The retail giant reported a reasonable sales and earnings report that hit estimates for the second quarter. This sent shares higher, as earnings of $1.77 per share exceeded the expectation of $1.63.
One bright area is guidance. It now expects earnings per share to decline between 9% to 11% for the 2023 fiscal year, which is lower than the previously guided range of 11% to 13%. Optimism rises with such commentary as the company shifts its focus on essentials, and the price cut due to large inventory had already peaked in the last quarter. So the massive damage to the topline and profit margin may be over.
💣Meme Stocks: Bed Bath & Beyond rose sharply🕹
It was a terrible trading day for Pika World as we expect to incur significant losses with our poor trading set-up on meme stocks, particularly BBBY. Yeah, it is painful. Analysts are calling for the current price to be unreasonable given that the company is facing liquidity issues in an upcoming August 2024 $300 million note.
It is a tough week, and we hope to minimize losses and restrain our FOMO sentiments.
📱Lumentum Holdings: An indication of slowing consumer spending?📉
The company shares fell after the earnings outlook was less rosy than expected. The laser manfaucter guided much lower earnings per share between $1.45 to $1.70 per share, a far cry from Wall Street’s estimate of $1.71.
The company is strategically growing pain as it looks to finish its acquisition of NeoPhotonics, a laser manufacturer. Likewise, it is on the move to purchase IPG Photonics telecom assets. This will help provide a firmer value proposition in the cloud and networking client group.
Pika World will closely monitor the latest data released today for more insights on consumer spending behaviour.
🎙What’s on the menu today?🗽
At 8.30 pm, we will welcome the Core Retail Sales, and we expect it to decline by 0.1% every month.
At 9.30 pm, we expect FOMC member Bowman to speak. Analysts will be looking for clues on any future hike indication.
At 2am, we will receive the recent FOMC minutes. It comes after a string of economic data that shows inflation is possibly peaking and moderating; hence, investors may not place immense hope on the minutes. Nonetheless, if any indication of a more aggressive hike is discussed and the Fed seeks to see more cycles of inflation figures before deciding on a rate hike, market movement may be aggressive.
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