Selected stock price target news of the day - June 21st, 2024

By: Matthew Otto

Kroger Reports Q1 2024 Results, Reaffirms Full-Year Guidance Despite Pharmacy Segment Challenges

Kroger reported financial results for the first quarter of 2024, with adjusted earnings per share of $1.43, surpassing the analyst estimate of $1.34 by $0.09. Revenue for the quarter reached $45.27 billion, exceeding the consensus estimate of $44.93 billion. Identical sales, excluding fuel, increased by 0.5% year-over-year. Notably, digital sales grew by over 8%, driven by a 17% increase in delivery solutions.

Gross margin was 22.4% of sales, with a slight decrease in the FIFO gross margin rate, excluding fuel, primarily due to lower pharmacy margins and increased price investments. Recorded a LIFO charges of $41 million, a reduction from the $99 million charge in the same quarter last year, reflecting lower inflation expectations.

Kroger reaffirmed its full-year 2024 EPS guidance of $4.30 to $4.50, aligning with the consensus of $4.43. For fiscal 2024, Korger projects identical sales growth, excluding fuel, to be between 1% and 2%. Capital investments are expected to be approximately $3.4 billion, supporting 30 major store projects aimed at higher growth geographies. Additionally, Kroger anticipates achieving a net debt to adjusted EBITDA ratio within its target range of 2.3 to 2.5.

Kroger plans a $500 million investment to lower prices post-merger. A $1.3 billion investment to upgrade Albertsons stores, and a $1 billion investment in wages and benefits for employees. Kroger also aims to donate 10 billion meals to families across the U.S. by 2030.

Analysts Maintain Positive Ratings Despite Adjusted Price Targets

JP Morgan’s Ken Goldman maintained an Overweight rating but lowered the price target from $60 to $58.
Telsey Advisory Group’s Joseph Feldman maintained an Outperform rating with a $62 price target.
Evercore ISI Group’s Michael Montani reiterated an Outperform rating while lowering the price target from $61 to $60.

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

Analyst Michael Montani (EVERCORE) currently has the highest performing score on KR with 8/9 (88.89%) price target fulfillment ratio. His price targets carry an average of $7.61 (13.50%) potential upside. Kroger stock price reaches these price targets on average within 255 days.

Winnebago Industries Faces Revenue Decline Amid Economic Challenges in Q3 Fiscal 2024

In the third quarter of fiscal 2024, Winnebago Industries faced challenges as consolidated net revenue declined to $786 million, versus the consensus estimate of $806.13 million. A 12.7% drop compared to the same period last year. Adjusted earnings per share for the quarter came in at $1.13, $0.21 worse than the analyst estimate of $1.34. Additionally, adjusted EBITDA came in at a total of $58 million.

The Towable RV segment showed a sequential revenue increase of 35.7%, but year-over-year growth was minimal at 0.6%. Conversely, the Motorhome RV segment reported a 20.1% decline in revenue compared to the prior year. The Marine segment also struggled, registering a 31.8% revenue decrease year-over-year.

Financially, Winnebago Industries maintained a net debt-to-EBITDA ratio of approximately 1.7 times. Despite generating $88.4 million in free cash flow during the quarter, capital allocation strategy included $20 million in share repurchases and the payment of a quarterly cash dividend of $0.31 per share.

Analysts Adjust Price Targets Amid Economic Uncertainty

Truist Securities analyst Michael Swartz maintained a Buy rating and lowered the price target from $76 to $68.
BMO Capital analyst Tristan Thomas-Martin reiterated an Outperform rating and downgraded the price target from $80 to $75.
Baird analyst Craig Kennison maintained an Outperform rating and lowered the price target from $75 to $70.
Citi analyst James Hardiman reiterated a Buy rating and decreased the price target from $79 to $71.
Jefferies analyst Bret Jordan lowered the price target to $60.

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

Analyst Michael Swartz (TRUIST) currently has the highest performing score on WGO with 14/21 (66.67%) price target fulfillment ratio. His price targets carry an average of $16.14 (26.96%) potential upside. Winnebago Industries stock price reaches these price targets on average within 150 days.

Jabil Beats Q3 Expectations, Issues Cautious Guidance for Q4 2024

Jabil has announced its third-quarter fiscal 2024 results, surpassing market expectations with reported earnings per share of $1.89, exceeding the consensus estimate of $1.85 by $0.04. Reported quarterly revenue of $6.8 billion, outperforming the consensus estimate of $6.53 billion.

Jabil’s core operating income reported to be $350 million, representing 5.2% of revenue, marking a 40 basis points improvement year-over-year. GAAP operating income stood at $261 million, with GAAP diluted earnings per share at $1.06, and core diluted earnings per share exceeding guidance at $1.89. In terms of segment performance, Jabil’s DMS segment reported $3.4 billion in revenue. Meanwhile, the EMS segment also performed with $3.4 billion in revenue.

Looking forward, Jabil has provided guidance for the fourth quarter of fiscal 2024, expecting EPS in the range of $2.03 to $2.43. This forecast is below the consensus estimate of $2.22. Revenue for Q4 is projected to be between $6.3 billion and $6.9 billion, which is below the consensus expectation of $6.8 billion. Despite these projections, Jabil emphasized its commitment to completing a $2.5 billion share repurchase authorization by the end of the fiscal year.

Analysts Adjust Price Targets Following Mixed Ratings

Barclays analyst George Wang maintained an Overweight rating and lowered the price target from $149 to $135.
JP Morgan analyst Samik Chatterjee reiterated an Overweight rating and adjusted the price target from $145 to $137.
UBS analyst David Vogt kept a Neutral rating and decreased the price target from $130 to $120.

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

Analyst Gena Wang (BARCLAYS) currently has the highest performing score on JBL with 3/4 (75%) price target fulfillment ratio. Her price targets carry an average of $29.49 (24.27%) potential upside. Jabil stock price reaches these price targets on average within 67 days.