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Earnings Previews: Home Depot, JD.com, Walmart

JD.com

Beijing-based JD.com Inc. (NASDAQ: JD) is the second-largest Chinese e-commerce company, and it has lost more than 29% of its share price over the past 12 months. JD.com is among the more than 80 Chinese companies threatened with delisting on U.S. exchanges for failing to meet federal accounting requirements. Virtually all the company’s share price decrease has come since the Securities and Exchange Commission issued its list. The company has until May 25 to dispute its inclusion on the SEC list.

Of 38 analysts covering the stock, 36 have a Buy or Strong Buy rating. At a share price of around $50.90, the stock’s implied upside based on a median price target of $80.55 is about 58.3%. At the high price target of $118.00, the upside potential is nearly 132%.

Analysts expect JD.com to report first-quarter revenue of $34.69 billion, down 20% sequentially but 11.9% higher year over year. Adjusted EPS are expected to come in at $0.25, up 40% sequentially and down 34.2% year over year. For the full 2022 fiscal year, EPS are forecast at $1.82, up about 113%, on sales of $166.06 billion, up 10.9% year over year.

The stock trades at 28.2 times expected 2022 EPS, 18.7 times estimated 2023 earnings of $2.74 and 13.9 times estimated 2024 earnings of $3.69 per share. The stock’s 52-week range is $41.56 to $92.69, and the company does not pay a dividend. Total shareholder return over the past year is negative 23.5%.

Walmart

The second Dow component reporting early Tuesday morning is Walmart Inc. (NYSE: WMT). Over the past 12 months, the company has seen its share price increase by nearly 10%. There have been a few questions about the retail giant’s valuation, even though it has beaten analysts’ consensus revenue estimates for eight consecutive quarters and EPS estimates for seven of those eight.

Analysts are mostly bullish on the stock, with 28 of 38 awarding the shares a Buy or Strong Buy rating and the rest with Hold ratings. At a share price of around $147.00, the upside potential at the median price target of $167.00 is about 13.6%. At the high target of $190, the implied upside is 29.3%.


For its first quarter of fiscal 2023, Walmart is expected to report sales of $138.03 billion, down 8.9% sequentially and down about 0.6% year over year. Adjusted EPS are pegged at $1.48, down 3.4% sequentially and 10.0% year over year. For the full fiscal year that began in February, analysts forecast EPS of $6.75, up 4.5%, on sales of $588.25 billion, up 3.6%.

Walmart stock trades at 21.8 times expected 2023 EPS, 20.2 times estimated 2024 earnings of $7.28 and 18.3 times estimated 2025 earnings of $8.03 per share. The stock’s 52-week range is $132.01 to $160.77. Walmart pays an annual dividend of $2.20 (yield of 1.52%). Total shareholder return for the past year was just over 8%.

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