Selected stock price target news of the day - August 6th, 2024

By: Matthew Otto

DraftKings Revises Down FY 2024 EBITDA Guidance Despite Beating Q2 EPS Estimates

DraftKings reported financial performance for the second quarter of 2024 during its earnings call. Revenue achieved $1.104 billion, marking a 26% year-over-year increase, and generated $128 million in adjusted EBITDA. DraftKings reported Q2 EPS of $0.22, surpassing the analyst estimate of ($0.01) by $0.23.

The results were driven by customer acquisition, with new online sports betting (OSB) and iGaming customers increasing nearly 80% year-over-year. Structural sportsbook hold percent improved to approximately 10%, while adjusted gross margin reached 43%, attributed to customer acquisition and promotional reinvestment strategies.

Looking ahead, DraftKings updated its fiscal year 2024 revenue guidance to a range of $5.050 billion to $5.250 billion, representing a 38% to 43% year-over-year growth and exceeding the consensus estimate of $5 billion. However, adjusted EBITDA guidance was revised downward to $340 million to $420 million from the previously announced range of $460 million to $540 million. For fiscal year 2025, DraftKings continues to project adjusted EBITDA between $900 million and $1 billion

Analysts Lower Price Targets Amid Revised Guidance

Barclays analyst Brandt Montour maintained an Overweight rating but lowered the price target from $53 to $43.
Macquarie analyst Chad Beynon maintained an Outperform rating and reduced the price target from $52 to $50.
Oppenheimer analyst Jed Kelly reiterated an Outperform rating while lowering the price target from $58 to $55.
Truist Securities analyst Barry Jonas reiterated a Buy rating; however, decreased the price target from $53 to $50.
Stifel analyst Jeffrey Stantial reiterated a Buy rating and lowered the price target from $50 to $48.
Wells Fargo analyst Daniel Politzer kept an Overweight rating, yet lowered the price target from $53 to $47.
Goldman Sachs analyst Ben Miller remained a Buy rating but reduced the price target from $60 to $54.
Needham analyst Bernie McTernan reiterated a Buy rating and a price target at $60.

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

Analyst Carlo Santarelli (DEUTSCHE BANK) currently has the highest performing score on DKNG with 9/12 (75%) price target fulfillment ratio. His price targets carry an average of $-9.07 (-20.58%) potential downside. DraftKings stock price reaches these price targets on average within 88 days.

Church & Dwight Cuts Outlook After Weak Growth and Consumer Spending Slump

Church & Dwight reported second-quarter results for 2024, showcasing performance across its divisions. Reported sales growth achieved 3.9%, surpassing its outlook of 3.5%, and organic sales growth of 4.7%, driven by a 3.5% increase in volume. Adjusted gross margin expanded by 150 basis points, reaching 47.1%.

The adjusted earnings per share (EPS) for the quarter stood at $0.93, exceeding the company’s outlook of $0.83 and beating the analyst estimate of $0.85 by $0.08. Revenue for the quarter came in at $1.51 billion, aligning with the consensus estimate.

Church & Dwight’s U.S. consumer business saw a 3.8% rise in organic sales, while its international segment delivered 9.3% organic growth, bolstered by performances in Canada, Mexico, and Germany.

However, CEO Matthew Farrell noted that category consumption growth had moderated, with dollar growth in eight main categories slowing to 2% from 4.5% in the first five months of the year. Consequently, Church & Dwight adjusted its full-year forecast, now expecting organic sales growth at the lower end of its previous 4% to 5% range and full-year adjusted profit growth also at the lower end of the 8% to 9% range.

Despite these headwinds, Church & Dwight reported second-quarter revenue of approximately $1.51 billion, aligning with analysts’ expectations, and a 3.5% increase in volumes. Adjusted gross margin for the quarter increased to 45.4%.

For the full year 2024, Church & Dwight anticipates net sales growth of 3.5%, adjusted gross margin expansion of 100 to 110 basis points, reported EPS growth of 12% to 13%, and cash from operations of approximately $1.08 billion.

Analysts Cut Price Targets Amidst Lowered Growth Outlook

Morgan Stanley Dara Mohsenian maintained an Overweight rating, but lowered the price target from $114 to $110.
Evercore ISI Group Javier Escalante kept an In-Line rating and a reduced price target of $101, down from $110.
JP Morgan Andrea Teixeira continued with an Underweight rating and lowered the price target from $101 to $97.
Truist Securities Bill Chappell maintained a Buy rating, while adjusting the price target from $115 to $110.
Stifel Mark Astrachan reiterated a Hold rating and decreased the price target from $107 to $105.
Wells Fargo Chris Carey maintained an Overweight rating and revised the price target down from $116 to $108.

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

Analyst Anna Lizzul (BAML) currently has the highest performing score on CHD with 2/2 (100%) price target fulfillment ratio. Her price targets carry an average of $2.42 (2.38%) potential upside. Church & Dwight Company stock price reaches these price targets on average within 5 days.

ZoomInfo Faces Financial Setbacks in Q2 2024 Amid Higher SMB Write-Offs

ZoomInfo Technologies reported its financial results for the second quarter of 2024, posting a GAAP revenue of $291.5 million, below the consensus estimate of $307.68 million. Adjusted operating income for the quarter stood at $82 million, reflecting a margin of 28%.

However, ZoomInfo faced a significant $33 million charge related to higher-than-expected write-offs from small and medium-sized business (SMB) customers. The primary driver for the high write-off rate was attributed to extending credit to a higher mix of SMB customers in 2022 and 2023, coupled with increased non-payment rates.

Looking ahead, a new business risk model was implemented to require prepayment from high-risk prospects, resulting in $11 million in annual contract value (ACV) through upfront prepayments. Despite these setbacks, ZoomInfo saw growth in its mid-market and enterprise sectors, with increases in $100,000 ACV customer cohorts and a 17% year-over-year growth in million-dollar customer ACV.

For Q3 2024, ZoomInfo projects GAAP revenue between $298 million and $301 million, with adjusted operating income ranging from $107 million to $109 million. The full-year 2024 guidance has been adjusted to a revenue range of $1.19 billion to $1.205 billion and non-GAAP net income per share between $0.86 and $0.88, both below previous consensus estimates.

Analysts Downgrades Amid Financial Challenges

Piper Sandler analyst Brent Bracelin maintained a Neutral rating but lowered the price target from $14 to $10.
Truist Securities analyst Terry Tillman maintained a Hold rating and lowered the price target from $16 to $11.
Stifel analyst Parker Lane reiterated a Buy rating while lowering the price target from $16 to $13.
Mizuho analyst Siti Panigrahi kept a Neutral rating yet downgraded the price target from $14 to $9.
DA Davidson analyst Gil Luria downgraded from Buy to Neutral and the price target from $20 to $9.5.
Needham analyst Joshua Reilly maintained a Buy rating and lowered the price target from $25 to $15.
Keybanc analyst Jason Ader downgraded from Overweight to Sector Weight.
Raymond James analyst Brian Peterson downgraded from Outperform to Market Perform.

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

Analyst Taylor Mcginnis (UBS) currently has the highest performing score on ZI with 7/12 (58.33%) price target fulfillment ratio. Her price targets carry an average of $3.86 (31.80%) potential upside. ZoomInfo Technologies stock price reaches these price targets on average within 48 days.