Lululemon Stock Analysis: Earnings Expectations and Insights
Insights into Lululemon's Earnings Performance
Lululemon Athletica Inc. (NASDAQ: LULU) is in the spotlight as it prepares to disclose its second quarter earnings results later today. Investors and analysts are keenly watching the developments, eager to see if the company will continue its trend of beating earnings expectations.
What Analysts Expect
Analysts have projected earnings per share (EPS) of $2.88 and are forecasting a revenue of $2.54 billion. Lululemon had earlier provided guidance indicating expected net revenue between $2.53 billion and $2.56 billion for this quarter, indicating robust performance.
Recapping Recent Performance
In the first quarter, Lululemon outperformed market expectations with an EPS of $2.60, surpassing the consensus estimate of $2.58. Additionally, the company achieved a revenue of $2.37 billion, slightly exceeding the anticipated $2.36 billion. This solid track record can foster investor confidence.
Recent Earnings History
The company's ability to consistently surpass earnings expectations in recent quarters highlights its strong market position and effective business strategies.
Analysts' Price Target Adjustments
Prior to the earnings announcement, several analysts expressed their perspectives by adjusting price targets for Lululemon's stock. Noteworthy changes include:
- Needham's Tom Nikic has maintained a Buy rating while revising the price target down from $317 to $238.
- Citigroup’s Paul Lejuez retains a Neutral rating, lowering the target from $270 to $220.
- BTIG’s Janine Stichter holds a Buy rating and adjusts the target from $405 to $375.
- B of A Securities' Lorraine Hutchinson keeps a Buy rating with a revised price target of $300, down from $370.
- Morgan Stanley’s Alexandra Steiger maintains an Equal-Weight rating, reducing the target from $280 to $223.
Investment Considerations
The consensus price target for Lululemon is now identified at $303.98. The spectrum of expectations varies widely, with the lowest price target at $200.00 and the highest reaching as high as $500.00. Such differing targets reflect the varying optimism among analysts regarding the brand’s future growth.
LULU Stock Movement
Currently, Lululemon shares are trading approximately 2.36% higher at $203.22. Investors will be keen to see how the earnings release influences market behavior.
Frequently Asked Questions
What are the earnings expectations for Lululemon?
Analysts expect Lululemon to report earnings per share of $2.88 and revenue of $2.54 billion.
How did Lululemon perform in the previous quarter?
In its first quarter, Lululemon reported an EPS of $2.60 and revenue of $2.37 billion.
What is the consensus price target for Lululemon stock?
The consensus price target for Lululemon is currently $303.98.
What do analysts say about Lululemon?
Analysts have adjusted their price targets, with changes ranging from $238 to $375, reflecting a mix of expectations.
How is Lululemon stock performing today?
As of now, Lululemon stock is trading 2.36% higher at $203.22.
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