Day: October 9, 2024

Delta Air Lines, Inc. DAL will release earnings results for its third quarter, before the opening bell on Thursday, Oct. 10.

Analysts expect the Atlanta, Georgia-based company to report quarterly earnings at $1.51 per share, down from $2.03 per share in the year-ago period. Delta Air projects to report revenue of $14.71 billion for the quarter, compared to $14.55 billion a year earlier, according to data from Benzinga Pro.

On Sept. 12, Delta reportedly said FY24 EPS is expected to be at or above the midpoint of the $6-$7 range, with September quarter ASMs up around 4% YoY.

Delta Air shares gained 2.3% to close at $50.62 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

• Jefferies analyst Sheila Kahyaoglu maintained a Buy rating and raised the price target from $56 to $60 on Oct. 2. This analyst has an accuracy rate of 71%.
• Citigroup analyst Stephen Trent maintained a Buy rating and boosted the price target from $55 to $65 on May 29. This analyst has an accuracy rate of 70%.
• Deutsche Bank analyst Michael Linenberg maintained a Buy rating and increased the price target from $50 to $60 on April 11. This analyst has an accuracy rate of 74%.
• UBS analyst Atul Maheswari initiated coverage on the stock with a Buy rating and a price target of $59 on March 20. This analyst has an accuracy rate of 66%.
• JP Morgan analyst Jamie Baker maintained an Overweight rating and slashed the price target from $71 to $68 on Oct 13, 2023. This analyst has an accuracy rate of 63%.

Considering buying DAL stock? Here’s what analysts think:

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Theratechnologies THTX is preparing to release its quarterly earnings on Thursday, 2024-10-10. Here’s a brief overview of what investors should keep in mind before the announcement.

Analysts expect Theratechnologies to report an earnings per share (EPS) of $0.03.

Investors in Theratechnologies are eagerly awaiting the company’s announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It’s worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.04, leading to a 3.33% drop in the share price the following trading session.

Here’s a look at Theratechnologies’s past performance and the resulting price change:

Market Performance of Theratechnologies’s Stock

Shares of Theratechnologies were trading at $1.21 as of October 08. Over the last 52-week period, shares are down 31.35%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

To track all earnings releases for Theratechnologies visit their earnings calendar on our site.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

JPMorgan analyst Matthew R. Boss flagged several troubling signs for Nike Inc NKE, which may have investors tightening their seatbelts.

Boss maintains a neutral rating with a price target of $77 for December 2025 on Nike stock. His insights from the filing reveal potential challenges that could impact Nike’s growth trajectory.

Ominous Omission: Supply Chain Concerns

A significant red flag Boss noticed in Nike’s latest 10-Q filing is the absence of the “Supply Chain Conditions” reference, a staple in previous quarterly filings. This omission suggests a departure from previously reassuring statements about inventory health.

Boss points out that while Nike reported a 5% decline in inventories, revenues fell by 10%, indicating a widening gap that investors should watch closely.

Read Also: What’s Going On With Nike Stock?

New ‘Marketplace Management’ Factor: A Shaky Shift

Nike introduced a “Marketplace Management” factor, indicating a strategic pivot to balance product distribution between direct operations and wholesale partners.

However, this shift comes on the heels of disappointing first-quarter results, with traffic declines across both Nike Brand Digital and physical stores.

Boss warns that the competitive environment is fierce, and the company’s ability to regain market share could be jeopardized.

Greater China: The Weak Link

Nike’s performance in Greater China represents a significant concern. With comparable store sales down 8% in the first quarter, this region is facing intense competition from local brands.

As Boss notes, the company is struggling with declining unit sales across its key categories, including a 10% drop in footwear and a 12% drop in apparel. This underperformance signals an urgent need for Nike to rethink its strategy in one of its most critical markets.

Margin Compression: A Looming Threat

In addition to declining sales, Nike’s gross margins are under pressure. Management revealed a rise in inventory obsolescence reserves, particularly in Greater China, which contributed to a 60bps decline in gross margins.

As promotional activities ramp up to clear excess inventory, Boss highlights the need for vigilance, as the company’s gross margin guidance indicates a potential 150bps decline year-over-year for the second quarter.

Proceed With Caution

With these red flags waving, investors should be cautious. Nike’s path forward will depend heavily on how well it navigates these challenges in the upcoming quarters.

As Boss emphasizes, in this evolving landscape, execution will be critical for maintaining growth for Nike.

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Image: Shutterstock

Analog Devices ADI announced the launch of CodeFusion Studio, a new embedded software development environment based on Microsoft’s Visual Studio code on Monday.

This will be ADI’s first-ever fully integrated suite comprising software and security solutions.

CodeFusion Studio uses a modern integrated development environment and command-line interface, incorporating open-source configuration and profiling tools to simplify development on multiple processors and drive efficiency and enhanced security.

CodeFusion Studio will be available for download on ADI’s new Developer Portal, a complete resource hub, offering extensive documentation, support, partnerships and community engagement.

ADI’s Strong Partner Base Aids Prospects

Analog Devices’ strategic partnership with India’s Tata Group to boost the latter’s electronic manufacturing ecosystem marks a significant achievement. Tata Electronics, Tata Motors and Tejas Networks signed a Memorandum of Understanding with ADI to use its products in Tata applications mostly in electric vehicles and network infrastructure.

ADI’s latest collaboration with Honeywell HON to digitize commercial spaces without replacing existing wiring, reducing costs and downtime is a notable development.

Analog Devices recently teamed up with Taiwan Semiconductor TSM to secure long-term wafer capacity via Japan Advanced Semiconductor Manufacturing. This partnership, while ensuring a stable chip supply and facilitating rapid scaling and increased output to meet customer needs can be beneficial for ADI.

Analog Devices and BMW Group’s announcement of the early adoption of E²B, ADI’s 10BASE-T1S Ethernet to the Edge bus technology within the automotive industry, is a noteworthy development. BMW will leverage ADI’s E²B for ambient lighting system design in its vehicles.

Analog Devices Suffers Persistent Headwinds

Despite having a diverse portfolio and strategic alliances, macroeconomic challenges remain a concern. Geopolitical tensions and recessionary fears are major negatives.

ADI faces stiff competition from players like Texas Instruments TXN, which is also making efforts to integrate generative AI capabilities into its products.

On a year-to-date basis, ADI has underperformed TXN, which gained 18.5%.

ADI shares have plunged 15.5% year to date against the broader Zacks Computer and Technology sector’s return of 22.2%.

In the first half of fiscal 2024, ADI reported revenues of $4.67 billion, down 36% year-ago period. This underperformance can be firmly pointed toward the softness in the industrial, communications and automotive end markets.

Earnings Estimate Revisions Trend Higher for ADI

For fourth-quarter fiscal 2024, ADI expects revenues of $2.40 billion (+/- $100 million), up 4% sequentially at the midpoint.

The Zacks Consensus Estimate for fourth-quarter fiscal 2024 revenues is pegged at $2.40 billion, indicating a fall of 11.58% year over year.

ADI anticipates a non-GAAP operating margin of 41% (+/- 100 bps).

It expects the Industrial and Consumer end markets to increase, Communications to be flattish and Automotive to decrease.

ADI expects non-GAAP earnings to be $1.63 (+/- $0.10) per share.

The consensus mark for fourth-quarter fiscal 2024 earnings is pegged at $1.63 per share, up by a couple of pennies for the past 60 days, suggesting a decline of 18.91% year over year.

Zacks Rank and Valuation

ADI shares currently have a stretched valuation, as suggested by a Value Score of D.

Analog Devices stock is trading with a forward 12-month Price/Sales of 11X compared with the industry’s 7.85X.

ADI currently carries a Zacks Rank #3 (Hold), implying that investors should wait for a favorable entry point to accumulate the stock.

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