Selected stock price target news of the day - September 30th, 2024

By: Matthew Otto

Costco Exceeds Q4 Earnings Expectations Despite Slight Revenue Miss, Highlights Strong Sales Momentum

Costco Wholesale Corporation reported its financial results. For the fourth quarter, net sales reached $78.2 billion, reflecting a 1.0% increase compared to $77.4 billion in the 17-week fourth quarter of the prior year. Fiscal year net sales were $249.6 billion, a 5.0% growth from $237.7 billion in the 53-week fiscal year 2023.

Comparable sales for the quarter increased 5.4% overall, with 5.3% growth in the U.S., 5.5% in Canada, and 5.7% in other international markets. E-commerce sales grew by 18.9%. Costco’s net income for the fourth quarter was $2.354 billion, or $5.29 per diluted share, up from $2.160 billion, or $4.86 per diluted share, a year earlier. This exceeded analyst expectations of $5.08 per share. However, revenue for the quarter of $79.7 billion came in slightly below the consensus estimate of $79.93 billion. For the full year, net income was $7.367 billion, up from $6.292 billion in 2023.

Oppenheimer analyst Rupesh Parikh highlighted Costco’s success in expanding its nonfood offerings, particularly in apparel, which has helped boost sales despite a mixed discretionary spending environment. However, valuation concerns remain, with Truist analyst, Scot Ciccarelli, noting that Costco’s price-to-earnings ratio of 50.7 times next year’s earnings exceeds its five-year average of 37.1. Nevertheless, analysts like Sky Canaves at Emarketer believe Costco remains positioned to capture increased spending from higher-income households as inflation pressures ease.

Analysts Price Target Upgrades Following Q4 Earnings Report

DA Davidson analyst Michael Baker maintained a Neutral rating, but raised the price target from $780 to $880.
Roth MKM analyst Bill Kirk kept a Neutral rating, yet increased the price target from $676 to $755.
Goldman Sachs analyst Kate McShane held a Buy rating and lifted the price target from $876 to $995.
Wells Fargo analyst George Kelly maintained an Equal-Weight rating, while raising the price target from $800 to $850.
Telsey Advisory Group analyst Joseph Feldman continued with an Outperform rating and increased the price target from $925 to $1000.
Barclays analyst Karen Short reiterated an Equal-Weight rating, but boosted the price target from $830 to $850.
Truist Securities analyst Scot Ciccarelli kept a Hold rating, while raising the price target from $873 to $909.
BMO Capital analyst Kelly Bania reiterated an Outperform rating and raised the price target from $950 to $980.

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

Analyst Krisztina Katai (DEUTSCHE BANK) currently has the highest performing score on COST with 17/19 (89.47%) price target fulfillment ratio. His price targets carry an average of $87.57 (10.43%) potential upside. Costco Wholesale Corporation stock price reaches these price targets on average within 147 days.

CarMax Reports Second Quarter 2024 Results: Growth in Unit Sales and Increased Loan Loss Provisions

CarMax reported its financial performance for the second quarter, with key highlights including a 5.1% increase in retail used unit sales and a 2.9% rise in overall unit sales compared to the previous year. Comparable store sales for used units also increased by 4.3%.

CarMax reported earnings per diluted share of $0.85, up 13.3% from $0.75 a year ago, but narrowly missing analysts’ forecast of $0.86. Total revenue reached $7.01 billion, slightly lower than the previous year but above analysts’ expectations of $6.79 billion. Despite this, the average retail selling price per vehicle declined by 4.6%, while the wholesale price fell 12.9%. The gross profit per retail unit remained in line with the prior year at $2,269, while the gross profit per wholesale unit was $975.

CarMax’s financial services arm, CarMax Auto Finance (CAF), saw income drop by 14.4%, primarily due to a $52.2 million increase in loan loss provisions. The allowance for loan losses now stands at $500.8 million.

Analysts like Sharon Zackfia of William Blair noted that while the loan provisions are a challenge, the uptick in retail unit sales shows promising momentum for future quarters.

Analysts Adjust Ratings and Targets After Strong Q2 Performance

Needham analyst Chris Pierce maintained a Buy rating and raised the price target from $87 to $90.
Truist Securities analyst Scot Ciccarelli held a Hold rating while lowering the price target from $75 to $72.
RBC Capital analyst Steven Shemesh maintained an Outperform rating and increased the price target from $75 to $82.
Evercore ISI Group analyst Michael Montani kept an In-Line rating and raised the price target from $76 to $79.

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

Analyst Scot Ciccarelli (TRUIST) currently has the highest performing score on KMX with 22/26 (84.62%) price target fulfillment ratio. His price targets carry an average of $-5.32 (-6.88%) potential downside. CarMax stock price reaches these price targets on average within 76 days.

Jabil Reports Strong Q4 Performance and Provides Guidance for Fiscal Year 2025

Jabil has released its preliminary, unaudited financial results for the fourth quarter and fiscal year. In the fourth quarter, Jabil reported earnings per share (EPS) of $2.30, exceeding analyst estimates of $2.22 by $0.08. The revenue for the quarter reached $7 billion, surpassing the consensus estimate of $6.59 billion. Additionally, Jabil achieved a U.S. GAAP operating income of $318 million and diluted earnings per share of $1.18. Non-GAAP figures indicated a core operating income of $401 million, while core diluted earnings per share were reported at $2.30.

For the entire fiscal year 2024, Jabil achieved net revenue of $28.9 billion, a U.S. GAAP operating income of $2.0 billion, and diluted earnings per share of $11.17. Core operating income reached $1.6 billion, with core diluted earnings per share at $8.49. Jabil generated over $1 billion in adjusted free cash flow and returned $2.5 billion to shareholders through buybacks.

Looking ahead, Jabil provided an outlook for the first quarter of fiscal year 2025, estimating EPS between $1.65 and $2.05, compared to the consensus of $1.83. Projected revenue for Q1 2025 is anticipated to be between $6.3 billion and $6.9 billion, with a consensus of $6.5 billion. For the full fiscal year 2025, Jabil expects EPS of approximately $8.65, slightly above the consensus estimate of $8.64. Additionally, forecasts revenue of $27 billion for FY2025, slightly below the consensus of $27.2 billion.

Analyst Ratings Strengthen Following Positive Q4 Results

Barclays analyst George Wang maintained an Overweight rating and raised the price target from $135 to $157.
Stifel analyst Matthew Sheerin kept a Buy rating, while increasing the price target from $130 to $140.
BofA Securities analyst Ruplu Bhattacharya reiterated a Buy rating and lifted the price target from $135 to $150.

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

Analyst Matthew Sheerin (STIFEL) currently has the highest performing score on JBL with 13/15 (86.67%) price target fulfillment ratio. His price targets carry an average of $17.66 (14.44%) potential upside. Jabil Circuit stock price reaches these price targets on average within 123 days.