Earnings next week will focus on consumer confidence
The earnings season has been positive for equity markets confirming that the outlook remains stable and earnings growth is improving. Next week, our earnings focus will be on the consumer oriented companies reporting such as Meituan, Xiaomi, Tencent, and JD.com all linked to consumer and spending in the Chinese economy. Given the good Q2 results from Alibaba yesterday, we expect these companies to show good progress in Q2 except maybe for Xiaomi that like Apple is hit harder by inflation as electronic consumer goods have been impacted a lot from inflation eating into disposable income.
In emerging markets NU Holdings (parent of Nubank which is the largest online bank in Brazil/Latin America) and Sea Ltd (biggest e-commerce business in Southeast Asia) will each provide a good temperature on the emerging market consumer outside China.
In the US, our earnings focus will be on Home Depot and Walmart that both are massive players in the US consumer sector. With new housing and permits stabilising this year we expect Home Depot to slowly adjust their outlook in a more positive direction.
In Europe, our earnings focus is on Carlsberg (one of the largest breweries), Adyen (important payments company), and Nibe Industrier which is a good proxy on green transformation investments from households due to the heat pump business.
Next week’s most important earnings releases across the markets we track during the earnings season.
- Monday: CSL, PetroChina, Meituan, Xiaomi, COSCO Shipping, KE Holdings, Trip.com
- Tuesday: Suncor Energy, Alcon, Home Depot, Agilent Technologies, NU Holdings, Sea Ltd
- Wednesday: Carlsberg, Tencent, JD Health, JD Logistics, Cisco, TJX, JD.com, Target
- Thursday: Telstra, Coloplast, CNOOC, Adyen, Nibe Industrier, Geberit, Walmart, Applied Materials, Ross Stores
- Friday: Kingspan, Deere, Palo Alto Networks, Estee Lauder, XPeng