Earnings expectations for Australia’s biggest companies are slipping after a bleak reporting season that jolted shares https://t.co/p1W4b8NdkN ...

Group 1 - Riskified Ltd. is set to release its second-quarter earnings results on August 18, with analysts expecting earnings of 2 cents per share, a decrease from 4 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $80.37 million, an increase from $78.73 million a year earlier [1] - Riskified's first-quarter results were better than expected, indicating potential positive momentum [1] Group 2 - Riskified shares experienced a decline of 1.5%, closing at $5.11 [2] - Analysts have provided various ratings for Riskified, with DA Davidson maintaining a Buy rating and raising the price target from $6 to $6.5 [4] - Piper Sandler reiterated an Overweight rating with a price target of $7, while JP Morgan maintained a Neutral rating and reduced the price target from $7 to $6 [4]

Core Viewpoint - Wendy's Company is expected to report a decline in earnings and revenue for the second quarter compared to the previous year [1][2] Financial Performance - Analysts predict quarterly earnings of 25 cents per share, down from 27 cents per share in the same period last year [1] - Projected quarterly revenue is $558.03 million, a decrease from $570.73 million a year earlier [1] Analyst Ratings and Price Targets - Citigroup analyst Jon Tower maintained a Neutral rating and reduced the price target from $13.75 to $11.5 [4] - B of A Securities analyst Gregory Francfort maintained a Buy rating but lowered the price target from $13 to $11 [4] - Morgan Stanley analyst John Glass kept an Underweight rating and cut the price target from $13 to $11 [4] - Truist Securities analyst Jake Bartlett maintained a Buy rating and reduced the price target from $16 to $14 [4] - BMO Capital analyst Andrew Strelzik maintained a Market Perform rating and lowered the price target from $17 to $15 [4] Stock Performance - Wendy's shares fell 0.8% to close at $9.96 on Thursday [2]

Core Insights - Flutter reported second-quarter earnings that exceeded Wall Street expectations, with adjusted earnings of $2.95 per share compared to an estimated $2.08, and revenue of $4.19 billion against a consensus of $4.13 billion [1] - The U.S. revenue for the quarter reached $1.79 billion, slightly above expectations, and adjusted EBITDA was nearly $100 million higher than analyst consensus [2] - Flutter raised its full-year guidance, attributing this to favorable U.S. sports results and tax changes [2] Performance Highlights - FanDuel, owned by Flutter, achieved a record gross revenue margin of 16.3% in June, benefiting from positive sports outcomes [2] - The company’s strong performance in the U.S. market is a key driver of its overall revenue growth [2] Regulatory Concerns - CEO Peter Jackson expressed concerns about state taxes potentially driving gamblers to offshore illegal sportsbooks, citing Illinois as a specific example where tax changes could negatively impact casual users [3]

Group 1: Barclays - Barclays stock reached a 52-week high of $20 after reporting Q2 EPS of $0.62, exceeding estimates by 24% [2] - Year-over-year, Barclays' Q2 earnings increased by 47% from $0.42, driven by a 20% sales growth to $9.59 billion [2][3] - The bank's valuation remains attractive, trading at 8.9X forward earnings and under 2X forward sales, compared to European peers [3] Group 2: Cincinnati Financial - Cincinnati Financial reported Q2 EPS of $1.97, surpassing estimates by nearly 42% and reflecting a 53% increase from $1.29 in Q2 2024 [4] - The company has a 2.28% annual dividend yield, significantly higher than the S&P 500's average of 1.16% and the industry average of 0.27% [5] - Cincinnati Financial is recognized as a Dividend King, having increased its dividend for over 50 consecutive years with an annualized growth rate of 8.39% [5] Group 3: LendingClub - LendingClub posted Q2 earnings of $0.33, exceeding estimates by 120% and increasing from $0.13 in the prior year [8] - The company achieved Q2 sales of $248.43 million, which was 10% above expectations and a 32% increase from $187.24 million a year ago [8] - LendingClub has consistently surpassed EPS estimates for 10 consecutive quarters, with an average earnings surprise of 53.93% in the last four reports [9]

Group 1 - Waste Management, Inc. is set to release its second-quarter earnings results on July 28, with expected earnings of $1.89 per share, an increase from $1.82 per share in the same period last year [1] - The company is projected to report quarterly revenue of $6.36 billion, up from $5.4 billion a year earlier [1] - John Morris has been appointed as President of Waste Management as of May 14 [1] Group 2 - Waste Management shares experienced a decline of 0.4%, closing at $229.67 [2] - Analysts have provided various ratings and price targets for Waste Management, with Raymond James maintaining an Outperform rating and raising the price target from $255 to $256 [4] - Oppenheimer also maintained an Outperform rating, increasing the price target from $255 to $260 [4] - Scotiabank raised its price target from $260 to $265 while maintaining a Sector Outperform rating [4] - RBC Capital reiterated a Sector Perform rating with a price target of $229 [4] - BMO Capital maintained a Market Perform rating and raised the price target from $241 to $245 [4]

Core Insights - Capital One has significantly outperformed expectations in Q2 earnings, setting a high standard for competitors like Visa and Mastercard [1][3][4] Financial Performance - Q2 sales increased by 31% to $12.49 billion, surpassing estimates of $12.22 billion [4] - Q2 earnings per share (EPS) rose 74% to $5.48, exceeding the Zacks EPS Consensus of $3.83 by 43% [4][6] - Capital One has achieved an average earnings surprise of 23.02% over the last four quarters [4][6] Acquisition Impact - The acquisition of Discover Financial Services contributed $2 billion in revenue during Q2 and expanded Capital One's credit card and payment networks [3] - Capital One acquired $98.3 billion in domestic card loans and $9.9 billion in personal loans from Discover, along with $106.7 billion in deposits [9] Future Outlook - Capital One reaffirmed its full-year fiscal 2025 outlook, expecting revenue to rise 36% to $53.29 billion, above the Zacks Consensus of $52.3 billion [10] - Annual earnings are projected to increase by 9% to $15.25 per share, although this is below previous expectations of $15.51 [10] Valuation Metrics - Capital One trades at 14X forward earnings, significantly lower than the S&P 500's 24X and Visa and Mastercard's multiples of 30X and 34X, respectively [11] - The stock also trades under 2X forward sales, compared to Visa and Mastercard's over 17X [11] Investment Considerations - Despite not raising its full-year guidance, the reaffirmation of outlook indicates the positive impact of the Discover acquisition [13] - Future upside may depend on positive earnings estimate revisions for FY26, as FY25 EPS estimates are expected to decline [14]

Group 1 - Macy's, Inc. is set to release its first-quarter earnings results on May 28, with analysts expecting earnings of 15 cents per share, a decrease from 27 cents per share in the same period last year [1] - The projected quarterly revenue for Macy's is $4.43 billion, down from $4.85 billion a year earlier [1] - The company's board declared a regular quarterly dividend of 18.24 cents per share on May 16 [1] Group 2 - Macy's shares increased by 4.1% to close at $12.04 on Tuesday [2] - Recent analyst ratings show a mix of downgrades and maintained ratings, with Morgan Stanley maintaining an Equal-Weight rating and lowering the price target from $14 to $12 [7] - Goldman Sachs downgraded Macy's from Buy to Neutral, cutting the price target from $17 to $12 [7]

Core Viewpoint - Home Depot is set to release its first-quarter earnings results, with expectations of a slight decline in earnings per share but an increase in revenue compared to the previous year [1]. Financial Performance - Analysts predict Home Depot will report earnings of $3.59 per share, down from $3.63 per share in the same quarter last year [1]. - The company is expected to report quarterly revenue of $39.14 billion, an increase from $36.42 billion a year earlier [1]. Analyst Ratings - Home Depot has exceeded revenue estimates in two consecutive quarters and six out of the last ten quarters [2]. - Recent analyst ratings include: - Wells Fargo maintains an Overweight rating, lowering the price target from $445 to $420 [8]. - Truist Securities maintains a Buy rating, raising the price target from $391 to $393 [8]. - JP Morgan maintains an Overweight rating, reducing the price target from $470 to $410 [8]. - Morgan Stanley maintains an Overweight rating, cutting the price target from $450 to $410 [8]. - Piper Sandler maintains an Overweight rating, lowering the price target from $435 to $418 [8].

Group 1 - CAVA Group, Inc. is set to release its first-quarter earnings results on May 15, with analysts expecting earnings of 15 cents per share, an increase from 13 cents per share in the same period last year [1] - Projected quarterly revenue for CAVA is $327.71 million, up from $259.01 million a year earlier [1] - CAVA Group will replace Altair Engineering in the S&P MidCap 400, as announced by S&P Dow Jones Indices on March 26 [1] Group 2 - CAVA shares experienced a slight decline of 0.2%, closing at $99.54 on Wednesday [2] - Analysts have provided various ratings for CAVA, with UBS maintaining a Neutral rating and lowering the price target from $125 to $112 [7] - Barclays also maintained an Equal-Weight rating, reducing the price target from $104 to $90 [7] - TD Securities kept a Buy rating but cut the price target from $130 to $120 [7] - Baird maintained an Outperform rating, lowering the price target from $125 to $105 [7] - JP Morgan upgraded the stock from Neutral to Overweight with a price target of $110 [7]