In this article, we will take a look at the 10 most awaited earnings to watch in August. If you want to see some more highly anticipated earnings of the month, go directly to 5 Most Awaited Earnings to Watch in August.
We are more than halfway through the second-quarter earnings season. However, several famous stocks, including Alibaba Group Holding Limited (NYSE:BABA), PayPal Holdings, Inc. (NASDAQ:PYPL) and Advanced Micro Devices, Inc. (NASDAQ:AMD), have yet to report their financial results.
In addition, entertainment giant The Walt Disney Company (NYSE:DIS) and financial software provider Intuit Inc. (NASDAQ:INTU) will also post their earnings in the coming weeks. We will discuss analysts’ expectations for these companies in the remaining article.
10. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 53
Eli Lilly and Company (NYSE:LLY) has performed well in recent months. Despite macro-economic headwinds, its share price has improved more than 20 percent so far in 2022. The stock is currently trading around $330, which is impressive considering its trading price of about $245 around the same time in 2021.
The Indiana-based pharmaceutical giant plans to release its financial results for the second quarter on August 4, 2022. Analysts expect Eli Lilly and Company (NYSE:LLY) to report earnings of $1.69 per share on revenue of $6.7 billion.
Earlier this year, asset management firm Baron Funds also talked about Eli Lilly and Company (NYSE:LLY) in its first-quarter 2022 investor letter, stating:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company with a diverse offering primarily focused on therapeutics. Performance was strong mostly due to consistent financial growth powered by its core diabetes (and future obesity) franchise, as well as the constant drumbeat surrounding the Alzheimer’s therapeutic market, of which Eli Lilly has one of the three potential winning blockbuster candidates in Donanemab. We retain conviction in Eli Lilly given the company’s strong long-term growth outlook.”
9. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 60
Walmart Inc. (NYSE:WMT) is next on the list of 10 most awaited earnings to watch in August. The retail giant will release its second-quarter results on August 16, 2022. Industry experts expect the inflationary pressure to weigh on the upcoming results.
Meanwhile, Walmart Inc. (NYSE:WMT) recently slashed its profit outlook for the second quarter. The company now expects its Q2 adjusted EPS to drop in the range of 8 - 9 percent. Previously, it was expecting adjusted EPS to be flat or marginally up.
Walmart Inc. (NYSE:WMT) blamed elevated inflation levels for the revised guidance. According to the company, shoppers have increased their spending on daily essentials such as food while cutting back on non-essential items.
Separately, Deutsche Bank analyst Krisztina Katai cut her price target for Walmart Inc. (NYSE:WMT) from $166 per share to $142 per share last week, following the updated outlook of the company.
8. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 66
Cisco Systems, Inc. (NASDAQ:CSCO) plans to announce financial results for its fiscal fourth quarter on August 17, 2022. The networking company is expected to earn 82 cents per share on revenue of $12.75 billion.
For the prior quarter, Cisco Systems, Inc. (NASDAQ:CSCO) had reported adjusted earnings of 87 cents per share, slightly higher than the consensus of 86 cents. However, its quarterly revenue of $12.84 billion missed the expectations of $13.34 billion.
Meanwhile, JPMorgan analyst Samik Chatterjee downgraded Cisco Systems, Inc. (NASDAQ:CSCO) from “Overweight” to “Neutral” last month. Chatterjee thinks that macroeconomic challenges and a drop in enterprise spending would likely hurt the growth of networking and hardware stocks.
7. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 72
CVS Health Corporation (NYSE:CVS) is one of the leading healthcare companies in the world. It is best known for its pharmacy business and health insurance plans. The company is set to report its second-quarter results on August 3, 2022.
Analysts are expecting CVS Health Corporation (NYSE:CVS) to post earnings of $2.17 per share on revenue of $76.37 billion. This compares to adjusted earnings of $2.22 per share on revenue of $76.83 billion reported by CVS for the prior quarter.
CVS Health Corporation (NYSE:CVS) has struggled to gain value so far in 2022, primarily due to fading demand for coronavirus testing and vaccinations. CVS shares are down nearly 8 percent on a year-to-date basis. That’s disappointing considering a jump of more than 50 percent in CVS share price in 2021.
Like CVS Health Corporation (NYSE:CVS), analysts are also keeping an eye on Alibaba Group Holding Limited (NYSE:BABA), PayPal Holdings, Inc. (NASDAQ:PYPL) and Advanced Micro Devices, Inc. (NASDAQ:AMD), ahead of their earnings.
6. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 75
The Home Depot, Inc. (NYSE:HD) plans to post its financial results for the second quarter on August 16, 2022. Analysts are calling for earnings of $4.94 per share on revenue of $43.32 billion for the quarter.
Industry experts have mixed opinions about The Home Depot, Inc. (NYSE:HD). Some expect the inflationary pressure and fading homebuilder sentiment to weigh on the results, while others believe the demand for Home Depot’s products might not decelerate as many predict.
The Home Depot, Inc. (NYSE:HD) also appeared in the first-quarter 2022 investor letter of investment management firm Diamond Hill Capital. Here’s what the firm said:
“Home Depot shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”
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Disclosure: None. 10 Most Awaited Earnings to Watch in August is originally published on Insider Monkey.