projections for the full fiscal year. The upcoming earnings release will provide insights into the company’s performance amidst evolving market dynamics and changing consumer behaviours.

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

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