Consumer Discretionary

Uber Q1 Revenue Expected to Slightly Exceed Consensus, BofA Says

/ / Consumer Discretionary /

Uber Technologies’ (UBER) Q1 revenue is expected to be slightly higher than the consensus of $10.088 billion, BofA Securities said in a Monday note. The firm said it forecasts a revenue of $10.093 billion for the ride-hailing company, which is set to release Q1 results on May 8. BofA said that the “bright spot” for the quarter is expected to be Uber’s mobility business, for which the firm anticipates “modestly accelerating” year-over-year growth on a foreign exchange-neutral basis to 29%. The firm said that based on data on mobility and the company’s historical guidance, it expects a Q2 bookings guidance range of $39.5 billion to $40.5 billion, the midpoint of which is inline with the consensus of $40 billion. BofA maintained its buy rating and $91 price objective on Uber.

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Domino’s Pizza Has Displayed A Strong Start To 2024, Says Analyst

/ / Consumer Discretionary /

TD Cowen analyst Andrew Charles reiterated a Buy rating on the shares of Domino’s Pizza Inc (NYSE:DPZ) with a price target of $550. The company reported first-quarter FY24 sales growth of 6% year-on-year to $1.085 billion, beating the analyst consensus estimate of $1.079 billion. EPS of $3.58 beat the consensus estimate of $3.42. The analyst attributes the EPS beat primarily to 110 basis points of better supply chain margin vs the Cowen model ($0.20), lower interest expense ($0.05), and lower income tax ($0.16). DPC Dash (Domino’s China) investment losses from fair value adjustments weighed on the first-quarter EPS by $0.53 relative to the analyst’s $0.50 estimate. U.S. same store sales of 5.6% exceeded the analyst’s expectations, aided by positive order counts for both delivery & carry-out orders, said the analyst. Order count growth was observed across all income cohorts in a challenged restaurant spending atmosphere for lower income consumers. DPZ ended first-quarter with

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Uber Poised For First-Quarter Earnings, Bookings Beat, BofA Says

/ / Consumer Discretionary /

Uber Technologies (UBER) is expected to report better-than-projected first-quarter earnings and bookings, with the company’s mobility business likely to be the “bright spot,” BofA Securities said Monday. The ride hailing company is scheduled to report first-quarter results May 8. BofA projects earnings at $0.26 per share and gross bookings at $38.27 billion, topping Wall Street’s views for $0.22 and $37.96 billion, respectively. The brokerage expects revenue of $10.09 billion, which is said would match the Street’s estimates. BofA sees mobility bookings at $19.18 billion versus the Street’s $19.14 billion view. The firm said its outlook assumes 28% growth. “We remain constructive on Uber as our top travel/transportation stock given bookings and (earnings before interest, taxes, depreciation, and amortization) growth well above peers,” BofA analysts Justin Post and Michael McGovern said in a note. “Data points for (first-quarter) mobility spend suggest accelerating trends, while restaurant may have decelerated, though Uber’s other

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Drop in U.S. Cosmetic Imports To China Seen As Key To Estee Lauder’s Results

/ / Consumer Discretionary /

The downtrend of cosmetics imports to China didn’t show any signs of improvement in the 1Q, Citigroup analyst Filippo Falorni says in a research note. China saw a 21% year-over-year decline in imports, and a 15% U.S. drop. “The continued decline of imports from the U.S. would suggest trends for Estee Lauder in Mainland China could remain sluggish for this quarter,” Falorni says. “However, we continue to believe the cycling of large inventory reductions in Korea/China travel retail could support a return to sales growth.” L’Oreal, on the other hand, can mitigate the impact of subdued China market growth and buy time until a recovery on easy comparatives in this region, Falorni adds. Citigroup’s top pick is the Chinese beauty company Proya for its strong earnings outlook at 25%-30% growth.

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CFRA Maintains Hold Opinion On Shares Of Domino’s Pizza, 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 lift our 12-month target to $560 from $483, 35.3x our 2024 EPS, higher than DPZ’s five-year average forward P/E of 28.9x, reflecting DPZ’s better top- and bottom-line growth prospects due its “Hungry for M.O.R.E” strategy. We raise our 2024 EPS to $15.85 from $15.76 and 2025’s to $17.74 from $17.58. DPZ posted Q1 EPS of $3.58, $0.18 above consensus. Revenue of $1,085M (+5.9% Y/Y) was $7M above consensus. Operating income rose 18.6% Y/Y to $210M, with margin widening 210 bps to 19.4% vs. the 18.4% consensus. Same-store sales increased in the U.S. (+5.6%) and internationally (+0.9% vs. +0.2% consensus), due to order count growth across income cohorts in carryout and delivery. We note that DPZ saw the most growth among lower-income cohorts, along with its launch

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McDonald’s Earnings Are Coming. Inflation May Not Be a Big Issue. — Barrons.com

/ / Consumer Discretionary /

McDonald’s is set to report first-quarter earnings on Tuesday before the market opens. Despite the struggles of the fast-food industry, the Big Mac maker is likely to hold up better. Analysts polled by FactSet expect McDonald’s to post $2.72 per share earnings and $6.16 billion in sales for the first three months of 2024, marking a 3.4% and 4.4% growth from the same quarter a year ago, respectively. Inflation has taken a toll on consumer spending. Lower-income households, the primary customers of fast-food chains, are squeezed particularly hard, especially after food-stamp assistance was cut and student loan payments resumed last year. McDonald’s raised prices by 10% last year. Management noted that lower-income consumers have visited its stores less frequently and are spending less when they do. Meanwhile, price gains at grocery stores have slowed down this year. “Some of those consumers are just choosing to eat at home more often,”

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Tesla’s FSD Nod Win Seen As Move To ‘Smooth Over Chinese EV’s Entry Into The US Market’ Says Redditor

/ / Consumer Discretionary /

Tesla Inc.’s (NASDAQ:TSLA) recent achievement in passing a significant milestone for its full self-driving (FSD) technology in China sparked discussions among investors and enthusiasts. The news, which caused Tesla’s share price to spike more than 15% on Monday, comes as the electric car maker continues to navigate the competitive Chinese market. Strategic Win For Tesla The breakthrough in China raises expectations that Tesla’s FSD technology will soon be available in the country. China is Tesla’s largest market for electric vehicles. Investors see this move as a strategic win for Tesla. Especially since it comes at a time when it is facing stiff competition from local rivals such as BYD Co Ltd (OTCPK:BYDDF) (OTCPK:BYDDY), Nio Inc – ADR (NYSE:NIO), and Xpeng Inc – ADR (NYSE:XPEV). However, some investors remain cautious about the impact of this development on Tesla’s stock. May Not Be The Catalyst To Drive Further Gains, Says Redditor The Redditor known as Puginator posted on r/stocks, sharing his

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Southwest Airlines(LUV.US) Q1 2024 Earnings Conference

/ / Consumer Discretionary /

The following is a summary of the Southwest Airlines Co. (LUV) Q1 2024 Earnings Call Transcript: Financial Performance: Southwest Airlines achieved record first quarter operating revenues and passengers, continuing their trend of eight consecutive quarters of growth. Despite setbacks from Boeing’s delivery delays, managed business revenues increased by 25% YoY. To manage potential cost increases, the company trimmed its 2024 capital spending forecast from $3.5 billion – $4 billion to $2.5 billion. For Q2 2024, Southwest projects a record revenue performance, marking it the ninth consecutive quarter of top line growth. Ancillary revenue rose by 18% YoY in Q1, outpacing the company’s passenger growth. Business Progress: Southwest opened 18 new cities during the pandemic and restored its network quickly after the 2022 demand surge. However, adjustments are being made to enhance profits, including network optimizations, underperforming market adjustments, revenue performance improvements through marketing and revenue management, and efficiency initiatives. Additional

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Ford Q1 Beat Driven by Pro Volume Growth, Lower Model E Losses, BofA Says

/ / Consumer Discretionary /

Ford’s (F) Q1 beat was driven by solid volume growth in the company’s Pro segment as well as lower losses in Model E, BofA Securities said in a note to clients on Thursday. However, Blue “partially worked as an offset due to the timing of 60K F-150s held in inventory,” the investment firm said. The carmaker reported Q1 adjusted earnings Wednesday of $0.49 per diluted share, down from $0.63 a year earlier. Analysts surveyed by Capital IQ expected $0.44. Revenue for the quarter was $42.78 billion, up from $41.47 billion a year earlier. Analysts expected $41.47 billion. The company’s management “painted a positive picture for Ford as strength in its core truck market continues. Demand for Pro remains high and, in the priority pecking order, it sits atop when resources are allocated,” BofA said. “New Pro products are expected to launch in 2H in Europe, which may impact volumes in

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Chipotle Q1 Results to Outshine Peers Due to Strong Sales, Margin Improvement, Deutsche Bank Says

/ / Consumer Discretionary /

Chipotle Mexican Grill (CMG) investors should be pleased with the Q1 results as it is expected to be among the strongest in the restaurant industry, Deutsche Bank said in a note Thursday. The company surpassed expectations with increased customer traffic driving strong same-store sales and improved restaurant-level margins, the note added. The company increased its full-year sales guidance due to continued momentum in April, Deutsche Bank said. The firms said Chipotle’s innovation and marketing plans combined with increased efforts on personalized offerings will support multi-year benefits. Deutsche Bank reiterated its buy rating on the company’s stock with a price target of $3,600. Chipotle shares were up 6% in recent trading.

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CFRA Upgrades Rating On Shares Of Spotify Technology S.a. To Buy From Hold

/ / 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 think the current share price is an attractive entry point to buy SPOT with the shares pulling back from this week’s high. Our target price is $325 using a forward P/E of 67.0x our 2024 earnings estimate, below the five-year historic average of 78.0x. On April 23, we increased our 2024 EPS estimate to EUR4.85 from EUR2.40 and 2025’s to EUR6.30 from EUR3.95 per share. We think SPOT can grow profitably with higher unit volumes and widening margins. Our revenue forecast is EUR15.8B in 2024 and EUR17.6B in 2025 vs. EUR13.2B in 2023. Gross margins ended Q1 2024 at 27.6%, +90 bps Q/Q, with more cost discipline and one-time restructuring charges. We see 2024 gross margins at 28.0%-29.5%. We like the music streaming market’s attractive growth

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CFRA Maintains Buy View On Shares Of Chipotle Mexican Grill, 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 lift our 12-month target to $3,700 from $2,930, 66.0x our 2024 EPS, a premium to CMG’s five-year average forward P/E, reflecting CMG’s outsized growth relative to peers. We raise our 2024 EPS to $56.04 from $54.12 and 2025’s to $66.35 from $65.10. CMG posted Q1 adj-EPS of $13.37, $1.69 above consensus. Revenue of $2,702M (+14.1% Y/Y) was $31M above consensus. Operating income rose 20.0% Y/Y to $441M vs. the $412M consensus, with the margin widening 80 bps Y/Y to 16.3%. Comp sales rose 7.0% vs. the 5.3% consensus, driven by transactions growth (~5.5%) and higher menu pricing (~2.8%), partially offset by negative mix and check. CMG raised its 2024 comp sales guidance to the mid- to high-single-digit range as staffing, scheduling, and execution of its “four

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