American Airlines Makes Changes, Cuts Guidance

/ / Consumer Discretionary /

American Airlines is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. The airline carrier cut its second-quarter adjusted profit forecast to $1 to $1.15 a share, down from a previous range of $1.15 to $1.45 a share. Also, American said it would part ways with Vasu Raja, chief commercial officer. Raja was the executive behind Americans pivot away from selling tickets through agencies and prioritizing direct sales via the airlines app and website. The moves helped American cut expenses but cost the airline some market share among lucrative corporate travelers. Dow Jones & Co. owns Factiva.

American Airlines Makes Changes, Cuts Guidance Read Post »

FactSet Research Systems Likely to Report Roughly ‘In-Line’ Fiscal Q3 Results, RBC Says

/ / Financials /

FactSet Research Systems (FDS) is expected to report roughly “in-line” fiscal Q3 results but the focus is on fiscal Q4 annual subscription value, RBC Capital Markets said in a note. RBC, said in a Tuesday note, it expects FactSet to report fiscal Q3 adjusted earnings of $3.90 per diluted share and revenue of $552.7 million. The brokerage said the key focus areas for fiscal Q3 are the impact of the UBS Group (UBS) and Credit Suisse merger, and the risk of a lower fiscal 2024 annual subscription value outlook. For fiscal 2024, RBC anticipates the annual subscription value at $2.27 billion, representing a $98 million year-over-year growth which is below the company’s guidance of $110 million to 150 million due to an extended sales cycle and soft hiring trends. The brokerage said they expect FactSet Research to reaffirm its fiscal 2024 annual subscription value outlook due to a strong sales

FactSet Research Systems Likely to Report Roughly ‘In-Line’ Fiscal Q3 Results, RBC Says Read Post »

Airbnb’s Upside Potential Offers Attractive Buying Opportunity, Wedbush Says

/ / Consumer Discretionary /

Airbnb’s (ABNB) upside potential following a conservative second-quarter guidance makes the stock an attractive buying opportunity amid recent underperformance, Wedbush Securities said in a note on Tuesday. The brokerage upgraded the stock to outperform from neutral and increased its price target to $165 from $160. Shares of Airbnb were up 2% in Tuesday trade. The stock has declined 8.5% since the vacation rental company’s first-quarter earnings report earlier this month, compared with gains reported by the Nasdaq and Booking Holdings (BKNG), according to Wedbush. “We think investors should take advantage of this period of relative weakness and see potential upside to near-term estimates following disappointing (second-quarter) guidance that we view as conservative given positive travel data points” so far in the quarter, a group of analysts including Scott Devitt said. Travel demand appears resilient through the near term, according to Devitt. Recent industry commentary has indicated healthy demand for the

Airbnb’s Upside Potential Offers Attractive Buying Opportunity, Wedbush Says Read Post »

Airbnb Keeps Leading Position Amid Strong Travel Demand, Wedbush Says in Upgrade

/ / Consumer Discretionary /

Airbnb’s (ABNB) stock price declined recently, but it’s a good time to buy because travel demand is strong and the company continues to hold a leading competitive position in the alternative accommodation segment, Wedbush said in a note Tuesday. “We think investors should take advantage of this period of relative weakness and see potential upside to near-term estimates following disappointing [Q2] guidance that we view as conservative given positive travel data points thus far in [Q2],” Wedbush said, adding that the company’s long-term growth potential remains strong, with promising opportunities as it expands beyond its core business, Wedbush added. Near-term travel demand looks strong, boosted by events like the Paris Olympics from July 26 to Aug. 11, and Euro Cup from June 14 to July 14, according to the note. Positive engagement data and rising alternative accommodation demand suggest potential for Airbnb to exceed Q2 expectations, it added. Wedbush is

Airbnb Keeps Leading Position Amid Strong Travel Demand, Wedbush Says in Upgrade Read Post »

CFRA Retains Strong Buy Opinion On Shares Of Eli Lilly And Company

/ / Health Care /

We lift our target price to $930 from $906, reflecting a 48.6x multiple on our 2025 EPS, above LLY’s historical forward P/E average, justified by LLY’s strong sales and earnings growth outlook in the next years. We lift our 2024 EPS view to $14.05 from $13.54 and 2025’s to $19.14 from $16.59 as we expect solid margin expansion. We updated our model and raised our revenue forecasts for 2024 and 2025 to $43.6B and $53.1B, respectively, pointing to 28% Y/Y and 22% Y/Y increases. We continue to see high top-line sales growth led by robust growth in Tirzepatide revenues (Mounjaro +Zepbound) both in the U.S. and internationally during 2024 and 2025, which we expect to be above $14B and $23B, respectively. We think the recently announced $9B manufacturing investment in Indiana, the largest in the firm’s history, to expand the manufacturing capacity for the active pharmaceutical ingredients in Tirzepatide products,

CFRA Retains Strong Buy Opinion On Shares Of Eli Lilly And Company Read Post »

Costco Stock Will Only Look Hotter as Elections Near

/ / Consumer Discretionary /

Costco Wholesale shares are looking very attractive to investors as retail spending remains tight, and that sentiment is probably going to intensify as spending becomes even more volatile heading into election season, UBS analysts say in a research note. “As this takes place, Costco’s share gains will look even more compelling and the stock will sustain its premium valuation,” the analysts say. The market currently has little appetite for market share losers, and Costco is positioned to keep scooping up market share as macroeconomic strains have more consumers seeking out warehouse memberships to maximize their spending power, the analysts say.

Costco Stock Will Only Look Hotter as Elections Near Read Post »

Costco Wholesale’s Fiscal Q3 Results to Highlight Strong Business Model, UBS Says

/ / Consumer Discretionary /

Costco Wholesale’s (COST) upcoming fiscal Q3 financial results are expected to emphasize the strength of its warehouse club business model, UBS Securities said in a note. The firm noted that Costco has consistently increased foot traffic by mid-single digits regardless of the macroeconomic backdrop. “With such strong and consistent growth in footsteps, [Costco] offers exactly what the market is looking for right now, given that retail investors have very little appetite to be exposed to market share losers and are increasingly favoring market share winners,” UBS said in its note Monday. UBS said new member growth, increasing traffic and new store openings likely helped the company grow its net sales by 8%, while earnings per share are estimated at $3.75, above the $3.71 consensus, for fiscal Q3, the firm added. Costco is scheduled to release fiscal Q3 results Thursday. “We believe [Costco] can continue to appeal to a cash strapped

Costco Wholesale’s Fiscal Q3 Results to Highlight Strong Business Model, UBS Says Read Post »

Google Buys Minority Stake in Walmart-Backed Flipkart for $350 Million

/ / Technology /

Alphabet’s (GOOG, GOOGL) Google is purchasing a minority stake worth $350 million in Indian e-commerce company Flipkart, valuing the firm at $37 billion, Reuters reported Friday, citing a source with direct knowledge of the matter. Flipkart announced Friday, as part of its latest funding round led by Walmart (WMT), that Google will become a minority investor pending regulatory and customary approvals from both parties. “Google’s proposed investment and its Cloud collaboration will help Flipkart expand its business and advance the modernization of its digital infrastructure to serve customers across the country,” Flipkart added. “As a people-led, tech-powered omnichannel retailer helping people save money to live better, Walmart and Flipkart look forward to welcoming Google as a minority investor,” Walmart told MT Newswires.

Google Buys Minority Stake in Walmart-Backed Flipkart for $350 Million Read Post »

Salesforce Makes Comeback With Margins, Growth Improvements, Wedbush Says

/ / Technology /

Salesforce (CRM) faced challenges but “pulled a comeback story,” with improved margins and growth prospects for fiscal 2025, Wedbush said in a note Tuesday. The company had been facing criticism for lackluster growth and margins for some quarters now, but it has turned around with improving performance. Based on its checks, the brokerage now expects another solid quarter and expects CEO Marc Benioff and the management to overcome the negative sentiment. “Investors will be closely watching [Salesforce] results and commentary from Benioff to further gauge the enterprise demand environment for software and overall appetite for the company’s freshly rolled out AI strategic roadmap with the AI Revolution on the doorstep for the tech world.” Cross-selling was strong this quarter, especially with Mulesoft deals. Despite market challenges, integration of Slack, a cloud-based team communication platform, into the company’s suite shows promise for collaboration deals, Wedbush said. Cost-cutting efforts are slowing down,

Salesforce Makes Comeback With Margins, Growth Improvements, Wedbush Says Read Post »

Marvell Technology Q1 Earnings Preview: Investors ‘Particularly Interested’ In Company’s AI Business, Second Half Growth

/ / Technology /

Semiconductor company Marvell Technology (NASDAQ:MRVL) is set to report first-quarter financial results after market close on Thursday. Earnings Estimates: Analysts expect Marvell to report first-quarter revenue of $1.18 billion,. The company reported $1.32 billion in revenue in last year’s first quarter. Marvell has exceeded analysts’ revenue estimates in eight of the last 10 quarters, including the past five consecutive quarters. Analysts expect the company to report first-quarter earnings per share of 25 cents, compared to 31 cents reported in last year’s first quarter. The company has beaten analysts’ earnings per share estimates in seven of the last 10 quarters, with the fourth quarter results coming in-line with estimates. Marvell previously guided for first-quarter revenue to be $1.15 billion, plus or minus 5%. The company also guided for adjusted first-quarter earnings per share of 23 cents, plus or minus 5 cents per share.

Marvell Technology Q1 Earnings Preview: Investors ‘Particularly Interested’ In Company’s AI Business, Second Half Growth Read Post »

McDonald’s Struggles With Lowest Sales Growth Since 2020, Sluggish Trends to Continue in Q2, BofA Says

/ / Consumer Discretionary /

McDonald’s (MCD) saw its lowest quarterly same-store sales growth in Q1 since H1 of 2020 and real-time spending data indicate the slow trend will continue in Q2, BofA Securities said in a note Tuesday. The company has been facing declining customer traffic since Q3 2023 and is now lagging peers like Burger King and Wendy’s (WEN), highlighting issues with difficult comparisons and missed execution, BofA said. McDonald’s $5 combo deal aims to address the lack of a national value menu, but overall prices also need to moderate as the company’s cumulative price increase of 20% since 2022 surpasses both Burger King and Wendy’s, the analysts said. BofA said it sees the $5 combo as an urgent move and a temporary measure before introducing a more permanent value offer. The firm lowered the price objective on McDonald’s stock to $288 from $302 and reiterated its neutral rating.

McDonald’s Struggles With Lowest Sales Growth Since 2020, Sluggish Trends to Continue in Q2, BofA Says Read Post »

Nvidia Shares Help Lift Nasdaq — WSJ

/ / Technology /

By Sam Goldfarb Nvidia shares surged again Tuesday, adding to their outsized recent gains on an otherwise lackluster day for stocks. Still riding high after another blockbuster earnings report last week, Nvidia’s stock climbed 7%, bringing its month-to-date gain to 32% and year-to-date gain to 130%. News that Elon Musk’s xAI had raised $6 billion in private financing provided an extra boost to Nvidia shares, highlighting the frenzy of artificial-intelligence investment that has turned the chip maker into a market behemoth. Shares of other chip producers also rose, helping lift the tech-heavy Nasdaq Composite 0.6%. The S&P 500 ticked up less than 0.1% and the Dow Jones Industrial Average dropped 0.6%. Overall, investors are “digesting what was a pretty good earnings season, ” said Ed Clissold, chief U.S. strategist at Ned Davis Research. With most S&P 500 companies having reported their first-quarter results, earnings are on track to climb 6%

Nvidia Shares Help Lift Nasdaq — WSJ Read Post »

Scroll to Top