After U.S. markets closed on Thursday, Affirm Holdings reported a narrower-than-expected loss per share and revenue that was 9% above the consensus estimate. Revenue rose by 22% year over year. Affirm also issued upside revenue guidance for the current quarter. Shares traded up more than 26% shortly after Friday’s opening bell.
Gap reported earnings per share (EPS) well above the consensus estimate but missed on revenue. Year over year, revenue was down by 8%, with same-store sales down 6%. The company also issued downside revenue guidance for the current quarter. Shares traded up 3.3%.
Marvell Technology beat estimates on both the top and bottom lines, but revenue fell by 11.6% year over year. Guidance was in line with consensus estimates. More was expected, especially given Nvidia’s glowing report on Wednesday. The stock traded down 7.3% early Friday.
Nordstrom also beat top-line and bottom-line estimates, but revenue was down nearly 8% year over year. The company was able to clear out inventory, costing the department store 8.5% in gross merchandise value. Nordstrom reaffirmed EPS guidance for the 2024 fiscal year but sees revenue down 4% to 6% year over year. The stock traded down 5.7% early Friday.
No notable earnings reports are being released on Friday. Before markets open on Monday, Nordic American Tankers will post its quarterly earnings.
Here is a look at what analysts expect when these three companies report quarterly results Tuesday morning.
Best Buy
Over the past 12 months, shares of technology retailer Best Buy Co. Inc. (NYSE: BBY) have slipped by about 5.8%. They reached a 52-week high in early February but have retreated about 21.5% since then. Sales have been more or less stagnant since the third quarter of 2019, when the total was $9.76 billion. In the first quarter of this year, sales totaled $9.47 billion. As long as the dividend is not endangered, though, investors will likely be willing to hold on to the stock.
Analysts cannot give up that dividend either. Of 30 brokerages covering Best Buy, 22 rate the shares at Hold and six have a Buy or Strong Buy rating. At a recent price of around $73.00 a share, the upside potential based on a median price target of $75.00 is 2.7%. Based on a high price target of $110.00, the upside potential is 50.7%.
For the company’s fiscal 2024 second-quarter revenue, analysts anticipate $9.52 billion, which would be up 0.,5% sequentially but down 7.8% year over year. Adjusted EPS are forecast at $1.07, down 6.6% sequentially and by 30.5% year over year. For the full fiscal year ending in January, current estimates call for EPS of $6.10, down 13.9%, on sales of $44.29 billion, down 4.3%.
The stock trades 12.0 times expected 2024 EPS, 10.7 times estimated 2025 earnings of $6.85 and 9.5 times estimated 2026 earnings of $7.66 per share. Its 52-week trading range is $60.78 to $93.32. Best Buy pays an annual dividend of $3.68 (yield of 4.93%). Total shareholder return for the past year was negative 1.28%.
Big Lots
Discount retailer Big Lots Inc. (NYSE: BIG) has seen a share price decline of more than 73% over the past 12 months, including a 58.5% drop so far in 2023. The 52-week high was posted nearly a full year ago and shares have been sliding ever since.
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