S&P 500 Earnings: Walmart And Nvidia Report This Coming Week

This article discusses the upcoming earnings reports of two major companies in the S&P 500 index: Walmart and Nvidia. Walmart’s report is expected to be released on Tuesday morning, February 20, 2024, while Nvidia’s report will be released on Wednesday, February 21, 2024, after the closing bell. The article provides details on the expected earnings per share and revenue for each company, as well as recent analyst target price changes for Nvidia. It also mentions how Walmart’s foray into advertising could impact its margins and highlights some key insights on the current state of the S&P 500 earnings. Overall, this article offers a comprehensive overview of these upcoming earnings reports and provides valuable insights for investors.

S&P 500 Earnings

Overview

The S&P 500 is a widely followed index that tracks the performance of 500 large-cap stocks listed on US stock exchanges. As such, earnings reports from companies included in the index, such as Nvidia and Walmart, have a significant impact on the overall performance of the S&P 500. This article will provide an overview of these companies’ earnings, their potential impact on the S&P 500, recent analyst target price changes, and expectations for their upcoming earnings reports.

Nvidia’s Earnings

Nvidia, a leading semiconductor company, is scheduled to report its earnings on Wednesday, February 21, 2024, after the closing bell. According to Street consensus, analysts expect Nvidia to report earnings per share (EPS) of $4.59 on $20.4 billion in revenue. The company’s stock has been performing well, with several recent target price changes by analysts. On February 16, Loop Capital initiated coverage on Nvidia with a target price of $1,200. Piper Sandler also raised its target price from $620 to $850 on February 15. These target price changes reflect the positive sentiment surrounding the company’s earnings prospects.

Walmart’s Earnings

Walmart, a multinational retail corporation, is set to announce its earnings on Tuesday morning, February 20, 2024, before the opening bell. The company’s previous earnings report in mid-November 2023 resulted in a stock decline due to a gross margin miss and undisclosed one-time litigation charges. However, Walmart has been making strategic moves to improve its performance, including expanding into the advertising space. This advertising strategy, along with potential margin expansion from AI and supply chain automation, could positively impact the company’s earnings. Market expectations for Walmart’s upcoming earnings report will be closely watched to assess its performance within the retail sector.

Impact on S&P 500

Both Nvidia and Walmart have significant weightings in the S&P 500 index. Nvidia accounts for 4.25% of the index, while Walmart has a smaller but still notable weighting. As a result, the earnings reports from these two companies can have a significant impact on the overall performance of the S&P 500. Strong earnings results from Nvidia and Walmart can boost investor sentiment and contribute to a positive performance of the index. Conversely, disappointing earnings reports may lead to a decline in the S&P 500. Therefore, market participants will closely monitor these earnings releases and assess their potential effects on the overall index.

Recent Analyst Target Price Changes

Several analysts have recently revised their target prices for Nvidia. On February 16, Loop Capital initiated coverage on Nvidia with a target price of $1,200. Piper Sandler also raised its target price from $620 to $850 on February 15, reflecting their positive outlook for the company’s stock. Additionally, UBS raised its target price for Nvidia from $580 to $850 on February 13, further emphasizing the bullish sentiment surrounding the stock. These target price changes highlight the positive expectations analysts have for Nvidia’s earnings and future performance.

Expectations for Nvidia’s Earnings

The Street consensus for Nvidia’s earnings is an EPS of $4.59 on $20.4 billion in revenue. These expectations reflect the company’s strong performance and positive outlook. Nvidia has been experiencing steady growth, driven by its position in the semiconductor industry and the increasing demand for its products. The company’s previous performance has been positive, further supporting the optimistic projections for its upcoming earnings report. Factors such as product launches, partnerships, and macroeconomic conditions will impact Nvidia’s earnings, and investors will closely analyze these factors to assess the company’s earnings potential.

Expectations for Walmart’s Earnings

Market expectations for Walmart’s earnings will closely consider the company’s previous performance, stock reaction, and strategic initiatives. In its previous earnings report in mid-November 2023, Walmart experienced a decline in its stock due to a gross margin miss and undisclosed litigation charges. However, the company has been implementing various strategies, including an advertising push, to improve its performance. Investors will watch Walmart’s earnings to assess the effectiveness of these initiatives and evaluate the company’s potential for margin expansion and growth within the retail sector.

S&P 500 Data

The S&P 500 data provides an overview of the index’s forward 4-quarter estimate (FFQE), P/E ratio, EPS estimate growth, revenue upside surprise, and a comparison of Q4 ’23 EPS growth expectations. The FFQE fell slightly from $242.77 to $242.57 during the week. The P/E ratio also decreased marginally from 20.7x to 20.6x. The Q4 ’23 bottom-up S&P 500 EPS estimate showed a consistent increase over six consecutive weeks, ending at $56.93. The EPS “upside surprise” for Q4 ’23 rose to 6.9%, indicating that actual earnings exceeded expectations. The revenue upside surprise for Q4 ’23 was at 1.1%. These data points provide insights into the overall performance and expectations for the S&P 500 index.

Summary/Conclusion

In summary, the upcoming earnings reports from Nvidia and Walmart will have a significant impact on the performance of the S&P 500 index. Both companies play important roles within the index, and their earnings results can influence investor sentiment and the overall direction of the index. Recent target price changes for Nvidia indicate positive expectations for its earnings, while Walmart’s strategic initiatives, including advertising and margin expansion, will be closely watched. The S&P 500 data highlights the current estimates and growth expectations for the index, providing further context to evaluate the impact of these earnings reports. Overall, the market will closely monitor these earnings releases and assess their implications on market trends and investor sentiment.

Upcoming Earnings Reports and Market Outlook

In addition to Nvidia and Walmart’s earnings reports, other notable companies like Applied Materials, Trade Desk, and Coinbase are scheduled to report their earnings. These reports will provide insights into specific sectors and industries, such as semiconductors and advertising. The expectations for the semiconductor industry will be particularly important, as it has a significant impact on technology stocks and the overall market. Additionally, historical market performance in late February suggests that this period tends to be challenging for stock returns. Investors may need to navigate potential market volatility during this time. It is important for investors to assess their portfolio volatility tolerance and adjust their investment strategies accordingly.