As the earnings season starts to draw to a close, investors are eagerly awaiting reports from key players within the S&P 500. Among the companies still scheduled to release their quarterly results are notable giants such as Home Depot and Disney. This reporting period holds significant implications for market momentum, particularly in light of recent post-election stock market dynamics. With over 450 companies having already shared their third-quarter results—of which an impressive 74% exceeded analyst expectations, according to FactSet—investor sentiment remains delicate yet optimistic.
Home Depot’s upcoming earnings report, set for the premarket session, is poised to be of particular interest. The earnings call scheduled for 9 a.m. will provide insights into the home improvement retailer’s trajectory. Previously, Home Depot projected a cooling in sales due to increasingly cautious consumer behavior. Analysts from LSEG predict a minor decline in year-over-year earnings this quarter, reflecting broader market themes.
Investors should focus on expectations surrounding same-store sales, as UBS analysts have expressed concerns over weakened demand. Their observation indicates that contractors are scaling back on larger projects, opting instead for smaller home improvement endeavors. However, analysts remain hopeful that consumer engagement through innovation and new products may buoy overall sales. Historically, Home Depot has a record of beating earnings expectations for 17 consecutive quarters, creating a narrative of resilience that will be scrutinized in this earnings release.
In conjunction with Home Depot, Live Nation Entertainment is also scheduled to post its earnings, with a call following shortly after. Market analysts anticipate a notable decline in earnings for the entertainment powerhouse—estimated at around 10% year-over-year. However, the company’s stock had enjoyed a significant rally earlier in the year, reflecting a 31% increase through 2024, demonstrating the resilience of consumer demand for live events.
Morgan Stanley recently raised its price target for Live Nation, reflecting an optimistic outlook despite possible declines in certain quarters. With the anticipation of a more robust 2025, investors room for cautious optimism exists as they await this report. Traditionally, Live Nation has performed well in the days following earnings releases, indicating that investors may still see a potential upside.
Thursday will see Disney take center stage in the earnings lineup, with its report scheduled before the market opens. Having beaten estimates in its prior quarter, the Disney report has been highly anticipated, particularly as it is projected to show more than 30% earnings growth compared to last year. A key focus for analysts—such as Guggenheim’s Michael Morris—will be the company’s guidance moving forward.
Investors will be looking closely at Disney’s performance not just for recent profit margins, but also in the context of projected revenue and operating income guidance. Past experiences, however, highlight vulnerability, as Disney’s shares have faced setbacks following its last two earnings reports. The stakes are high; a positive outlook could rejuvenate investor confidence in Disney’s diverse portfolio amid shifting media consumption trends.
Lastly, Applied Materials is set to release its earnings following the close of trading. Coming off a previous quarter where it exceeded expectations, this report will be closely monitored for any shifts in momentum within the semiconductor sector. With industry performance varying widely, Applied Materials’ growth has lagged behind the broader semiconductor index. Analysts are forecasting slight year-over-year growth in both earnings and revenue, indicating a cautious approach in their projections.
On earnings days, Applied Materials shares have typically realized modest gains, hinting at investor expectations that may remain tempered but optimistic. As technological advancements and supply chain challenges continue to shape the sector, stakeholders will be eager to hear insights from management that could set the tone for future performance.
As the earnings season progresses, the eyes of investors are keenly fixed on these financial reports. The outcomes from Home Depot, Live Nation, Disney, and Applied Materials are pivotal not just for understanding the companies themselves, but also for gauging broader market sentiments moving forward. Positive results may reinforce current bullish trends, while disappointing releases could signal a recalibration in market expectations. Whatever the results, the narratives from this earnings season are sure to reverberate through the financial landscape in the months to come.