Selected stock price target news of the day - August 23rd, 2024

By: Matthew Otto

Urban Outfitters Beats Q2 Expectations, But Challenges Loom

Urban Outfitters delivered its second-quarter results for 2024, with earnings per share (EPS) reaching $1.24, surpassing the consensus estimate of $1.00 by $0.24. This marks a 94% year-over-year increase from the EPS of $0.64 reported in the same quarter last year. Revenue for the quarter came in slightly above expectations at $1.35 billion, just above the consensus estimate of $1.34 billion, and a 7% increase compared to $1.26 billion in Q2 2023.

Total sales climbed to $1.4 billion, reflecting a 6% increase year-over-year. The retail segment reported a 4% rise in comparable sales, while improved inventory management and reduced promotional activity boosted gross profit margins to 37.2%, up from 34.8% a year ago.

The rental business, Nuuly, contributed to growth with a 55% rise in active subscribers, and the wholesale segment saw a 15% revenue boost, the core Urban Outfitters brand struggled. Comparable sales in the retail segment for the Urban Outfitters brand fell by 9%, highlighting weaknesses in both North American and European markets. Moreover, gross profit improved by 8% to $493 million and the gross profit rate improved by 68 basis points to 36.5%

Analysts Lower Price Targets Despite Strong Q2 Results

Telsey Advisory Group Analyst Dana Telsey downgraded from Outperform to Market Perform and the price target from $49 to $44.
Wells Fargo Analyst Ike Boruchow maintained an Equal-Weight rating and cut the price target from $48 to $40.
Barclays Analyst Adrienne Yih kept an Overweight rating but reduced the price target from $52 to $43.
Jefferies Analyst Corey Tarlowe maintained an Underperform rating, but lowered the price target from $35 to $34.
BMO Capital Analyst Simeon Siegel kept a Market Perform rating and decreased the price target from $42 to $39.
BofA Securities Analyst Lorraine Hutchinson upheld a Buy rating, but adjusted the price target downwards from $52 to $46.
Morgan Stanley Analyst Alex Straton retained an Equal-Weight rating and lowered the price target from $40 to $38.

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

Analyst Jay Sole (UBS) currently has the highest performing score on URBN with 11/14 (78.57%) price target fulfillment ratio. His price targets carry an average of $3.27 (7.84%) potential upside. Urban Outfitters stock price reaches these price targets on average within 166 days.

Toll Brothers Reports Strong Q3 Results, Beats Earnings Estimates, and Updates Full-Year Guidance

Toll Brothers reported its third-quarter results for fiscal year 2024, posting an earnings per share (EPS) of $3.60, surpassing the consensus estimate of $3.31 by $0.29. Revenue for the quarter came in at $2.73 billion, slightly above the anticipated $2.71 billion.

Toll Brothers delivered 2,814 homes at an average price of $968,000, contributing to home sale revenues of $2.72 billion. The adjusted gross margin stood at 28.8%, which exceeded guidance by 110 basis points, and selling, general, and administrative expenses (SG&A) were 9.0% of home sale revenues, improving by 20 basis points over guidance.

Looking ahead, Toll Brothers expects to deliver between 3,275 and 3,375 homes in the fourth quarter, contributing to full-year deliveries of 10,650 to 10,750 units. The average delivered price per home is projected to be between $940,000 and $950,000 in Q4, with a full-year average of $975,000.

Adjusted home sales gross margin for the full year is expected to be 28.3%, while SG&A as a percentage of home sales revenue is projected at 9.4%. Other income, including income from unconsolidated entities and gross margin from land sales, is anticipated to be $47 million in Q4 and $260 million for the full year. Toll Brothers forecasts a full-year tax rate of 25.4% and expects to achieve earnings per share between $14.50 and $14.75, outperforming the consensus estimate of $14.20.

Analysts Upgrade Price Targets Following Strong Q3 Performance

RBC Capital analyst Mike Dahl maintained an Outperform rating and raised the price target from $130 to $143.
Wells Fargo analyst Sam Reid kept an Overweight rating while increasing the price target from $150 to $160.
Barclays analyst Matthew Bouley continued to hold an Underweight rating but lifted the price target from $116 to $135.
Oppenheimer analyst Tyler Batory remained with an Outperform rating and raised the price target from $157 to $168.
BofA Securities analyst Rafe Jadrosich maintained a Buy rating and increased the price target from $150 to $160.
Keefe, Bruyette & Woods analyst Jade Rahmani reiterated an Outperform rating and a $142 price target.

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

Analyst Matthew Bouley (BARCLAYS) currently has the highest performing score on TOL with 14/15 (93.33%) price target fulfillment ratio. His price targets carry an average of $-7.15 (-5.81%) potential downside. Toll Brothers stock price reaches these price targets on average within 75 days.

Wolfspeed Reports Q4 Loss, Misses Revenue Estimates; Guides Lower for Q1 2025

Wolfspeed reported fourth-quarter fiscal 2024 results, with revenue of $200.7 million, slightly missing the consensus estimate of $201.31 million. Posted an adjusted loss per share of $0.89, which was $0.05 worse than the analyst estimate of a $0.84 loss per share.

Wolfspeed faced challenges, including a $20 million revenue impact due to equipment issues at its Durham 150-millimeter chip fabrication plant. Non-GAAP gross margin for the fourth quarter was 5%, influenced by $24 million of underutilization related primarily to the Mohawk Valley facility.

Looking ahead, Wolfspeed has provided guidance for the first quarter of fiscal 2025, projecting revenue between $185 million and $215 million. This range is below the consensus estimate of $211.7 million. Wolfspeed also anticipates an adjusted loss per share between $1.09 and $0.90, compared to an expected loss of $0.84 per share. The Mohawk Valley plant is expected to reach 25% of its operating capacity in the first quarter, surpassing initial projections.

Analysts Downgrade Ratings and Price Targets Following Weak Q4

BofA Securities analyst Vivek Arya maintained an Underperform rating and lowered the price target from $25 to $15.
Deutsche Bank analyst Robert Sanders kept a Hold rating and reduced the price target from $17 to $14.
TD Cowen analyst Matthew Ramsay maintained a Hold rating while decreasing the price target from $25 to $15.
Susquehanna analyst Christopher Rolland retained a Neutral rating and downgraded the price target from $23 to $16.
Piper Sandler analyst Harsh Kumar continued with an Overweight rating but revised the price target down from $35 to $20.
Mizuho analyst Vijay Rakesh maintained a Neutral rating and cut the price target from $28 to $17.

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

Analyst Atif Malik (CITI) currently has the highest performing score on WOLF with 5/8 (62.5%) price target fulfillment ratio. His price targets carry an average of $1.44 (6.11%) potential upside. Wolfspeed stock price reaches these price targets on average within 38 days.