Selected stock price target news of the day - June 7th, 2024

By: Matthew Otto

Five Below Struggles Amid Inflation, Lowers Revenue Guidance

Five Below‘s first-quarter performance revealed a total sales growth of 12%, with revenue reaching $811.9 million but missing the consensus estimate of $835.01 million. Comparable sales declined by 2.3%, and adjusted earnings per share stood at $0.60, $0.03 below the analyst estimate of $0.63. CEO Joel Anderson acknowledged that the negative comparable sales were driven by a 2.8% decline in comp transactions, partially offset by a 0.5% increase in the comp ticket.

Five Below’s outlook sees Q2 2025 EPS between $0.57 and $0.69, lower than the consensus estimate of $0.99, and anticipates Q2 2025 revenue between $830 million and $850 million, falling short of the expected $883 million. For the full fiscal year 2025, Five Below projects EPS to range from $5.00 to $5.40, versus the consensus of $6.00, and revenue to be between $3.79 billion and $3.87 billion, against the anticipated $4.03 billion. .

Analysts Adjust Ratings and Price Targets Amid Challenges

Wells Fargo analyst Edward Kelly maintained an Overweight rating but lowered the price target from $180 to $145.
UBS analyst Michael Lasser maintained a Buy rating but downgraded the price target from $245 to $223.
Guggenheim analyst John Heinbockel reiterated a Buy rating but decreased the price target from $230 to $165.
Truist Securities analyst Scot Ciccarelli maintained a Buy rating but lowered the price target from $176 to $136.
Craig-Hallum analyst Jeremy Hamblin kept a Hold rating but downgraded the price target from $187 to $124.
Barclays analyst Karen Short maintained an Overweight rating but lowered the price target from $214 to $176.

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

Analyst Edward Kelly (WELLS FARGO) currently has the highest performing score on FIVE with 19/21 (90.48%) price target fulfillment ratio. His price targets carry an average of $26.28 (22.14%) potential upside. Five Below stock price reaches these price targets on average within 92 days.

Dollar Tree’s Q1 Earnings Meet Expectations, but Revenue Falls Short: Cautious Guidance Ahead

Dollar Tree reported its first-quarter earnings for fiscal 2024, with EPS at $1.43, aligning with analysts’ expectations. However, revenue slightly missed consensus estimates, coming in at $7.63 billion against the anticipated $7.65 billion.

Consolidated net sales increased by 4.2% to $7.6 billion. Adjusted operating income saw a 3% decrease to $436 million, resulting in an adjusted operating margin decline of 45 basis points. Dollar Tree’s segment net sales rose by 5.9% to $4.2 billion, though operating income experienced a 3% decrease to $522 million, reflecting a 110 basis point drop in operating margin. On the other hand, Family Dollar saw a 2% increase in net sales to $3.5 billion, with adjusted operating income witnessing a 32% surge to $51 million. Adjusted operating margin increased by 30 basis points.

For the second quarter of fiscal 2025, Dollar Tree’s EPS outlook of $1.00 to $1.10 is lower than the consensus estimate of $1.19. Additionally, the revenue projection for Q2, ranging from $7.3 billion to $7.6 billion, is below the anticipated $7.59 billion.

Looking ahead, Dollar Tree’s guidance for fiscal year 2025 appears to be cautious, with projected EPS in the range of $6.50 to $7.00, below the consensus estimate of $6.89. Similarly, the forecasted revenue for fiscal 2025, ranging from $31 billion to $32 billion, falls slightly short of the expected $31.4 billion.

Analysts Adjust Price Targets Amidst Shifting Market Sentiment

Wells Fargo analyst Edward Kelly maintained an Overweight and lowered the price target from $180 to $160.
Truist Securities analyst Scot Ciccarelli reiterated a Buy and lowered the price target from $147 to $140.
Citigroup analyst Paul Lejuez downgraded from Buy to Neutral and the price target from $163 to $120.
JP Morgan analyst Matthew Boss maintained an Overweight and downgraded the price target from $152 to $135.
BMO Capital analyst Kelly Bania maintained an Outperform and lowered the price target from $150 to $145.
Piper Sandler analyst Peter Keith reiterated an Overweight and decreased the price target from $168 to $143.

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

Analyst Joseph Feldman (TELSEY ADVISORY) currently has the highest performing score on DLTR with 8/27 (29.63%) price target fulfillment ratio. His price targets carry an average of $42.63 (37.94%) potential upside. Dollar Tree stock price reaches these price targets on average within 105 days.

Lululemon Athletica’s Q1 Earnings Surpass Expectations, Yet Investor Skepticism Persists

In its latest earnings report, Lululemon Athletica surpassed analyst expectations, reporting a first-quarter EPS of $2.54, exceeding the forecasted $2.40 by $0.14. Revenue for the quarter totaled $2.21 billion, slightly surpassing the consensus estimate of $2.2 billion.

Comparable sales rose by 7%. Regionally, revenue in the Americas increased by 3% on a reported basis or 4% in constant currency, with flat comparable sales. China Mainland revenue surged by 45% on a reported basis, or 52% in constant currency, with comparable sales increasing by 33%. Rest of World segment revenue grew by 27% on a reported basis, or 30% in constant currency, with comparable sales increasing by 26%. Digital channel revenue increased by 8%, contributing $906 million, or 41% of total revenue.

Gross profit for the quarter was $1.28 billion, or 57.7% of net revenue, representing a 20 basis point increase relative to the same period last year. Operating income was $433 million, or 19.6% of net revenue. Net income for the quarter stood at $321 million.

Looking ahead, lululemon athletica provided guidance for the second quarter of 2025, expecting an EPS in the range of $2.92 to $2.97. This projection falls slightly below the consensus estimate of $3.01. Revenue for the same period is anticipated to be between $2.4 billion and $2.42 billion, compared to the consensus estimate of $2.45 billion.

For the full fiscal year 2025, lululemon athletica forecasts an EPS range of $14.27 to $14.47, exceeding the consensus estimate of $14.11. Revenue guidance for the fiscal year is set between $10.7 billion and $10.8 billion, slightly surpassing the consensus estimate of $10.75 billion.

Analyst Ratings: Mixed Sentiment Prevails as Price Targets Adjust

Wells Fargo analyst Ike Boruchow adjusted rating to Equal-Weight and reduced the price target from $425 to $350.
Stifel analyst Jim Duffy maintained a Buy rating while lifting the price target from $410 to $416.
Barclays analyst Adrienne Yih also reiterated an Equal-Weight rating but lowered the price target from $395 to $338.
JP Morgan analyst Matthew Boss maintained an Overweight rating but decreased the price target from $509 to $457.
BMO Capital analyst Simeon Siegel maintained a Market Perform rating and downgraded the price target from $420 to $384.
Oppenheimer analyst Brian Nagel kept an Outperform rating and a price target of $445.
Wedbush analyst Tom Nikic retained an Outperform rating while raising the price target from $397 to $400.
BofA Securities’ Lorraine Hutchinson maintained a Buy rating and increased the price target from $430 to $440.
TD Cowen analyst John Kernan sustained a Buy rating and adjusted the price target from $437 to $447.

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

Analyst Rick Patel (RAYMOND JAMES) currently has the highest performing score on LULU with 15/17 (88.24%) price target fulfillment ratio. His price targets carry an average of $35.9 (7.42%) potential upside. Lululemon Athletica stock price reaches these price targets on average within 152 days.