Ulta Beauty posted excellent Q2 financials. Earnings per share were $ 4.56 versus the market consensus of $ 2.59. Returning shoppers and an improved product range have provided significant support to the company’s financial performance. Total sales of cosmetics for the past quarter approached 2019 levels. The company’s management improved its forecast for 2021, which assumes accelerated growth in revenue and margins in 2H21, but at a slower pace compared to 1H21 due to the risk of rising inflation, persisting supply chain problems and uncertainty over COVID-19. A loyalty program, multi-channel engagement, and an innovative brand lineup serve as good long-term drivers of business growth. We are raising our target price for ULTA shares from $ 385 to $ 490.
Tag: CASH MANAGEMENT
The market continued to slightly correct
Last week, major US indices continued to correct. So the S&P 500 fell 0.4%, while the NASDAQ 100 lost 1%. Nevertheless, at the end of July, the indices rose by 1.8% and 2.8%, respectively, and since the beginning of the year the indicators have added 16-17%. The reporting season remains the focus of traders’ attention. The profit of 89% of S&P index companies, which have already reported results, exceeded analysts’ expectations. The largest tech companies released their quarterly earnings last week. Thus, the results of Microsoft, Facebook and Google and Apple were significantly better than market expectations, while the reports of Amazon disappointed investors. The company’s revenue fell below market consensus.
Where is my Uber?
Our research indicates positive dynamics of the e-commerce market in 2Q21. For Uber Eats, this translates into an increase in MAU and purchase frequency on a quarterly and yearly basis, a potential indicator of sustained growth in delivery orders. Our assessment of Uber Technologies is based on a differentiated approach, thanks to the company’s global reach and market leadership in various transportation and logistics segments, coordinated by applications. We maintain positive sentiment on the companies business.
Record revenue and profit for the quarter
Applied Materials posted record revenue and earnings per share in the third fiscal quarter. Revenue for the reporting quarter ended August 1 amounted to $ 6.2 billion, which is 41% higher than the level of the same period last fiscal year. The company’s net profit more than doubled – to $ 1.72 billion from $ 841 million a year earlier. Earnings per share jumped to $ 1.87 from $ 0.91, while earnings excluding one-off factors jumped to $ 1.9 from $ 1.06. The numbers exceeded both management expectations and market consensus.
Microsoft reported a record net profit and revenue
Microsoft posted record-breaking net income and revenues for fiscal 2021 that ended June 30, which far surpassed market consensus. The company’s net profit rose 38% to $ 61.27 billion, adjusted profit increased 37% to $ 60.65 billion. Revenue increased 18% to $ 168.1 billion. In the fourth fiscal quarter, net income jumped 47% – to $ 16.458 billion, or $ 2.17 per share, compared with $ 11.202 billion, or $ 1.46 per share received in the comparable period of the previous year. Quarterly revenue increased by 21% and reached $ 46.152 billion against $ 38.033 billion a year earlier. The market expected the company’s quarterly earnings of $ 1.92 per share on revenue of $ 44.22 billion.
We appreciate the Enphase strategy
Enphase is an American company that manufactures micro-inverters and power electrical modules for residential and commercial PV systems. The key to the company’s success is the development of an ASIC that addresses the issues of cost savings and increased integration. We believe that semiconductor shortages could put pressure on Enphase Energy’s business through the end of 2021. However, we see high upside potential for the company’s stock, suggesting that supply chains will begin to recover in 2022. We believe the company’s strategic goals for 2022-2023 are feasible, especially given the move to GaN-based architecture, which can have a profound impact on cost and performance. However, we assume as the main risk that SolarEdge will be able to recapture some of the market share that Enphase Energy has grown in the US in 2020.
Record revenue expected in Q3
Airbnb nearly quadrupled its revenue in the second quarter of 2021 amid a pickup in local tourism activity. Revenue in April-June increased by 299% and reached $ 1.3 billion compared to $ 335 million in the same period a year earlier, which exceeded market expectations of $ 1.26 billion. The total volume of orders of the company jumped by 320%, to $ 13.4 billion, beating the market consensus forecast of $ 11.56 billion. Airbnb’s net loss in the last quarter fell to $ 68 million, or 11 cents per share, from $ 576 million, or $ 2.18 per share, a year earlier. The market had expected the figure at the level of $ 264 million, or 36 cents per share. In the second quarter, the company posted positive EBITDA of $ 217 versus negative EBITDA of minus $ 397 million in the same period last year.
Nike Doubles Quarterly Revenue
Nike has published excellent financials for its fourth fiscal quarter. Revenue for the quarter ended May 31, 2021 jumped 96% to $ 12.3 billion, up from $ 6.3 billion in the same period a year earlier, when the company’s sales fell sharply amid the spread of the coronavirus pandemic. The company posted net income of $ 1.5 billion, or $ 0.93 per share, versus a net loss of $ 790 million, or $ 0.51 per share, a year earlier. The market consensus assumed the growth of the indicator to the level of $ 0.51 per share on revenue of $ 11.03 billion.
Walmart has improved its annual forecast
Walmart saw net income fall 34% in the second quarter of fiscal year 2022 ended July 31, but both adjusted numbers and revenue beat analysts’ forecasts. Revenue increased 2.4% to $ 141.05 billion versus $ 137.74 billion a year earlier compared to the market consensus of $ 137.02 billion. Net income for the financial quarter was $ 4.276 billion, or $ 1.52 per share, per compared to $ 6.476 billion, or $ 2.27 per share, received in the comparable period last year. Meanwhile, adjusted earnings rose to $ 1.78 per share from $ 1.56, beating market expectations of $ 1.57. The company’s online sales in the US climbed 6%. At the same time, over the past two years, their volume has more than doubled.
ASML announces new buyback program
The Netherlands-based ASML Holding NV, Europe’s largest chip maker, increased its second-quarter net profit and improved its annual revenue forecast, and announced a share buyback program of up to € 9 billion by the end of 2023. ASML’s revenue last quarter was € 4.02 billion, up from € 3.33 billion in the same period in 2020. The market consensus assumed the figure at the level of 4.09 billion eurosю