Consumer Discretionary

CFRA Reiterates Buy Opinion On Shares Of Netflix, Inc.

/ / Consumer Discretionary /

We lift our target to $725 from $640 on a forward TEV/EBITDA of 26.3x our 2025 EBITDA estimate at $28.14/share, a premium to the peer average at 23.0x and below NFLX’s three-year average at 31.6x. We keep our EPS views at $18.55 (consensus $18.31) in 2024 and $21.95 ($22.02) in 2025; our respective revenue estimates are $38.6B and $43.2B. Back in mid-April, NFLX surprised investors by disclosing it will remove subscriber data starting in Q1 2025, as it says the business is broader with other revenue streams. We still believe investors and advertisers want to know the subscriber base, net adds, and average revenue per user or subscriber (ARPU) by total/regions. In Q1 2024, NFLX added 9.33M net subscribers, ending with 269.6M total subscribers. Monthly ARPU varied by region with UCAN at $17.30 ($16.18 a year ago), EMEA at $10.92 ($10.89), LATAM at $8.29 ($8.60), and APAC ex-China at $7.35 […]

CFRA Reiterates Buy Opinion On Shares Of Netflix, Inc. Read Post »

CFRA Maintains Hold Opinion On Shares Of Ross Stores, Inc.

/ / Consumer Discretionary /

We maintain our 12-month price target of $138, based on 23.0x our FY 25 (Jan.) EPS estimate and slightly lower than the company’s 5-year average forward P/E multiple of 23.9x. We maintain our FY 25 and FY 26 EPS estimates of $6.00 and $6.40, respectively. ROST posts normalized Q1 EPS of $1.46 vs. $1.09, $0.11 above consensus estimates on revenues of $4.86B vs. $4.50B and $32M above estimates. Comparable store sales increased 3% Y/Y while total revenues increased 8%. Management said that Accessories and Children were the best-selling categories while California and the Pacific Northwest were the strongest regions. The company also stated that dd’s Discounts outperformed Ross as customers responded well to better value. Inventory was up 10% Y/Y with average store inventory up 4% and in line with sales growth. ROST guided for comp store sales up 2% to 3% and EPS of $5.98 at the high point.

CFRA Maintains Hold Opinion On Shares Of Ross Stores, Inc. Read Post »

Ross Stores Stock Pops on Strong Earnings. Lower Costs Helped. — Barrons.com

/ / Consumer Discretionary /

Shares of Ross Stores were trading sharply higher Friday after the discount retailer easily beat quarterly estimates and lifted guidance. Late Thursday, Ross posted earnings per share of $1.46 for its fiscal first quarter, beating Wall Street’s call for $1.35, according to FactSet. Sales of $4.86 billion topped the consensus call for $4.83 billion. Same-store sales ticked 3% higher. Ross stock was up 6.8% to $140.80 in premarket trading Friday, while futures tracking the S&P 500 edged 0.3% higher. “Though we had hoped to do better, first quarter sales were in line with guidance despite macroeconomic headwinds that continued to pressure our customers’ discretionary spending,” CEO Barbara Rentler said in the earnings release. “Earnings results for the period were better-than-expected primarily due to lower expenses relative to our plan.” For its fiscal second quarter, the company expects same-store sales to rise 2% to 3% and is calling for earnings per

Ross Stores Stock Pops on Strong Earnings. Lower Costs Helped. — Barrons.com Read Post »

Target to See Lower Comparable Q2 Sales, BofA Says

/ / Consumer Discretionary /

Target (TGT) is expected to have lower comparable sales in Q2, but are still expected to rise, BofA Securities said in a note Thursday. Target is expected to have lower Q2 comparable sales, making the brokerage lower its Q2 sales projection to a 1% increase compared to previous estimate of 3% increase. This is due to “continued softness in discretionary categories (most notably home & hardlines), and softening trends in frequency categories.” However, that means Target is expected to deliver sales results within its guidance of flat to 2% increase. The company recently announced a new pricing strategy with rewards programs and owned products focused on entry-level price points that will help in increase traffic and market share. BofA’s forecast for fiscal year 2025 EPS is unchanged at $9.45 given Q1 performance that surpassed its estimates.. BofA reiterated a price objective of $190 for Target with buy rating.

Target to See Lower Comparable Q2 Sales, BofA Says Read Post »

Analysts Highlight Target’s Market Share Struggles And Increased Competition: Details

/ / Consumer Discretionary /

Yesterday, Target Corp (NYSE:TGT) reported its first-quarter FY24 earnings and the following are the comments on the same by different analysts. BMO Capital – Reiterates Market Perform, lowers price target from $170.00 to $155.00 Analyst Kelly Bania said that while Target’s first-quarter results were in line with her expectations, investor expectations for continued GM% upside were clearly reigned in. With signs of share losses widening in food & consumables, continued weakness in digital growth and signs of increasing same-day competition from Amazon.com Inc (NASDAQ:AMZN) and Walmart Inc (NYSE:WMT), the analyst lowered the price target to $155. The analyst believes 6% EBIT margins remain the target, but the pace of achieving the target could take longer than expected. RBC Capital Markets – Reiterated Outperform, lowers price target from $191.00 to $181.00 Analyst Steven Shemesh opined that with the majority of the easy gross margin wins in the rearview, the focus will shift back to demand trends /market

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Ross Stores Fiscal Q1 Earnings, Sales Rise; Updates Guidance

/ / Consumer Discretionary /

Ross Stores (ROST) reported fiscal Q1 earnings late Thursday of $1.46 per diluted share, up from $1.09 a year earlier. Analysts polled by Capital IQ expected $1.36. Sales for the quarter ended May 4 totaled $4.86 billion, up from $4.49 billion a year earlier. Analysts surveyed by Capital IQ expected $4.83 billion. Ross Stores said it expects fiscal Q2 EPS of $1.43 to $1.49 on comparable store sales growth of 2% to 3%. Analysts polled by Capital IQ are looking for EPS of $1.47 and comparable sales growth of 3%. The company now expects fiscal 2025 EPS of $5.79 to $5.98, compared with $5.64 to $5.89 previously. Analysts are expecting EPS of $5.94. Comparable store sales guidance for the 52 weeks ending Feb. 1, 2025 remain unchanged at up 2% to 3%. Shares of Ross Stores were up over 6% in recent after-hours activity.

Ross Stores Fiscal Q1 Earnings, Sales Rise; Updates Guidance Read Post »

Target’s Q1 Earnings: Falling Revenues and Comp Sales Weigh On Retailer, But Inventories Fall By 80%

/ / Consumer Discretionary /

Target Corp (NYSE:TGT) shares are trading lower after the company reported a lower-than-expected first-quarter FY24 adjusted EPS. The company reported a first-quarter FY24 sales decline of 3.1% year-on-year to $24.531 billion, beating the analyst consensus estimate of $24.521 billion. Comparable sales declined 3.7% in the first quarter, reflecting comparable store sales declines of 4.8% partially offset by a comparable digital sales increase of 1.4%. Gross margin for the quarter expanded by 140 basis points to 27.7%, reflecting the net impact of merchandising activities, including cost improvements that more than offset higher promotional markdown rates, combined with favorable category mix and lower book to physical inventory adjustments. Operating income margin rate of 5.3% was 10 basis points higher than last year, and the operating income for the quarter fell 2.4% to $1.3 billion. The company held $3.6 billion in cash and equivalents as of May 4. Operating cash flow for three months

Target’s Q1 Earnings: Falling Revenues and Comp Sales Weigh On Retailer, But Inventories Fall By 80% Read Post »

Lowe’s Above-Consensus Sales Balanced Below-Consensus Margin

/ / Consumer Discretionary /

Lowe’s reports gross margins in 1Q that were below consensus, but the retailer’s better-than-expected sales during the quarter kept profits in line with the consensus estimate, DA Davidson analyst Michael Baker says in a research note. On the margin side, it’s a tough look for Lowe’s, which had been narrowing its margin gap with rival Home Depot for the past several years only for the gap to widen in 1Q, the analyst says. Still, the sales decline was lighter than expected and guidance was reiterated, Baker says. Lowe’s is off 1.4% in early trading.

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Lowe’s Shows Home Improvement Spending May Be Nearing Bottom

/ / Consumer Discretionary /

Home improvement spending may be getting closer to a bottom as the rate of Lowe’s comparable sales declines continued to ease in 1Q, M Science analyst John Tomlinson says in a note. Same-store sales were down 4.1%, beating analyst forecasts for a 5.6% decline and an improvement from a 6.2% drop in 4Q and 7.4% decline in 3Q. Unlike its rival Home Depot, Lowe’s logged stronger quarterly results that topped analyst expectations in part from gains in its professional-customers channel, though spending on big-ticket items remains under pressure, the analyst says. Shares slide 3.1% to $222.12.

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Lowe’s 1Q Performance Was Best in the West

/ / Consumer Discretionary /

Lowe’s notched its best regional performance in 1Q come from the Western U.S., says Joe McFarland, executive vice president of stores, on a call with analysts. He says markets that saw the best weather during the quarter generated the best performance. CFO Brandon Sink notes that the performance from its professional customer cohort, which make up about a quarter of overall sales, was consistent across all regions. CEO Marvin Ellison adds that the company’s rural locations were its best performing subset of stores in 1Q, while the western markets outperformed overall.

Lowe’s 1Q Performance Was Best in the West Read Post »

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