Walmart, Home Depot, Nvidia — This week’s earnings winners and losers
Yahoo Finance's Brad Smith breaks down this week's earnings winners and losers.
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BRAD SMITH: Since we've been talking earnings, let's get you up to speed on this week's earnings. We saw a slew of companies reporting fourth quarter earnings this week. It was Lucid. It was Etsy, eBay. And those were just to name a few.
But what grade do they get for their quarterly report card? Well, I'm going to focus in on a few of them that caught my attention. I'm going to start things off with Walmart, the retailer you go to, you know. And at the end of the day, yeah, I gave them a B-minus, and here's why.
They talked about some caution on the consumer. And if the biggest retailer, brick and mortar fashion-style, is saying this and also citing some weakness in home, electronics, and apparel and some of those discretionary categories, that should actually send a little bit of shock throughout the rest of the retail landscape as well.
Now, Walmart here on the day, it's down by about 1.4%. One of the other keys to remember with Walmart, even with their caution on the consumer, they're saying on the earnings call, have said on the earnings call, it's attempting to predict with precision three swings-- or these swings in macroeconomic conditions and their effect on consumer behavior but calling it very challenging right now. So net-net, gave it a B-minus.
And want to get back to this report card here. Let's go to the C. Now, this was Home Depot. They got a C grade here, and here's why. When you think about what exactly is going to continue to challenge them in this near term, this is a company that definitely touches, of course, that DIY home care or home project market as well as some of those core customers that are constructing in a large order capacity.
They had a revenue miss. They issued weak guidance. Shares here on the day, they are higher by about 7/10 of a percent. But they did give that warning to investors.
However, one of the bright spots that I'll shout out, this is a company that in their process of taking care of businesses, trying to take care of their employees a little bit better here too. They did ultimately raise that minimum wage for those employees. And so we will continue to see exactly what type of effect that has in the broader labor and employment situation environment, as the competition for labor continues.
And we've got to talk about Nividia. We were just mentioning how well they did in at least the earnings call. But the quarter wasn't all roses, everyone. You've got to remember, there were actually two categories that they did not perform that well in and saw year over year declines that were quite significant. And that was actually being run through by our own Dan Howley.
But within that gaming segment as well as the professional visualization segment, severe declines year over year. However, given that the future is AI, the company did so good at selling what this could actually look like and some of the consortium of contending partners, that they've been able to insulate themselves with around for this vision. Now all sights are going to be on their conference and what more detail they provide in the coming weeks here. Ultimately shares moving higher by about 14% here, Ines. So that was your earnings report card for this week.