9 out of 12 companies deliver EPS wins this week-Earnings Scorecard

Wall Street’s major averages were up on Friday after a week marked by robust earnings and strong economic data fuelled investors with optimism.

Non-farm payrolls resurged in November, making up for October’s storms, indicating that the labor market remains solid. The U.S. economy added 227K jobs last month, topping the +211K consensus estimate.

On the earnings front, out of the 12 S&P 500 companies that reported earnings this week, nine of them delivered strong EPS wins. Two companies beat revenue estimates, while only one missed estimates for both EPS and revenue.

Consumer companies were at the forefront this week after a successful Thanksgiving and Black Friday, as American consumers continued to turn out in droves to shop. Spending reached a record $10.8B on Black Friday, according to Adobe’s data, marking a Y/Y rise of 10.2%. That came after a total spend of $6.1B on Thanksgiving.

Seven out of eight consumer companies that reported earnings this week, beat estimates, alleviating worries over the state of the U.S. economy, which was widely cited as one of the top concerns among voters during the election.

Companies such as athleisure retailer, Lululemon delivered solid quarterly results, with better-than-expected profit and sales, and double-digit comparable sales growth in its international markets.

The company also raised its FY24 guidance above Wall Street’s expectations and raised its share buyback program by another billion dollars.

Along similar lines, another consumer giant, Dollar Tree (NASDAQ:DLTR) also beat top and bottom-line estimates for the third quarter, and updated its forecast. For the fiscal year 2024, adjusted earnings per share are now expected in the $5.31 to $5.51 range, revised from $5.20 to $5.60.Net sales are expected to be $30.7B to $30.9B.

In contrast to these upbeat forecasts, retail giant Kroger (NYSE:KR) missed its revenue estimates due to the impact of lower fuel prices and the sale of its specialty pharmacy business. Kroger (NYSE:KR) also narrowed its EPS guidance to a range of $4.35 to $4.45 per share from $4.30 to $4.50 per share.

Three companies from the technology sector also reported earnings this week, with two of them beating estimates. Hewlett Packard (NYSE:HPE) and Synopsys (NASDAQ:SNPS) beat estimates for both revenue and EPS, while Salesforce (NYSE:CRM) missed EPS expectations.

HP Enterprise (HPE) reported fiscal fourth-quarter results and guidance that topped Wall Street’s expectations, aided in part by the artificial intelligence spending boom. For the period ending October 31, HP Enterprise said it earned an adjusted $0.58 per share as revenue rose 15.6% year-over-year to come in at $8.5B.

On the other hand, Salesforce (CRM) reported adjusted earnings per share of $2.41, which was less than the consensus estimate of $2.45. The company said the lower-than-expected earnings per share was due to losses on strategic investments.

For the upcoming week, six S&P500 companies are scheduled to report earnings, with Oracle (NYSE:ORCL) reporting on Monday, AutoZone (NYSE:AZO) on Tuesday, and Adobe (NASDAQ:ADBE) on Wednesday. Thursday will include names like Broadcom (NASDAQ:AVGO), and Costco (NASDAQ:COST).