Chart of the Day – Health Care in the Infirmary
Q3 2024 Earnings Conference Call Recaps: Walmart (WMT)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Walmart‘s (WMT) Q3 2025 earnings call.
Walmart (WMT) is the world’s largest retailer, operating over 10,500 stores and numerous e-commerce platforms across 20+ countries. Known for its low prices and extensive product assortment across groceries, general merchandise, pharmacy services, and e-commerce, WMT serves cost-conscious households of all income ranges. This quarter, WMT posted global sales up 6.1% with e-commerce as the standout performer, growing 27% globally, with marketplace sales surging 42% in the US. Membership programs, including Walmart+ and Sam’s Club, delivered double-digit growth, strengthened by higher-income households. The company reported resilient consumer spending despite low inflation, with 75% of US market share gains coming from households earning over $100,000. Internationally, markets like China and Mexico drove impressive results, and management noted improved delivery and digital developments in those markets. In reaction to earnings results that were stronger than estimates, WMT shares rose about 4% through midday on 11/19…
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Bespoke’s Morning Lineup – 11/19/24 – Ten in a Row For Walmart
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium. CLICK HERE to learn more and start your trial.
“And like most other overnight successes, it was about twenty years in the making.” – Sam Walton
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
What was looking like a positive morning for equities turned murkier in the last few hours as Russian President Vladimir Putin updated the country’s nuclear doctrine in response to President Biden’s move giving Ukraine the go-ahead to launch attacks on Russian targets deep inside the border. Under the new policy, a spokesperson for the Kremlin said that Russia now “reserves the right to use nuclear weapons in the event of aggression using conventional weapons against it and/or the Republic of Belarus.”
Before the comments, Asian stocks were higher, with fractional gains across the board overnight. European stocks also opened flat to slightly higher but then steadily sold off in the wake of the updated doctrine. The STOXX 600 currently sits down about 0.75%, as even a small increase, however unlikely, of an escalating conflict can understandably cause investors to become more risk averse. It’s also worth highlighting that Putin made similar comments over the weekend that supplying Ukraine with long-range missiles would cross a red line.
Given the tensions, Treasury yields are lower as the 10-year yield is back below 3.4%, crude oil is fractionally lower, and gold and bitcoin are up nearly 1% each with the latter trading firmly above $92K. In terms of economic data, Building Permits and Housing Starts for October were just released and both headline readings came in modestly lower than expected.
Shifting from macro to the micro, Walmart (WMT) marked the unofficial end to earnings season this morning reporting better-than-expected EPS and sales and reiterating its full-year guidance. This was the tenth straight quarter that the company reported better than expected EPS and sales, and in response, the stock is poised to gap up 3.5% which would be the fourth time in a row that the stock gapped up in reaction to earnings. Shares of WMT have already been on a monster run for the last year after dropping below $50 late last year, but this morning the stock is at record highs around $87. One thing to be aware of is that on each of its last six earnings reaction days, the stock has traded down from the open to close.
The Closer – Fedspeak, Cass, Consumer Credit – 11/18/24
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Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we lead off with a look at the dynamics of growth and momentum (page 1) in addition to providing an update on the crude term structure and our Fedspeak index (page 2). We then dive into consumer credit (page 3) and freight data (page 4) before previewing this week’s Treasury auctions (page 5). We close out with a positioning recap (pages 6-9).
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Daily Sector Snapshot — 11/18/24
Chart of the Day: From Down and Out to Off the Mat
Q3 2024 Earnings Conference Call Recaps: TreeHouse Foods (THS)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers TreeHouse Foods’ (THS) Q3 2024 earnings call.
TreeHouse Foods (THS) is a private-label food manufacturer specializing in packaged and ready-to-eat products like snacks, beverages, and meal components. Some of THS’s largest partners include major grocery retailers such as Walmart and Albertsons. The company is positioned well for the growth of private-label groceries but saw net sales fall slightly below guidance this quarter because of short-term weakening consumer demand and disruptions from Hurricane Helene. On the contrary, THS highlighted $20 million in supply chain savings. Private-label products continued to gain share but from a shrinking market, as major grocers reported declines in shopper traffic. A frozen griddle product recall impacted revenue and will keep a facility offline until Q1 2025. The company is focused on $250 million in supply chain savings by 2027, leveraging procurement efficiencies and improved logistics. THS missed across the board and cut guidance, resulting in a 14.3% drop for THS on 11/12…
Continue reading our Conference Call Recap for THS by becoming a Bespoke Institutional subscriber. You can sign up for Bespoke Institutional now and receive a 14-day trial to read our newest Conference Call Recap. To sign up, choose either the monthly or annual checkout link below:
Q3 2024 Earnings Conference Call Recaps: Tyson Foods (TSN)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Tyson Foods’ (TSN) Q4 2024 earnings call.
Tyson Foods (TSN) is a major player in protein with a wide range of beef, pork, chicken, and prepared foods under well-known brands like Tyson, Jimmy Dean, and Hillshire Farm. As one of the largest meat processors in the world, the company provides insights into consumer demand trends, agricultural cycles, and global food supply dynamics. This quarter, TSN reported its best quarterly adjusted EPS in two years and annual AOI (Adjusted Operating Income) that nearly doubled last year’s results. Key drivers included a $1.1 billion turnaround in chicken profitability and its best performance in prepared foods since 2018. Beef remains challenged by compressed spreads and tight cattle supplies, though innovations in value-added products like Restaurant Style Crispy Wings available in various flavors, and Razorback-shaped chicken nuggets to celebrate the University of Arkansas, provide optimism. As higher prices helped TSN to earnings beats, shares rose 6.6% on 11/12 in reaction to the report…
Continue reading our Conference Call Recap for TSN by becoming a Bespoke Institutional subscriber. You can sign up for Bespoke Institutional now and receive a 14-day trial to read our newest Conference Call Recap. To sign up, choose either the monthly or annual checkout link below:
Q3 2024 Earnings Conference Call Recaps: Shopify (SHOP)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Shopify’s (SHOP) Q3 2024 earnings call.
Shopify (SHOP) is a leading e-commerce platform empowering businesses of all sizes to build, manage, and scale their online and offline storefronts. SHOP offers solutions for payments, marketing, inventory, logistics, and now AI-powered automation, serving over 1 million merchants worldwide. SHOP posted a standout Q3, with GMV (Gross Merchandise Value) rising 24% YoY, marking its fifth consecutive quarter of 20%-plus growth. Revenue increased 26% to $2.2 billion, driven by its growth internationally (33% GMV growth outside North America), offline commerce (27% GMV growth), and AI-powered features like personalized responses and enhanced automation. The Shop App saw an 18% boost in buyer engagement sessions, while the B2B segment surged 145%, fueled by new tools and enterprise adoption. The company launched integrations with PayPal, YouTube, and Roblox, and its new data migration tool enables merchants to onboard thousands of SKUs to the platform in a matter of minutes. On in-line EPS and better-than-expected revenues, SHOP shares surged 21% on 11/12…
Continue reading our Conference Call Recap for SHOP by becoming a Bespoke Institutional subscriber. You can sign up for Bespoke Institutional now and receive a 14-day trial to read our newest Conference Call Recap. To sign up, choose either the monthly or annual checkout link below:
Homebuilders Present vs. the Future
This morning the National Association of Home Builders published their latest update on home builder sentiment. The headline index rose to 46 versus an expected decline from 43 to 42. That three-point jump marks the largest one-month uptick since March but only leaves it in the middle of its range from the past couple of years.
Of the sub-indices, future sales stood out the most. The index surged 7 points month over month to reach the most elevated reading since April 2022. That is just above the historical median and suggests homebuilders are optimistic in spite of weaker readings in traffic and present sale indices.
As noted, present sales and traffic were not as rosy as future sales. As shown below, present sales were higher in November rising 2 points month-over-month to 49. However, that is only in the 29th percentile of historical readings, and more recently that is well within the range of readings from the past couple of years.
With present and future sales moving in the opposite direction, a massive divergence has formed between the two. As shown below, for most of the survey’s history, future sales have tended to be higher than present sales for sustained periods albeit with some exceptions like the first couple of years of the pandemic. The last time present sales were stronger than future sales (negative readings in the chart below) was just five months ago, but there has been a massive turnaround since then. With November’s reading, the spread is at the highest level (meaning sentiment towards future sales is stronger than present sales) since December 2006. Late 1991 was the only other time in which there was as wide of a divergence between the two.
Not only has there been a divergence between present and future sales, but the report also showed some divergence in sentiment based on geography. As shown below, homebuilder sentiment has perked up in the Northeast and the Midwest. Conversely, sentiment was lower month over month and closer to the low ends of recent ranges in the South and West.
As for homebuilder stocks, the long-term uptrend remains in place albeit the chart isn’t as constructive as it once was. In late October, the iShares US Home Construction ETF (ITB) fell back below its 50-DMA for the first time since late spring and early summer when there was a successful test of support at the longer-term 200-DMA. While there hasn’t been any sort of similar drawdown to support this go around, one week ago there was a failed attempt to move back above the 50-DMA. That leaves the group in no-man’s-land sandwiched between the two moving averages.
