Earnings Week Ahead: Nvidia, Costco, Palo Alto Networks, Lowe’s and more

Next week will see a number of key earnings reports from the retail, semiconductor and tech sectors. Retailers will take a large chunk of the spotlight, with Lowe’s (NYSE:LOW) especially under the microscope after an inauspicious report from Home Depot (HD) in the week prior.

Meanwhile, fellow retailers Best Buy (BBY), AutoZone (AZO), Williams-Sonoma (WSM), Ulta Beauty (ULTA), Kohl’s (KSS), American Eagle (AEO), Abercrombie & Fitch (ANF), VF Corp. (VFC) and The Gap (GPS) are set to report as well. Continuing the theme, bargain-based chains like Dollar Tree (DLTR), BJ’s Wholesale Club (BJ), Costco Wholesale Corp. (NASDAQ:COST) and Burlington Stores (BURL) are also on the agenda.

Outside of the heavy dose of retail reports, tech names Zoom Video (ZM), Palo Alto Networks (PANW), Workday (WDAY), Intuit (INTU), Marvell Technology (MRVL) and UiPath (PATH) are on the docket, leading up to the headliner for the week in Nvidia (NASDAQ:NVDA).

Below is a rundown of major earnings due in the week of May 22 to May 26:

Monday, May 22

Ryanair (RYAAY)

Ryanair (RYAAY) is due to provide its full-year update on Monday, following shortly after a massive order of aircraft from Boeing. The Irish airline said it plans to buy at least 150 of Boeing's (BA) 737-10 Max jetliners, along with an option for 150 more. While the low-cost carrier has notched double-digit traffic growth heading into the warmer months of the year, staffing concerns and worker strikes have caused its summer schedule to come under scrutiny.

Also reporting: Zoom Video Communications (ZM), ZIM Integrated Shipping (ZIM), HEICO Corporation (HEI), PetMed Express (PETS) and Niu Technologies (NIU)

Tuesday, May 23

Lowe’s Companies (LOW)

Just a week after a downbeat forecast from rival Home Depot (HD) dragged the stock down, Lowe’s Companies (LOW) is due to provide its own quarterly update before the opening bell on Tuesday. Lowe’s (LOW) has significantly outperformed Home Depot in 2023, rising over 5% in contrast to a nearly 7% decline for its Atlanta-based competitor. The stock has become a favorite among analysts ahead of the Q1 print as well, with both Jefferies and Wells Fargo adding the name to “top pick” lists.

“We have a favorable outlook on home improvement demand based on housing and demographics factors that we see bolstering R&R activity. Recent meetings with LOW mgmt. suggested company initiatives are poised to deliver near flat comps Y/Y. Shares trade at a 30% P/E discount to peers, and our '24 EPS forecast is ahead of consensus,” Jefferies wrote in a recent note.

• Consensus EPS Estimates: $3.47
• Consensus Revenue Estimates: $21.78B
• Earnings Insight: Lowe’s has beaten EPS estimates in 8 consecutive quarters and revenue expectations in 5 of those reports

Also reporting: Intuit (INTU), Palo Alto Networks (PANW), AutoZone (AZO), Agilent Technologies (A), Kroger (KR), Best Buy (BBY), DICK'S Sporting Goods (DKS) BJ's Wholesale Club Holdings (BJ), V.F. Corporation (VFC), Williams-Sonoma (WSM), Toll Brothers (TOL), Manchester United (MANU), Urban Outfitters (URBN), and Cracker Barrel Old Country Store (CBRL)

Wednesday, May 24

NVIDIA (NVDA)

Nvidia (NVDA) is due to report its first quarter earnings results after the closing bell on Wednesday. Shares of the California-based chip maker have recorded a 100% gain to start 2023, rising alongside spiking interest in AI advancements. From its October 2022 low, the stock has nearly tripled. The Jensen Huang-led company was also recently boosted by the announcement of additional details on its new low-priced GPUs. EPS and revenue estimates have been revised upward a net of 15 and 7 times, respectively, in the 90 days ahead of the earnings announcement.

The consensus sell-side rating on the stock remains a Buy. However, both Seeking Alpha analysts and maintain a Hold rating, citing an untenable valuation. Victor Dergunov recently warned of a coming post-earnings plunge due to the red-hot run into the print.

• Consensus EPS Estimates: $0.91
• Consensus Revenue Estimates: $6.52B
• Earnings Insight: Nvidia has beaten EPS estimates in 6 of the past 8 quarters, rising above revenue expectations in 100% of those reports.

Also reporting: Abercrombie & Fitch (ANF), Analog Devices (ADI), Bank of Montreal (BMO), Snowflake (SNOW), Splunk (SPLK), U-Haul Holding Company (UHAL), Xpeng Inc. (XPEV), UiPath (PATH), Futu Holdings (FUTU), Nutanix (NTNX) e.l.f. Beauty (ELF), Petco Health and Wellness Company (WOOF), American Eagle Outfitters (AEO), Kohl’s Corporation (KSS)

Thursday, May 25

Costco (COST)

Washington-based Costco Wholesale Corp. (COST) is set to update investors on its fiscal third quarter results after the closing bell on Thursday. The company recently indicated sales rose 3% to $17.85B for April and comparable sales were up 1.4% during the month, led by international growth. The sell-side consensus on the stock remains a Buy, with William Blair joining the bull camp in April.

Equity analyst Philip Blee said that the company maintains a “best-in-class private-label brand” and an engaged membership base that would likely not balk at a modest membership price increase.“Our pricing analysis implies the average product savings delivers an 11-times return on the annual membership fee,” Blee wrote. “Our proprietary survey suggests the average consumer ranks Costco first on best product price, quality, brand trust, and experience versus its peers.”

• Consensus EPS Estimates: $3.33
• Consensus Revenue Estimates: $54.66B
• Earnings Insight: Costco has beaten EPS expectations in 7 of the past 8 quarters, missing revenue expectations twice in that span

The Toronto-Dominion Bank (TD)

Canadian bank Toronto-Dominion (TD) will report its fiscal second quarter results in premarket hours on Thursday. The report comes shortly after the collapse of talks to take over First Horizon (FHN). The bank initially disclosed in early March that it didn't expect to receive regulatory approval in time to complete its $13.4B acquisition of First Horizon. By early May, the deal had officially fallen through. The Seeking Alpha Quant Ratings system recently upgraded the stock to Buy as the acquisition fell through, highlighting improving valuation and momentum dynamics.

• Consensus EPS Estimates: $1.55
• Consensus Revenue Estimates: $9.18B
• Earnings Insight: TD Bank has beaten EPS and revenue expectations in 8 consecutive quarters.

Also reporting: Royal Bank of Canada (RY), Medtronic (MDT), NetEase (NTES), Workday (WDAY), Autodesk (ADSK), Marvell Technology (MRVL), Dollar Tree (DLTR), Ulta Beauty (ULTA), Deckers Outdoor Corporation (DECK), Burlington Stores (BURL), Ralph Lauren Corporation (RL), Weibo Corporation (WB), The Gap (GPS), and Lion’s Gate Entertainment (LGF.A)

Friday, May 26

Big Lots (BIG)

Big Lots (BIG) is set to post its first quarter earnings update on Friday before the opening bell. The heavily shorted stock has slumped over 70% in the past year, plummeting 19% in just the month ahead of the print. While the Seeking Alpha Quant Ratings system has rated the stock a Sell for much of the past 6 months, analysts maintain a consensus Hold rating.

That said, Piper Sandler is the latest to join the bear camp ahead of the earnings report, citing slowing furniture and mattress sales, as well as free cash flow concerns for the retailer.

“We are downgrading shares of BIG to Underweight and lowering our PT to $7 based on our industry view that demand for both home furnishings and mattresses has deteriorated since March and will likely remain challenged in the months ahead,” the downgrade authored in late April explained. “With continued weakness in sales FCF could go negative and put the dividend at risk.”

• Consensus EPS Estimates: $-1.57
• Consensus Revenue Estimates: $1.19B
• Earnings Insight: Big Lots has beaten EPS and revenue estimates in 4 of the past 8 quarters.

Also reporting: The Buckle (BKE) and Booz Allen Hamilton Holding (BAH)