Disney CEO Iger Says ESPN To Continue To ‘Take Advantage Of Linear In Terms Of Rev And Profits That It Generates,’ While Making Transition To Streaming.
Retailer Costco Wholesale Corporation (NASDAQ:COST) reported second-quarter financial results after market close Thursday. Analysts size up the results and what’s next for Costco stock, which trades near all-time highs. Truist analyst Scot Ciccarelli has a Buy rating and raises the price target from $741 to $815. Stifel analyst Mark Astrachan has a Buy rating and raises the price target from $735 to $800. Telsey analyst Joseph Feldman has an Outperform rating and raises the price targe from $750 to $800. Oppenheimer analyst Rupesh Parikh has an Outperform rating and a price target of $805. Goldman Sachs analyst Kate McShane has a Buy rating and raises the price target from $749 to $830. DA Davidson analyst Michael Baker has a Neutral rating and raises the price target from $600 to $680. Related Link: Costco Membership Fee Increase Could Be Coming, Hot Dog & Soda Combo To Stay The Same Truist: Improving discretionary sales and
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our target by $40 to $650 using a forward TEV/EBITDA of 29.7x, below the three-year historic average at 32.0x. We keep our EPS estimate at $17.05 in 2024 and $20.60 in 2025, both near consensus. On valuation, we are comfortable with a wider risk premium given NFLX is widening its lead over its competitors, in our opinion, and has new revenue streams (advertising, ad-pay plans, and paid share members) to spur growth. We believe NFLX has a best-in-class technology platform, programming, and global distribution. The company never stops innovating and management is disciplined with a $17B programming and content annual budget. NFLX has a major opportunity as TV viewers shift to streaming from linear networks, while most of its direct competitors have to transition from
CFRA Reiterates Buy Opinion On Shares Of Netflix, Inc. Read Post »
Costco Reports Q2 EPS of $3.92 on Revenue of $58.4 Billion, vs CIQ Analyst Consensus of $3.64/Share on Revenue of $59.1 Billion。
Costco (COST) shares slipped 4.7% in after-market trading as the company reported revenue that fell short of estimates in the fiscal second quarter despite booming e-commerce sales. The big-box retail giant’s profit rose to $1.74 billion, or $3.92 a share, for the quarter ended Feb. 18, from $1.47 billion, or $3.30 a share, in the prior-year quarter. Analysts polled by FactSet expected per-share earnings of $3.61. Revenue rose 5.7% to $58.44 billion, falling short of the $59.11 billion expected by analysts polled by FactSet. Comparable sales for the quarter were up 5.6% for the company, with a 4.3% increase in the U.S. offsetting higher comparable sales growth in Canada and other international. E-commerce comparable sales increased 18% in the quarter.
Costco Slips 5.2% as Q2 Revenue Misses Estimates Despite E-Commerce Strength Read Post »
Costco Wholesale (COST) reported fiscal Q2 earnings late Thursday of $3.92 per diluted share, up from $3.30 a year earlier. Analysts polled by Capital IQ expected $3.61. Net sales for the quarter were $58.44 billion, up from $55.27 billion a year earlier. Analysts surveyed by Capital IQ expected $59.13 billion. Costco shares fell past 4% in after-hours trading.
Costco Fiscal Q2 EPS, Net Sales Increase Read Post »
By Sabrina Escobar Costco (COST.US) topped earnings expectations, but the stock fell in after-hour trading Thursday following the company’s rare revenue miss. The company’s fiscal second-quarter revenue of $58.4 billion missed analyst projections for $59.1 billion. Total company same-store sales, adjusted for currency and gasoline price fluctuations, rose 5.8% year-over-year. Analysts had predicted they would tick up 5%. Earnings of $3.92 a share were higher than estimates for $3.63 a share. Net income got a boost from a $94 million tax benefit from the deductibility of the $15-per-share special dividend announced last year. Costco’s stock fell 4.6% to $749.63 Thursday afternoon. The stock has gained 19% this year, while the S&P 500 is up 8%. The company — and its stock — have been reliable outperformers over the past couple of quarters, with strong financial results pushing shares to historic highs. And indeed, Costco has given investors a lot to
Costco Beats on Earnings, but Revenue Falls Short. — Barrons.com Read Post »
Replying to the first question on an earnings call, outgoing CFO Richard Galanti tells analysts that the retailer isn’t prepared to announce an increase in membership fees. Investors have been watching whether Costco would boost its fees in a bid to capture additional revenue. Renewal rates increased in 2Q from 1Q and overall membership grew year over year. Walmart’s Sam’s Club raised its membership fees in 2022. “We will at some point,” says Galanti, who will be replaced by former Kroger CFO Gary Millerchip on March 15. “I’ve been joking with Gary, it will be on his watch, not mine.”
Costco Not Raising Membership Fees Yet Read Post »
Warner Bros. Discovery is talking with potential partners about new streaming bundles. JB Perrette, CEO of global streaming and games, says at the Morgan Stanley Technology, Media & Telecom Conference that the company is “in conversation with others” about making a similar offering to its bundle with Verizon and Netflix. Warner Bros. Discovery executives have previously hinted at a big role for streaming bundles in the future, potentially with intermediaries such as Roku or directly with other services. “We think there’s more opportunity, particularly in that lower-priced SKU, to drive penetration, Perrette says.
Warner Bros. Discovery In Talks for More Streaming Bundles Read Post »
Ross Stores (ROST) better-than-expected fiscal Q4 earnings were due to topline and GM outperformance, Morgan Stanley said in a note to clients Wednesday. The EPS beat was partially offset by rising selling, general and administrative costs, however, the report added. Highlights of the quarter included underlying sales growth, current apparel category underperformance, fiscal Q4 GM reaching the highest level since 2017, and reducing the gap to its pre-Covid profitability levels, the report said. The off-price apparel and home fashion chain reported fiscal Q4 earnings late Tuesday of $1.82 per diluted share and sales of $6.02 billion for the quarter ended Feb. 3. Morgan Stanley raised Ross Stores’ price target to $161 from $155 and maintained its overweight rating on the stock.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Shares are ~3% lower in intraday trading on reports of Valisure’s, an independent U.S. laboratory, findings during testing of acne treatment products containing Benzoyl Peroxide (BPO). Valisure found BPO acne products are fundamentally unstable and can generate unacceptably high levels of Benzene, a known carcinogenic, when stored or exposed to higher temperatures by consumer handling. Benzene was found to potentially escape into the surrounding air at approximately 1,270 times the EPA’s calculated threshold for increased cancer risk, when measured in a compact car at 70 degrees Celsius. Clinique, one of EL’s leading brands, was highlighted as having BPO products. Visiting Clinique’s website we found 1/10 acne products listed BPO as an ingredient. This BPO acne product is not listed as a top-seller for Clinique across various e-commerce
CFRA Retains Hold Opinion On Shares Of The Estee Lauder Companies Inc. Read Post »
Target’s (TGT) merchandising and brand initiatives should help the retailer recapture traffic and share gains after reporting a strong fiscal Q4, BofA Securities said in an emailed note to clients Wednesday. The investment firm raised Target’s price target to $190 from $160 and reiterated its buy rating. Target faces steeper competition in same-day delivery as many large retailers also improved same-day offerings during the COVID-19 pandemic. Still, the company’s gross margin is expected to return to 6% operating margin in fiscal 2028, according to the note. “We continue to expect [gross margin] expansion in [fiscal year 2025] as well as a comp sales & traffic inflection in [fiscal Q2] driven by easing comparisons and the expected success of TGT’s merchandising initiatives,” BofA analysts said. “We expect these benefits to be partially offset by expense deleverage, particularly in Q1 as we forecast a comp sales decline of 4%.”
Target’s Merchandising, Brand Initiatives Should Support Traffic, Share Gains, BofA Says Read Post »