Lululemon’s Organizational Tweaks Seen Signaling Issues

/ / Consumer Discretionary /

The restructuring of Lululemon Athletica’s product and brand teams is not seen as a good sign by Jefferies analysts. They say in a research note that their store checks suggest that Lululemon’s product assortment is “falling flat,” with plenty of supply across colors and product lines. The analysts say they believe the organizational adjustments could signal potential weaker top-line results in future quarters. They argue the company’s business has peaked, and see rising competition as a concern. Shares fall 2.6% to $314.50 after hours.

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Lowe’s Companies Earnings, Revenue Fall in Fiscal Q1; Offers Full Year Outlook

/ / Consumer Discretionary /

Lowe’s Companies (LOW) reported fiscal Q1 diluted earnings Tuesday of $3.06 per share, down from $3.77 a year earlier. Analysts polled by Capital IQ expected $2.96. Total sales for the quarter ended May 3 was $21.36 billion, down from $22.35 billion a year earlier. Analysts surveyed by Capital IQ expected $21.1 billion. The company said it expects full-year 2024 diluted earnings of $12.00 to $12.30. Analysts surveyed by Capital IQ expect $12.15. The company expects total sales for 2024 of $84 billion to $85 billion. Analysts polled by Capital IQ expect $84.41 billion.

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Lowe’s Fiscal First-Quarter Results Top Street Views Despite DIY Spending Decline

/ / Consumer Discretionary /

Lowe’s (LOW) on Tuesday recorded better-than-expected fiscal first-quarter results, even as consumers cut back on big-budget spending on home improvement projects. The retailer’s earnings came in at $3.06 per share for the quarter ended May 3, down from $3.77 the year before, but topped the Capital IQ-polled consensus of $2.96. Sales slipped to $21.36 billion from $22.35 billion, but were ahead of the Street’s view for $21.1 billion. Shares rose nearly 3% in premarket activity. Comparable sales decreased 4.1%, compared with the 5.7% drop modeled by analysts, as positive pro and online same-store sales partially offset the decline in do-it-yourself big ticket discretionary spending, according to Lowe’s. “We are pleased with our start to spring, driven by strong execution and enhanced customer service,” Chief Executive Marvin Ellison said in a statement. “We think the company got off to a tough start, but our data indicated that sales trends accelerated towards

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Boeing Has 1 Very Good Reason Not to Design a New Jet Now — Barrons.com

/ / Industrials /

Quality problems, regulatory delays, and eroding market share have many pundits wondering when Boeing will design an all-new single-aisle jet. The sooner the better goes conventional wisdom. The engines, however, might be the gating factor. Soon-to-be-retired CEO Dave Calhoun has been firm in his commitment to not design an all-new aircraft that could better compete with the Airbus A321. “I don’t want to fill a gap in a product line,” said Calhoun in November 2022. That view may have changed if technologies could deliver significant improvement. “I want to build a product that’s going to differentiate in a way that absolutely substitutes the airplanes that came before it,” added Calhoun. “That [cost] number has to be at least 20%, 25%, maybe 30% better than airplanes it replaces.” Engines play a big role in improving aircraft operating costs. A problem for Boeing is the next big thing in engine development might

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LOWE’S REPORTS FIRST QUARTER 2024 SALES AND EARNINGS RESULTS

/ / Consumer Discretionary /

LOWE’S REPORTS FIRST QUARTER 2024 SALES AND EARNINGS RESULTS PR Newswire MOORESVILLE, N.C., May 21, 2024 — Comparable Sales Decreased 4.1%; Diluted EPS of $3.06 — — Affirms Full Year 2024 Outlook — MOORESVILLE, N.C., May 21, 2024 /PRNewswire/ — Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $1.8 billion and diluted earnings per share (EPS) of $3.06 for the quarter ended May 3, 2024, compared to diluted EPS of $3.77 in the first quarter of 2023, which included a gain associated with the 2022 sale of the Canadian retail business. Excluding this gain, first quarter 2023 adjusted diluted EPS(1) was $3.67. Total sales for the quarter were $21.4 billion, compared to $22.3 billion in the prior-year quarter. Comparable sales for the quarter decreased 4.1% as the decline in DIY big ticket discretionary spending was partially offset by positive comparable sales in Pro and online. “We are pleased

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Lowe’s Companies Q1 2024 GAAP EPS $3.06 Beats $2.94 Estimate, Sales $21.364B Beat $21.123B Estimate

/ / Consumer Discretionary /

Lowe’s Companies (NYSE:LOW) reported quarterly earnings of $3.06 per share which beat the analyst consensus estimate of $2.94 by 4.08 percent. The company reported quarterly sales of $21.364 billion which beat the analyst consensus estimate of $21.123 billion by 1.14 percent.

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CFRA Maintains Buy Opinion On Shares Of Nvidia Corporation

/ / Technology /

We up our 12-month target to $1,100 from $1,000, on a P/E of 35x our CY 25 EPS view, above peers but below historical given our view of improving FCF (+$55B in FY 25 and +$70B in FY 26). We up our FY 25 (Jan.) EPS estimate to $25.47 from $25.00 and FY 26’s to $31.62 from $31.25. Ahead of Apr-Q results on 5/22, we look for EPS of $5.64 on revenue of $24.6B (+242% Y/Y). We see upside to data center assumptions ($21.1B; up 395% Y/Y and 86% of revenue), driven by higher cloud capex spend and greater enterprise GenAI adoption. We believe NVDA’s content growth story has more room to go driven by ongoing shift toward AI servers, early days for CPU expansion, and addressable market upside tied to new software applications/greater focus on energy efficiency/TCO benefits. Concerns that seem unwarranted include order softness ahead of Blackwell (happens

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CFRA Maintains Its Buy Opinion On Shares Of Yum Brands, Inc.

/ / Consumer Discretionary /

We lift our 12-month target price to $152 from $150, 26.5x our 2024 EPS, slightly below YUM’s five-year average forward P/E of 26.9x, reflecting near-term revenue growth risks. We lower our 2024 EPS to $5.74 from $5.84 and FY 25’s to $6.45 from $6.54. YUM posted Q1 adj-EPS of $1.15, $0.05 below consensus. Revenue of $1,598M (-2.9% Y/Y) was $112M below consensus. Adjusted operating income increased 5.5% Y/Y to $515M vs. $568M consensus, with margin expanding to 34.7%. Same-store sales fell 3.0% vs. 3.7% consensus, with declines at Pizza Hut (-7%) and KFC (-4%), partly offset by Taco Bell (+1%). We also note the Middle East conflicts and unfavorable weather were headwinds. While we’re still positive about YUM’s Taco Bell division and its AI initiatives (over 40 currently), there are concerns about near-term margin pressure amid the more promotional environment. Nonetheless, we think YUM is relatively well positioned given its

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Target’s Price Cuts Touch Key Household Items

/ / Consumer Discretionary /

Target’s planned price cuts on frequently shopped items directly touch many goods that have cost more due to prolonged inflation. The retailer says lower prices will be seen on items ranging from milk, meat, fresh fruit and vegetables, snacks, pet food and more. The latest CPI data shows the price of chicken rising 0.7% and beef and veal climbing 7% in April over the past year. But, pets and pet products declined 0.5%, and snacks fell 1.3% in April over the past year. Target says it will lower prices on about 5,000 frequently shopped items and has just reduced prices on about 1,500 items, with thousands more price cuts planned to take place over the summer months.

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Ryanair Posts Higher Earnings, But Pricing Disappoints

/ / Consumer Discretionary /

Ryanair is among the most-mentioned companies across news items over the past six hours, according to Factiva data, after the Irish carrier reported upbeat year-end results and a 700 million euros ($760.9 million) share buyback. However, concerns about its prices weighed on shares. “It might seem counterintuitive that Ryanair’s share price is enduring a bit of turbulence after the low-cost airline announced record passenger numbers and profits, but the prospect that ticket price cuts might be on the way has subdued sentiment,” AJ Bell analyst Danni Hewson said in a note. Ryanair, which reported higher year-end earnings on rising passenger numbers, said summer bookings were trending ahead of their prior-year level. This summer outlook has been echoed by several of the company’s peers, including Lufthansa in Germany, and London-listed easyJet. That said, Ryanair said recent pricing was softer than previously expected and should remain subdued. In addition, the company warned

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Target Price Cuts Could Help Keep Shoppers From Pivoting To Walmart

/ / Consumer Discretionary /

Target will lower prices on 5,000 frequently shopped items, a move that may keep consumers from spending at other retailers with value offerings such as Walmart. Target says it’s cutting prices on items ranging from milk, meat, fresh fruit and vegetables, snacks, pet food and more. The move comes as Walmart’s latest results last week showed rising sales as shoppers kept spending on inexpensive everyday necessities, while also gaining market share with higher-income households particularly in the grocery category. Walmart CFO John David Rainey told WSJ the company is benefiting from an economic environment where people are looking for value.

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Salesforce Q1 Earnings Preview: Goldman Sachs Expects Beat On These Metrics

/ / Technology /

Salesforce Inc (NYSE:CRM) has inked a partnership with NTT DATA Group Corp. (OTC:NTDTY) to streamline its application environment. The company is now preparing to report its fiscal first-quarter results on May 29, amid an exciting earnings season. Salesforce is likely to report results broadly in-line with guidance, as its projections were driven more by “an improvement in the economic backdrop or a recovery in SMB spending” than execution, according to Goldman Sachs. The Salesforce Analyst: Kash Rangan maintained a Buy rating on Salesforce with an unchanged $345 price target. The Salesforce Takeaways: The company is likely to report revenue growth of 11% year-on-year and non-GAAP earnings of $2.29 per share, higher than consensus of $2.24 per share, Rangan said in a Monday note. The first quarter is a “seasonally less-significant” one and is “unlikely to alter the company’s path toward +10% subscription revenue growth in FY25,” the analyst wrote. Salesforce is likely to report 13%

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