|Day's Range||1.94 - 2.10|
Yahoo Finance's Alexis Christoforous and Jared Blikre break down the latest market action after Campbell Soup reported third quarter earnings that beat Wall Street expectations.
As wages and transportation costs climb, retailers must be more efficient to keep costs down, say analysts.
Apple • AAPL-Nasdaq Buy • Price $186.44 on May 15 by Canaccord Genuity Based on work for our North America survey, we believe the iPhone maintained its leading market share at all four major U.S. carriers—AT&T, Verizon Wireless, T-Mobile US, and Sprint—and its overall share was probably greater than 50%. Further, we believe Apple’s ecosystem approach, including its installed base of over 1.3 billion devices globally, will contribute to strong ongoing growth in services revenue. Greater segmentation could lead to year-over-year unit growth in 2019.
Gryphon Investors is making a bet on the company, whose beauty products are sold by retailers such as Ulta Beauty Inc. and Target Corp.
At approximately $2,000, Consensus 2018 was the most expensive edition in the bitcoin conference’s history. Founded by CoinDesk, Consensus 2018 drew 8,500 attendees, an all-time record. Last year’s haul topped out at 2,700 people, which was a respectable figure at that time, representing a near-doubling from Consensus 2016.
Walmart’s (WMT) e-commerce sales were the key catalyst behind its stellar stock performance in 2017, which is why investors dumped Walmart stock soon after the company reported a deceleration in its digital sales in fiscal Q4 2018. Walmart’s e-commerce sales jumped 33.0% in fiscal Q1 2019, reflecting strong sequential growth. Walmart stood by its earlier guidance and expects its e-commerce business to record 40.0% growth in fiscal 2019.
Walmart (WMT) sustained the growth momentum in its EPS and reported better-than-expected bottom-line results. Walmart’s first quarter adjusted EPS of $1.14 came in ahead of analyst expectations of $1.12 and saw YoY (year-over-year) growth of 14.0%. The graph below shows that Walmart exceeded analysts’ expectations in the past five quarters despite significant pressure on profitability from investments in growth initiatives.
Walmart (WMT) reported better-than-expected fiscal Q1 2019 results (the quarter ended April 30, 2018) on May 17. Walmart’s top-line and bottom-line results came in ahead of analysts’ expectations and saw YoY (year-over-year) improvement. The company saw continued strength in its US business, its largest business segment by sales and profitability.
Nike Inc (NYSE:NKE) CEO Mark Parker probably hasn’t slept very well for the past couple of months. It’s not a problem with Nike stock, to be clear. Indeed, Nike managed to reach a record high just a few days ago, and continues to test its ceiling.
Target (TGT) is set to announce its fiscal first-quarter earnings on May 23. Analysts expect Target’s adjusted earnings to return to growth and register an increase of 14.9% on a YoY basis. Notably, Target registered a YoY decline in its EPS in the past several quarters, as you can see in the following graph.
As we discussed previously, mass merchandisers’ margins remained subdued due to their investments in growth measures. Target (TGT), Walmart (WMT), and Costco (COST) saw their margins decline. Investments in price to drive shoppers and costs associated with digital fulfillment are taking a toll on companies’ profitability.
Along with fast delivery and convenient shopping, another key advantage that Amazon (AMZN) holds over retailers is its low pricing. Amazon’s pricing advantage and scale have put many small retailers out of business. Large retailers are forced to invest in the price to drive traffic and stay relevant with consumers.
As consumers look for convenience and time-saving services to purchase everyday essentials, retailers have ramped up their delivery services to match Amazon (AMZN). Recently, Target (TGT) announced that it’s expanding its Restock program (Target’s next-day delivery service for essentials) to newer markets covering more than 75.0% of the US population.
The startup will sell its kits in more than 200 additional Target stores and launch its delivery service in California.
Target (TGT) has been witnessing an improving sales trend, which has led analysts to raise their target prices on the stock (see the graph below). Also, Target’s exclusive brand launches, store remodeling, and value pricing bode well with consumers and are expected to drive its sales in the coming quarters. Analysts are maintaining a price target of $75.87 on the stock, which represents an upside of 4.1% to its closing price of $72.90 on May 14.