Home Depot, XPENG, Medtronic: Market Movers

A closer look as Home Depot (HD), XPENG (XPEV) and Medtronic (MDT) prepare to report earnings.

Video Transcript

00:00 Speaker A

Well, for market movers, we're going to focus on earnings. First, let's recap on Home Depot and look at how its shares are doing in the pre-market. It's trading lower around, I think about 5%. Oh, no, just over just 0.49% now. Even though the company's chief financial officer said the results were in line with expectations, and the performance was the strongest in two years. But that metric I spoke about earlier, comparable sales, just up 1% and missing the street view, did have an impact on investor sentiment in the pre-market. Though shares are starting to recover, and in reality, second quarter sales and profits did miss analyst estimates. Now, the company was able to maintain pricing levels because most of its imported goods arrived before the new tariffs kicked in. But the CFO did warn that later in the year, some items will get more expensive. Now, Home Depot sources more than 50% of its items in the US and said it plans to keep prices competitive. Okay, next up, we have Xpeng, the Chinese EV maker. On the face of it, the results don't look great. In the second quarter, revenue more than doubled though, to come in at 18.27 billion yuan. But analysts had been hoping for 18.38 billion. Also, it's forecast revenue for the third quarter of between 19.6 billion and 21 billion yuan, and that fell short of the street estimate. However, the automaker managed to deliver over 103,000 cars during Q2. Now get this, that's a 241% increase compared to the same period a year ago. And that's perhaps why we're seeing the shares performing quite well in the pre-market. The ADR is performing quite well in the pre-market. In fact, the Chinese automaker now sees profitability as being something it can achieve, and it's narrowed its net loss significantly in Q2. And finally, we've just got earnings from American Irish medical device provider, Medtronic. Now, revenue over the first quarter came in better than expected at $8.6 billion. Uh, the street was calling for $8.4 billion. They adjusted earnings per share was also better at $1.26, too. But operating margin came in slightly less than expected. Um, and that may have been having an impact on the share price. Now, shares did actually initially rise quite significantly. And that's because Medtronic is making changes to its board after Elliott Investment Management became one of its largest shareholders. Uh, in fact, the activist investor and the medical device maker have been holding friendly talks around how to boost the company's valuation and build on ongoing plans to focus on core assets. Now, as I said, that gave a massive boost to the shares in the pre-market. They've since started to slip, perhaps on the fact that operating margin came in just slightly lower than expected.

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