Notable Earnings: Home Depot (HD), Wal-Mart (WMT), Cheetah Mobile Inc. (CMCM)

The Home Depot, Inc. (HD) shares are up $1.46 to $116 in pre-market trading Tuesday after the company reported its first-quarter earnings results.

The home improvement giant posted non-GAAP earnings of $1.16 per share on revenues of $20.89 billion, up 6.1% from $19.69 billion a year ago. Analysts were expecting EPS of $1.15 on revenues of $20.81 billion. Q1/15 gross profit was $7.71 million, an improvement of more than 6% from $6.75 million over Q1/14. The company’s net income for the same period came in at $1.58 million, or $1.21 per diluted share, from $1.38 million, or $1.00 per diluted share, a year earlier. The company said sales at U.S. stores open at least a year were up 7.1% from the same-period last year.

“We had a stronger than expected start to the year as we experienced a more normal spring across much of the country and continued recovery of the U.S. housing market,” said in a statement Craig Menear, chairman, CEO and president.

For full year 2015, Home Depot provided EPS guidance of $5.24 – $5.27 versus consensus of $5.23 per share. The company also issued revenue projection of $86.67 – $87.1 billion, compared to the consensus revenue estimate of $86.80 billion.

Cash – As of May 3, 2015, Home Depot’s cash and cash equivalents were $2.82 billion, compared to $2.5 billion as of May 4, 2014. The $148.44 billion market cap company reported $33.3 billion in total liabilities in its most recent quarter.

Wal-Mart Stores Inc. (WMT) reported first quarter 2016 EPS of $1.03 before the opening bell Tuesday, compared to the consensus estimate of $1.05. Revenues declined 0.1% yoy to $114.83 billion from $114.96 billion. Analysts expected revenues of $115.5 billion. Consolidated operating income declined 8.3%. The company said this was due to impacts from currency fluctuations and investments in associate wages & training and e-commerce. Meanwhile, net profit came in at $3.34 billion, or $1.03 per share, in the first quarter ended April 30, compared to $3.59 billion, or $1.11 per share, a year earlier. Same-store sales for Walmart U.S. increased 1.1%.

For Q2/16, WMT provided EPS guidance of $1.06 – $1.18 versus consensus of $1.17 per share.

The stock is currently down $1.87 to $78.05 on 106K shares.

Shares of Cheetah Mobile Inc. (CMCM) gained $0.96 to $31.00 after the company released its earnings results on Tuesday. The firm reported Q1’15 EPS of $0.54 per share vs. $0.28 consensus on $672.5 million in revenue, up 113.0% from a year ago.

On valuation measures, Cheetah Mobile Inc. ADS shares, which currently have an average 3-month trading volume of 1.49 million shares, trade at a trailing-12 P/E of 370.86, a forward P/E of 21.93 and a P/E to growth ratio of 0.76. The median Wall Street price target on the name is $28.00 with a high target of $32.30. Currently ticker boasts 9 ‘Buy’ endorsements, compared to 0 ‘Holds’ and no ‘Sell’.

Profitability-wise, CMCM has a t-12 profit and operating margin of 3.85% and 4.69%, respectively. The $4.28 billion market cap company reported $119.6 million in cash vs. $621 million in total liabilities in its most recent quarter.

CMCM currently prints a one year return of about 123% and a year-to-date return of around 99%.

The chart below shows where the equity has traded over the last 52 weeks.

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