These Analysts Cut Their Forecasts On Stitch Fix After Weak Q2 Results
Portfolio Pulse from Avi Kapoor
Stitch Fix, Inc. (NASDAQ:SFIX) reported Q2 financial results below expectations and provided a weak revenue forecast for FY24, leading analysts to cut their price targets. The company reported a quarterly loss of 30 cents per share, missing the consensus estimate of a 20-cent loss, and sales of $330.4 million, below the expected $330.85 million. The forecast for Q3 revenue is between $300 million and $310 million, against an estimate of $322.29 million, with FY24 revenue expected to be between $1.29 billion and $1.32 billion, below the consensus of $1.35 billion. Despite this, SFIX shares rose 2.2% to close at $3.28.
March 05, 2024 | 1:36 pm
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Stitch Fix reported lower-than-expected Q2 results and a weak FY24 revenue forecast, prompting analysts to lower their price targets. Despite this, SFIX shares increased by 2.2%.
The negative impact of the earnings miss and lowered revenue forecast is somewhat counterbalanced by the unexpected rise in SFIX shares post-announcement. This suggests that while the news is fundamentally negative, market reaction may not align directly with expectations. Analysts' adjustments reflect a cautious outlook, but the stock's resilience indicates investor sentiment may not be as bearish.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100