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.
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
CFRA Maintains Buy Opinion On Shares Of Nvidia Corporation Read Post »
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
CFRA Maintains Its Buy Opinion On Shares Of Yum Brands, Inc. Read Post »
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.
Target’s Price Cuts Touch Key Household Items Read Post »
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
Ryanair Posts Higher Earnings, But Pricing Disappoints Read Post »
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.
Target Price Cuts Could Help Keep Shoppers From Pivoting To Walmart Read Post »
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%
Salesforce Q1 Earnings Preview: Goldman Sachs Expects Beat On These Metrics Read Post »
Our 12-month target of $56, up $3, reflects an 8.6x multiple of EV to projected 2025 EBITDA, slightly below SLB’s historical average. We think a discount is merited due to SLB having around $2.1B in debt maturing by 2025. We cut our 2024 EPS view by $0.01 to $3.53, but lift 2025’s by $0.54 to $4.23. While we think that SLB could face crude oil headwinds with Middle East customers (most notably Saudi Arabia) in the near term, we think that there are long-term tailwinds that SLB could benefit from within Saudi Arabia as the Kingdom looks to grow its natural gas output by 60% from 2021 levels by 2030, which could lead to an uptick in demand for SLB’s services, in our view, given its historic success in the region. In addition, we see near-term opportunities for SLB with respect to carbon capture and sequestration (CCS), as the company
CFRA Lifts View Of Shares Of Schlumberger Limited To Buy From Hold Read Post »
Netflix (NFLX) has a “virtually insurmountable lead in the streaming wars” and it’s now positioning itself to increase advertising revenue, Wedbush said Monday in a note to clients. The streaming giant’s rivals will likely “continue to flail while trying to replicate Netflix’s business model,” said Wedbush analysts including Alicia Reese. Meanwhile, the company’s “advertising tier should reap benefits for several years,” the analysts said. “The biggest benefit of the ad tier so far is that it limits churn,” the note said. “Netflix is positioning to accelerate ad tier revenue contribution into year-end and 2025 as it improves its advertising solutions and targeting, expands partnerships, and adds more live events.” The company has “reached the right formula with global content creation, balancing costs, and increasing profitability,” the analysts said, adding the company will likely “continue to expand profitability and generate increasing free cash flow.” Catalysts for the company include the “full
Netflix Has Won Streaming Wars, Next Stage Will Be Ad Revenue Growth, Wedbush Says Read Post »
Chipotle Mexican Grill’s new TikTok critic has some investors worried. Chipotle partnered with TikTok food reviewer Keith Lee last year over a so-called ordering hack he popularized. But Lee last week posted a video in which he slammed the fast-casual chain for what he viewed as small portion sizes and lacking flavor. That post went viral, garnering over 14M views, prompting some investor concern about backlash. Wedbush analysts Nick Setyan and Michael Symington note the worries and say their checks suggest there hasn’t been a major effect on sales and traffic. Investor concerns follow recent internet-fueled backlash at Planet Fitness and Bud Light.
TikTok Review Turns Up Heat on Chipotle Read Post »
Snowflake (SNOW) is tracking toward a modest fiscal first-quarter revenue beat and positive guidance revisions amid potential product sales upside, RBC Capital Markets said in a note emailed Monday. The brokerage said markets are assuming 2% to 3% upside to the first-quarter consensus for total revenue of $787 million and product revenue of $744 million. They both imply year-over-year growth of 26%. Shares of Snowflake were up 1.5% in afternoon trade. The cloud-based data analytics platform topped product expectations by an average of 2.9% over the last four quarters, according to RBC’s analysis. A 2.5% beat in the May 22 report would imply product revenue closer to $762 million, a year-over-year gain of 29%, according to RBC. RBC is modeling for first-quarter total revenue of $784.5 million and adjusted earnings per share of $0.15, compared with the $0.17 average analyst estimate on Capital IQ. “We see a better setup this
Snowflake Likely to Beat First-Quarter Revenue Views, RBC Say Read Post »
There were no big surprises at today’s Investor Day, but the event underscored JPM’s market leadership and the depth/breadth of its management. JPM raised its NII forecast by $1B to $91B in ’24, and interest rate trends do not appear to be a disruptor to underlying loan volume with rates higher for longer to a soft landing. We keep our $215 target on a forward P/E of 13.0x, above the five-year average at 12.3x. Higher valuation may be supported by the bank’s ability to capitalize on its lead market position, the size of its balance sheet, and its ability to innovate and drive future growth. Investor Day demonstrated how JPM is using technology, including AI and other applications, to drive product innovation, streamline work processes, and realize higher organic revenue outpacing expense growth. JPM was low key about a rebound in investment banking, which is a cornerstone of our Buy
CFRA Reiterates Buy Opinion On Shares Of Jpmorgan Chase & Co. Read Post »