Target, which owns the second-largest chain of discount stores in the United States, increased its net profit in the third fiscal quarter by 48% and revenue by 13%. Target’s quarterly revenue rose to $ 25.65 billion from $ 22.63 billion a year earlier. The consensus forecast of analysts for this indicator was $ 24.61 billion. Growth in comparable sales of Target in the last quarter was 12.7% (forecast was 8.2%). Online sales increased by 29%. Net income for the quarter ended October 30 was $ 1.49 billion, up from $ 1.01 billion in the same period last year. Earnings per share increased to $ 3.04 from $ 2.01. Profit excluding one-off factors was $ 3.03 per share, beating the market average forecast of $ 2.82 per share.
Tag: Weekly
Markets continued to storm highs
At the end of last week, the capitalization of the S&P 500 increased by 0.3%, while the Nasdaq 100 rose by 2.3% and ended the week at historic highs. Investors continued to evaluate the companies’ reports for the third quarter, as well as a new portion of statistical data. The number of Americans who applied for unemployment benefits for the first time last week fell by 1,000 to 268,000, according to a report from the US Department of Labor. This is the lowest level since March 2020. A week earlier, the number of requests was 269 thousand, and not 267 thousand, as previously reported. Analysts polled by Bloomberg, on average, expected the number of applications to decrease to 260 thousand from the previously announced level of the previous week.
Adidas increased its net profit by 71% yoy in Q3, but worsened its forecast
Adidas, the world’s second-largest sportswear manufacturer, increased its third-quarter net income by 70.6% despite slowing revenue growth. Adidas’ revenues rose 3.4% to 5.75 billion euros, in line with the market forecast. Excluding changes in exchange rates, it increased by 3%. It should be noted that the pace of revenue growth slowed significantly compared to a 51.5% rise in the second quarter, due in part to a worsening sales situation in China. Excluding changes in currency exchange rates, the company’s revenue in China in the last quarter decreased by 11% (to 1.155 billion euros), in other countries of the Asia-Pacific region – by 9.6% (to 504 million euros). Meanwhile, it grew in North America by 6.6% (to 1.4 billion euros), in EMEA – by 8.1% (to 2.25 billion euros), in Latin America – 53.4% (to 405 million Euro).
Strong reporting despite falling sales in China
Nike posted better-than-expected earnings and revenues for the second quarter of fiscal 2022 ended November 30, despite a sharp decline in sales in China. Nike’s quarterly revenues increased 1% yoy to $ 11.36 billion, better than the market forecast of $ 11.25 billion. Excluding currency fluctuations, the figure was flat on an annualized basis. Online sales of the company for the reporting period increased by 12% year-on-year.
Micron triples its quarterly profit and improves its annual forecast
Micron Technology almost tripled its net profit in the first fiscal quarter of 2022, which ended on December 2, and revenue by 33.3% yoy, which was better than analysts’ forecasts. Micron’s quarterly revenue jumped to $ 7.69 billion from $ 5.77 billion, while the market forecast estimated the figure at $ 7.68 billion, and management predicted $ 7.65 billion. Nevertheless, revenue growth slowed slightly, which happened for the first time in a year. In the previous fiscal quarter, this figure increased by 36.6% over the previous year.
Strong results coupled with announcement of new $ 10 billion buyback program
Oracle, one of the world’s largest software companies, posted a net loss in the second quarter of fiscal 2022 ending November 30, but adjusted earnings and revenues rose above analysts’ expectations. Oracle’s revenue increased 6% year-on-year to $ 10.4 billion, up from $ 9.8 billion in the same period last year. The indicator grew the most since 2018, while the market expected revenue to grow to $ 10.2 billion.
Snowflake doubles its quarterly revenue
Snowflake has excellent Q3 earnings. Revenue soared 110% to $ 334.4 million, beating market forecasts of $ 305.6 million in sales. For the quarter, the company posted a loss of $ 0.51 per share, outperforming market consensus. estimated the expected loss at $ 0.60 per share. The figure was also significantly better than last year’s figure of $ 1.01 loss per share. Snowflake’s management improved its forecast for fourth-quarter revenue from $ 345mn to $ 350mn, beating market expectations of $ 316mn. We are impressed by the good financials and have revised our fair share price estimate upwards from $ 375 to $ 450.
Dell Records Record Revenue and Operating Profit
With strong sales of personal computers, servers and storage systems in the third fiscal quarter, Dell posted record revenues and operating margins. Revenue for the quarter ended Oct. 29 increased 21% to $ 28.39 billion from $ 23.48 billion in the same period last fiscal year. Market consensus implied growth in the indicator to $ 27.37 billion. The company’s operating income increased by 19%, to $ 1.35 billion. Dell’s net profit in the last quarter rose to $ 3.84 billion, or $ 4.87 per share, up from $ 832 million, or $ 1.08 per share, a year earlier. Profit excluding one-off factors was $ 2.37 per share, beating the average analyst forecast of $ 2.3 per share.
Inflation data disappointed investors
Over the past week, the S&P 500 declined 0.3%, while the capitalization of the Nasdaq 100 declined 1%. Investors were disappointed with inflation figures released on Wednesday. The market is closely following US inflation data as they are key to the Fed’s decisions on the future direction of monetary policy. Consumer prices in the United States in October rose by 6.2% compared with the same month last year – the highest rate in almost 31 years (since November 1990). A month earlier, inflation in the US was 5.4%, and experts expected it to accelerate in October to 5.8%. The jump in energy prices in the United States last month amounted to 30% in annual terms, gasoline rose in price by 49.6%. The rate of growth in the cost of foodstuffs, which amounted to 5.3%, was the highest since January 2009. If inflation does not start to ease, the Fed may have to accelerate the pace of winding up its asset repurchase program and move on to hike rates, which will negatively affect the stock market.
Indices are storming new frontiers
American stock indices rose for the week and renewed their historical values again. The S&P 500 added 1.3% for the week, while the capitalization of the Nasdaq rose 3.2%. October was the best month since the beginning of the year. Thanks to strong corporate reporting, the S&P 500 yielded 7% over the past month, while the Nasdaq 100 gained 8%. The season for corporate reporting is in full swing. Caterpillar engineering group, whose reporting is perceived as an indicator of the situation in the real sector of the economy, delighted investors with good quarterly results. Ford has improved its profit forecast for 2021. It is also worth noting the excellent reporting of Microsoft and Google, which have shown strong growth in cloud revenues. Microsoft shares were in demand all week, and on Friday the company’s capitalization reached a record of $ 2,490 billion. Microsoft is now the most valuable company in the world, followed by Apple with a capitalization of $ 2,458 billion.