Selected stock price target news of the day - August 19th, 2024

By: Matthew Otto

Walmart Exceeds Q2 Expectations in Earnings and Revenue, Adjusts Q3 EPS Guidance

Walmart delivered its Q2 performance, reporting earnings per share of $0.67 for Q2, beating the analyst estimate of $0.64 by $0.03. Generated $169.3 billion in revenue, slightly above the consensus estimate of $168.52 billion.

Total net sales increased by 4.9% on a constant currency basis, driven by performance in all three operating segments. Global e-commerce sales surged 21%, with Walmart U.S. reporting a 22% increase in e-commerce sales and a 20% rise in weekly active customers. Also saw growth in its international business, where sales rose 8.3% on a constant currency basis, with Walmex, China, and Flipkart contributing to this strength. In the U.S., comparable sales for Walmart grew 4.2%, primarily fueled by increased traffic and unit growth, particularly in food and general merchandise categories.

Globally, Walmart’s advertising business saw a 26% increase, with Walmart Connect in the U.S. growing by 30%. Also reported a reduction in net delivery cost per order in the U.S., which decreased by nearly 40% for the quarter.

Looking ahead, Walmart expects Q3 2025 EPS to range between $0.51 and $0.52, falling short of the consensus estimate of $0.54. For the full fiscal year 2025, Walmart projects EPS between $2.35 and $2.43, with the upper range aligning with the consensus estimate of $2.43.

Analysts Raise Price Targets Following Q2 Performance

DA Davidson analyst Michael Baker maintained a Buy rating and raised the price target from $75 to $85.
Guggenheim analyst Robert Drbul reiterated a Buy rating and upgraded the price target from $75 to $81.
Deutsche Bank analyst Krisztina Katai maintained a Buy rating and increased the price target from $77 to $83.
BofA Securities analyst Robert Ohmes kept a Buy rating and raised the price target from $75 to $85.
TD Cowen analyst Oliver Chen retained a Buy rating while lifting the price target from $80 to $85.
Goldman Sachs analyst Kate McShane kept a Buy rating and upgraded the price target from $73 to $81.
Truist Securities analyst Scot Ciccarelli maintained a Hold rating and raised the price target from $64 to $76.
Piper Sandler analyst Peter Keith reiterated an Overweight rating and increased the price target from $81 to $83.
UBS analyst Michael Lasser held a Buy rating and increased the price target from $74 to $81.
Evercore ISI Group analyst Greg Melich maintained an Outperform rating and raised the price target from $74 to $78.
Roth MKM analyst Bill Kirk kept a Buy rating while lifting the price target from $71 to $81.
BMO Capital analyst Kelly Bania maintained an Outperform rating with a steady price target of $80.
Wells Fargo analyst Edward Kelly reiterated an Overweight rating and raised the price target from $75 to $81.

Which Analyst has the best track record to show on WMT?

Analyst Seth Sigman (BARCLAYS) currently has the highest performing score on WMT with 16/16 (100%) price target fulfillment ratio. His price targets carry an average of $1.82 (2.84%) potential upside. Walmart stock price reaches these price targets on average within 192 days.

Applied Materials Exceeds EPS Estimate but Faces Mixed Performance and Uneven Outlook

Applied Materials reported its fiscal Q3 2024 earnings with an EPS of $2.12, which was $0.09 higher than the consensus estimate of $2.03. Reported a revenue of $6.78 billion for the quarter, representing a 5% year-over-year increase and exceeding the anticipated $6.68 billion.

The non-GAAP gross margin stood at 47.4%, marking a 100 basis point improvement from the previous year. However, non-GAAP operating expenses rose to $1.26 billion, an 8% increase attributed to R&D investments.

Revenue from China dropped by 24% sequentially to $2.15 billion. The Semiconductor Systems segment reported $4.92 billion in revenue, reflecting a 5% year-over-year increase, while the Advanced Global Services segment saw revenue of $1.58 billion, an 8% rise. The Display segment’s revenue of $251 million marked a 7% increase from the previous year.

Looking ahead, Applied Materials forecast fourth-quarter revenue of $6.93 billion, with a variance of plus or minus $400 million, slightly above analysts’ average estimate of $6.92 billion. The company expects adjusted EPS to range between $2.00 and $2.36, compared to the analyst estimate of $2.14 per share.

Analysts Mixed Reactions and Adjusted Price Targets

Deutsche Bank analyst Sidney Ho maintained a Hold rating and reduced the price target from $260 to $230.
Citigroup analyst Atif Malik retained a Buy rating while increasing the price target from $240 to $250.
Stifel analyst Brian Chin reiterated a Buy rating but lowered the price target from $275 to $270.
Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating and the price target at $250.
B. Riley Securities analyst Craig Ellis maintained a Buy rating, but reduced the price target from $300 to $280.
JP Morgan analyst Harlan Sur maintained an Overweight rating and raised the price target from $240 to $250.
Needham analyst Charles Shi reaffirmed a Buy rating and the price target at $260.
Morgan Stanley analyst Joseph Moore kept an Equal-Weight rating and increased the price target from $223 to $224.

Which Analyst has the best track record to show on AMAT?

Analyst C J Muse (CANTOR FITZGERALD) currently has the highest performing score on AMAT with 8/11 (72.73%) price target fulfillment ratio. His price targets carry an average of $44.16 (17.96%) potential upside. Applied Material stock price reaches these price targets on average within 103 days.

Alibaba Mixed Q2 2024: Strong EPS Amid Revenue Misses and Soft Customer Management Performance

Alibaba Group released its Q2 2024 financial results, reporting a revenue of $33.4 billion. This figure fell short of analysts’ consensus estimate of $34.1 billion. In contrast, Alibaba’s earnings per share (EPS) outperformed expectations, coming in at $2.26 compared to the estimated $2.06.

The Customer Management Revenue (CMR) fell by 1% year-over-year, despite analysts anticipating a 3% growth. However, the Taobao and Tmall Group reported a revenue of $15.5 billion, marking a 22% increase quarter-over-quarter. Despite this growth, the figure was still below the expected $16.2 billion. The International Digital Commerce Group, posted a revenue of $4.0 billion. This reflects a 6.7% quarter-over-quarter increase, but again, slightly underperformed against the expected $4.1 billion. In contrast, Alibaba’s Cloud Intelligence Group reported revenue of $3.6 billion, a 3.7% increase quarter-over-quarter, exceeding the expected $3.6 billion.

Alibaba’s adjusted EBITDA for the quarter was $7.0 billion, representing a 1.7% decrease year-over-year. Despite the decline, this figure surpassed the consensus estimate of $6.5 billion. Analyst James Lee from Mizuho noted that the negative CMR result was consistent with their expectations, citing growth headwinds due to weaker macroeconomic conditions and a shift to lower-monetizing surfaces.

Morgan Stanley analyst, Gary Yu, also highlighted key areas of interest for the upcoming earnings call, particularly the progress on Alibaba’s primary listing, which is expected to be completed by the end of August 2024, and the company’s expectations for consumption and top-line growth.

Analyst Price Target Reflect Mixed Reactions to Q2 Earnings Miss

Benchmark analyst Fawne Jiang reiterated a Buy rating and a price target of $118.
Truist Securities analyst Youssef Squali maintained a Buy rating but lowered the price target from $110 to $100.
Citigroup analyst Alicia Yap maintained an Overweight rating while raising the price target from $100 to $108.
JP Morgan analyst Alex Yao also reiterated an Overweight rating and raised the price target from $100 to $108.
Bernstein analyst Robin Zhu kept a Market Perform rating and increased the price target from $80 to $85.
Baird analyst Colin Sebastian maintained an Outperform rating and upgraded the price target from $85 to $88.

Which Analyst has the best track record to show on BABA?

Analyst Youssef Squali (TRUIST) currently has the highest performing score on BABA with 28/47 (59.57%) price target fulfillment ratio. His price targets carry an average of $29.69 (36.97%) potential upside. Alibaba Group Holdings stock price reaches these price targets on average within 271 days.