What do investors expect after Nvidia and Walmart?

Nvidia and Walmart Reports on the Way

As most of the third-quarter earnings reports unfold before our eyes, investors are eagerly awaiting reports from noteworthy companies this week, such as Nvidia (NVDA) and Walmart (WMT).

So far, the third-quarter earnings season has made a positive start. As of November 14, S&P 500 companies have reported results for 92% of their members, with analysts expecting a 13.1% increase in earnings per share for the third quarter. This rate was reported as 12% in the second quarter of the year, and if it holds true, it will mean a fourth consecutive quarter of earnings growth above 10%.

Expectations were quite low entering the quarter; as of September 30, analysts had expected a 7.9% increase in earnings per share for S&P 500 companies in the third quarter.

This week, all eyes will be on giants in the artificial intelligence and retail sectors, such as Nvidia and Walmart. Additionally, earnings reports will also come from companies like Palo Alto Networks (PANW), Home Depot (HD), Lowe's (LOW), Target (TGT), TJX (TJX), and XPeng (XPEV).

The earnings report for Nvidia will be released on Wednesday after the market closes, providing a turning point regarding concerns, valuations, and growth in the field of artificial intelligence. Following the release of results on Wednesday, shares may experience significant movement. According to a Reuters report, Nvidia options predict a 7% move in either direction after the quarterly report, which could create a $320 billion fluctuation in the chip maker's market capitalization; this would be the largest movement following earnings. Nvidia's market capitalization is currently around $4.42 trillion.

As many artificial intelligence stocks are dependent on Nvidia's performance, any large fluctuation in either direction could have widespread effects in the markets.

Empower's chief investment strategist Marta Norton remarked about Nvidia's earnings, “At this point, it's a macro indicator.” While expectations are high, Norton approaches Nvidia’s ability to deliver a positive surprise with skepticism.

La-Z-Boy experienced a rise of over 5% after announcing its earnings and revenues following the market close on Wednesday. The company presented results largely in line with those from a year ago but exceeded analysts' expectations and continues its transformation-focused efforts.

La-Z-Boy reported retail sales growth of 4% and wholesale sales growth of 2% in its second fiscal quarter. Sales of the Joybird brand increased by 1%. The company successfully opened 15 new stores throughout the quarter and announced plans to transform its portfolio. La-Z-Boy suggested ceasing its operations outside of North America and is considering closing its production facility in the United Kingdom.

For the current quarter, the company expects revenues to be between $525 million and $545 million.

Klarna (KLAR) reported a 26% increase in the third quarter on Tuesday. These numbers exceeded expectations following its initial public offering, leading to a 1% rise in the Swedish fintech company's stock value.

Medtronic (MDT) experienced a rise of over 4% on Tuesday morning due to strong demand for heart devices and insulin pumps. The company managed to surpass expectations on both the top and bottom lines in its fiscal second quarter.

Medtronic reported a GAAP earnings per share of $1.07, surpassing the $0.95 forecast according to S&P Global Market Intelligence data. Revenue was reported at $8.96 billion, exceeding the $8.86 billion forecast.

Medtronic's revenue from its cardiovascular portfolio highlighted $3.43 billion, showing a year-over-year increase of 10.8%. The company's insulin business revenue was recorded at $757 million, with a year-over-year increase of 10.3%. The company plans to spin off the insulin business as an independent entity.

Home Depot (HD) reported its third-quarter earnings mixed on Thursday. The retail giant lowered its adjusted earnings expectations for fiscal 2025 while raising its sales growth expectations, causing its stock value to drop by more than 3%. This situation was detailed by Yahoo Finance’s senior reporter Brooke DiPalma.

Baidu (BIDU) shares increased by 2% on Tuesday, attributed to the Chinese search engine's third-quarter revenue exceeding market expectations. The company noted robust growth driven by the recovery in the advertising market.

Nvidia (NVDA) is set to announce its anticipated third-quarter earnings report after market close on Tuesday. This will be the first quarterly results announced after the company temporarily became a $5 trillion company, and it will serve as a significant test for trade in the artificial intelligence sector.

American Bitcoin (ABTC) shares fell by 13% last Friday despite reporting an increase in profits for the third quarter. The company has Eric Trump as founder and chief strategist and Donald Trump Jr. as the primary shareholder.

Investors observed that the Applied Materials (AMAT) shares declined by over 2%; the company predicted positive results despite a slowdown in revenue.

Disney (DIS) shares fell by 3% after its third-quarter earnings failed to meet analyst expectations; declines in linear TV business balanced against strong performances in parks and streaming segments.

Tencent (0700.HK, TCEHY) reported a 15% increase in third-quarter revenues, driven by strong demand for gaming and expanding artificial intelligence-focused services.

Cisco Systems (CSCO) shares rose by over 6% post-trading; the San Jose-based technology company raised its annual profit and revenue forecasts due to increased demand for networking equipment from data center expansions.

McGraw Hill (MH) shares rose by over 22% on Wednesday; the education company raised its full-year outlook and reported second fiscal quarter results that exceeded expectations. The company achieved earnings of $0.57 per share, significantly above analyst estimates by S&P Global Market Intelligence. Total revenue was reported at $669.2 million, falling 2.8% year-over-year while still exceeding forecasts.

Circle (CRCL) shares dropped by 5% on Wednesday morning, but it reported third-quarter profit forecasts that surpassed traditional estimates. The stock value was supported by increased reserve revenues and growth in USDC stablecoin circulation.