Daily Update - March 29, 2023
Selected highlights of the day,
By: Matthew Otto
Lululemon Athletica
Has announced its financial results for the fourth quarter and full year of fiscal 2022. The company reported that its net revenue for the fourth quarter of 2022 increased by 30% to $2.8 billion, while its full year net revenue increased by 30% to $8.1 billion. The company’s GAAP EPS for the fourth quarter of 2022 was $0.94, while its adjusted EPS was $4.40. Its GAAP EPS for the full year of 2022 was $6.68, while its adjusted EPS was $10.07. The company’s direct to consumer net revenue represented 52% of total net revenue in the fourth quarter of 2022, compared to 49% for the fourth quarter of 2021, and 46% of total net revenue for the full year of 2022, compared to 44% for 2021. The company opened 32 net new company-operated stores during the fourth quarter, ending with 655 stores.
For the first quarter of fiscal 2023, Lululemon Athletica Inc. expects net revenue to be in the range of $1.890 billion to $1.930 billion, representing growth of approximately 18%. Diluted earnings per share are expected to be in the range of $1.93 to $2.00 for the quarter. For fiscal 2023, the company expects net revenue to be in the range of $9.300 billion to $9.410 billion, representing growth of approximately 15%.
- Credit Suisse analyst Michael Binetti: Maintains Outperform, raises price target to $420
- Stifel analyst Jim Duffy: Maintains Buy, raises price target to $460
- Wells Fargo analyst Ike Boruchow: Keeps Overweight, raises price target to $425
- Guggenheim analyst Gregory Francfort: Maintains Buy, raises price target to $440
- Citigroup analyst Paul Lejuez: Upgrades to Buy, raises price target to $440
- Telsey Advisory Group analyst Dana Telsey: Reiterates Outperform, maintains $425 price target
- Keybanc: Maintains Overweight, raises price target to $390 (no specific analyst mentioned)
Micron
Teleased its financial results for the fiscal second quarter on March 29, which were about in line with expectations. Despite a weak market for PCs and smartphones, the memory chip company is showing some promising signs, including inventory reductions at PC vendors and smartphone producers. Sumit Sadana, the company’s chief business officer, noted there is still more work to be done on inventories at data center computing companies, but inventory conditions should be healthier by the end of the year. Micron sees revenue of $3.7 billion for the fiscal third quarter plus or minus $200 million which is in line with analysts’ average estimate and expects industry wide bit-demand growth to support sequential bit demand growth for DRAM and NAND through the calendar year. The company also plans to broaden its cuts from a previously expected 10% reduction in headcount to a 15% reduction.
The company’s revenue fell by 53% to $3.69 billion, and it recorded a loss of $2.3 billion, compared to a profit of $2.26 billion a year earlier. For the current quarter, Micron forecasts a loss of $1.58 per share, excluding items, plus or minus 7 cents, which is worse than Wall Street’s expectation of a loss of 90 cents per share.
- JP Morgan’s Harlan Sur raises his price target of Micron Technology from $65 to $75 and maintains an Overweight rating.
- Needham’s Rajvindra Gill stays at a Buy rating on Micron Technology and lifts the price target from $67 to $71.
Biomea Fusion’s
- Citigroup’s Yigal Nochomovitz maintains a Buy rating on Biomea Fusion and raises the price target from $20 to $60.
- Oppenheimer’s Hartaj Singh retains an Outperform rating and lifts the price target from $25 to $47.
- HC Wainwright & Co.’s Joseph Pantginis reiterates a Buy rating and a $44 price target.
BioNTech has announced a new share repurchase program, allowing the company to purchase up to $0.5 billion worth of American Depositary Shares (ADS) for the remainder of 2023. The repurchased ADSs will be used to satisfy upcoming settlement obligations under the company’s share-based payment arrangements.
- Oppenheimer’s Hartaj Singh maintains an Outperform rating on Biomea Fusion and increases the price target from $25 to $47.
- Citigroup’s Yigal Nochomovitz reiterates a Buy rating and raises the price target from $20 to $60.
- HC Wainwright & Co.’s Joseph Pantginis maintains a Buy rating n and keeps the price target at $44.
nCino
Has reported its Q4 and Fiscal Year 2023 financial results, with total revenues for the fourth quarter at $109.2 million, up by 46% YoY, and $408.3 million, up by 49% YoY, for Fiscal Year 2023. Subscription revenues for Q4 were $92.8 million, up by 48% YoY, and $344.8 million, up by 53% YoY, for Fiscal Year 2023. The company has also achieved its second consecutive quarter of positive non-GAAP operating income. For the first quarter ending April 30, 2023, nCino has provided a guidance of total revenues between $111.5 million and $113.5 million and subscription revenues between $95.5 million and $97.5 million, while for Fiscal Year 2024, the company has provided a guidance of total revenues between $476 million and $483 million and subscription revenues between $407 million and $412 million.
- Truist Securities analyst Terry Tillman keeps Ncino with a Buy and lowers the price target from $45 to $40.
- BOFA Securities analyst Brad Sills maintains a Buy and lowers the price target from $32 to $30.
- Stephens analyst Charles Nabhan has an Overweight yet lowers the price target from $33 to $27.
- Needham analyst Mayank Tandon maintains Ncino with a Buy and reduces his price target from $35 to $33.
- Barclays analyst Saket Kalia maintains Ncino with an Equal-Weight and lowers her price target from $35 to $26.
- Piper Sandler analyst Brent Bracelin reiterates Ncino with a Neutral and maintains a $22 price target.
