Selected stock price target news of the day - August 27th, 2024

By: Matthew Otto

Pinduoduo Misses Q2 Revenue Estimates Despite Beating Earnings Expectations

Pinduoduo reported its financial results for the second quarter of 2024 posting earnings per share (EPS) of $3.17, surpassing analyst expectations of $2.79 by $0.38. However, revenue for the quarter totaled $13.26 billion, missing the consensus estimate of $13.59 billion. Although Pinduoduo’s revenue still grew year-over-year, the slower growth rate and revenue miss raise questions about its ability to sustain high growth amid intensifying competition and macroeconomic pressures.

In a statement, Ms. Jun Liu, VP of Finance of PDD Holdings, acknowledged the slowdown, citing that “revenue growth will inevitably face pressure due to intensified competition and external challenges.” Liu also noted that “profitability will also likely to be impacted as we continue to invest resolutely.”

Analysts Lower Ratings and Price Targets Following Results

Citigroup analyst Alicia Yap Downgraded from Buy to Neutral and the price target significantly from $194 to $120.
BofA Securities analyst Joyce Ju Maintained a Buy rating but reduced the price target from $206 to $170.
Bernstein analyst Robin Zhu Continued to rate as Outperform, while cutting the price target from $235 to $170.
Jefferies analyst Thomas Chong Kept a Buy rating; however, lowered the price target from $193 to $151.
Macquarie analyst Ellie Jiang Downgraded from Outperform to Neutral.

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

Analyst Jiong Shao (BARCLAYS) currently has the highest performing score on PDD with 9/10 (90%) price target fulfillment ratio. His price targets carry an average of $66.43 (42.16%) potential upside. Pinduoduo stock price reaches these price targets on average within 108 days.

Williams-Sonoma Falls Short of Revenue Expectations, Adjusts Full-Year Forecast Downward

Williams-Sonoma reported its second-quarter fiscal 2024 results, posting earnings per share (EPS) of $1.74, which outperformed the analyst estimate of $1.61 by $0.13. Despite this earnings beat, revenue came in slightly below expectations at $1.79 billion, versus the consensus estimate of $1.81 billion. This represented a year-over-year decline from the $2.14 billion reported in the same quarter last year.

Additionally, Williams-Sonoma’s operating margins now stand between 18.0% and 18.4%, up from previous forecasts. Excluding a 60 basis point first-quarter out-of-period adjustment, the operating margin is expected to range between 17.4% and 17.8% for the fiscal year.

Williams-Sonoma adjusted its fiscal 2024 guidance and now projects annual net revenue growth in the range of -4.0% to -1.5%, with comparable store sales expected to decline between -5.5% and -3.0%. Interest income is expected to reach approximately $45 million, with an annual effective tax rate of around 25.5%.

Analysts Adjust Ratings and Price Targets Following Mixed Q2 Report

RBC Capital analyst Scot Ciccarelli maintained an Outperform rating but lowered the price target from $150 to $147.
Telsey Advisory Group’s Cristina Fernandez continued to rate as Outperform, albeit with a revised price target of $165, down from $170.
Barclays analyst Adrienne Yih retained an Underweight rating and reduced the price target from $232 to $116.
Wedbush analyst Seth Basham held an Outperform rating but decreased the price target from $175 to $150.
TD Cowen analyst Max Rakhlenko maintained a Buy rating but lowered the price target from $170 to $150.
Baird analyst Peter Benedict kept a Neutral rating and adjusted the price target from $150 to $140.

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

Analyst Joseph Feldman (TELSEY ADVISORY) currently has the highest performing score on WSM with 12/15 (80%) price target fulfillment ratio. His price targets carry an average of $25.49 (18.27%) potential upside. Williams-Sonoma stock price reaches these price targets on average within 242 days.

Advance Auto Parts Reports Mixed Q2 Results and Lowers Full-Year Guidance Amid $1.5 Billion Worldpac Sale

Advance Auto Parts reported its results for the second quarter of 2024 posting earnings per share (EPS) of $0.75, which fell short of the analyst estimate of $0.94 by $0.19. Revenue for the quarter reached $2.68 billion, slightly surpassing the consensus estimate of $2.67 billion.

Comparable-store sales increased by 0.4%, bolstered by growth in the professional segment. Gross profit margin declined to 41.5% from 42.5% a year ago, due to strategic pricing investments and higher product costs. SG&A expenses rose to $1 billion, or 38.9% of net sales, driven by higher payroll and strategic review costs.

Additionally, Advance Auto Parts also announced the planned sale of its Worldpac business to Carlyle Group for $1.5 billion. This transaction is expected to close by year-end and will provide approximately $1.2 billion in net proceeds,

Looking ahead, Advance Auto Parts revised its full-year 2024 guidance and now expects EPS to range from $2.00 to $2.50, lower than the previous consensus estimate of $3.55. Revenue guidance for the year has been adjusted to $11.15 billion to $11.25 billion, compared to the consensus of $11.29 billion.

Analysts Cut Price Targets Amid Weak Earnings and Strategic Shifts

Mizuho Analyst David Bellinger maintained a Neutral rating and reduced the price target from $64 to $45.
JP Morgan Analyst Christopher Horvers kept a Neutral rating and lowered its price target to $43.
Truist Securities Analyst Scott Ciccarelli maintained a Hold rating and revised the price target from $63 to $46.
Evercore ISI Group Analyst Greg Melich retained an In-Line rating while lowering the price target from $64 to $60.
TD Cowen Analyst Max Rakhlenko continued with a Hold rating and reduced the price target from $65 to $55.

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

Analyst David Bellinger (MIZUHO) currently has the highest performing score on AAP with 3/3 (100%) price target fulfillment ratio. His price targets carry an average of $0.81 (1.28%) potential upside. Advance Auto Parts stock price reaches these price targets on average within 22 days.