Earnings Alert: Walmart (WMT), Home Depot (HD) revenue up in Q2

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Earnings Alert: Walmart (WMT), Home Depot (HD) revenue up in Q2

 Earnings Alert: Walmart (WMT), Home Depot (HD) revenue up in Q2
Image source: Stokkete, Shutterstock

Highlights

  • Walmart’s (NYSE: WMT) revenue surged 2.4 percent YoY to US$141 billion in Q2, while its operating income rose by 20.4 percent.
  • Home Depot (NYSE: HD) saw strong sales of US$41.1 billion in Q2, up 8.1 percent YoY. Its net earnings were US$4.8 billion or US$4.53 per diluted share.
  • The Walmart stock gained 4.58 percent YTD, while the Home Depot stock jumped 26 percent this year.

US retail giants Walmart Inc (NYSE: WMT) and Home Depot Inc (NYSE: HD) reported significant revenue and sales growth in the second quarter on Tuesday.

Walmart stock shed 0.87 percent to US$149.49 at 8.06 am ET, while Home Depot stock fell 3.18 percent to US$324.40 at 8.23 am ET after the results.

We explore here the performance of the two companies in Q2.

Walmart Inc (NYSE: WMT)

Walmart’s revenue surged 2.4 percent YoY to US$141 billion in Q2, and its operating income rose by 20.4 percent in the same period. However, its international net sales declined by US$4.1 billion to US$23 billion YoY.

The consolidated operating income was US$7.4 billion, up 21.4 percent YoY, and adjusted earnings per share were US$1.78.

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Walmart runs over 10,500 stores globally. It has repurchased US$5.2 billion worth of shares year-to-date. Its market cap is US$422 billion, the P/E is 35.06, and the forward P/E one year is 25.13. While its EPS is US$4.30, the company also pays an annual dividend of US$2.30.

The stock surged 4.58 percent YTD. Its 52-week highest and the lowest stock price was US$153.66 and US$126.28.

Source: Pixabay.

Home Depot Inc (NYSE: HD)

It reported strong sales of US$41.1 billion in Q2, up 8.1 percent YoY. The company’s net earnings were US$4.8 billion or US$4.53 per diluted share.

In the same quarter of 2020, net earnings were US$4.3 billion or US$4.02 per diluted share.

It recorded sales of over US$40 billion in a single quarter for the first time in Q2, 2021. Its gross profit was US$13.6 billion compared to US$2.9 billion in the same quarter last year. The company had liquidity reserves of US$4.5 billion at the end of the quarter compared to US$14.1 billion in the same period in 2020. The company runs 2298 stores in the US, Canada, and Mexico.

The stock gained more than 26 percent YTD. Its market cap is US$356.2 billion, the P/E ratio is 24.44, and the forward P/E one year is 23.65. The EPS is US$13.71, while the annual dividend is US$6.60.

Also read: Top e-commerce stocks to consider as online sales boom

Its highest and the lowest stock price for the last 52 weeks was US$345.69 and US$246.59, respectively.

Bottomline

The Home Depot expects an increase in sales in fiscal 2021 as the economy recovers from the pandemic. Likewise, Walmart Inc looks forward to strong earnings in the next quarter.

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