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3 Key Quarterly Releases to Watch Next Week

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The stock market has shown resilience after the late October lows, with the first few weeks of November reflecting positive trends. As the Q3 earnings cycle progresses, we anticipate a notable slowdown in the coming weeks. However, several notable companies, such as Palo Alto Networks (PANW), Home Depot (HD), and Target (TGT), are yet to report, and all three are on the reporting docket for next week.

Palo Alto Networks Insights

Palo Alto Networks, a leading cybersecurity player, provides network security solutions to enterprises, service providers, and government entities globally. The company’s shares have surged by over 70% in 2023, largely attributed to the broader technology rebound and excitement surrounding artificial intelligence.

Analysts raised their expectations for the upcoming quarter following the late August release, and the stock value has seen a 4.5% increase, reflecting a substantial 40% year-over-year growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Although the top-line expectations have slightly decreased to $1.8 billion compared to $1.9 billion in late August, it still indicates an impressive 18% year-over-year improvement.

The company’s guidance after the 2023 Q4 results indicated an expected total Billings range of $2.05 – $2.08 billion, reflecting an 18% year-over-year growth. Palo Alto Networks has consistently exceeded consensus Billings expectations, with the upcoming release anticipated to be no exception.

Zacks Investment Research
Image Source: Zacks Investment Research

Palo Alto Networks is scheduled to report on November 15th, after the market close.

Home Depot Expectations

Estimates for home improvement giant Home Depot have remained relatively stable since August, with the Zacks Consensus EPS Estimate at $3.80, representing only a marginal 0.3% decrease. The consensus revenue estimate stands at $37.6 billion, down by a slight 0.2% during the same period.

The current consensus expectations indicate a 10% drop in earnings and a 3% decline in sales compared to the year-ago period. Home Depot has been impacted by a slowdown in big-ticket items, as many consumers made substantial home improvements during lockdown phases and don’t foresee replacing these items anytime soon.

Zacks Investment Research
Image Source: Zacks Investment Research

Home Depot’s upcoming release is scheduled for November 14th, before the market opens.

Insights on Target

Retail behemoth Target has experienced a challenging year, with its shares declining by nearly 30% year-to-date. The company has been affected by consumers shifting from discretionary products to essential items, impacting its revenue growth. In its latest quarterly release, Target lowered its FY23 sales outlook, anticipating a mid-single-digit year-over-year decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Analysts have adjusted their expectations lower for the upcoming release, with the current $1.47 Zacks Consensus EPS Estimate down 8% since mid-August. Similarly, the top-line revisions have been negative, with the $25.3 billion expectation taken 1.3% lower during the same period.

Given the challenging performance in 2023, even modestly positive results regarding inventory and discretionary demand could potentially boost Target’s shares following the earnings report. The company is set to report on November 15th, before the market opens.

Key Takeaways

As we navigate through the earnings season, many companies have already released their results. However, several prominent companies, including Target (TGT), Home Depot (HD), and Palo Alto Networks (PANW), are yet to report.

The upcoming quarterly releases from these companies carry significant weight and are poised to influence market sentiments. Investors will keenly monitor the results and guidance provided by these companies, shaping the market’s trajectory in the upcoming weeks.

A strategic interpretation of these releases and their potential impact on the broader market can provide valuable insights for investors and traders, enabling informed decision-making in a dynamic market environment.

Source: Zacks Investment Research

Zacks Investment Research

Disclaimer: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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