Author: Chris Katje

Adobe Inc (NASDAQ:ADBE) could highlight its strong subscriber revenue and growth when the company reports fourth-quarter results after market close Wednesday.

Earnings Estimates: Analysts expect Adobe to report fourth-quarter revenue of $5.54 billion, up from $5.05 billion in last year’s fourth quarter, according to data from Benzinga Pro.

The company has beaten analyst revenue estimates in seven straight quarters and nine of the last 10 quarters overall.

Analysts expect the company to report earnings per share of $4.65 in the fourth quarter, compared to $4.27 in last year’s fourth quarter. The company has beaten analyst estimates for earnings per share in 11 straight quarters.

Guidance from the company sees fourth-quarter revenue coming in a range of $5.50 to $5.55 billion and earnings per share coming in a range of $4.63 to $4.68.

Read Also: How Nvidia, PayPal, Adobe Are Driving GenAI’s Productivity Revolution: Report

What Analysts Are Saying: Adobe could offer a compelling risk-reward profile ahead of 2025, Piper Sandler analyst Brent Bracelin recently said.

The analyst reiterated an Overweight rating and $635 price target on the stock in the note.

Bracelin said with shares down year-to-date, the stock could go from laggard to leader.

Concerns of threats on Adobe’s business from artificial intelligence could be overshadowing healthy subscription growth trends, the analyst added.

The analyst said the earnings report could show the durability of subscription growth and high operating margins.

Adobe Express Mobile is also attracting new users with quarterly downloads over 10 million, Bracelin said.

Here are other analyst ratings on Adobe and their price targets:

• Citigroup: Maintained Neutral rating, lowered price target from $616 to $590
• BMO Capital: Maintained Outperform rating, lowered price target from $600 to $580
• RBC Capital: Reiterated Outperform rating, price target $610

Key Items to Watch: Subscription revenue and strength will be one of the biggest areas to watch, as shared by Bracelin above.

Investors and analysts will also be looking to hear any comments on how AI is impacting the company and what Adobe is doing to offset this competitive threat.

Updates on new products and their initial reaction will also be an item to watch.

With this being the fourth-quarter financial results, analysts and investors will also be waiting to see if Adobe shares guidance for the next fiscal year.

ADBE Price Action: Adobe stock is down 0.3% to $545.23 on Wednesday versus a 52-week trading range of $433.98 to $638.25. Adobe stock is down 6% year-to-date in 2024.

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Photo: Shutterstock

Discount retailers Dollar General (NYSE:DG), Dollar Tree Inc (NASDAQ:DLTR) and Five Below Inc (NASDAQ:FIVE) will look to win over investors when each company reports third-quarter financial results this week.

Here’s a look at their earnings estimates and what analysts are saying.

Dollar General

The Goodlettsville, Tennessee-based company is set to report third-quarter financial results before the market opens Thursday, Dec. 5.

According to data from Benzinga Pro, analysts expect:

• Third-quarter revenue of $10.15 billion, up from $9.69 billion in last year’s third quarter,
• Earnings per share of 94 cents, down from $1.26 in last year’s third quarter.

The company has beaten analyst estimates for revenue in six of the last 10 quarters, as well as estimates for earnings per share in five of the last 10 quarters.

Data from Placer.ai shows third quarter visits to Dollar General were up 4.8% year-over-year — positive in all the months tracked for the quarter. The report said discount and dollar store leaders like Dollar General are showing consistent strength in the retail space.

Oppenheimer analyst Rupesh Parikh currently has a Perform rating and no price target.

There are low expectations for Dollar General and a risk of lower guidance from the company, he said. It could also see pressure from the impact of several hurricanes in the south and the continued macroeconomic backdrop.

“On the top line, we expect another soft quarter driven by ongoing discretionary category headwinds and expectations for continued pressures on the company’s low-end consumer,” Parikh said.

Dollar General stock typically struggles after the company reports quarterly results. Shares fell each of the past eight report days, Parikh said, adding, “We remain sidelined with our entire dollar store coverage.”

Read Also: Breaking Down Dollar Gen: 8 Analysts Share Their Views

Dollar Tree

The Chesapeake, Virginia-based company reports third-quarter financial results before the market opens on Wednesday, Dec. 4.

Analysts expect:

• Third-quarter revenue of $7.44 billion, up from $7.32 billion in last year’s third quarter.
• And third-quarter earnings per share of $1.07, up from last year’s 97 cents per share in the third quarter.

The company has beaten analyst estimates for revenue in six of the last 10 quarters, plus estimates for earnings per share in six of the last 10 quarters.

Data from Placer.ai shows third quarter visits to Dollar Tree up 5.3% year-over-year, with each month in the quarter up year-over-year.

In the second quarter, Dollar Tree initiated a formal review of strategic alternatives for its Family Dollar business, which include a sale or spin-off. Investors will be looking for an update on how the review is going.

Five Below

The Philadelphia-based company reports third-quarter financial results after the market closes on Wednesday, Dec. 4.

Analysts expect:

• Third-quarter revenue of $795.4 million, up from $736.4 million in last year’s third quarter.
• Third-quarter earnings per share of 17 cents, down from 26 cents per share in last year’s third quarter.

The company has beaten analyst revenue estimates in five of the last 10 quarters and estimates for earnings per share in five of the last 10 quarters.

Data from Placer.ai shows third quarter visits for Five Below up 13.8% year-over-year, suggesting a potentially strong quarter for the company. The report highlights Five Below opening a record 205 new stores last year, which will add to its potential growth for the 2024 holiday shopping season.

Telsey analyst Joseph Feldman recently downgraded Five Below stock from Outperform to Sector Perform and lowered the price target from $102 to $95.

The analyst cautioned on the stock with a transition for its business model and leadership changes taking time.

“The company dealt with the last round of tariffs by breaking the $5 price point and gradually increasing prices since then, while quality did not always keep pace, thereby eroding value,” Feldman said.

What’s Next: Placer.ai said weekly visits to both Dollar Tree and Dollar General locations tend to increase after Black Friday and peak around the last full week before Christmas.

This could make early commentary on the current fourth quarter and guidance important when the companies report.

Similarly, Five Below sees its traffic increase leading up to the Christmas holiday with its busiest day often Super Saturday, or the Saturday before Christmas. Last year, Five Below saw traffic up 337.3% on Super Saturday compared to its daily average.

Price Action:

• Dollar General stock is up 1.62% Tuesday to $79.04 versus a 52-week trading range of $72.12 to $168.07. Shares are down 43% year-to-date in 2024.
• Dollar Tree stock is down 0.45% to $72.48 on Tuesday versus a 52-week trading range of $60.49 to $151.22. Shares are down 49% year-to-date.
• Five Below stock is up 4% to $103.20 at last check Tuesday versus a 52-week trading range of $64.87 to $216.18. Shares are down 52% year-to-date.

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Image: Pixabay

Analysts expect Salesforce Inc (NYSE:CRM) to post revenue of $9.35 billion for the third quarter after market close Tuesday.

That’s up from $8.72 billion in last year’s third quarter, according to data from Benzinga Pro.

The cloud-based software company beat revenue estimates in the second quarter. It has beaten analyst estimates in nine of the past 10 quarters overall.

Analysts anticipate Salesforce’s third-quarter earnings per share to be $2.44, up from $2.11 in last year’s third quarter. The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.

Guidance from the company calls for third-quarter revenue to be in a range of $9.31 billion to $9.36 billion. Earnings per share should fall between $2.42 to $2.44.

Read Also: Salesforce Stock Balances Bullish, Bearish Signals Ahead Of Earnings

What Analysts Are Saying: Salesforce has two more quarterly results to report for fiscal 2025.

“F2026 is shaping up to be an important transitional year for CRM as it executes on laying the groundwork to bring AI agents to the enterprise masses with new pricing and packaging offers that could better position the company for a F2027 rebound,” Piper Sandler analyst Brent Bracelin said.

Bracelin maintained an Overweight rating and raised the price target from $325 to $395 in a new investor note.

There could be some downside risk to fiscal 2026 revenue estimates, he added. But free cash flow growth could be a key moving forward. Pressure includes macroeconomic concerns, budget battles for customers, AI experimentation and longer sales cycles.

“Investor sentiment has clearly improved with CRM shares +30% in the last three-months. We would look to opportunistically add to positions on potential pullbacks.”

Needham analyst Scott Berg maintained a Buy rating and $345 price target on Salesforce ahead of the third-quarter financial results.

“We expect CRM to report modest upside during third quarter as we believe the overall demand environment showed signs of subtle improvement versus last quarter,” Berg said.

The analyst expects a “marginal upside” in the third quarter after a second-quarter report mostly in line. Positive pipeline trends have been driven by Agentforce, which will be a main topic of discussion from the company, Berg added.  

“We expect strength in the quarter to be driven by the continued ramp of Data Cloud, which could gain a tailwind from the recently released Agentforce solution.”

Berg said Agentforce could drive incremental sales to sales and services and the demand for the product could help re-accelerate subscription revenue growth.

Price Action: Salesforce stock was down 0.11% from $331.01 in pre-market trading Tuesday versus a 52-week trading range of $212 to $348.86. Salesforce stock is up 29% year-to-date in 2024.

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Photo: Shutterstock

Analysts expect CrowdStrike Holdings (NASDAQ:CRWD) to report third-quarter revenue of $982.36 million after market close Tuesday. That’s up from $786.01 million in last year’s third quarter, according to data from Benzinga Pro.

Observers will be closely watching the stock for signs of a recovery following a July IT outage — one of the largest in history.

Earnings Estimates: CrowdStrike has beaten analyst revenue estimates in more than 10 straight quarters.

Analysts expect the company to report third-quarter earnings per share of 81 cents, versus 82 cents in last year’s third quarter. The company has beaten analyst earnings per share estimates in more than 10 straight quarters.

Guidance from the company calls for third-quarter revenue to be in a range of $979.2 million to $984.7 million. The company also is guiding for third-quarter earnings per share to be in a range of 80 cents to 81 cents per share.

Read Also: CrowdStrike Expands Cybersecurity Reach In Europe And Launches AI Red Team Services

What Analysts Are Saying: Investor attention will be on CrowdStrike’s recovery from its July 19 outage, Rosenblatt analyst Catherine Trebnick said in a new investor note.

The analyst reiterated a Buy rating and raised the price target from $325 to $385.

“Our channel checks suggest that customers remain confident in the company and are not stepping away,” Trebnick said.

Trebnick said CrowdStrike could show “modest upside” from quarterly estimates and raise guidance.

“Some renewals may be delayed, but overall customer retention appears strong.”

Guidance and the litigation overhang are key items being watched by WestPark Capital’s Paul Rodriguez. The analyst has a Hold rating and no price target. Future revenue can be impacted by customer discounts being used to help offset customer complaints about the July outage.

“Our checks suggest CRWD has not suffered much customer churn but CrowdStrike has had to make concessions to its clients base,” Rodriguez said.

The analyst said there are concerns about heavy discounting being done in the field.

A litigation overhang mainly revolves around Delta Air Lines, is also a concern for the analyst after Delta decided to move forward with legal action.

“If other companies move further with litigation against CrowdStrike post the Delta news remains to be seen but this scenario does pose a risk to CrowdStrike shares.”

Key Items to Watch: CrowdStrike said second-quarter annual recurring revenue was up 32% year-over-year. This remains a key item for investors to watch on Tuesday.

The company said the July outage inspired a renewed focus on becoming a “more customer-obsessed CrowdStrike.”

Cybersecurity remains a key theme going forward with companies increasing focus and spending on this category. Aside from the July outage recovery, new products and commentary on customer spending will be big items to watch for investors.

Price Action: CrowdStrike stock is down 2% to $363.80 on Monday versus a 52-week trading range of $200.81 to $398.30. CrowdStrike stock is up 47% year-to-date.

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Analysts expect Target Corporation (NYSE:TGT) to report third-quarter revenue of $25.9 billion when the company reports third-quarter financial results on Wednesday, Nov. 20 before the market opens.

That’s up from $25.4 billion in last year’s third quarter, according to data from Benzinga Pro.

The Minneapolis-based company has beaten analyst estimates for revenue in six of the last eight quarters and seven of the last 10 quarters overall.

Analysts expect Target to report third-quarter earnings per share of $2.30 — up from $2.10 in last year’s third quarter. The company has beaten analyst estimates in six of the last seven quarters and six of the last 10 quarters overall.

Guidance from Target calls for third-quarter comparable sales to be up 0% to 2% year-over-year. The company also guided for third-quarter earnings per share to be in the range of $2.10 to $2.40.

Target raised its full-year guidance after second-quarter results with earnings per share of $9.00 to $9.70 now expected, up from a prior range of $8.60 to $9.60.

Read Also: How To Earn $500 A Month From Target Stock Ahead Of Q3 Earnings

Key Items to Watch

Target visitor traffic was up 1% year-over-year, per data from Placer.ai. It outpaced retail rival Walmart Inc (NYSE:WMT), which had 0.9% visitor growth year-over-year.

The Placer.ai report also sheds some light on upcoming trends to watch for Target and how the company’s guidance could factor into the holiday season. Target saw the biggest weekly holiday visits boost of the tracked retail chains, with foot traffic up 87.3% the week before Christmas compared to the company’s weekly average.

Walmart, by comparison, saw a 39.6% increase in its weekly average visitors for the week before Christmas last year.

“Digging deeper into historical data suggests that it is Target that is primed to experience the busiest holiday season of the analyzed chains,” Placer.ai said.

Target also saw the biggest spike of the tracked retailers for the weekly visitor growth for the week of Turkey Wednesday and Black Friday, with visits up 18.9% compared to the company’s weekly average.

“With recent visits to Target on par with — or slightly above — last year’s levels, the retail giant is likely poised to win the holidays once again.”

Along with guidance and commentary on the holiday shopping season, another area to watch in Target’s report will be same-day delivery services. The company reported a double-digit increase in this segment in the second quarter.

Sales by segment could also be an area to watch with Target saying apparel and discretionary sales were strong in the second quarter.

Target’s quarterly results come one day after Walmart reported third-quarter results. Walmart reported revenue and earnings per share that came in ahead of Street consensus estimates. The retailers also raised its guidance.

The strong quarterly report from Walmart could be a positive for Target heading into the earnings report as it could signal the strength of the American consumer. The key will be making sure that Walmart didn’t end up taking market share away from Target as a result.

Price Action: Target stock is down 1% to $155.37 on Tuesday versus a 52-week trading range of $128.37 to $181.86. Target stock is up 8.6% year-to-date in 2024.

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Image: Shutterstock

Nvidia Corporation (NASDAQ:NVDA) analysts expect the technology giant to report third-quarter revenue of $33.12 billion on Wednesday, Nov. 20 after market close.

That’s up from $18.12 billion in last year’s third quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in eight straight quarters and nine of the last 10 quarters overall.

Analysts expect third-quarter earnings per share of 75 cents. That’s up from 40 cents per share in last year’s third quarter. The company beat analyst estimates for earnings per share in seven straight quarters and eight of the last 10 quarters.

Guidance from the company calls for third-quarter revenue to be $32.5 billion plus or minus 2%.

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Here’s a look at what several Nvidia analysts are saying ahead of Wednesday’s financial results:

• Truist analyst William Stein maintained a Buy rating and raised the price target from $148 to $167.
• KeyBanc analyst John Vinh maintained an Overweight rating with a $180 price target.
• Rosenblatt analyst Hans Mosesmann maintained a Buy rating with a $200 price target.
• Morgan Stanley analyst Joseph Moore maintained an Overweight rating and raised the price target from $150 to $160.

Truist: Data supports upside to Nvidia earnings with a significant backlog, Stein said in a new investor note.

Investors should buy Nvidia stock into earnings with the expectation that the company will beat third-quarter estimates and provide upside to fourth-quarter guidance, Stein says.

“We raise our estimates based on higher growth expectations in the Datacenter end market,” he added.

The company is likely already working with suppliers, partners and customers to fix overheating issues.

“While we expect to hear Blackwell called out as a revenue generator in both CQ3 and ramping in CQ4, we believe any slippage in Blackwell will be replaced with Hopper, offering downside protection on revenue,” Stein said.

Two key items to watch in Nvidia’s earnings call are physical AI like robotics and data processing, Stein added.

KeyBanc: Supply constraints could limit the near-term upside for Nvidia stock, Vinh said in a new investor note.

“We expect NVDA to report strong F3Q results, which will solidly beat, driven by strong demand for Hopper, and guide F4Q modestly above consensus expectations,” Vinh said.

The analyst lowers fourth-quarter estimates due to supply constraints and several other items.

“While the lack of more meaningful upside could pressure NVDA NT (near term), we still see favorable risk/reward LT (long term) driven by outsized gen AI growth.”

Hopper orders are getting pushed out according to supply chain checks, Vinh said. The analyst said pressure in China to use domestica AI solutions could also contribute to Hopper orders getting pushed out.

Rosenblatt: The technology giant could provide upside to third-quarter estimates and fourth-quarter guidance, Mosesmann said in a new investor note.

“Expecting a beat-n-raise on continued data center strength,” Mosesmann said.

Hopper’s continued strength could show up in the quarterly results as the company transitions to the Blackwell ramp.

“The setup into 2025 is positive with a Blackwell ramp set to eclipse Hopper and resilient to unit share losses to AMD and ASIC accelerator players Broadcom and Marvell.”

Mosesmann said Nvidia will likely report strong growth for the Data Center segment. Strength could also show through in the company’s networking products, Mosesmann added.

Morgan Stanley: Moore raises Nvidia second-quarter estimates, but said he is keeping near-term expectations for the company in check due to supply constraints.

“We expect another very good quarter, but we think the bigger upward revisions happen later in the year,” Moore said.”

The analyst said commentary that Blackwell demand is “insane” is tough to understand with the ongoing supply constraints.

“Demand signals show no signs of moderating, and while it’s hard to calibrate exact amount of upside we expect to maintain recent trends.”

Price Action: Nvidia stock is up 2% to $143.35 on Tuesday versus a 52-week trading range of $45.01 to $149.77. Nvidia stock is up 197.6% year-to-date in 2024.

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Walmart Inc (NYSE:WMT) could serve as a bellwether for the health of U.S. consumers when the company reports third-quarter financial results on Tuesday, Nov. 19 before the market opens.

Earnings Estimates: Analysts expect Walmart to report third-quarter revenue of $167.72 billion, up from $160.8 billion in last year’s third quarter, according to data from Benzinga Pro.

Walmart has beaten analyst estimates for revenue in more than 10 straight quarters.

Analysts expect the company to report third-quarter earnings per share of 53 cents, up from 51 cents per share in last year’s third quarter. Walmart has beaten analyst estimates for earnings per share in three straight quarters.

Over the last 10 quarters, Walmart has beaten analyst earnings per share estimates eight times, met estimates one time and missed only one time.

Guidance from the company calls for third-quarter revenue to be in the range of $164.58 billion to $166.17 billion and earnings per share to be in a range of 51 cents to 52 cents per share.

What Analysts Are Saying: Discretionary and consumable trends could be steady for retailers in the third quarter, BMO Capital analyst Kelly Bania said in a new investor note.

The analyst maintained an Outperform rating on Walmart. Bania also raised the price target from $80 to $100 ahead of the earnings report.

Walmart is showing strong U.S. comparable sales and posting an earnings per share beat, Bania said.

“We continue to believe WMT’s decade of omni-channel investments are the early stages of paying off and believe WMT should remain a core holding,” she added.

Walmart could show strong market share gains in the grocery category along with improvement in discretionary and general merchandise, Bania said, adding that “share gains are coming across all income cohorts.”

Bania estimates that Walmart’s U.S. grocery sales are up 38% since 2019.

“We believe WMT’s share price remains attractive for a global retailer with difficult-to-replicate scale.”

The analyst said Walmart’s valuation can move higher with a consistency of earnings growth in coming years.

Freedom Capital Markets Chief Global Strategist Jay Woods highlighted Walmart stock having one of its best performances in more than 25 years with shares up 60% year-to-date and trading near all-time highs ahead of the earnings report.

“Shares have climbed higher after earnings after eight of the last 10 reports and has an average move of +/- 3.8%,” Woods said in a weekly newsletter.

Woods said it “will be interesting” to see if analysts raise their price targets after the third quarter earnings report.

Key Items to Watch: Walmart reported global e-commerce sales were up 21% year-over-year in the second quarter, helped by store-fulfilled pickup and delivery. The third quarter results could show if investments in e-commerce and order fulfillment continue to pay off.

Advertising is another area to watch with global advertising up 26% year-over-year in the second quarter.

“Our newer businesses like marketplace, advertising, and membership, are also contributing, diversifying our profits and reinforcing the resilience of our business model,” Walmart CEO Doug McMillon said after second quarter results.

Walmart’s third-quarter results come one day before Target Corporation reports quarterly results. Several large retail and e-commerce stocks could be under pressure after Walmart’s report.

Price Action: Walmart stock is down 0.2% to $84.06 on Monday versus a 52-week trading range of $49.85 to $85.79. Walmart stock is up 58.3% year-to-date in 2024.

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All eyes will be on streaming subscribers, profitability and how the success of the “Deadpool & Wolverine” movie translated into The Walt Disney Company’s (NYSE:DIS) quarterly results when the company reports earnings Thursday.

Earnings Estimates: Analysts expect the media conglomerate to report fourth-quarter revenue of $22.35 billion on Thursday before the market open. That’s up from $21.24 billion in last year’s fourth quarter, according to data from Benzinga Pro.

Disney beat analyst estimates for revenue in the last quarter, but has missed estimates in four of the last five quarters and five of the last 10 quarters overall.

Analysts expect the company to report fourth-quarter earnings per share of $1.10, up from 82 cents per share in last year’s fourth quarter. The company has beaten analyst estimates for earnings per share in five straight quarters.

In the last 10 quarters, Disney has beaten analyst estimates eight times, met estimates once and missed estimates only once.

Read Also: Disney Bulls Await Earnings For Streaming Growth, Bob Iger Successor Clues

What Analysts Say: Strong streaming subscriber growth and box office strength are two areas Goldman Sachs analyst Michael Ng is watching for when Disney reports Thursday.

Ng, who has a buy rating on Disney lowered the price target from $124 to $120 in September before raising the price target back up to $125 later in October.

In September, Ng said the streaming and movie strength could offset weakness in Experiences and linear.

“The subscriber momentum and recent price increases should put Direct-to-Consumer on track for continued revenue and profit growth,” Ng said.

The analyst highlighted Disney+ bundles, promotional offers and the streaming premiere of “Inside Out 2” on the platform on Sept. 25 as catalysts that could increase subscribers. “Inside Out 2,” the highest grossing animated film of all time, will help the box office segment, the analyst added.

Ng forecasts Disney adding 3.5 million net core Disney+ subscribers in the quarter compared to consensus estimates of 1.8 million.

In October, Ng’s investor note highlighted the future revenue potential of Disney’s Lightning Lane Premiere Pass at theme parks. The analyst said the pass could add $220 million to $230 million in annual revenue beginning in 2025.

Disney’s streaming segment was one of the key highlights from Needham analyst Laura Martin in a September note on Disney.

The analyst reiterated a Buy rating and $110 price target at the time.

Martin said Disney’s direct-to-consumer segment could breakeven in fiscal 2024 and have “double-digit” margins at maturity.

The analyst also said Disney could see 5.5 million to 6 million new subscribers from a partnership with Charter Communications beginning in the second half of fiscal 2024.

Key Items to Watch: Disney’s fourth-quarter financial results will likely see its streaming and movie segments as the most watched by analysts and investors.

Disney reported 118.3 million Disney+ core subscribers in the third quarter.

The company’s combined streaming businesses of Disney+, Hulu and ESPN+ posted its first quarterly profit in the third quarter, which came ahead of expectations. The company expects both its Entertainment DTC and ESPN+ segments to be profitable in the fourth quarter, which comes as the Entertainment DTC was still slightly negative in the third quarter.

“Deadpool & Wolverine” is the second-highest-grossing film domestically in 2024 with $636.7 million at the box office. Since July, the film has grossed $1.34 billion worldwide and could help power Disney’s film segment in the fourth fiscal quarter.

“Inside Out 2″ will also likely factor into fourth-quarter results. The film premiered in June and grossed $183.5 million of its $653 million domestic total in the quarter. For the quarter, Disney had two of the top five grossing domestic films.

“Alien: Romulus” could also factor into the results. The August release grossed $105.3 million domestically and $350.9 million worldwide.

Disney’s earnings report comes days after “Deadpool & Wolverine” premiered on Disney+ (Nov. 12) and investors could get an early readout on whether the release was widely watched and boosted subscribers for the future quarter.

Other items investors and analysts will likely be watching include the health of the theme park division, an update on the CEO succession search and an update on the company’s investment in Epic Games and future games being developed.

Price Action: Disney stock is up 1% to $102.26 on Thursday versus a 52-week trading range of $83.91 to $123.74. Disney stock is up 12.7% year-to-date in 2024.

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Image: Disney/Marvel

Home Depot Inc (NYSE:HD) could highlight the impact of the 2024 election, interest rate cuts and hurricanes when the company reports third-quarter financial results Tuesday, before the market opens.

Earnings Estimates: Analysts expect Home Depot to report third-quarter revenue of $39.17 billion, up from $37.71 billion in last year’s third quarter, according to data from Benzinga Pro.

Home Depot has missed analyst estimates for revenue in two straight quarters but beat estimates in six of the past 10 quarters.

Analysts expect the company to report earnings per share of $3.64, down from $3.81 in last year’s third quarter. The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.

The company raised its full-year revenue guidance after second-quarter results to a year-over-year increase of 2.5% to 3.5%. Analysts and investors will closely monitor to see if the company maintains its raised guidance or raises guidance once again.

Read Also: How To Earn $500 A Month From Home Depot Stock Ahead Of Q3 Earnings

Key Items to Watch: Home improvement retail traffic may have been down in the third quarter for Home Depot, according to data from Placer.ai. The report said that home improvement and furnishing sector store visits were down 0.9% year-over-year in the third quarter.

While Harbor Freight Tools and HomeGoods saw visits up 12.9% and 8.1% year-over-year, respectively, in the third quarter, Home Depot didn’t have the same good fortunes.

The report said Home Depot visits were down 3.1% year-over-year in the third quarter, while peer Lowe’s Companies (NYSE:LOW) also saw traffic down 4.1% year-over-year. Of the 13 weeks in the quarter, the sector saw positive visit growth in six of the weeks and negative visit growth in seven of the weeks.

Another item on watch will be the average ticket size for Home Depot in the third quarter. The company saw the average ticket in the second quarter come in down 1.3% year-over-year at $88.90. Sales per retail square foot also declined 3.6% year-over-year to $660.17.

With consumers looking to make home improvements instead of moving due to higher home purchase prices and mortgage rates, Home Depot could benefit in the quarter and moving forward.

Lower interest rates could also spur an increase in demand in big-ticket purchases and home repairs.

“The underlying long-term fundamentals supporting home improvement demand are strong. During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly,” Home Depot CEO Ted Decker said after second-quarter earnings.

Several large-scale hurricanes did significant damage in the U.S. in recent months. Home improvement companies can sometimes see a short-term benefit as homeowners are tasked with rebuilding and making repairs after the damages.

Home Depot’s report comes a week before Lowe’s Companies is set to report for the same quarter. Lowe’s has also beaten analyst estimates for earnings per share in more than 10 straight quarters. On the revenue side of things, Lowe’s has beaten analyst estimates in only four of the past 10 quarters.

Despite the revenue misses in recent quarters, Lowe’s stock has outperformed Home Depot, with the stock up 26% year-to-date compared to a 19% gain for Home Depot stock. Both stocks have underperformed the S&P 500, which is up 26.8% year-to-date.

With Lowe’s reporting one week later, there is a good chance that Home Depot shares could be volatile this week and the following week as analysts and investors often weigh the two companies against each other.

HD Price Action: Home Depot stock is up 1.19% to $410.73 on Monday versus a 52-week trading range of $287.24 to $421.56.

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Sports betting and online gaming company DraftKings Inc (NASDAQ:DKNG) could highlight early results from the 2024 NFL season and new state legalizations when the company reports third-quarter financial results Thursday after market close.

Earnings Estimates: Analysts expect the company to report third-quarter revenue of $1.11 billion, up from last year’s third-quarter total of $789.96 million according to data from Benzinga Pro.

The company missed analyst estimates for revenue for the second quarter and two of the past three quarters, but has beaten analyst estimates for revenue in eight of the last 10 quarters overall.

Analysts expect DraftKings to report a loss of 42 cents per share in the third quarter, compared to a loss of 35 cents per share in last year’s third quarter. The company has beaten analyst estimates for earnings per share in 10 straight quarters.

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What Analysts Are Saying: Strong market share in the sports betting space and the potential to surprise with updated financial guidance has Bank of America analyst Shaun C. Kelley bullish on DraftKings ahead of the earnings report.

The analyst, who has a Buy rating and $50 price target, recently said revenue flowthrough for the second half of the fiscal year could be better than expected and “protect” EBITDA for fiscal 2024.

“We expect top-line growth in the fourth quarter to come in slightly below guidance driven by unfavorable hold and challenging iGaming comps,” Kelley said.

The analyst said DraftKings could also show its hold expansion similar to peer FanDuel with lower promotional spending activity.

Concerns for DraftKings in the third quarter include slower app downloads and unfavorable NFL game outcomes, Kelley added.

A near duopoly of the online sports betting space for DraftKings and FanDuel owner Flutter Entertainment (NYSE:FLUT) was highlighted by Needham analyst Bernie McTernan recently.

McTernan said the total addressable market size of the U.S. online sports betting market could “continue to surprise to the upside.”

“Scale and commitment to product leadership from FanDuel and DKNG likely keeps the OSB market dominated by these two players,” McTernan said.

A Needham survey revealed that sports bettors primarily use FanDuel and DraftKings.

“We think share can continue to ebb and flow between FanDuel and DKNG as we do not see a physical network effect in OSB meaning there is not a structural reason for dominant market share leader like digital marketplaces.”

McTernan said unless the market structure in the U.S. changes, it’s “FanDuel and DKNG at the top and then everyone else.”

FanDuel (37.8%) and DraftKings (34.8%) had a combined 73% market share in 2023. BetMGM ranks a distant third at 8.6% market share.

In the second quarter of 2024, FanDuel had a market share of 37.3% with DraftKings at 37.0%. Both BetMGM and fourth-place Caesars had lower market share in the first two quarters of 2024 compared to 2023.

Key Items to Watch: DraftKings quarterly financial results come after the start of the 2024 NFL season, which is one of the most bet on sports in the U.S. and a key to revenue and earnings for the company in the fourth quarter.

Guidance from the company and early commentary on the NFL season will be closely watched by investors.

The company announced an inaugural $1 billion share buyback in the second quarter. Investors and analysts will be watching to see if any shares were bought during the third quarter.

DraftKings acquisition of Jackpocket led to lower average revenue per monthly unique paying customer in the second quarter and could be an area to watch for investors and analysts.

As of July 25, DraftKings is live with mobile sports betting in 25 states and Washington, D.C., representing 49% of the U.S. population.

The company is live with iGaming in five states.

On Tuesday, voters in Missouri approved sports betting, becoming the 39^th state to legalize. There is no current timetable on when the state will be live, but DraftKings and FanDuel supported the ballot proposal.

Missouri is the 18^th most populous state and fourth-largest state that has not yet legalized sports betting, according to a report from Sportico.

DraftKings previously said there were 10 jurisdictions representing 12% of the U.S. population that have introduced legislation or introduced a bill for a referendum to legalize mobile sports betting.

An update on the timetable in Missouri and where other states stand could come from the company on Thursday.

DKNG Price Action: DraftKings stock was up 4.94% to $38.25 on Wednesday at market close versus a 52-week trading range of $28.69 to $49.57. DraftKings stock is up 14% year-to-date in 2024.

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