Top US stocks Robinhood, NVIDIA and Cisco
Robinhood, NVIDIA and Cisco all report after the closing bell today, with investors digesting earnings out from Lowe’s, Target, TJ Maxx, Tencent and Krispy Kreme within the meantime, while T-Mobile reveals the extent of the recent data hack.
Robinhood
Robinhood is about to release second quarter results after the markets close today, giving it the primary opportunity to interact with shareholders since completing its IPO last month.
The company has invited its horde of retail investors to submit inquiries to management, which touch on everything from how the platform are going to be improved to what new products are going to be released and remind us that a lot of also are customers. In terms of the financials, analysts expect Robinhood to report revenue of $521.8 million and a net loss of $514.1 million. One topline figure which will be closely-watched is that the amount of revenue coming from payment-for-order-flow, which is coming under increasing scrutiny within the US, where there are proposals to ban it outright.
The results will undoubtedly inject more volatility into an already volatile stock – something which will only gain momentum the more individual investors pile-in. Robinhood has become known for being the platform of choice for retail traders looking to take a position on so-called meme stocks like GameStop and AMC, but there are fears that Robinhood could itself undergo the meme stock experience that delivers sharp and unpredictable share price movements. NVIDIA
NVIDIA also will publish second quarter earnings later today, with Wall Street expecting the corporate to continue gaining momentum after reporting record revenue within the first because of strong demand for its chips in gaming devices and data centres.
Analysts expect second quarter revenue of $6.33 billion and GAAP net of $2.09 billion, up from $3.86 billion in revenue and $622 million in profits the year before. that might even be an uplift from the primary quarter of 2021 when it reported record revenue of $5.66 billion and profit of $1.91 billion.
Markets also will expect an update on the company’s pending $40 billion acquisition of UK semiconductor company ARM. UK regulators have expressed some national security concerns over the merger, but if and when those concerns are addressed, it might be a bullish sign for NVIDIA’s stock.
Cisco
Cisco is about to release fourth quarter and annual results later today, with markets expecting the corporate to beat its earnings guidance.
Analysts expect fourth quarter revenue to rise 7.2% to $13.02 billion from $12.15 billion the year before, at the top-end of its 6% to eight growth firing range . Wall Street expect GAAP EPS to rise to $0.72 from $0.62, before the $0.64 to $0.69 guidance range. For the complete year, analysts anticipate revenue will rise to $49.70 billion from $49.30 billion and for lower EPS of $2.55 from $2.64.
Its enterprise division could return to growth as demand strengthens but its commercial segment is about to drive results as Cisco continues to shift more toward software and subscription-based income.
Lowe’s
Lowe’s raised its full year guidance today after posting higher earnings as a slowdown in DIY was offset by growth in demand from its professional customers and for its installation services.
Net sales rose to $27.57 billion within the second quarter from $27.30 billion the year before and net earnings jumped to $3.02 billion from $2.82 billion, or to $4.25 from $3.74 on a per share basis. That beat the $26.85 billion in revenue expected by analysts while the 1.6% fall in same-store sales was also better than 2.2% decline forecast by Wall Street. DIY sales within the US were down 2.2% but was comfortably offset by 21% growth in sales to professional customers and 10% growth for its installation services. Online sales were up 7%, having grown over 135% the year before when the pandemic started.
Lowe’s said it's now expecting annual revenue of around $92 billion and an operating margin of 12.2%. that might compare to the $89.59 billion in revenue and margin of seven .5% within the year to January 29, 2021.
Target
Target delivered strong growth at the highest and bottom line during the second quarter, beating Wall Street estimates as shoppers flocked back to stores and prompting it to launch a replacement $15 billion share buyback programme.
Comparable sales were up 8.9% within the second quarter, slightly better than the 8.68% forecast by analysts. That compared to the ten .9% growth booked the year before. Meanwhile, online sales growth slowed to 10% after soaring 195% last year and 50% within the half-moon of 2021. Total revenue rose 9.4% to $24.82 billion and diluted EPS edged up 8.9% to $3.65, coming in before the $3.49 expected by Wall Street.
Target said it's expecting to deliver high single-digit growth in comparable sales within the last half and is targeting full year operating margin of above 8%. ‘In the second quarter, our business generated continued growth on top of record increases a year ago, reinforcing Target's leadership position in retail,’ said CEO Brian Cornell. ‘Even after unprecedented growth over the last two years, we see far more opportunity before us, and we're leaning into opportunities to take a position within the long-term growth and resiliency of our business.’
Tencent
Chinese giant Tencent continued to power ahead within the latest quarter because it beat expectations, helping install confidence after being shaken this year by the regulatory crackdown happening in China.
Revenue climbed 20% within the second quarter to RMB138.3 billion, slightly below the RMB139.0 billion expected by analysts. Diluted EPS of RMB3.50 improved from RMB3.44 and was better than the RMB3.38 forecast. Tencent said it had been particularly pleased with revenue growth in business services and advertising, which grew 40% and 23%, respectively. Gaming revenue was up 12%.
There was little update regarding the clampdown in China that poses a risk to Tencent’s sprawling business empire and has ultimately increased the danger attached to the stock, which has plunged over 43% since peaking earlier this year. Just today we acknowledged Tencent’s WeChat was one among 43 apps identified as breaking rules by regulators.
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