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Good evening investors!

Every weekend we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover.

Earnings season kept rolling this week as nine of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• Monday 11/11: --

• Tuesday 11/12: Home Depot and Shopify

• Wednesday 11/13: Cisco

• Thursday 11/14: Walt Disney

• Friday 11/15: Alibaba

Let’s dive in.

Home Depot (HD)

Home Depot delivered solid Q3 2024 earnings, exceeding revenue and EPS expectations but reporting softer comparable sales growth.

The company generated $40.22 billion in revenue, up 7% year-over-year, surpassing estimates by 2.31%. Net income for the quarter came in at $3.6 billion, a 4% decline compared to the previous year, with EPS at $3.78, beating projections by 3.56%.

Key highlights include flat operating income of $5.4 billion, while operating expenses rose 9% to $8.0 billion. U.S. comparable sales fell by 1.2%, with global comparable sales declining by 1.3%. Operating cash flow for the quarter was $15.1 billion, reflecting an 8% YoY drop, and the profit margin stood at 9.1%. The company also benefited from the integration of its recently acquired SRS business.

CFO Richard McPhail said consumers are still deferring purchases as they wait for lower mortgage rates and borrowing costs and express caution about the economy. About 90% of the company’s do-it-yourself customers own their homes.

For FY 2024, Home Depot expects total sales to grow approximately 4%, with full-year EPS projected to decline by 2%. Comparable sales are forecasted to decrease between 2.5% and 3.0%, reflecting ongoing macroeconomic challenges.

HD shares are -0.5% so far this week.

Alibaba (BABA)

Alibaba reported a mixed Q2 earnings report, with strong EPS growth offset by a slight revenue miss due to elevated operational pressures and declining free cash flow.

The company posted net income of $6.2 billion, up 63% YoY, and revenue of $33.64 billion, representing 9% YoY growth but falling short of analyst expectations by 1.38%. Earnings per share came in at $2.14, beating estimates by 1.42%.

Key highlights include a modest 1% YoY growth in Taobao/Tmall revenue to $14.1 billion and robust growth of 29% YoY in international commerce revenue, now at $4.5 billion. Cloud Intelligence revenue increased by 7% YoY to $4.2 billion, reflecting strong adoption of AI-related products. However, operating expenses surged 6% YoY to $28.8 billion, and free cash flow dropped significantly by 70% YoY to $2.0 billion due to investments in AI and global expansion initiatives.

Looking ahead, Alibaba reaffirmed its focus on revenue growth across core businesses, AI, and international commerce while acknowledging near-term pressures from higher expenses and declining free cash flow. Investors should expect cautious spending and strategic growth in these areas.

BABA shares are -3.6% so far this week.

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Cisco (CSCO)

Cisco reported better-than-expected earnings and revenue for Q1 2025, driven by growth in security revenue and strong cash flow, despite challenges in networking revenue.

The company posted net income of $2.7 billion, down 25% year-over-year, on revenue of $13.84 billion, which declined 6% compared to the same period last year but slightly beat analyst expectations of $13.78 billion.

Key highlights from the report include a 100% year-over-year growth in security revenue, reaching $2.0 billion, while networking revenue fell 23% to $6.8 billion. Operating income dropped 45% to $2.4 billion, largely impacted by a 28% increase in operating expenses.

However, Cisco's operating cash flow surged 54% year-over-year to $3.7 billion, reflecting improved operational efficiency. The company also completed acquisitions of DeepFactor and Robust Intelligence and authorized $2.0 billion in share buybacks.

For Q2 2025, Cisco expects revenue between $13.75 billion and $13.95 billion, with EPS in the range of $0.89 to $0.91. For the full fiscal year, the company raised its guidance to $55.3 billion-$56.3 billion in revenue and EPS of $3.60-$3.66, reflecting confidence in its ongoing strategic initiatives.

CSCO shares are -1.0% so far this week.

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The Walt Disney Company (DIS)

Disney delivered solid quarterly results, exceeding analyst expectations with revenue and EPS growth driven by strength in its Entertainment segment and resilient performance across streaming and parks.

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