As earnings week looms ahead, the stage is set for a tantalizing performance by three retail giants – Costco Wholesale, Target, and Foot Locker.
Costco’s Margin Woes
Costco Wholesale is teed up to unveil its Q2/24 earnings on March 7, post-market close. With analysts watching keenly, the consensus points to an EPS of $3.63 and revenues around $59.13 billion.
Despite outperforming expectations in the past two quarters, the outlook isn’t all sunshine and rainbows. ProTips indicate stormy weather with concerns around overbought stock, rich valuations, and weak gross profit margins.
Oracle’s Financial Fortunes
On the same day, Oracle is set to reveal its Q3/24 results. Analysts predict an EPS of $1.38 and revenues hitting $13.29 billion.
While exceeding EPS estimates in recent quarters, the tech giant has grappled with falling short on revenue expectations. InvestingPro suggests Oracle’s stock might be sailing at high prices, urging a cautious assessment.
Target’s Earnings Crosshairs
March 5 will see the unveiling of Target’s Q4/24 results just before the market welcomes the traders. Forecasting an EPS of $2.42 and revenues hovering around $31.86 billion, analysts brace for the impact.
However, recent downgrades in EPS forecasts shed light on potential challenges ahead. While Wall Street firms upgraded the retailer, all eyes are on the figures to see if Target can hit the bullseye.
Foot Locker Makes Its Stride
Foot Locker kicks off March 6 with its Q4/24 earnings report before the market awakens. Analysts project an EPS of $0.32 with revenues touching $2.27 billion.
Yet, dark clouds loom over Foot Locker’s horizon, with concerns ranging from heavy debts to forecasted drops in income. Investing Models suggest caution, hinting at potential stock overvaluation.
We expect 4Q inventory to be relatively clean but believe it will be challenging for FL to grow sales in F24 against heavy promotionally driven sales in F23.
With Wall Street analysts adjusting their forecasts for Foot Locker, it’s a stock to keep an eye on as investors navigate uncertain terrain.
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