Carnival Shares Climb Over 4% As Revenue Tops Estimates, Bookings Recovery Helps

Carnival shares rose over 4% on Friday after the world’s largest cruise ship operator reported better than expected revenue in the third quarter and said its cumulative advanced bookings for the second half of 2022 are ahead of pre-COVID-19 pandemic levels.

The firm reported revenue of $636 million, beating the wall street consensus estimates of $535 million.

The Miami, Florida-based company said its booking volumes for all future cruises during the third quarter of 2021 were higher than booking volumes during the first quarter of 2021. The company added that as of August 31, 2021, eight of the company’s nine brands have resumed guest operations as part of its gradual return to service.

Carnival said it ended the third quarter of 2021 with $7.8 billion of liquidity, which the company believes is sufficient to return to full cruise operations. Voyages for the third quarter of 2021 were cash flow positive and the company expects this to continue.

Following this optimism, Carnival shares rose over 4% to $25.72 on Friday.

However, the company reported U.S. GAAP net loss of $2.8 billion and an adjusted net loss of $2.0 billion for the third quarter of 2021.

Analyst Comments

“The company says Q3 occupancy was 54% and built during the month, and revenue per passenger cruise day was above 2019, driven by exceptionally strong onboard and other revenue. For the Carnival brand, revenue per PCD was 20% higher than 2019, despite onboard credits from cancelled cruises, with occupancy of 70%,” noted Jamie Rollo, Equity Analyst at Morgan Stanley.

“The comment on onboard spend is encouraging, and while there is no comment on ticket prices being up, we note that revenue per passenger is unlikely to be comparable to 2019 due to a difference mix of cabins. Q3 voyages were cash flow positive, and it expects this to continue. Despite the positive operating KPIs, the results were well below expectations, suggesting higher restart/lay-up/SG&A costs.”

Carnival Stock Price Forecast

Nine analysts who offered stock ratings for Carnival in the last three months forecast the average price in 12 months of $27.91 with a high forecast of $39.00 and a low forecast of $18.00.

The average price target represents an 8.90% change from the last price of $25.63. From those eight analysts, four rated “Buy”, one rated “Hold” while four rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $18 with a high of $40 under a bull scenario and $5 under the worst-case scenario. The firm gave an “Underweight” rating on the cruise ship operator’s stock.

Several other analysts have also updated their stock outlook. JPMorgan lifted their price objective to $36 from $33 and gave the company a “neutral” rating. Citigroup raised their target price to $34 from $30 and gave the stock a “buy” rating.

Check out FX Empire’s earnings calendar

Nike Shares Decline Nearly 4% After Company Slashed Full-Year Revenue Outlook

Nike shares plunged nearly 4% in extended trading on Thursday after the world’s largest athletic footwear and apparel seller slashed its full-year sales forecast and warned of delays during the holiday shopping season.

According to a Reuters report, the Beaverton, Oregon, footwear retailer has revised its sales forecast, now expecting a mid-single-digit growth rate for the full year instead of the low-double-digit rate it previously projected. Nike also predicted flat to slightly down revenue growth in the second quarter due to factory closures.

The company’s revenue rose 16% to $12.2 billion in the fiscal first quarter ended August 31, missing the market expectations of $12.6 billion.

Following this, Nike shares slumped about 4% to $153.32 in extended trading on Thursday.

However, the company’s diluted earnings per share surged 22% to $1.16, above the Wall Street consensus of $1.12 per share.

Analyst Comments

Nike’s (NKE) F1Q shows ongoing brand strength, the consumer is spending and not price sensitive, China sales continue to rise, and the LT model is solid. Supply chain disruption, coupled with normalized demand creation expense, dampens flow through, but the supply chain is a temporary issue,” noted Randal J. Konik, Equity Analyst at Jefferies.

“With NKE’s l-term DTC model best-in-class among global consumer companies, we still see shares up at least 25% over the next 12 months.”

Nike Stock Price Forecast

Twenty-four analysts who offered stock ratings for Nike in the last three months forecast the average price in 12 months of $186.68 with a high forecast of $221.00 and a low forecast of $168.00.

The average price target represents a 16.98% change from the last price of $159.58. From those 24 analysts, 20 rated “Buy”, three rated “Hold” while one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $201 with a high of $362 under a bull scenario and $117 under the worst-case scenario. The firm gave an “Overweight” rating on the footwear and apparel seller’s stock.

Nike’s (NKE) stock fell 4% AMC as management cut FY22 guidance to reflect limited inventory availability from factory closures and transit delays. We remain bullish despite the cut, as transitory headwinds should abate and underlying demand for NKE products appears robust. We stay Overweight & trim our price target to $201,” noted Ravi Shanker, equity analyst at Morgan Stanley.

Nike (NKE) is in the early innings of transition from a wholesaler to a DTC brand. Success would make it one of few to benefit from the shift to eComm (~20% of ‘21 sales). Its DTC business (~37% of ‘21 sales) is igniting its next phase of margin-accretive revenue growth, driving a 16% 5Y EPS CAGR. NKE also stands to benefit from advancing global consumer activewear demand (due to the WFH-induced preference for comfort-oriented apparel/footwear and increased focus on health & wellness). NKE’s strategic portfolio decisions, tech investments, and supply chain innovation also create LT competitive advantages, and are further supported by an industry-leading balance sheet.”

Several other analysts have also updated their stock outlook. Cowen and company raised the target price to $196 from $181. Oppenheimer upped the price target to $195 from $150. HSBC lifted the target price to $205 from $162.

Check out FX Empire’s earnings calendar

Salesforce Shares Surge After Company Lifts Revenue Guidance

Salesforce shares surged over 4% in pre-market trading on Thursday after the San Francisco, California-based software company lifted its full-year revenue outlook.

The leading provider of enterprise cloud computing solutions raised fiscal 2022 revenue guidance to a range of $26.25 billion to $26.35 billion and initiated FY23 revenue guidance of $31.65 billion to $31.80 billion.

The company initiates FY23 GAAP operating margin guidance of 3.0% to 3.5% and non-GAAP operating margin guidance of 20.0%.

Following this, Salesforce shares rose over 4% to $269.85 in pre-market trading on Thursday.

Analyst Comments

“A shift in operating philosophy, better balancing growth and profitability, and traction on margins YTD narrow the AD focus to durability of margin expansion and org. growth potential of the expanded portfolio. Strong demand trends and solid unit economics keep us bullish on both fronts,” noted Keith Weiss, equity analyst at Morgan Stanley.

“Salesforce remains one of our best secularly positioned names given enterprise IT spend prioritized towards digital transformation. Following the underperformance in shares post the Slack deal announcement, we see a favorable risk/reward and an attractive valuation for a leading franchise. While we continue to see the $28 billion price tag for Slack as high, we are more constructive on the asset after two quarters of improving new customer and billings growth at Slack. Further, we see guidance for flat FY22 operating margin, despite Slack dilution, as sign of better cost efficiencies and opportunity for margin expansion once M&A headwinds fade.”

Salesforce Stock Price Forecast

Thirty-seven analysts who offered stock ratings for Salesforce in the last three months forecast the average price in 12 months of $304.94 with a high forecast of $350.00 and a low forecast of $242.00.

The average price target represents a 17.66% change from the last price of $259.17. From those 37 analysts, 30 rated “Buy”, seven rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $305 with a high of $390 under a bull scenario and $210 under the worst-case scenario. The firm gave an “Overweight” rating on the cloud-based software company’s stock.

Several other analysts have also updated their stock outlook. Monness Crespi & Hardt upped their price objective to $300 from $290 and gave the company a buy rating. Sanford C. Bernstein upped their price objective to $290 from $266 and gave the company a market perform rating. Canaccord Genuity increased its price target to $270 from $200 and gave the company a buy rating.

Check out FX Empire’s earnings calendar

FedEx Shares Slump 5% After Earnings Disappoint

FedEx shares slumped about 5% in extended trading on Tuesday after the Memphis, Tennessee-based delivery services company reported lower-than-expected earnings in the fiscal first quarter and slashed their full-year outlook.

The delivery firm reported a net income of $1.19 billion, or $4.37 per share, during the fiscal first quarter, down from $1.28 billion, or $4.87 per share, a year ago. The company’s revenue rose 14% to $22.0 billion, beating the market expectations of $21.8 billion.

FedEx lowered its earnings outlook to reflect first-quarter results, which were lower than the company’s June forecast. The company forecasts earnings per diluted share of $19.75 to $21.00 before the MTM retirement plan accounting adjustments and excluding estimated TNT Express integration expenses and costs associated with business realignment activities, compared to the prior forecast of $20.50 to $21.50 per diluted share.

Following this, FedEx shares slumped about 5% to $239.76 in an extended trading session on Tuesday.

Executive Comments

“The current labour environment is driving inefficiencies in the operation of our networks and significantly impacting our financial results. For the peak season ahead, service remains our focus and we are making investments in resources and capacity to meet our customer’s needs,” noted Raj Subramaniam, FedEx Corp. president and chief operating officer.

Analyst Comments

“We had previewed 1Q as a challenging quarter for FedEx (FDX) but the 10%+ miss came in well below feared. The FY guide was cut by roughly the magnitude of the 1Q miss but we believe the 1Q issues (tough comps/normalization + cost inflation) actually get tougher from here,” noted Ravi Shanker, equity analyst at Morgan Stanley.

“We see EBIT growth through YE of FY21 driven by both margin improvement and vol. driven rev. growth which is helped by limited Airfreight capacity and an e-commerce surge, though yields are mixed. We continue to see secular threats to Parcel and remain sceptical that these trends will be sustainable but believe that until there is evidence of a reversal in earnings momentum, the stock can trade at its historical multiple (14-15x PE) on current EPS.”

FedEx Stock Price Forecast

Twenty-one analysts who offered stock ratings for FedEx in the last three months forecast the average price in 12 months of $350.42 with a high forecast of $381.00 and a low forecast of $270.00.

The average price target represents a 39.02% change from the last price of $252.07. From those 21 analysts, 17 rated “Buy”, three rated “Hold” while one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $250 with a high of $350 under a bull scenario and $125 under the worst-case scenario. The firm gave an “Equal-weight” rating on the multi-brand restaurant operator’s stock.

Several other analysts have also updated their stock outlook. Citigroup slashed the price target to $300 from $360. Baird cut the price objective to $310 from $350.

“As for our forecasts, we’ve been modelling an 11.8% adjusted ground margin for fiscal 2022 (which was likely more conservative than what was baked into the stock price), but we no longer consider that achievable considering that management expects the aforementioned cost pressures to persist (at a similar magnitude) in the fiscal second quarter,” noted Matthew Young, Equity Analyst at Morningstar.

“It sounded to us like the firm will be able to mitigate some of these headwinds in the second half, though it cautioned that elevated wage rates are not likely to budge.”

Darden’s Q1 Earnings to Rise Over 190%, Revenue to Jump 45%

Darden, which operates full-service restaurants in the United States and Canada, is expected to report its fiscal first-quarter earnings of $1.64 per share, which represents year-over-year growth of over 190%, up from $0.56 per share seen in the same period a year ago.

The Orlando-based multi-brand restaurant operator would post year-over-year revenue growth of over 45% to $2.2 billion. In the last four quarters, on average, Darden has beaten earnings estimates over 268%.

The company’s next earnings report is expected to be released on Wednesday, September 23 before the market opens.

According to ZACKS Research, several factors contributed to Darden’s strong fiscal first-quarter results, including increased vaccinations and expanded dining room capacity that likely contributed to the sequential sales increase. The fiscal first-quarter margins may, however, have been hit by increased hourly wages and marketing expenses.

“The Zacks Consensus Estimate for sales at Olive Garden, Fine Dining, and LongHorn Steakhouse is pegged at $1,120 million, $136 million and $508 million, suggesting year-over-year growth of 42.1%, 63.9% and 34.7%, respectively. The same for Other business stands at $433 million, suggesting an improvement of 55.2% from the prior-year quarter,” noted analysts at ZACKS Research.

Darden shares surged nearly 25% so far this year but the stock closed 0.49% lower at $148.69 on Monday.

Analyst Comments

“Best in class casual dining operator with strong brand portfolio. As the largest CDR operator, DRI has substantial scale advantages in shared services which can be levered in a post-Covid environment by improving margins and gaining market share. Lead brand Olive Garden (50% of sales) garners top consumer scores, its comp sales have historically outpaced the industry and recent cost savings have improved unit economics,” noted John Glass, equity analyst at Morgan Stanley.

“Acquisition of Cheddar’s has been more challenging than initially expected, though still provides longer-term growth potential. Strong position relative to peers, scale, operational leadership, unit growth and structurally higher margins drives our OW rating.”

Darden Restaurants Stock Price Forecast

Seventeen analysts who offered stock ratings for Darden Restaurants in the last three months forecast the average price in 12 months of $161.79 with a high forecast of $175.00 and a low forecast of $150.00.

The average price target represents an 8.81% change from the last price of $148.69. From those 17 analysts, 11 rated “Buy”, six rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $167 with a high of $208 under a bull scenario and $105 under the worst-case scenario. The firm gave an “Overweight” rating on the multi-brand restaurant operator’s stock.

Several other analysts have also updated their stock outlook. Deutsche Bank raised the target price to $152 from $145. Oppenheimer lifted the price target to $175 from $165. Truist Securities slashed the target price to $167 from $170.

Check out FX Empire’s earnings calendar

Preview: What to Expect From Nike’s Q1 Earnings on Thursday

The world’s largest athletic footwear and apparel seller Nike is expected to report its fiscal first-quarter earnings of $1.12 per share, which represents year-over-year growth of about 18%, up from $0.95 per share seen in the same period a year ago.

The Beaverton, Oregon-based footwear retailer would post year-over-year revenue growth of over 18% to $12.6 billion. In the last four quarters, on average, Nike has beaten earnings estimates over 55%.

According to ZACKS Research, for fiscal 2022, the company expects to grow revenues in the low-double digits, surpassing $50 billion because of strong customer demand across its segments.

The company expects revenue growth in the first half of fiscal 2022 to be higher than in the second half. The foreign exchange rate is expected to be a tailwind in fiscal 2022, generating 70 basis points of gains, ZACKS Research added.

Nike shares surged over 10% so far this year but the stock closed 0.75% lower at $156.42 on Friday.

Analyst Comments

“Investors are focused on the Vietnam factory closures impact on FY revenue guidance. Our analysis & mgmt. guidance conservatism suggests minimal risk. But high valuation requires beat & raise quarters – stock price pullback possible & we’re buyers on any weakness. Reiterate Overweight; raise price target to $221,” noted Kimberly Greenberger, equity analyst at Morgan Stanley.

Nike (NKE) trades at the high end of its historical valuation range, & investors expect quarterly beats & guidance raises. Unchanged or lowered FY guidance on temporary, Vietnam-driven headwinds could result in a stock pullback. We would be buyers on any potential weakness.”

Nike Stock Price Forecast

Twenty-five analysts who offered stock ratings for Nike in the last three months forecast the average price in 12 months of $187.26 with a high forecast of $221.00 and a low forecast of $168.00.

The average price target represents a 19.72% change from the last price of $156.42. From those 25 analysts, 21 rated “Buy”, three rated “Hold” while one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $221 with a high of $410 under a bull scenario and $127 under the worst-case scenario. The firm gave an “Overweight” rating on the footwear and apparel seller’s stock.

Several other analysts have also updated their stock outlook. Cowen and company raised the target price to $196 from $181. Oppenheimer upped the price target to $195 from $150. HSBC lifted the target price to $205 from $162.

“Disruption from COVID-19, supply chain pressure and China continue to escalate. Our contacts across the global supply chain suggest Vietnam could reopen by October. Port congestion and freight headwinds could ease into 2H 2022 and the sector’s 10% valuation correction has improved risk/reward,” noted John Kernan, equity analyst at Cowen.

“We are cutting our FY22 Nike sales estimate by 300bps to 9% growth with a robust recovery into FY23.”

Check out FX Empire’s earnings calendar

Earnings Week Ahead: Lennar, Autozone, FedEx, Nike and Costco Wholesale in Focus

Earnings Calendar For The Week Of September 20

Monday (September 20)

IN THE SPOTLIGHT: LENNAR

Lennar Corp, a home construction and real estate company, is expected to report earnings per share of $3.27 in the fiscal third quarter, which represents year-over-year growth of over 54% from $2.12 per share seen in the same period a year ago.

The Miami, Florida-based company would post year-over-year revenue growth of nearly 24% to around $7.3 billion. For four quarters in a row, the company has exceeded expectations on earnings per share.

“Shares of Lennar have outperformed the industry so far this year. The company is benefiting from effective cost control and focus on making its homebuilding platform more efficient, which in turn resulted in higher operating leverage. Higher demand for new homes backed by declining mortgage rates and low inventory levels bodes well. Focus on the lighter land strategy to boost free cash flow will bolster the balance sheet and thereby drive returns,” noted Analysts at ZACKS Research.

“Moreover, it has provided strong fiscal Q3 homebuilding gross margin guidance, suggesting 420 basis points (bps) increase at mid-point. Also, it has lifted average selling price and margin expectation for fiscal 2021, indicating 6% and 400bps year-over-year growth. However, higher land, labor and material costs are concerning. This may exert pressure on the company’s upcoming quarters as well.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE SEPTEMBER 20

Ticker Company EPS Forecast
LEN Lennar $3.27
HRB H&R Block -$0.34

 

Tuesday (September 21)

IN THE SPOTLIGHT: AUTOZONE, FEDEX

AUTOZONE: The Memphis, Tennessee-based auto parts retailer is expected to report its fiscal fourth-quarter earnings of $29.71 per share, which represents a year-over-year decline of about 4% from $30.93 per share seen in the same period a year ago.

Autozone (AZO) is our top pick in DIY Auto. We see it as a high-quality retailer with the ability to compound earnings/FCF growth over time. While not immune to a tougher macro backdrop (fewer miles driven), we believe AZO is best positioned through any recession given its leading exposure to the more defensive DIY segment (~80% of sales). In addition, its DIFM growth was accelerating pre-COVID and we think it can gain more share in that segment going forward. In our view, ongoing share gains coupled with solid expense management should allow AZO to overcome headwinds from less driving in the near- to medium-term. These advantages seem priced in currently.”

FEDEX: The Memphis, Tennessee-based multinational delivery services company is expected to report its fiscal first-quarter earnings of $5.00 per share, which represents year-over-year growth of about 3% from $4.87 per share seen in the same period a year ago.

The delivery firm would post revenue growth of about 13% to $21.8 billion. In the last four quarters, on average, FedEx has beaten earnings estimates over 28%.

“August quarter remained strong, although we are seeing some delays in shipments, which we expect management to address,” noted Helane Becker, equity analyst at Cowen.

“We are approaching the peak shipping season and expect to see ~50K new hires to handle what is likely to be record demand. Looking ahead, FedEx (FDX) should finally finish the TNT integration; European operations should show that.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE SEPTEMBER 21

Ticker Company EPS Forecast
AZO AutoZone $29.71
FDX FedEx $4.94
ADBE Adobe Systems $3.01
KGF Kingfisher £12.20
CBRL Cracker Barrel Old Country Store $2.33
NEOG Neogen $0.16

 

Wednesday (September 22)

Ticker Company EPS Forecast
KBH Kb Home $1.61
FUL HB Fuller $0.79
BBBY Bed Bath & Beyond Inc. $0.52
UNFI United Natural Foods $0.80
GIS General Mills $0.89

 

Thursday (September 23)

IN THE SPOTLIGHT: NIKE, COSTCO WHOLESALE

NIKE: The world’s largest athletic footwear and apparel seller is expected to report its fiscal first-quarter earnings of $1.12 per share, which represents year-over-year growth of about 18%, up from $0.95 per share seen in the same period a year ago.

The Beaverton, Oregon-based footwear retailer would post year-over-year revenue growth of over 18% to $12.6 billion.

“Investors are focused on the Vietnam factory closures impact on FY revenue guidance. Our analysis & mgmt guidance conservatism suggests minimal risk. But high valuation requires beat & raise quarters – stock price pullback possible & we’re buyers on any weakness. Reiterate Overweight; raise price target to $221,” noted Kimberly Greenberger, equity analyst at Morgan Stanley.

Nike (NKE) trades at the high end of its historical valuation range, & investors expect quarterly beats & guidance raises. Unchanged or lowered FY guidance on temporary, Vietnam-driven headwinds could result in a stock pullback. We would be buyers on any potential weakness.”

COSTCO WHOLESALE: The world’s fifth-largest retailer is expected to report its fiscal fourth-quarter earnings of $3.56 per share, which represents year-over-year growth of over 1.4% from $3.51 per share seen in the same period a year ago. The Fridley, Minnesota-based medical company would post revenue growth of about 18% to around $63 billion.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE SEPTEMBER 23

Ticker Company EPS Forecast
ACN Accenture $2.18
DRI Darden Restaurants $1.64
NKE Nike $1.12
COST Costco Wholesale $3.56
MTN Vail Resorts -$3.46
PRGS Progress Software $0.82

 

Friday (September 24)

Ticker Company EPS Forecast
CCL Carnival -$1.43
CUK Carnival -$1.45
CCL Carnival -£1.45

 

Preview: What to Expect From FedEx’s Q1 Earnings on Tuesday

The Memphis, Tennessee-based multinational delivery services company FedEx is expected to report its fiscal first-quarter earnings of $5.00 per share, which represents year-over-year growth of about 3% from $4.87 per share seen in the same period a year ago.

The delivery firm would post revenue growth of about 13% to $21.8 billion. In the last four quarters, on average, FedEx has beaten earnings estimates over 28%.

The company’s next earnings report is expected to be released on Tuesday, Sep 21 after market close.

Analyst Comments

“After 18 months of topline focus, attention turns to costs in F1Q22 as FedEx (like most other companies) grapples with labour and general inflation. With revenues running into tougher comps + normalizing trends as well (particularly in Ground), results could be challenging for the 2nd successive quarter,” noted Ravi Shanker, equity analyst at Morgan Stanley.

“We see EBIT growth through YE of FY21 driven by both margin improvement and vol. driven rev. growth which is helped by limited Airfreight capacity and an eCommerce surge, though yields are mixed. We continue to see secular threats to Parcel and remain skeptical that these trends will be sustainable but believe that until there is evidence of a reversal in earnings momentum, the stock can trade at its historical multiple (14-15x PE) on current EPS.”

FedEx Stock Price Forecast

Twenty-one analysts who offered stock ratings for FedEx in the last three months forecast the average price in 12 months of $351.32 with a high forecast of $397 and a low forecast of $270.

The average price target represents a 35.97% change from the last price of $258.38. From those 21 analysts, 17 rated “Buy”, three rated “Hold” while one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $270 with a high of $400 under a bull scenario and $100 under the worst-case scenario. The firm gave an “Equal-weight” rating on the health care company’s stock.

Several other analysts have also updated their stock outlook. Evercore ISI lowered the target price to $350 from $360. Citigroup slashed the price target to $360 from $365. JPMorgan cut the target price to $346 from $366.

“August quarter remained strong, although we are seeing some delays in shipments, which we expect management to address,” noted Helane Becker, equity analyst at Cowen.

“We are approaching the peak shipping season and expect to see ~50K new hires to handle what is likely to be record demand. Looking ahead, FedEx (FDX) should finally finish the TNT integration; European operations should show that.”

Check out FX Empire’s earnings calendar

Lennar On Track To Beat Earnings Estimates Again; Stock Has Over 20% Upside Potential

Lennar Corp, a home construction and real estate company, is expected to report earnings per share of $3.27 in the fiscal third quarter, which represents year-over-year growth of over 54% from $2.12 per share seen in the same period a year ago.

The Miami, Florida-based company would post year-over-year revenue growth of nearly 24% to around $7.3 billion. For four quarters in a row, the company has exceeded expectations on earnings per share.

The company will release earnings for the third quarter ended August 31, 2021 after the market closes on September 20, 2021.

According to Zacks research, Lennar expects to deliver 15,800-16,100 homes in the third-quarter fiscal 2021 with a gross margin of 27-27.5%. The company reaffirms a delivery range of 62,000-64,000 homes for fiscal 2021 but raises the ASP expectation to $420,000 from $400,000.

Lennar shares surged over about 30% so far this year. The stock closed 0.8% lower at $98.59 on Monday.

Analyst Comments

“Shares of Lennar have outperformed the industry so far this year. The company is benefiting from effective cost control and focus on making its homebuilding platform more efficient, which in turn resulted in higher operating leverage. Higher demand for new homes backed by declining mortgage rates and low inventory levels bodes well. Focus on the lighter land strategy to boost free cash flow will bolster the balance sheet and thereby drive returns,” noted Analysts at ZACKS Research.

“Moreover, it has provided strong fiscal Q3 homebuilding gross margin guidance, suggesting 420 basis points (bps) increase at mid-point. Also, it has lifted average selling price and margin expectation for fiscal 2021, indicating 6% and 400bps year-over-year growth. However, higher land, labor and material costs are concerning. This may exert pressure on the company’s upcoming quarters as well.”

Lennar Stock Price Forecast

Ten analysts who offered stock ratings for Lennar in the last three months forecast the average price in 12 months of $123.50 with a high forecast of $160.00 and a low forecast of $100.00.

The average price target represents a 25.27% change from the last price of $98.59. From those 10 analysts, six rated “Buy”, four rated “Hold” while none rated “Sell”, according to Tipranks.

CFRA raised the target price by $15 to $130. Royal Bank of Canada lifted their price objective to $100 from $97 and gave the company a “sector perform” rating. JPMorgan boosted their target price to $141 from $115. Barclays boosted their target price to $110 from $105 and gave the company an “equal weight” rating.

We think it is good to buy at the current level and target $123 in the long-term as the 200-day Moving Average and 100-200-day MACD Oscillator signals a buying opportunity.

Check out FX Empire’s earnings calendar

Boeing Upgrades Outlook for Jet Demand on Pandemic Recovery Hopes

The world’s largest aerospace company Boeing has upgraded its long-term forecasts for the commercial, defence and space aerospace market, reflecting signs of the industry’s recovery following the impacts of COVID-19.

According to 2021 Boeing Market Outlook (BMO), the aerospace products and services segment will grow to $9 trillion over the next decade. Forecasts have increased from $8.5 trillion a year ago, and from $8.7 trillion in the pre-pandemic forecast for 2019, reflecting the market’s continued recovery.

According to the Commercial Market Outlook (CMO), the company said the global aerospace market is recovering largely. Within the next two years, long-haul travel is expected to return to pre-pandemic levels, followed by domestic demand for air travel and intra-regional travel, which will ease health and travel restrictions.

The Boeing Market Outlook projects global demand for 19,000 commercial airplanes valued at $3.2 trillion over the next decade. During the next 20 years, Boeing projects the demand for more than 43,500 new airplanes worth $7.2 trillion, up about 500 planes over last year’s forecast.

Boeing Stock Price Forecast

Fifteen analysts who offered stock ratings for Boeing in the last three months forecast the average price in 12 months of $275.87 with a high forecast of $307.00 and a low forecast of $224.00.

The average price target represents a 28.62% change from the last price of $214.48. From those 15 analysts, eight rated “Buy”, seven rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $274 with a high of $373 under a bull scenario and $146 under the worst-case scenario. The firm gave an “Overweight” rating on the company’s stock.

Several other analysts have also updated their stock outlook. UBS cut the target price to $290 from $310. Wells Fargo raised the price target to $254 from $244. Bernstein lifted the target price to $252 from $242. Vertical Research upped the target price to $250 from $242.

Analyst Comments

“We expect the market to value the company based on 2025 normalized post-COVID-19 earnings instead of a partial recovery in 2023. Broader COVID-19 vaccine rollout through 2021, eventual easing of international borders, and improved airline booking trends are positive catalysts that could force bears and sideliners to re-evaluate,” noted Kristine Liwag, Equity Analyst at Morgan Stanley.

“Prior headwinds have abated, including: 1) lower production rates are now aligned to weaker demand; 2) implied aircraft cancellations have been recorded in the backlog de-risking the order book; and 3) current liquidity defers a potential equity raise to at least 2022, removing sentiment overhang.”

Check out FX Empire’s earnings calendar

Morgan Stanley Cuts Boston Beer’s Target Price to $800 After Company Withdraws FY2021 Guidance

Morgan Stanley slashed their base stock price forecast on Boston Beer to $800 from $900, reiterating an “Overweight” rating on one of the largest craft brewers in the United States and said the company is experiencing a sharper deceleration in hard seltzer category growth than was previously expected.

On Wednesday, September 8, the alcoholic beverage company withdrew its 2021 financial guidance issued on July 22, 2021, citing uncertainty about hard seltzer demand trends for the remainder of 2021.

Boston Beer said since the last guidance update for the fiscal year 2021 financial performance, the market for hard seltzer products has continued to experience decelerating growth trends. Industry reports have estimated that the full year 2021 volume for the hard seltzer market retail sales will have over 100 million fewer cases than the volumes estimated in May 2021 and over 30 million fewer cases than the volumes estimated in July 2021, the company said in an SEC filing.

While demand for the Company’s hard seltzer products continues to grow at faster than category rates in measured off-premise channels, the company believe there will be continuing uncertainty about hard seltzer demand trends for the remainder of 2021.

Boston Beer (SAM) withdrew its FY21 guidance at an investor conference citing uncertainty on the growth outlook for the US hard seltzer category, despite continued Truly share gains. We lower our EPS estimates by 15% and price target by 19% but stay Overweight with the market pricing M-HSD% long-term topline growth, below our 13%,” noted Filippo Falorni, equity analyst at Morgan Stanley.

“In connection with an investor conference, SAM issued an 8-K withdrawing its FY21 guidance provided with Q2 results and announced that it currently expects that FY21 EPS will fall below the previously reported estimate of between $18.00 and $22.00, excluding the impact of ASU 2016-09. SAM indicated that growth for the hard seltzer category remains uncertain with decelerating trends in recent months. SAM cited industry reports that indicated that the FY21 volume for the hard seltzer market retail sales will have over 100M fewer cases than the volumes estimated in May 2021 and over 30M fewer cases than the volumes estimated in July 2021.”

Other equity analysts also recently cut their stock price outlook. Berenberg slashed the target price to $550 from $978. Guggenheim cut the target price to $775 from $1,200. UBS lowered the target price to $775 from $850. Credit Suisse cut the target price to $965 from $1,281.

Thirteen analysts who offered stock ratings for Boston Beer in the last three months forecast the average price in 12 months at $686.23 with a high forecast of $990.00 and a low forecast of $400.00.

The average price target represents a 26.42% change from the last price of $542.82. Of those 13 equity analysts, six rated “Buy”, five rated “Hold” while two rated “Sell”, according to Tipranks. Boston Beer shares dipped over 45% so far this year. The stock closed 0.84% higher at $542.82 on Friday.

Morgan Stanley gave the stock price forecast of $1,000 under the bull scenario and $300 under the worst-case scenario.

“We are Overweight on Boston Beer (SAM) as we see a compelling long-term topline growth story, albeit with higher uncertainty given the recent category slowdown. We forecast ~13% LT topline forecast at SAM, above consensus and market expectations of ~6%, driven by the Truly brand within the high-growth US hard seltzer category,” Morgan Stanley’s Falorni added.

“We believe the secular growth drivers of the hard seltzer category (favorable demographics with a younger consumer base, expanding the consumer base to wine/spirits drinkers, innovation contribution, distribution expansion opportunities) are still in-place, even though the recent growth slowdown, as the category matures, has been faster than we originally expected.”

Check out FX Empire’s earnings calendar

Earnings Calendar Quiet Next Week; U.S. Inflation Print Could Dictate Market Trend

Earnings Calendar For The Week Of September 13

Monday (September 13)

IN THE SPOTLIGHT: ORACLE

The world’s largest database management company is expected to report its fiscal first-quarter earnings of $0.97 per share, which represents year-over-year growth of over 4% from $0.93 per share seen in the same period a year ago. The Austin, Texas-based computer technology corporation would post revenue of $9.8 billion.

Oracle’s current low valuation at ~16.7x CY22e EPS reflects its slower growth rate compared to peers. Despite potential opportunities within existing database customers and cloud-based ERP applications, offsets from waning businesses mean 2021 likely lacks the catalysts for the positive inflection in revenue growth investors would need to see to drive multiples higher,” noted Keith Weiss, equity analyst at Morgan Stanley.

“With management guiding to mid-single-digit CC revenue growth in a software sector filled with strong secular growth stories, and operating margins declining in FY22 due to heightened investment in Cloud, we remain Equal-weight while our price target moves up to $77.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE SEPTEMBER 13

Ticker Company EPS Forecast
ORCL Oracle $0.97
HRB H&R Block -$0.34

 

Tuesday (September 14)

IN THE SPOTLIGHT: KASPIEN HOLDINGS

Kaspien Holdings, an American company that provides software and services for e-commerce, is expected to report a loss of 47 cents a share revenue of around $39 million in the fiscal second quarter.

U.S. Inflation Data: On September 14, the consumer price index is scheduled to be released. Global trends and inflation data will drive equity markets next week, which after a run of record-breaking trades have taken a breather. If the data continues to be hot, Treasury yields could rise, which would be negative for the market.

“High inflation is also a reason to justify a Fed taper. Headline CPI is likely to remain close to 5.5% year-on-year this week with core inflation remaining at 4.3%. Given ongoing supply issues, rising labour costs and a clear sense of strong corporate pricing power – note the latest Federal Reserve Beige Book stated “several Districts indicated that businesses anticipate significant hikes in their selling prices in the months ahead” – we see little reason for inflation to fall meaningfully before 2Q 2022,” noted James Knightley, Chief International Economist at ING.

“The risk is that rising inflation expectations keeps it higher. Consequently, we continue to look for the Federal Reserve to conduct a swift taper with asset purchases ending in 2Q and interest rates increasing from late 2022 onwards.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE SEPTEMBER 14

Ticker Company EPS Forecast
JD Jd Sports Fashion -£3.35

 

Wednesday (September 15)

Ticker Company EPS Forecast
JKS JinkoSolar Holding Co. Ltd. ADR -$1.03
RDW Redrow £0.17

 

Thursday (September 16)

Ticker Company EPS Forecast
AHT Ashtead Group £0.51

 

Friday (September 17)

No major earnings are scheduled for release

Albemarle Shares Hit All-Time High on Solid 2022 Earnings Forecast

Albemarle shares hit a fresh record high on Friday after the largest producer of lithium forecast a sharp jump in adjusted core earnings for 2022, largely due to higher pricing and volumes for Lithium and anticipated stronger performance for catalysts following previous pandemic-related weakness.

The Charlotte, North Carolina-based company forecasts full-year 2022 adjusted core earnings to jump 25%-35% compared to 2021.

Moreover, Albemarle introduced its 2026 adjusted EBITDA forecast, which ranges between $2.2 billion and $2.6 billion. Adjusted EBITDA is expected to be between $810 million and $860 million in 2021.

Following this, Albemarle shares hit an all-time high of $252.97, rising about 4% on Friday. The stock has surged nearly 70% so far this year.

“We see exciting growth opportunities ahead for Albemarle, primarily driven by the importance of electrification in the transition to more sustainable sources of energy,” said Albemarle CEO Kent Masters.

“We are actively implementing our structured operating model, the Albemarle Way of Excellence, to help ensure we successfully achieve our strategic goals. With our focus on sustainable practices, our access to world-class resources, and our position as an industry leader, we aim to maintain a leadership position in all our businesses to serve our customers’ growing needs and create shareholder value well into the future.”

Analyst Comments

Albemarle will struggle to grow its lithium EBITDA over time as the continued reset in its lithium contract prices that we expect (whether the reset continues gradually in 2022+ as in 2020 and 2021, or suddenly in 2022) is likely to offset volume growth,” noted Vincent Andrews, Equity Analyst at Morgan Stanley.

“The lack of free cash flow through 2022 (MSe) raises questions about how aggressively Albemarle will pursue future lithium volume growth and/or how it will fund it. As it becomes apparent that contract lithium prices will not revert to prior peaks, we expect lithium to derate from >40x to ~16.5x EBITDA, in line with industrial gas (IG) companies.”

Albemarle Stock Price Forecast

Twelve analysts who offered stock ratings for Albemarle in the last three months forecast the average price in 12 months of $230.08 with a high forecast of $280.00 and a low forecast of $127.00.

The average price target represents a -7.15% change from the last price of $247.81. From those 12 analysts, seven rated “Buy”, three rated “Hold” while two rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $80 with a high of $200 under a bull scenario and $60 under the worst-case scenario. The firm gave an “Underweight” rating on the company’s stock.

Several other analysts have also updated their stock outlook. Jefferies raised the target price to $280 from $260. Berenberg lifted the price objective to $280 from $115. Cowen upped the price target to $260 from $180.

Check out FX Empire’s earnings calendar

Kroger Shares Slump Over 8% After Gross Margin Disappoints in Q2

Kroger shares slumped over 8% on Friday after the food retailer said its gross margin – business’s net sales minus the cost of goods sold – fell to 21.4% year-on-year during the second quarter from 22.8% a year ago despite beating earnings estimates.

The company said this was primarily due to continued price investments, and higher shrink and supply chain costs, partially offset by sourcing benefits and growth in the alternative profit business.

However, the U.S. supermarket chain reported better-than-expected earnings and revenue in the second quarter and lifted its full-year guidance. The retailer, which operates over 2,500 supermarkets in the U.S., reported adjusted earnings per share of $0.80, beating the market expectations of $0.64 per share.

The supermarket chain is known for exceeding earnings expectations. Kroger has beaten earnings estimates in seven of the last eight quarters.

Kroger posted revenues of $31.68 billion for the quarter ended July 2021, beating the Wall Street consensus estimates of 30.4 billion. Compared to an earlier forecast of 2.5%-4% decline, the company now expects a smaller decline of 1%-1.5% annually.

Kroger shares slumped over 8% to $42.08 on Friday. The stock has surged over 30% so far this year.

Executive Comments

Kroger’s strong execution resulted in identical sales above our internal expectations for the second quarter, and we continued to remove costs from the business. Driven by the momentum in our results and sustained food at home trends, we are raising our full-year guidance,” said CFO Gary Millerchip.

“We now expect our two-year identical sales stack to be in the range of 12.6% to 13.1%. We expect our adjusted net earnings per diluted share to be in the range of $3.25 to $3.35.”

Analyst Comments

“Another beat & raise as expected with solid IDs, OG&A leverage, and EBIT/EPS. One (big) caveat: gross margin missed and should stoke fears about margin pressure from inflation. Risk/reward skews negative in our view with share price & valuation elevated,” noted Simeon Gutman, Equity Analyst at Morgan Stanley.

“Our view is industry sales will eventually unwind and normalize; back to school/office post-Labor Day could be a catalyst for this to occur in 2H. But the Delta variant may keep demand elevated and inflation should provide a top-line tailwind. Importantly, we think the stock was already discounting at least $3.50 in ’21 EPS and as much as $3.75-$4.00. KR should still beat its updated guidance range, but we don’t see much upside beyond $3.50-$3.75 given gross margin choppiness and IDs that are unlikely to reaccelerate above 1H levels.”

Kroger Stock Price Forecast

Fifteen analysts who offered stock ratings for Kroger in the last three months forecast the average price in 12 months of $38.71 with a high forecast of $46.00 and a low forecast of $31.00.

The average price target represents a -8.38% change from the last price of $42.25. From those 15 analysts, two rated “Buy”, ten rated “Hold” while three rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $31 with a high of $50 under a bull scenario and $16 under the worst-case scenario. The firm gave an “Underweight” rating on the food retailer’s stock.

Several other analysts have also updated their stock outlook. JP Morgan raised the target price to $40 from $36. Deutsche Bank lifted the price target to $42 from $41. Guggenheim upped the target price to $41 from $37.

Check out FX Empire’s earnings calendar

Torrid Holdings Shares Soar Over 30% on Earnings Beat; Target Price $32 in Best Case

Torrid Holdings shares jumped over 30% on Thursday after the largest direct-to-consumer brand of women’s plus-size apparel reported better-than-expected earnings and revenue in the second quarter and said its net sales increased 34% on e-commerce business and improvement in-store productivity.

The company, which offers plus-size clothing and accessories for women size 10-30, reported adjusted earnings per share of $0.36, beating the Wall Street consensus estimates of $0.13.

The company’s revenue jumped over 30% year-on-year to $332.9 million. That was also higher than the market expectations of $290 million. That increase was largely driven by continued growth in its e-commerce business and improvement in-store productivity trends.

Torrid forecasts fiscal third-quarter net sales in the range of $305 million and $315 million and adjusted EBITDA of between $47 million and $52 million. For the full year, the company predicted net sales in the range of $1.29 billion to $1.31 billion and adjusted EBITDA of between $248 million and $258 million.

Following this Torrid Holdings shares jumped over 30% to $24.43 on Thursday. The stock is up over 16% since its debut on the New York Stock Exchange in July with an IPO price of $21.

Analyst Comments

Torrid Holdings (CURV) reported significant 2Q upside (top-line, GM), with strength continuing into 3Q, driving the guide ~40% ahead of cons. While sourcing bottlenecks are a headwind, they appear less onerous than feared. Concerns around potential competitive pressures are likely to linger background for now, but current momentum should help to quell near-term concerns. Raising estimates, Reiterate Buy,” noted Janine Stichter, Equity Analyst at Jefferies.

“As the leader in the plus-size market with strong digital capabilities, Torrid looks well-placed to benefit from outsized growth in the sector while driving share gains. A loyal customer base and low-risk merch strategy mitigate risk and drive stability in the model. LT earnings algo (HSD%+ revs, LDD% EBITDA growth) is likely conservative.”

Torrid Stock Price Forecast

Eight analysts who offered stock ratings for Torrid in the last three months forecast the average price in 12 months of $29.14 with a high forecast of $32.00 and a low forecast of $26.00.

The average price target represents a 19.13% change from the last price of $24.46. From those eight analysts, seven rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $28 with a high of $41 under a bull scenario and $10 under the worst-case scenario. The firm gave an “Overweight” rating on the company’s stock.

“2Q’s 3% revenue beat & strong flow thru highlight a strong print. At 1-2% share of women’s plus size apparel spending, we see upside to our 7% 2021-23 Base Case revenue CAGR forecast. Superior fit, fashion & quality differentiate CURV from value-priced players. Raising 2022/23 adj EBITDA 9%/4%,” noted Kimberly Greenberger, equity analyst at Morgan Stanley.

“We are constructive on CURV’s product fit expertise in women’s plus sizes, low fashion risk assortment, and sector-leading digital penetration (70% 2020), with eComm EBIT margin at least at parity with the store. The plus-size clothing category is forecast to grow at twice the rate of the US apparel industry comparable to the demand outlook for global activewear. Our 9% 2019-23 CURV revenue growth CAGR appears conservative given < 2% dollar market share, underdeveloped digital marketing versus peers, and new store growth opportunity. Stronger than expected comps and improving leverage on non-merchandise expenses could provide some upside to our near-term revenue and EBIT margin estimates.”

Several other analysts have also updated their stock outlook. Robert W. Baird set an “outperform” rating and a $30 price target. The Goldman Sachs Group issued a “neutral” rating and a $26 target price. Cowen issued an “outperform” rating and a $30.

Check out FX Empire’s earnings calendar

UiPath Shares Plummet Despite Earnings Beat; Analysts Cut Price Targets

UiPath shares slumped over 6% in pre-market trading on Wednesday despite the New York City-based software company for robotic process automation reporting better-than-expected earnings in the second quarter and lifting its forecast for its recurring revenue for the ongoing fiscal year.

The company reported quarterly adjusted earnings of 1 cent​​ per share, beating analysts’ expectations for a loss of 5 cents per share. Revenue jumped 60% year-on-year to $195.52 million​, above the Wall Street consensus estimates of $184.34 million.

The company expects revenue to reach $207 million to $209 million in this quarter, above the consensus estimate of $205.8 million. The company expects annualized recurring revenue in the range of $876 million to $881 million this fiscal year, up from the previous forecast of $850 million to $855 million.

Despite this UiPath shares fell 6.39% to $58.47 in pre-market trading on Wednesday. The stock is up over 4% since its debut on the New York Stock Exchange in April with an IPO price of $56.

Analyst Comments

“2Q reflected continued demand strength w/ ARR +60% y/y on robust 144% net retention. PATH upped 2H ARR outlook above consensus and continues to invest aggressively. A high bar of expectations paired w/ rev rec noise in billings & volatile new logo iARR apt to pressure shares. However, sustainability of outsized growth via PATH’s leading position in a massive TAM is attractive, in our view. Price target $80,” noted Bryan C. Bergin, equity analyst at Cowen.

UiPath Stock Price Forecast

Eleven analysts who offered stock ratings for UiPath in the last three months forecast the average price in 12 months of $74.90 with a high forecast of $86.00 and a low forecast of $40.00.

The average price target represents a 19.92% change from the last price of $62.46. From those 11 analysts, four rated “Buy”, six rated “Hold” while one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $74 with a high of $142 under a bull scenario and $24 under the worst-case scenario. The firm gave an “Equal-weight” rating on the software company’s stock.

“60% YoY ARR growth beat expectations, however, transactional metrics indicated in-quarter growth closer to ~30%. While confusion on the right growth metric may weigh on the stock, we see ARR as the key number. 33% net new ARR growth and 144% DBNRR remain supportive of a durable 30%+ grower,” noted Keith Weiss, equity analyst at Morgan Stanley.

UiPath primarily targets a large $25 bn Workflow Automation market, relieving employees from repetitive, routine tasks that are a part of many digital workflows in enterprises today. A clear category leader in robotic process automation, with a leading market share in one of the fastest-growing software markets, UiPath has expanded its product set through acquisitions to build out an end-to-end automation platform. At the same time, competition has been rapidly rising, from both traditional RPA or BPM vendors as well as enterprise platforms such as Microsoft and ServiceNow. With heighted competitive risks coupled with high multiple, we look for continued execution and leadership.”

Several other analysts have also updated their stock outlook. Canaccord Genuity lowered the target price to $65 from $75. Barclays cut the target price to $70 from $73. Cowen and company slashed the target price to $80 from $84. JPMorgan cut the target price to $64 from $68.

Check out FX Empire’s earnings calendar

Is Kroger On Track To Beat Earnings Expectations Again?

Kroger, one of the world’s largest food retailers, is expected to report its fiscal second-quarter earnings of $0.64 per share, which represents a year-over-year decline of over 12% from $0.73 per share seen in the same period a year ago.

The retailer, which operates over 2,500 supermarkets in the U.S., would post revenue of 30.4 billion, down about -0.3% year on year.

However, as evidenced by its last four earnings reports, the supermarket chain is known for beating earnings estimates. In the last four quarters, on average, the company has beaten earnings estimates over 21%.

Kroger Company will report earnings for the fiscal quarter ending July 2021 on Friday, September 10 before the market open. Friday’s better-than-expected results could help the stock hit new all-time highs.

Kroger shares have surged over 45% so far this year. The stock closed 1.39% lower at $46.65 on Friday.

Analyst Comments

Kroger (KR) is one of the largest conventional food retailers, with competitive advantages including leading scale, an advanced customer data science platform, and ramping digital capabilities. 2020 was a historically strong year for KR driven by COVID-19 uplifts, but KR’s share gains are already normalizing we anticipate an industry sales slowdown in 2021-2022 that is underappreciated in Street estimates,” noted Simeon Gutman, equity analyst at Morgan Stanley.

“Meanwhile we model EBIT margins to return to pre-COVID levels by 2022 as normalizing promotional activity and e-comm pull-forward pressure margins. Longer-term we continue to struggle to model a path to sustainable EBIT growth and margin stabilization.”

Kroger Stock Price Forecast

Fifteen analysts who offered stock ratings for Kroger in the last three months forecast the average price in 12 months of $38.71 with a high forecast of $46.00 and a low forecast of $31.00.

The average price target represents a -17.02% change from the last price of $46.65. From those 15 analysts, two rated “Buy”, ten rated “Hold” while three rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $31 with a high of $50 under a bull scenario and $16 under the worst-case scenario. The firm gave an “Underweight” rating on the food retailer’s stock.

Several other analysts have also updated their stock outlook. JP Morgan raised the target price to $40 from $36. Deutsche Bank lifted the price target to $42 from $41. Guggenheim upped the target price to $41 from $37.

Check out FX Empire’s earnings calendar

Preview: What to Expect From GameStop’s Q2 Earnings on Wednesday

The world’s largest multichannel video game retailer GameStop is expected to report its fiscal second-quarter loss of -$0.67 per share, an improvement from a loss of -$1.40 per share seen in the same period a year ago.

The Grapevine, Texas-based company would post year-over-year revenue growth of about 20% year-on-year to around $1.1 billion. EPS estimates have been exceeded twice in the last four quarters.

GameStop Corp. will report second-quarter fiscal 2021 earnings results after the market closes on Wednesday, September 8, 2021. GameStop shares have surged over 975% so far this year. The stock closed 5.04% lower at $202.75 on Friday.

The U.S. financial markets will be closed for Labor Day on Monday, September 6.

Analyst Comments

“Caught in meme-frenzy, GameStop has soared and outperformed the industry year to date. The company has been undertaking efforts to fast-track growth, mainly in the digital arena. To accelerate transformation, the company has resorted to board as well as capital restructuring. In this context, the company concluded selling 5 million shares in its last at-the-market equity offering program, and generated net proceeds worth as much as $1.13 billion,” noted analysts at ZACKS Research.

“Moreover, during first-quarter fiscal 2021, the company undertook steps to eliminate long term debt. Speaking of performance, the company witnessed significant improvement in the topline. It gained from sales growth across hardware, accessories and collectibles categories. Management highlighted that second-quarter sales trend continue to reflect growth, with total sales in May rising 27% year over year.”

GameStop Stock Price Forecast

Six analysts who offered stock ratings for GameStop in the last three months forecast the average price in 12 months of $88.33 with a high forecast of $190.00 and a low forecast of $25.00.

The average price target represents a -56.43% change from the last price of $202.75. From those six analysts, one rated “Buy”, two rated “Hold” while three rated “Sell”, according to Tipranks.

GameStop shares were rated “sell” by Credit Suisse Group in April. GameStop shares were raised by Wedbush to $50.00 in June from $39.00, and the firm assigned it an “underperform” rating.

GameStop’s shares were rated a “sell” by Ascendiant Capital Markets it released its July research note. Lastly, in June, Zacks Investment Research lowered its rating for GameStop from a “buy” to a “hold” and set a price target of $231.00.

Check out FX Empire’s earnings calendar

Lululemon’s Q2 Earnings to Rise 60%, Revenue to Jump 50%

The Vancouver-based retailer healthy lifestyle-inspired athletic retailer Lululemon Athletica is expected to report its fiscal second-quarter earnings of $1.18 per share, which represents year-over-year growth of about 60% from $0.74 per share seen in the same period a year ago.

The apparel retailer would post year-over-year sales growth of about 50% to $1.34 billion.

“For second-quarter fiscal 2021, it expects net sales of $1.3-$1.33 billion, indicating a two-year CAGR growth of 21-23%. The company currently has 93% of its stores open. On a two-year CAGR basis, it expects flat in-store sales, whereas e-commerce sales are anticipated to increase 55%,” noted analysts at ZACKS Research.

“However, the company anticipates e-commerce sales in the fiscal second quarter to decline modestly from the prior-year quarter, as it laps the height of COVID-related channel shifts and online warehouse sales. Nonetheless, it expects e-commerce sales to increase modestly in the fiscal third and fourth quarters.”

Lululemon Athletica shares have surged over 11% so far this year. The stock closed nearly flat at $388.33 on Friday. The U.S. financial markets will be closed for Labor Day on Monday, September 6.

Analyst Comments

Lululemon Athletica (LULU) is a LT topline grower, supported by compelling secular tailwinds (e.g., performance/athleisure focus), a market share gain opportunity, & credible future revenue driver (e.g., international expansion, digital growth, & product innovation/expansion into new categories). The company’s recent MIRROR acquisition offers both revenue & profitability upside, as reflected in our bull case,” noted Kimberly Greenberger, equity analyst at Morgan Stanley.

LULU dominates the NA athletic yoga apparel category due to its unique brand positioning & fashionable products. Covid accelerated consumers health & wellness focus & fashion casualization, both of which should benefit LULU.”

Lululemon Athletica Stock Price Forecast

Nine analysts who offered stock ratings for Lululemon Athletica in the last three months forecast the average price in 12 months of $441.00 with a high forecast of $466.00 and a low forecast of $405.00.

The average price target represents a 13.56% change from the last price of $388.33. From those nine analysts, eight rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $300 with a high of $521 under a bull scenario and $213 under the worst-case scenario. The firm gave an “Equal-weight” rating to the athletic apparel company’s stock.

Several other analysts have also updated their stock outlook. B.Riley raised the target price to $466 from $370. Telsey Advisory Group lifted the target price to $460 from $440. Deutsche Bank upped the price target to $436 from $401.

Check out FX Empire’s earnings calendar

Weekly Earnings Preview: GameStop, Lululemon Athletica, Oracle and Kroger in Focus

Earnings Calendar For The Week Of September 6

Monday (September 6)

Ticker Company EPS Forecast
DPH Dechra Pharma £47.90
SMAR Smartsheet Inc. -$0.13
SUMO Sumo -$0.14

Tuesday (September 7)

Ticker Company EPS Forecast
CASY Casey’s General Stores $2.99

Wednesday (September 8)

IN THE SPOTLIGHT: GAMESTOP, LULULEMON ATHLETICA

GAMESTOP: The world’s largest multichannel video game retailer is expected to report its fiscal second-quarter loss of -$0.67 per share, an improvement from a loss of -$1.40 per share seen in the same period a year ago.

The Grapevine, Texas-based company would post year-over-year revenue growth of about 20% year-on-year to around $1.1 billion. EPS estimates have been exceeded twice in the last four quarters.

LULULEMON ATHLETICA: The Vancouver-based retailer healthy lifestyle-inspired athletic retailer is expected to report its fiscal second-quarter earnings of $1.18 per share, which represents year-over-year growth of about 60% from $0.74 per share seen in the same period a year ago. The apparel retailer would post year-over-year sales growth of about 50% to $1.34 billion.

Lululemon Athletica (LULU) is a LT topline grower, supported by compelling secular tailwinds (e.g., performance/athleisure focus), a market share gain opportunity, & credible future revenue driver (e.g., international expansion, digital growth, & product innovation/expansion into new categories). The company’s recent MIRROR acquisition offers both revenue & profitability upside, as reflected in our bull case,” noted Kimberly Greenberger, equity analyst at Morgan Stanley.

LULU dominates the NA athletic yoga apparel category due to its unique brand positioning & fashionable products. Covid accelerated consumers health & wellness focus & fashion casualization, both of which should benefit LULU.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE SEPTEMBER 8

Ticker Company EPS Forecast
DNLM Dunelm Group £3.00
KFY Korn Ferry International $1.07
CPRT Copart $0.91
GME GameStop -$0.67
RH Restoration Hardware $6.48
ABM ABM Industries $0.81
AVAV AeroVironment -$0.24
LULU Lululemon Athletica $1.18

Thursday (September 9)

IN THE SPOTLIGHT: ORACLE

The world’s largest database management company is expected to report its fiscal first-quarter earnings of $0.97 per share, which represents year-over-year growth of over 4% from $0.93 per share seen in the same period a year ago. The Austin, Texas-based computer technology corporation would post revenue of $9.8 billion.

Oracle‘s current low valuation at ~16.7x CY22e EPS reflects its slower growth rate compared to peers. Despite potential opportunities within existing database customers and cloud-based ERP applications, offsets from waning businesses mean 2021 likely lacks the catalysts for the positive inflection in revenue growth investors would need to see to drive multiples higher,” noted Keith Weiss, equity analyst at Morgan Stanley.

“With management guiding to mid-single-digit CC revenue growth in a software sector filled with strong secular growth stories, and operating margins declining in FY22 due to heightened investment in Cloud, we remain Equal-weight while our price target moves up to $77.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE SEPTEMBER 9

Ticker Company EPS Forecast
MRW Morrison Supermarkets £5.77
ASO Avesoro Resources $1.38
VRNT Verint Systems $0.42
FIZZ National Beverage $0.52

Friday (September 10)

IN THE SPOTLIGHT: KROGER

Kroger, one of the world’s largest food retailers, is expected to report its fiscal second-quarter earnings of $0.64 per share, which represents a year-over-year decline of over 12% from $0.73 per share seen in the same period a year ago.

The retailer, which operates over 2,500 supermarkets in the U.S., would post revenue of 30.4 billion, down about -0.3% year on year. However, it is worth noting that in the last four quarters, on average, the company has beaten earnings estimates over 21%.