Streetbeat News

Earnings

DPZ

KO

PEP

Cathie Wood, founder of Ark Invest, warns of looming deflation in an interview with Benzinga. She expects interest rates to fall and highlights that many companies are showing little to no nominal growth. She uses Domino's Pizza, PepsiCo, and Coca-Cola as examples of companies experiencing negative unit growth due to price increases. Wood also mentions rising consumer delinquencies and the potential impact on the economy.

Portfolio Pulse from AJ Fabino

August 30, 2023 | 7:31 pm

SJM

Stifel analyst Matthew E. Smith reiterated a Hold rating on J.M. Smucker Company (NYSE:SJM), but lowered the price target to $150 from $160. The company reported Q1 adjusted EPS of $2.21, beating the consensus of $2.04. The analyst highlighted the company's strong performance relative to its peers, supported by improved category exposure and strong brands. The company's balance sheet has significantly improved, providing the potential for M&A and share repurchases. However, SJM shares are trading lower by 1.57% to $143.65.

Portfolio Pulse from Nabaparna Bhattacharya

August 30, 2023 | 6:26 pm

AEO

Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on American Eagle Outfitters, Inc. (NYSE:AEO), with a price target of $15. The analyst expects Q2 EPS of $0.14, vs. $0.04 last year, a penny below the market's expectation of $0.15. Telsey estimates sales of $1.20 billion, flat Y/Y, in line with company guidance. The analyst projects 120 bps of operating expense deleverage to 26.8% percent of sales, vs. the consensus forecast of 26.6%. AEO shares are trading higher by 0.12% to $16.59 on the last check Wednesday.

Portfolio Pulse from Nabaparna Bhattacharya

August 30, 2023 | 6:25 pm

DELL

Dell Technologies Inc. (NYSE:DELL) shares are trading lower in sympathy with HP, Inc., which fell after issuing weak guidance. Despite HP reporting better-than-expected Q3 results, the company issued full-year 2023 earnings per share guidance below estimates. Dell shares fell only a day before the company is set to report its Q2 earnings. Dell is expected to report earnings of $1.14 per share and revenue of $20.85 billion.

Portfolio Pulse from Ryan Gustafson

August 30, 2023 | 6:17 pm

LULU

Wedbush analyst Tom Nikic has reiterated an Outperform rating on Lululemon Athletica Inc (NASDAQ:LULU) with a price target of $415. Despite a challenging macro environment, the analyst believes LULU's 100% DTC model and lack of exposure to the wholesale channel allows it to maintain pricing discipline and avoid promotional pressure. The company's strong product offering continues to resonate with consumers, and it has been prudently conservative in its guidance, allowing for continued 'beat-and-raise' performance.

Portfolio Pulse from Shivani Kumaresan

August 30, 2023 | 6:03 pm

AMBA

Ambarella Inc reported a 23% YoY decline in Q2 FY23 revenue to $62.12 million, beating the consensus of $62.05 million. The company's Q3 revenue forecast is $50 million, lower than estimates of $67.6 million. Analysts from Morgan Stanley, Rosenblatt, and Needham have lowered their price targets for the company due to the surprising severity of revenue weakness and uncertainty around longer-term opportunities. AMBA shares are trading lower by 18.14%.

Portfolio Pulse from Shivani Kumaresan

August 30, 2023 | 5:38 pm

BIG

Telsey Advisory Group analyst Joseph Feldman has reiterated a Market Perform rating on Big Lots, Inc. (NYSE:BIG), raising the price target to $8.50 from $6. Despite a 15.4% YoY sales decline in Q2 FY23, the company beat consensus estimates. Feldman believes Big Lots is shifting to offense after several quarters on defense due to the harsh macro environment and inflation. The company's Q3 comparable sales are expected to be down in the low-teens range, a modest improvement from Q2. For FY23, the EPS estimate was lowered to a $(10.63) loss.

Portfolio Pulse from Nabaparna Bhattacharya

August 30, 2023 | 5:28 pm

CTLT

Catalent Inc (NYSE:CTLT) reported Q4 adjusted EPS of $0.09, missing the consensus of $0.10, with sales of $1.07 billion, down 17% Y/Y. The company forecasts FY24 sales of $4.30 billion-$4.50 billion. Catalent also finalized a deal with activist investor Elliott Investment Management. William Blair analysts believe that the activist presence on Catalent's board will speed up the company's operational recovery. However, the company's margin outlook did not meet William Blair's expectations, projecting a mere 1% growth in adjusted EBITDA from the low 2023 levels.

Portfolio Pulse from Vandana Singh

August 30, 2023 | 5:27 pm

NAOV

OTLK

REX

The article lists the stocks that gained and lost in Wednesday's mid-day session. Notable gainers include NanoVibronix, AgileThought, iCoreConnect, and Aravive. On the other hand, Outlook Therapeutics, TD Holdings, Axcella Health, and FibroGen were among the biggest losers. REX American Resources fell by 8.8% following weak quarterly earnings.

Portfolio Pulse from Lisa Levin

August 30, 2023 | 5:17 pm

CDRO

Codere Online Luxembourg (NASDAQ:CDRO) is set to release its latest quarterly earnings report on August 31, 2023. Analysts estimate an earnings per share (EPS) of $-0.17. The company's past performance shows a mixed trend in price changes post-earnings release. The stock was trading at $3.18 as of August 28, with a 52-week return of 7.8%.

Portfolio Pulse from Benzinga Insights

August 30, 2023 | 5:00 pm