Group 1: Walmart's Performance - Walmart's results showed better-than-expected comparable sales, with its domestic e-commerce business becoming profitable for the first time [1] - The 'general merchandise' category faced slight negative comps, particularly in electronics, home, and sporting goods, although there was positive momentum in toys, automotive, and kids apparel [2][3] - Walmart's ability to provide guidance amidst operational uncertainty is a positive sign for investors [1] Group 2: Target's Challenges - Target's shares have significantly underperformed, losing over 25% of their value this year, while Walmart's shares have increased by more than 8% [5] - Target is expected to report a decline in EPS by 17.2% year-over-year, with same-store sales projected to decrease by 1.7% [5] - Target's vulnerability to global trade issues is greater than Walmart's, as Walmart sources two-thirds of its merchandise domestically [6] Group 3: Home Improvement Retailers - Home Depot and Lowe's are facing challenges due to high interest rates affecting the housing market, which is impacting discretionary spending on home improvement [10][11] - Home Depot is expected to report a slight decline in EPS of 1.1% year-over-year, while Lowe's is projected to see a decline of 1.99% in comps [14][15] - The overall operating environment for home improvement retailers remains difficult, with a focus on repair and replacement rather than new projects [13] Group 4: Retail Sector Overview - The retail sector has seen a 16.7% increase in total Q1 earnings for 21 retailers in the S&P 500, with 57.1% beating EPS estimates [18] - The earnings growth for the sector is significantly influenced by Amazon, with the group outside of Amazon showing a decline in earnings despite revenue growth [20][22] - The overall earnings picture for the retail sector indicates a stabilization trend, although estimates for Q2 have been cut more than usual [35][39]

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TEF, VOD, ORANY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA. It may be structured as such, but ...

Core Viewpoint - Applied Materials Inc reported its fiscal second-quarter results, showing mixed performance amid a competitive earnings season, leading to a decline in share price. Financial Performance - The company reported quarterly revenue of $7.1 billion, down 1% sequentially but up 7% year-on-year, aligning with consensus estimates [2] - Non-GAAP gross margins were 49.2%, exceeding the consensus of 48.4%, resulting in non-GAAP earnings of $2.39 per share, surpassing the consensus of $2.31 per share [3] Analyst Ratings and Price Targets - JPMorgan maintained an Overweight rating but reduced the price target from $240 to $210 [2] - BofA Securities reaffirmed a Buy rating with a price target of $190, citing trailing-edge exposure as a growth drag [4] - Cantor Fitzgerald kept an Overweight rating with a price target of $200, noting mixed results and revenue guidance in line with expectations [6] - Needham reiterated a Buy rating with a price target of $195, highlighting a decline in China revenue to 25% of total revenues [8] Growth Outlook - Analysts expect at least 5% growth for the year, with Semiconductor System revenues balanced between the first and second halves [7] - Management indicated a generally unchanged WFE outlook, with domestic China revenues normalizing post-trade restrictions [7] - Despite consistent growth over the past five years, the company’s 2026 sales estimates were lowered by 3% due to softer trends [5] Revenue Guidance - The midpoint of the revenue guidance for the fiscal third quarter is $7.20 billion, slightly missing the consensus estimate of $7.22 billion [8][9] - Management did not provide guidance for the latter half of the year, which is critical for assessing future trends [9]

Wall Street analysts forecast that Target (TGT) will report quarterly earnings of $1.68 per share in its upcoming release, pointing to a year-over-year decline of 17.2%. It is anticipated that revenues will amount to $24.42 billion, exhibiting a decline of 0.5% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 5.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections ...

Core Viewpoint - Target Corporation is expected to report first-quarter fiscal 2025 earnings on May 21, with projected revenues of $24.45 billion, reflecting a slight decline of 0.3% year-over-year, and earnings per share estimated at $1.68, indicating a drop of 17.2% from the previous year [1][2]. Financial Estimates - The Zacks Consensus Estimate for earnings has been revised downward by six cents over the past week, with current estimates for the next quarters showing a downward trend [2]. - Target's trailing four-quarter average earnings surprise stands at 1.5%, with the last quarter's earnings surpassing estimates by 7.1% [2]. Earnings Prediction - The current Zacks Rank for Target is 5 (Strong Sell) with an Earnings ESP of -9.91%, indicating a lack of strong indicators for an earnings beat this quarter [5][6]. Market Outlook - Target has provided a cautious outlook for Q1 2025, citing significant profit pressure due to consumer uncertainty, a slight decline in net sales for February, tariff concerns, and the timing of certain expenses [7]. - Despite record Valentine's Day sales, overall performance in February was subdued, impacted by unseasonably cold weather and declining consumer confidence affecting discretionary spending [8]. Revenue Vulnerability - Target's revenue is significantly derived from discretionary segments, which are volatile and susceptible to external shocks, with expectations of a 1% decrease in comparable sales and a 1.6% drop in average transaction amounts [9]. Strategic Initiatives - Target's focus on innovation, digital growth, and store enhancements is expected to positively influence first-quarter performance, with initiatives like same-day services and curbside pickup likely driving increased customer engagement [10]. Stock Performance - Target's stock price has increased by 4.3% over the past month, outperforming the Zacks Retail–Discount Stores industry, which rose by 1.5% [11]. - The stock is currently trading at a forward 12-month P/E multiple of 10.67X, significantly below the industry average of 32.49X and below its median P/E level of 14.65 over the past year [15]. Investment Considerations - The company is facing challenges in discretionary spending and margin pressure, with ongoing investments in digital growth and operational improvements that may take time to yield benefits [16]. - Investors may want to adopt a cautious approach, waiting for clearer signs of recovery in sales trends and margin performance before making significant investment decisions [17].

Core Viewpoint - Target Hospitality Corp. is expected to report a loss in Q1 2025, with significant declines in both earnings and revenues compared to the previous year, reflecting ongoing challenges in its business segments [1][2][3]. Financial Performance - The adjusted earnings for Q1 2025 are estimated to be a loss of $0.02 per share, a deterioration of 110% from the EPS of $0.20 reported in the same quarter last year [2]. - Revenue estimates for Q1 2025 are pegged at $65.4 million, indicating a decline of 38.7% from $106.7 million in the prior-year quarter [3]. Segment Performance - The Government segment's revenues are expected to be $23.7 million, down from $67.6 million in the prior-year quarter [4]. - Revenues from the Hospitality & Facilities Services – South segment are estimated at $35.8 million, a slight decrease from $36.9 million reported in the previous year [4]. Cost and Operational Challenges - The company's bottom line is anticipated to be negatively impacted by increased selling, general, and administrative expenses, alongside a declining top line [5]. - The adjusted gross profit for the Government and Hospitality & Facilities Services – South segments is projected to be $16.2 million and $11.5 million, respectively, both showing year-over-year declines [6]. Earnings Prediction Model - The current model does not predict an earnings beat for Target Hospitality, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 2 (Buy) [7][8].

Wall Street expects a year-over-year decline in earnings on lower revenues when Target (TGT) reports results for the quarter ended April 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 21. On the other ...

Target (NYSE: TGT ), a mega company whose stock price has been in free fall since September 2021. The price has fallen by more than 60% from its all-time high. Target is struggling with temporary challenges such asI'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in bot ...

Target's former chief diversity officer is weighing in on the backlash the retailer has faced over its rollback of DEI policies. Caroline Wanga, who left Target in 2020 and is now CEO of Essence, told NBC's Today show on Friday that Target "didn't walk away from DEI. They trained it.""If you do this thing right, you create a way that gives goals that can be measured to incent people into the behavior," she said. "Eventually the goal goes away because the behavior is embedded and you pick the next thing." ...

Core Insights - The retail sector is currently under scrutiny as major retailers like Walmart, Home Depot, Lowe's, and Target prepare to report their earnings [1] Earnings Performance - 20 out of 33 retailers in the S&P 500 Index have reported earnings, showing a 20.2% increase in earnings compared to the same period last year, with revenues up by 6.9%. 55% of these companies exceeded EPS estimates, while 45% surpassed revenue estimates. The overall retail sector is projected to achieve earnings growth of 20.1% and revenue growth of 7% [2] ETF Performance - Traditional retail ETFs are gaining attention, with SPDR S&P Retail ETF (XRT) and VanEck Vectors Retail ETF (RTH) increasing by approximately 13.3% and 9.8% respectively over the past month [3] Individual Retailer Insights - Walmart has an Earnings ESP of -1.76% and a Zacks Rank of 3, with a slight negative earnings estimate revision. The company has an average earnings surprise of 7.36% over the last four quarters and is set to report on May 15 [5] - Home Depot has an Earnings ESP of +0.43% and a Zacks Rank of 3, with no revisions in earnings estimates. The average earnings surprise over the last four quarters is 2.56%, and it will report on May 20 [6] - Lowe's has an Earnings ESP of -0.16% and a Zacks Rank of 3, with no revisions in earnings estimates. The average earnings surprise is 3.89%, and it is scheduled to report on May 21 [7] - Target has an Earnings ESP of -2.45% and a Zacks Rank of 4, with a negative earnings estimate revision. The average earnings surprise is 1.48%, and it will report on May 21 [8] - Nordstrom has an Earnings ESP of -25.37% and a Zacks Rank of 2, with no revisions in earnings estimates. The average earnings surprise is -26.1%, and it is set to report on May 29 [9] - Kohl's has an Earnings ESP of +35.91% and a Zacks Rank of 3, with a positive earnings estimate revision. The average earnings surprise is -166.43%, and it will report on May 29 [10] ETF Details - SPDR S&P Retail ETF (XRT) tracks the S&P Retail Select Industry Index, holding 76 diversified stocks with no single stock exceeding 2% of the total. It has an asset under management (AUM) of $437.7 million and an average trading volume of 7 million shares [11][12] - VanEck Vectors Retail ETF (RTH) tracks the MVIS US Listed Retail 25 Index, focusing on the 26 largest retail firms. It has an AUM of $239.6 million and trades an average of 6,000 shares daily [13][14]