NVIDIA, Salesforce, and Key Reports to Shape the Market This Week

Earnings Report Preview:

This week’s earnings reports provide a critical look at how major companies across AI, home improvement, mobility, healthcare, electric vehicles, and fast-casual dining are navigating shifting market dynamics. With macroeconomic uncertainty, evolving consumer spending patterns, and rapid technological advancements, these earnings will offer valuable insights into where growth opportunities—and potential risks—lie.

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Here’s what to watch:

? AI & Cloud Innovation – NVIDIA’s record-breaking AI demand and Salesforce’s enterprise AI expansion will set the tone for the cloud and AI sectors.

? Consumer & Healthcare Trends – Hims & Hers' growth in personalized healthcare highlights shifts in consumer spending on digital health solutions.

? Housing & Retail Performance – Home Depot and Lowe’s results will provide insight into the strength of the home improvement market as DIY spending slows but Pro demand holds steady.

? EV Updates – Lucid Motors’ production ramp and results will indicate whether this sectors can sustain momentum.

? Fast-Casual Growth – Cava continues to outperform in the restaurant industry, demonstrating the strength of digital and in-store sales in the fast-casual space.

With the final quarter of the year underway, these earnings will help shape market expectations for 2025. Investors, analysts, and traders alike will be watching closely for guidance on profitability, expansion strategies, and the broader economic outlook. Let’s dive into what to watch from this week’s key reports.

NVIDIA (NVDA) Earnings Preview

Q3 FY25 Recap

NVIDIA delivered another record-breaking quarter, with total revenue surging 94% year-over-year (YoY) to $35.1 billion, significantly surpassing its outlook of $32.5 billion. The Data Center segment remained the primary growth driver, generating $30.8 billion in revenue—a 112% YoY increase. This was fueled by strong demand for NVIDIA’s Hopper architecture, rapid adoption of its H200 GPUs, and the early ramp-up of its next-generation Blackwell platform.

? Gaming revenue grew 15% YoY to $3.3 billion, supported by back-to-school sales and robust demand for GeForce RTX GPUs.

? Professional Visualization revenue rose 17% YoY to $486 million, driven by AI-powered design and content creation.

? Automotive revenue jumped 72% YoY to $449 million, bolstered by self-driving advancements and NVIDIA DRIVE-powered vehicles like Volvo’s EX90.

? Operating income soared 110% YoY to $21.9 billion, with gross margins holding strong at 74.6% GAAP and 75.0% non-GAAP.

What to Watch for in Q4 FY25

1. Blackwell Ramp & Supply Constraints – NVIDIA expects demand for its new Blackwell GPUs to significantly outstrip supply, but its Q4 revenue outlook of $37.5 billion (+/- 2%) suggests a strong initial ramp. Analysts will watch for guidance on future capacity expansions.

2. Data Center Expansion & AI Leadership – NVIDIA remains the dominant AI infrastructure provider. Watch for further cloud service provider (CSP) adoption, particularly in India and Japan, where GPU deployments are expanding rapidly.

3. Gaming Segment Challenges – The company expects sequential gaming revenue declines in Q4 due to supply constraints. Investors will look for clarity on how NVIDIA plans to navigate these challenges.

4. Automotive & AI Growth – The integration of AI in industrial and automotive sectors continues to accelerate. Updates on self-driving partnerships and AI-powered enterprise tools could provide long-term growth insights.

5. Profitability & Margins – As Blackwell ramps up, gross margins are projected to moderate to the low 70s. Analysts will be watching for further commentary on cost structure and long-term profitability.

With record-breaking performance in AI infrastructure and continued expansion into multiple high-growth sectors, NVIDIA’s upcoming report will be pivotal in assessing the trajectory of AI, cloud computing, and semiconductor demand heading into 2025.

Salesforce (CRM) Earnings Preview

Q3 FY25 Recap

Salesforce reported Q3 FY25 revenue of $9.44 billion, up 8% YoY, driven by strong Subscription & Support revenue growth of 9%. The company delivered GAAP operating margin of 20% and non-GAAP operating margin of 33.1%, reflecting efficiency improvements and cost controls. Operating cash flow surged 29% YoY to $1.98 billion, while free cash flow grew 30% YoY to $1.78 billion.

Key highlights included:

? Current Remaining Performance Obligation (cRPO) grew 10% YoY, reflecting strong demand for Salesforce’s cloud services.

? Salesforce returned $1.6 billion to shareholders through share buybacks and dividends.

? Agentforce AI platform positioned as a transformative tool for enterprises, enhancing automation and digital labor solutions.

What to Watch for in Q4 FY25

1. AI & Agentforce Growth – Salesforce’s AI-powered automation tools are gaining traction. Watch for updates on enterprise adoption and customer expansion.

2. Cloud & Subscription Growth – Subscription revenue is expected to grow slightly below 10% YoY in constant currency. Analysts will assess whether demand remains resilient in enterprise spending.

3. Margin Expansion & Profitability – Salesforce has raised its full-year non-GAAP operating margin guidance to 32.9%, up 190 basis points YoY. Investors will monitor whether cost efficiencies continue.

4. Enterprise Spending Trends – Salesforce’s cRPO growth provides insight into enterprise IT budgets. Guidance for Q1 FY26 will indicate whether spending is stable amid macroeconomic uncertainty.

5. Shareholder Returns & Buybacks – With over $20 billion in cumulative share repurchases, analysts will look for updates on additional capital return initiatives.

Salesforce’s strong AI-driven strategy and cost discipline continue to drive growth. Its Q4 results will provide key insights into enterprise software demand, AI adoption, and overall cloud market trends heading into 2025.

Zoom Communications (ZM) Earnings Preview

Q3 FY25 Recap

Zoom reported Q3 FY25 revenue of $1.18 billion, up 4% YoY, slightly exceeding expectations due to stable enterprise demand and improved churn rates. The company’s enterprise revenue grew 6% YoY, making up 59% of total revenue, while its online business stabilized with record-low churn of 2.7%. Zoom’s AI Companion Monthly Active Users surged 59% QoQ, reflecting the company’s strategic focus on AI-first solutions.

Key highlights included:

? Improved operating margins with non-GAAP gross margin at 78.9%, though slightly lower YoY due to AI investments.

? Contact Center growth with over 1,250 enterprise customers, up 82% YoY.

? Workvivo expansion, with customer growth of 72% YoY, driven by stronger demand for internal communication tools.

What to Watch for in Q4 FY25

1. AI Monetization & Adoption – Zoom’s AI Companion is seeing rapid adoption, but investors will watch for signs of revenue contribution from AI-powered tools and enterprise up-selling opportunities.

2. Enterprise Growth & Churn Rates – Enterprise remains Zoom’s core growth driver, and a steady increase in large customers contributing over $100K in TTM revenue will be a key metric to track.

3. Profitability & Expense Management – While revenue growth remains moderate, Zoom has improved operating efficiency. Investors will focus on whether the company can maintain expanding non-GAAP margins.

4. Contact Center & Workvivo Momentum – Zoom’s expansion into adjacent business services like Contact Center and Workvivo is gaining traction. Updates on deal pipeline and revenue contribution will be critical.

5. Forward Guidance & Macroeconomic Sensitivity – Management’s outlook on enterprise IT spending amid economic uncertainties will set the tone for FY26 expectations.

Zoom’s continued push toward AI-first collaboration tools and enterprise expansion will be the primary focus this quarter. Investors will look for signs of sustained growth, stronger AI monetization, and operating leverage in the upcoming report.

Home Depot (HD) Earnings Preview

Q3 2024 Recap

Home Depot reported Q3 2024 revenue of $40.2 billion, reflecting a 6.6% YoY increase. However, comparable sales declined 1.3%, signaling continued macroeconomic pressures. In the U.S., comparable sales fell 1.2%, weighed down by a slowdown in discretionary spending. The company saw strength in professional contractor demand, particularly in larger project categories, while DIY sales remained softer.

Key highlights included:

? Operating income of $5.4 billion, with an operating margin of 13.5%, down from 14.3% in the prior year.

? Net earnings of $3.6 billion, or $3.67 per share, reflecting a 4.3% YoY decline.

? Inventory levels increased to $23.9 billion, up from $20.9 billion in the prior quarter, indicating preparation for seasonal demand.

? Total transactions declined by 0.2%, with the average ticket falling 0.8% to $88.65, suggesting pricing headwinds.

What to Watch for in Q4 2024

1. Macroeconomic Pressures on Consumer Spending – Rising interest rates and economic uncertainty may continue to weigh on home improvement demand, particularly in DIY categories.

2. Professional Contractor Sales vs. DIY – Home Depot has seen resilience in pro-demand, but its ability to sustain this segment’s growth amid slowing housing activity will be a key factor.

3. Inventory and Promotional Strategies – With rising inventory levels, watch for pricing strategies and promotional activity to stimulate holiday-season sales.

4. Operational Efficiency & Margin Management – Cost pressures, including higher labor and transportation expenses, have impacted margins. Investors will look for signs of cost containment efforts.

5. Updated 2024 Guidance & Long-Term Strategy – Home Depot revised its full-year comparable sales forecast to a 2.5% decline. Any updates on store expansions, pro-market penetration, or supply chain initiatives will be closely monitored.

Home Depot is navigating softening consumer spending, but strength in professional contractor demand and operational adjustments will be key in determining its Q4 performance and 2025 outlook.

Lowe’s (LOW) Earnings Preview

Q3 2024 Recap

Lowe’s reported Q3 2024 revenue of $20.2 billion, a 1.5% year-over-year decline, as ongoing macroeconomic pressures impacted consumer spending. Comparable sales declined 1.1%, primarily due to softness in DIY discretionary purchases, though partially offset by storm-related sales and continued strength in Pro and online sales.

Key financial highlights included:

? Net earnings of $1.7 billion, with diluted earnings per share (EPS) of $2.99, down from $3.06 in Q3 2023. Adjusted EPS, excluding a $54 million gain from the 2022 sale of its Canadian retail business, was $2.89.

? Gross margin of 33.7%, relatively flat from last year’s 33.66%, despite inflationary pressures.

? Operating margin of 12.6%, down from 13.2% in Q3 2023, reflecting higher labor and supply chain costs.

? Inventory levels rose to $17.6 billion, up from $17.5 billion last year, as Lowe’s prepares for seasonal demand.

Despite challenges in the broader home improvement sector, Lowe’s saw growth in Pro sales, which outpaced DIY performance. Additionally, online sales experienced high-single-digit growth, driven by enhancements in e-commerce and fulfillment capabilities.

What to Watch for in Q4 2024

1. Consumer Spending Trends – With discretionary purchases under pressure, Lowe’s needs consistent Pro sales growth to offset weakness in big-ticket DIY categories.

2. Holiday Season Performance – Lowe’s promotional strategy and ability to drive holiday-season demand will be crucial. Watch for insights into discounting and inventory management.

3. Operating Margins & Cost Management – Lowe’s continues to navigate higher costs while working on productivity initiatives. Investors will focus on margin expansion efforts in Q4.

4. Outlook for 2025 – Lowe’s updated full-year sales guidance projects revenue between $83.0B and $83.5B, with comparable sales expected to decline 3.0% to 3.5%. Any revision to this guidance will indicate the company’s confidence heading into 2025.

5. Pro Market Expansion & Online Growth – Pro customer engagement and Lowe’s continued e-commerce improvements could provide a longer-term growth catalyst.

Lowe’s remains well-positioned in the home improvement space, but with ongoing macroeconomic headwinds, its Pro segment performance, cost controls, and holiday-season execution will be critical factors in assessing its Q4 trajectory.

Cava (CAVA) Earnings Preview

Q3 2024 Recap

Cava Group delivered another strong quarter, with Q3 2024 revenue rising 39% year-over-year to $241.5 million. The Mediterranean fast-casual brand saw same-restaurant sales growth of 18.1%, supported by a 12.9% increase in guest traffic and a 5.2% increase in menu pricing and product mix. The company opened 11 net new Cava restaurants during the quarter, bringing the total to 352 locations, a 21.4% increase year-over-year.

Other key financial highlights include:

? Restaurant-level profit of $61.8 million, reflecting a 41.9% YoY increase, with restaurant-level profit margins expanding to 25.6%.

? Digital sales mix of 35.8%, showcasing Cava’s strong online and mobile ordering presence.

? Net income of $18.0 million, compared to $6.8 million in Q3 2023, highlighting significant margin expansion and operational efficiency.

? Adjusted EBITDA of $33.5 million, marking a 69.2% increase from last year’s $19.8 million.

Cava also completed the national launch of its reimagined loyalty program and introduced a new labor model ahead of schedule, which is expected to enhance operational efficiency.

What to Watch for in Q4 2024

1. Same-Restaurant Sales Momentum – With consumer trends favoring fast-casual dining, Cava’s ability to sustain double-digit same-restaurant sales growth will be closely monitored.

2. Restaurant Expansion Strategy – Cava raised its full-year net new restaurant opening target to 56-58 locations. Investors will watch for continued execution on its growth strategy and real estate expansion updates.

3. Profitability and Margins – Cava’s restaurant-level profit margins of 25.6% are among the best in the industry. Analysts will look for whether the company can maintain or further expand margins, particularly amid inflationary pressures and rising labor costs.

4. Digital and Delivery Growth – With 35.8% of revenue coming from digital sales, Cava’s continued push into mobile ordering, loyalty programs, and delivery partnerships will be a key area of interest.

5. Full-Year 2024 Guidance Updates – The company has raised its same-restaurant sales growth outlook to 12-13% for the year. Any further revisions or insights into 2025 expectations will provide a clearer picture of long-term growth potential.

Cava remains one of the fastest-growing brands in the fast-casual space, with strong unit economics, digital engagement, and operational efficiency. Investors will be watching closely to see if the company can sustain its momentum heading into 2025.

Hims & Hers Health (HIMS) – Earnings Preview

Q3 2024 Recap:

Hims & Hers Health continued its strong growth trajectory in Q3 2024, reporting revenue of $401.6 million, a 77% year-over-year increase from Q3 2023. The company achieved net income of $75.6 million, compared to a loss of $7.6 million in the same quarter last year. Adjusted EBITDA surged 317% year-over-year to $51.1 million, while free cash flow grew 312% to $79.4 million. The company ended the quarter with 2.0 million subscribers, marking a 44% YoY increase.

Key drivers of growth included:

? Expansion of personalized healthcare solutions, with over 1 million subscribers utilizing customized treatment plans—a 175% YoY increase.

? Strength in its Sexual Health, Dermatology, Mental Health, and Weight Loss categories.

? Operational efficiency improvements, leading to stronger margins and cash flow generation.

What to Watch for in Q4 2024:

1. Continued Subscriber Growth – Hims & Hers has maintained rapid adoption, with strong retention across key healthcare segments. Watch for continued momentum in personalized healthcare solutions.

2. Expansion in Weight Loss – The company is investing in personalized dosing and titration for GLP-1 treatments and expanding form factor options, including oral alternatives.

3. AI and Technology Enhancements – The company’s AI-driven MedMatch tool is helping providers offer data-driven treatment recommendations, potentially driving higher patient retention.

4. Operational Scaling & Margin Expansion – With more investment in fulfillment and pharmacy infrastructure, efficiency improvements could continue to bolster financial results.

5. 2025 Guidance & Market Expansion – Any updates on new partnerships, product launches, or international expansion will be closely watched.

Hims & Hers’ continued expansion in digital healthcare and subscription-based models positions it as a key player in the evolving telehealth landscape. Investors will be looking for signs of sustained revenue growth, margin improvements, and strategic innovations as the company heads into 2025.

Lucid Motors (LCID) – Earnings Preview

Q3 2024 Recap

Lucid Motors reported revenue of $200 million in Q3, driven by 2,781 vehicle deliveries, marking a 90.9% year-over-year increase. The company produced 1,805 vehicles in the quarter and expects full-year production of approximately 9,000 vehicles. Despite improvements in deliveries, the company reported a GAAP net loss per share of $(0.41) and non-GAAP net loss per share of $(0.28). Lucid ended the quarter with $5.16 billion in total liquidity, bolstered by a $1.75 billion capital raise in October 2024.

The company highlighted its continued cost reduction efforts, aiming to improve gross margins. Additionally, Lucid opened reservations for its upcoming Lucid Gravity SUV, set to enter production later this year.

What to Watch For in Q4 2024:

1. Gravity SUV Launch & Production Ramp – Investors will closely monitor the production timeline and early order volumes for Lucid’s highly anticipated luxury SUV.

2. Gross Margin Trends – With ongoing cost-cutting efforts, Lucid's ability to improve margins while scaling production remains a key focus.

3. Liquidity & Capital Needs – After a fresh capital raise, updates on cash runway and future funding plans will be critical for assessing long-term sustainability.

4. Delivery Growth – Watch for further acceleration in vehicle deliveries and demand trends as the company approaches its full-year production target.

5. Competitive Landscape – As EV competition intensifies, any updates on Lucid’s market positioning and technology differentiation could impact investor sentiment.

Lucid’s execution on these key areas will determine its trajectory as it scales production and works towards long-term profitability.

Conclusion

As we head into another pivotal earnings week, the upcoming reports from NVIDIA, Salesforce, Zoom, Home Depot, Lowe’s, Cava, Hims & Hers, and Lucid Motors will offer critical insights into key market trends. These results will shape expectations for AI growth, consumer spending, home improvement, mobility, healthcare, and EV adoption as we close out 2024.

Here’s what to watch:

? AI & Cloud Expansion – Will NVIDIA continue its record-setting AI dominance, and can Salesforce drive enterprise adoption of AI-powered solutions?

? Consumer & Healthcare Trends – Can Hims & Hers sustain its rapid subscriber growth, and will Cava maintain its strong sales momentum in fast-casual dining?

? Housing & Retail Performance – With DIY spending under pressure, will Home Depot and Lowe’s lean on Pro contractor demand to support revenue?

? EV Market Developments – Will Lucid Motors’ production ramp signal long-term profitability potential?

These earnings reports will provide key indicators of growth, profitability, and sector resilience heading into 2025. As companies navigate economic uncertainty and evolving consumer behaviors, their strategic outlooks will be crucial in shaping market sentiment.

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