Selected stock price target news of the day - June 20th, 2024

By: Matthew Otto

Darden Restaurants Provides Fiscal Q4 Earnings Update and Fiscal 2025 Outlook

Darden Restaurants reported mixed results for its fiscal fourth quarter, posting an earnings per share of $2.65, surpassing analysts’ estimates by $0.04, and reported revenue of $3 billion, slightly above the consensus estimate of $2.98 billion. Total sales increased by 6.8%, driven by the acquisition of 80 Ruth’s Chris Steak House locations and the addition of 37 other new restaurants.

Same-store sales remained flat, with Olive Garden experiencing a 1.5% decline. Conversely, LongHorn Steakhouse emerged with a 4% increase in same-store sales. Darden’s fine-dining segment, which now includes Ruth’s Chris, saw a 2.6% decline in same-store sales. For the quarter, Darden reported a net income of $308.1 million, or $2.57 per share, slightly down from the previous year’s $315.1 million, or $2.58 per share.

Looking ahead to fiscal 2025, Darden projects a same-store sales growth of 1% to 2%. Anticipated net sales between $11.8 billion and $11.9 billion, aligning with Wall Street’s projections and exceeding the consensus estimate of $11.4 billion. Darden expects earnings per share to range from $9.40 to $9.60, in line with analysts’ forecasts of $9.55. Additionally, Darden plans capital expenditures of $550 million to $600 million, aiming to open 45 to 50 new restaurants.

Analysts Provide Mixed Ratings and Price Targets

TD Cowen analyst Andrew Charles reiterated a Buy rating and a $170 price target.
Wedbush analyst Nick Setyan maintained an Outperform rating with a $170 price target.
Stephens & Co. analyst Jim Salera kept an Equal-Weight rating and a $165 price target.

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

Analyst Andrew Strelzik (BMO) currently has the highest performing score on DRI with 19/19 (100%) price target fulfillment ratio. His price targets carry an average of $-8.19 (-4.73%) potential downside. Darden Restaurants stock price reaches these price targets on average within 156 days.

KB Home Delivers Q2 Results and Optimistic 2024 Outlook

KB Home announced their second-quarter earnings with an EPS of $2.15, surpassing analysts’ expectations of $1.80 by $0.35 per share. Total revenues of $1.71 billion for the quarter, exceeding the consensus estimate of $1.65 billion.

Gross margin stood at over 21%, and operating income margin exceeded 11%. KB Home also continued its share repurchase program, buying back an additional $50 million in shares during the quarter, contributing to a 14% year-over-year increase in book value per share.

KB Home started nearly 4,300 homes in the second quarter and ended with about 7,700 homes in production. Their community count at quarter-end was 247, reflecting a slight increase sequentially. On the financial front, the company reported a debt-to-capital ratio of 29.8% and ended the quarter with over $1.7 billion in liquidity.

Looking forward, KB Home provided guidance for the fiscal year 2024, expecting housing revenues to range between $6.70 billion and $6.90 billion. The average selling price of homes is anticipated to be in the range of $485,000 to $495,000. KB Home aims for homebuilding operating income as a percentage of revenues to fall within 11.0% to 11.4%, assuming no inventory-related charges.

Analysts Upgrade Price Targets Following Q2 Results

Wedbush analyst Jay McCanless maintained a Neutral rating and raised the price target from $64 to $67.
Keefe, Bruyette & Woods analyst Jade Rahmani maintained a Market Perform rating and increased the price target from $74 to $77.
Evercore ISI Group analyst Stephen Kim reiterated an Outperform rating and upgraded the price target from $78 to $86.

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

Analyst Michael Rehaut (JPMORGAN) currently has the highest performing score on KBH with 10/11 (90.91%) price target fulfillment ratio. His price targets carry an average of $0.94 (1.35%) potential upside. KB Home stock price reaches these price targets on average within 181 days.

Lennar Q3 2024 Earnings Call: Revenue Hits Estimates, Operational Metrics in Line

Lennar Corporation reported performance in its second quarter of 2024, posting an earnings per share of $3.45, outperforming analysts’ estimates by $0.22. Revenues totaling $8.77 billion, exceeding the consensus estimate of $8.51 billion.

During the quarter, Lennar initiated the construction of approximately 21,400 homes, achieving sales of approximately 21,300 homes and delivering approximately 19,700 homes. These figures align with the company’s yearly target of delivering approximately 80,000 homes, underscoring its steady production pace and operational efficiency.

Looking ahead to the third quarter of 2024, new orders and deliveries projected between 20,500 and 21,000 units each. The average sales price is expected to range from $420,000 to $425,000 per home, with a gross margin of approximately 23% on home sales and selling, general, and administrative expenses as a percentage of home sales estimated between 7.3% and 7.5%. Additionally, Lennar forecasts financial services operating earnings to be in the range of $135 million to $140 million.

Analyst Ratings and Price Adjustments Following Earnings Result

JP Morgan analyst Michael Rehaut maintained a Neutral rating but lowered the price target from $157 to $154.
Evercore ISI Group analyst Stephen Kim maintained an Outperform rating however downgraded the price target from $238 to $237.
Keefe, Bruyette & Woods analyst Jade Rahmani reiterated an Outperform rating and kept the price target at $183.
Goldman Sachs analyst Susan Maklari reiterated a Buy rating and a $180 price target.
Barclays analyst Matthew Bouley lowered the price target to $177.
RBC Capital analyst Mike Dahl reiterated an Underperform rating and a $145 price target.
BTIG analyst Carl Reichardt Jr. lowered the price target from $177 to $175.

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

Analyst Anthony Pettinari (CITI) currently has the highest performing score on LEN with 9/11 (81.82%) price target fulfillment ratio. His price targets carry an average of $31.78 (19.12%) potential upside. Lennar Corporation stock price reaches these price targets on average within 105 days.