Why Lululemon Stock Is Stretching Higher
Portfolio Pulse from Erica Kollmann
Lululemon Athletica Inc. (NASDAQ:LULU) reported Q3 revenue of $2.2 billion, a 19% increase YOY, surpassing estimates of $2.19 billion. Earnings were $2.53 per share, beating the $2.28 consensus. The company announced a $1 billion share buyback program but provided Q4 guidance slightly below estimates. Analysts from JP Morgan, Needham, Barclays, Keybanc, Morgan Stanley, and Deutsche Bank raised their price targets on LULU. LULU shares rose nearly 3% to $478.00.
December 08, 2023 | 4:45 pm
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POSITIVE IMPACT
Lululemon's Q3 earnings beat and revenue growth, coupled with a new share buyback program, are positive signals for investors. However, Q4 guidance below estimates may temper gains.
The positive earnings report and share buyback announcement are likely to boost investor confidence and drive short-term price appreciation. The slight miss on Q4 guidance is a minor concern but overshadowed by the overall positive results.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100