HD, M, BABA, COIN, INTU: Earnings Preview

By Duncan Ferris

Feb 21, 2022

This week's earnings include updates from Home Depot (NYSE: HD), Macy’s (NYSE: M), Alibaba (NYSE: BABA), Coinbase (NASDAQ: COIN) and Intuit (NASDAQ: INTU).

Coinbase-23-12-20-HERO-v1

Earnings Previews

US markets might be closed on Monday but another busy week of earnings news lies ahead. We’ve picked out Home Depot (NYSE: HD), Macy’s (NYSE: M), Alibaba (NYSE: BABA), Coinbase (NASDAQ: COIN) and Intuit (NASDAQ: INTU) as some of the top releases to look out for over the next five days.

Home Depot (NYSE: HD)

Home Depot is one stock that managed to weather the storm of the pandemic better than most, with the retailer benefitting from increased demand for home improvement. There’s nothing quite like being stuck at home to motivate people to revamp their kitchen, decorate their spare bedroom or splurge on lawn furniture.

However, this quarter could see a slowdown as more Americans return to working in the office, while a cooling housing market means fewer movers will be looking to improve their new properties.

Home Depot is slated to return EPS of around $3.18 and revenue of just below $35bn, though any less than this may spark alarm in investors who are concerned about slowing demand. Look for Home Depot’s earnings before the market opens on Tuesday.

Macy’s (NYSE: M)

Following a period of digital rejuvenation, Macy’s is expected to report revenue of $8.4bn and EPS of $1.96, according to Wall Street analysts. This would be a major improvement from the same period in 2020, with the company having been forced to modernize by pandemic-related closures.

Even so, the department store beat expectations in its third quarter results despite facing supply chain issues, with some investors optimistic that the retailer can pull off the same trick with its fourth quarter earnings.

Key topics to watch out for include the continued success of the retailer’s loyalty programme and progress in its efforts to launch an online marketplace. Macy’s earnings are scheduled to be released on Tuesday morning.

Alibaba (NYSE: BABA)

Chinese ecommerce giant Alibaba is set to report its earnings on Thursday following a period of regulatory disruption. Chinese stocks have been lagging behind expectations after a lacklustre 2021. The company is expected to report EPS of $3.35 and revenue of $33.7bn for the three-month period.

The stock has dropped by more than 50% over the past 12 months but strong earnings could trigger a rebound. This is also a key earnings report to look out for as Alibaba is the first major Chinese tech stock to report for this period, so its results may offer insight into the performances of others, such as Tencent Holdings and Meituan.

The online marketplace’s earnings will be released before the start of play on Thursday.

Coinbase (NASDAQ: COIN)

With cryptocurrency prices having taken a beating since ascending to new highs in early November, Coinbase’s earnings are a key release to look out for this week.

The cryptocurrency exchange platform is heavily dependent on retail transaction fees for its revenue, so the drop in crypto prices which has likely driven away interest from potential newbie traders is likely to yield pretty bad news.

It will also be important to keep an eye on how the company’s subscription and services revenue performs, as Coinbase will be a much more appealing investment if this area of its business can pick up some of the slack.

Keep your eyes peeled for Coinbase’s earnings after markets close on Thursday.

Intuit (NASDAQ: INTU) 

This company, which is known for making accounting software programmes such as TurboTax and QuickBooks, is expected to achieve earnings per share of $0.99 in its upcoming earnings. Its last quarterly update exceeded expectations, with revenue of $2.0bn and earnings of $1.53 putting it ahead of forecasts.

However, Intuit warned on 14 February that a “slower forming tax season” meant it had to cut revenue guidance for the period. Consequently, the stock fell by more than 10% last week. Additionally, Intuit’s share price has fallen by almost 24% across the year to date.

The financial software specialist’s earnings report will be out in the public eye on Thursday evening.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.