Consumer Discretionary

Nike Reports Flat Quarterly Sales — WSJ

/ / Consumer Discretionary /

By Inti Pacheco Nike reported flat sales for the quarter that ended Feb. 29, missing out on year-end holiday spending that lifted some brands. The sneaker giant reported higher sales in North America and China, offset by declines in Europe and its Converse brand. Nike said its direct-to-consumer sales were flat and its digital sales declined for the quarter. We are making the necessary adjustments to drive Nikes next chapter of growth, said CEO John Donahoe. In February, Nike said it would lay off about 2% of its workforce, or some 1,600 employees, as it works to reduce $2 billion in costs over the next three years. Shares of Nike were little changed in after-hours trading. In December, Nike cut its revenue outlook for the year and executives said they anticipated slower sales in the second half. The sportswear company has been dealing with more competition from rival brands in […]

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CFRA Keeps Hold Opinion On Shares Of Warner Bros. Discovery, Inc.

/ / Consumer Discretionary /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We are lowering our target price by $1 to $10, using a narrower risk premium and a forward TEV/EBITDA of 6.5x, below direct peer average. We think accelerated growth and profits for MAX video streaming may take longer. We believe the consensus is optimistic with a $13.70 target price that suggests a scenario for higher growth in EBITDA and profitability. A year ago, we thought EBITDA would show significant growth in ’24, but we see the consensus estimate at $9.9B compared to $10.2B actual EBITDA in ’23. Also, the ’25 consensus estimate of $10.4B equates to less than 5% EBITDA growth. In our view, the share price reflects less patience for WBD to achieve the transformation of its linear networks to MAX. Streaming subscriber gains were modest

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Airline Stocks Can Take Off This Year, UBS Says. Buy These 4, Sell These 2. — Barrons.com

/ / Consumer Discretionary /

By Callum Keown Things are about to start looking up for U.S. airlines and investors should consider buying four stocks in particular — Delta Air Lines, American Airlines, Southwest Airlines, and Alaska Air Group. That’s the view of UBS analysts as they initiated coverage of the airline sector in a note late Tuesday. They see the intense cost pressures facing the industry beginning to moderate later in the year and margins moving higher in late 2024 and into 2025. “The market will recalibrate its 2025 profit estimates higher as there is growing evidence of cost pressures bottoming later this year and unit revenues (revenue per available seat mile) increasing from here,” analysts led by Atul Maheswari wrote. “Plus, demand is likely to hold firm amid a stable economic backdrop and a return of business travel,” they added. But those factors will only drive select airline stocks higher, the analysts noted

Airline Stocks Can Take Off This Year, UBS Says. Buy These 4, Sell These 2. — Barrons.com Read Post »

BofA Bets On Spotify, Sees Scope For Share Repurchase Program Initiation After New CFO Announcement

/ / Consumer Discretionary /

BofA Securities analyst Jessica Reif Ehrlich raised the price target of Spotify Technology S.A. (NYSE:SPOT) to $315 from $265 and reiterated the Buy rating. The analyst is confident that the company’s first quarter FY24 results will be at least in line with guidance, including revenue, premium subscribers, and MAUs. Also, the analyst writes that they are confident about sustainability of share price momentum led by subscriber growth, monetization opportunities, scaling of advertising and continued operating leverage. Given the strong balance sheet and FCF trajectory, the analyst notes ample capacity to start a share repurchase program (likely after the new CFO announcement), which could be a share price driving factor in the second half. The analyst adjusted the first-quarter forecast to reflect higher social costs, lowering operating income to €121 million (from €180 million). The analyst slightly lowered CY24 estimates mainly due to foreign exchange adjustments. Meanwhile, the analyst raised the estimates for CY25 and CY26

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Netflix’s Sports Content Expands With Docu-Series on NFL Receivers

/ / Consumer Discretionary /

Netflix’s sports ambitions continue to grow. The streaming giant announces plans to premiere a docu-series on select receivers in the National Football League later this year. The docu-series will likely be in a similar mold to the one made on select NFL quarterbacks as it comes from the same creators. Netflix has focused more on sports programming after success with some of its shows such as “Quarterback”; the company in January announced a $5 billion, multiyear deal with WWE wrestling. One of the next ventures is a livestreamed boxing match featuring former heavyweight champ Mike Tyson and YouTube star-turned-boxer Jake Paul.

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