While macro concerns and falling commodity prices have plagued the market in recent days, companies must overcome these challenges and focus on returning value to shareholders. Here's what to watch for this week in earnings reports from Wal-Mart Stores, Inc. (NYSE:WMT), NVIDIA Corporation (NASDAQ:NVDA), Deere & Company (NYSE:DE), and Virgin America Inc (NASDAQ:VA).
Wal-Mart Stores, Inc.
Wal-Mart is set to release Q4:2015 earnings on Thursday, February 18 before market open. Analysts expect the retail giant to post revenues of $130.76 billion and earnings of $1.54 per share, compared to revenues of $131.56 billion and earnings of $1.61 per share from the same quarter of last year.
For this report, investors will be focused on the effects of the company's recent restructuring. Last month, the company announced store closures in the u.s. of Walmart Express and some under-performing stores in Brazil, with the goal of focusing on its core Megacenters. However, the company has already announced plans to open more than 300 new stores in fiscal 2017.
Investors will also be focusing on the macro effects on Wal-Mart's overseas markets coupled with with currency fluctuations and a strong U.S. dollar. Despite some headwinds, the company guided same store sale growth of 1% for the fourth quarter and an e-commerce sales growth rate in the mid-to-high teens. Other factors to watch for include higher wage and training expenses, growth investments, the release of e-payment strategy Wal-Mart Pay, and the effects of lower energy prices.
According to TipRanks' statistics, out of the 9 analysts who have rated the company in the past 3 months, 2 are bullish while 7 remain neutral. The average 12-month price target for the stock is $65.50, marking a 1% downside from where shares last closed.
NVIDIA Corporation
NVIDIA will release its Q4:2016 earnings on Wednesday, February 17 after market close. Analysts are expecting revenues of $1.31 billion, compared to $1.25 billion for the same quarter of last year, and earnings of $0.32 per share, compared to $0.35 for the same quarter of last year.
