HomeNewsWednesday’s market recap: Quarterly results trigger gains for US equities, Target and Walmart dip, as Manchester United beats estimates

Wednesday’s market recap: Quarterly results trigger gains for US equities, Target and Walmart dip, as Manchester United beats estimates

Sanne Moonemans

  • Lowe’s a Companies, and Home Depot shares gain on impressive quarterly reports
  • Shares of US retailers Walmart and Target dip despite impressive results
  • Manchester United tops its fiscal Q1 2022 earnings

Various companies reported their quarterly revenue and earnings results on Wednesday, with some topping estimates, which helped shares jump while others posted disappointing results leading to stock decline.

Lowe’s Companies top Q3 2021 estimates 

Lowe’s Companies (NYSE: LOW) inched 1.38% higher after reporting fiscal Q3 2021 financial results that topped analyst estimates on Wednesday before the market opened.  The company posted revenue of $22.92 billion, up 2.7% YoY, beating Wall Street projections by $980 million. Non-GAAP earnings per share were $2.73, while GAAP EPS was $2.73, topping estimates of $2.34 and $2.28, respectively.   

Home Depot revenue of $36.82 billion 

Home Depot Inc. (NYSE: HD) shares jumped 6% on Tuesday after releasing its Q3 2021 revenue and earnings topping expectations.  The company reported revenue of $36.82 billion, representing YoY growth of 9.8% and topping consensus estimates by $2 billion. Home Depot’s Q3 2021 GAAP earnings per share of $3.92 topped average Wall Street estimates of $3.37 per share.  

Cisco reports a net income of $3 billion

Cisco Systems Inc. (NASDAQ: CSCO) shares were down 7% on Wednesday after hours after the company reported weaker-than-anticipated revenue for Q1 2022 and offered a tepid outlook. Net income was $3 billion or $0.7 per share compared to net income of $2.2 billion or $0.51 per share a year ago. Adjusted earnings per share in Q1 2022 were $0.82 per share. Cisco had revenue of $12.9 billion, representing a YoY growth of 8%.  

Shares of top US retailers drop despite solid results 

Despite posting solid Q3 2021 results, Target Corp (NYSE: TGT) shares lost over 5% on Wednesday. The retailer topped revenue and earnings estimates, but its profitability margins were unimpressive despite the increasing unit prices. The company reported revenue of $25.65 billion, representing a YoY growth of 13.3%, non-GAAP earnings of $3.03 per share, and GAAP earnings of $3.04 per share.

Another retailer that saw its stock drop is Walmart Inc. (NYSE: WMT), whose shares lost 3% even though it topped estimates. The company revised its FY2021 earnings outlook above Wall Street analysts’ estimates.  Non-GAAP EPS was $1.45 in Q3 2021, while GAAP EPS was $1.11, missing estimates of $1.40. Additionally, the company has a revenue of $140.3 billion.   

Manchester United tops fiscal Q1 2021 earnings 

Manchester United Plc (NYSE: MANU) edged slightly lower on Wednesday after releasing fiscal Q1 2022 results. The company topped analysts’ estimates in its most recent quarter posting non-GAAP EPS of £0.0767. Revenue for Q1 2022 was 16.1%, up from Q1 2021 to £126.5 million, topping estimates by £4.35 million. Since September 27, 2021, Manchester United shares have shed over 23%.