Shares of Target (TGT) are up nearly 12% on the day after crushing earnings and raising its full-year 2019 forecast. CEO Brian Cornell said the results are “further proof of the durability” of Target’s investment strategy, as the retailer has an “unmatched suite of easy and convenient fulfillment options,” notes CNBC.
EPS of $1.36 beat expectations of $1.19. Revenue of $18.67 billion was better than estimates for $18.49 billion. Same store sales growth of 4.5% was better than estimates for 3.6%. Better, the company anticipates full-year adjusted earnings per share to fall within a range of $6.25 to $6.45, compared with a prior estimate of $5.90 to $6.20. Analysts were looking for EPS of $6.18.
Lowe’s Jumps on Raised Forecast
Lowe’s (LOW) is up 5%, or $5.72 on the day after beating expectations. It posted an adjusted profit of $1.41, which was above forecasts for $1.35. Revenue of $17.39 billion also beat estimates for $17.68 billion. Same-store sales growth of 2.2% was below 3.1% estimates.
Lowe’s expects to earn $5.63 to $5.70 in 2019, compared with earlier calls for $5.67.
“We were pleased with the performance of our U.S. home improvement stores, which reflects a solid macroeconomic backdrop and continued progress in our transformation driven by investments in customer experience, improved merchandise category performance, and continued growth of our Pro business,” CEO Marvin Ellison said, as quoted by CNBC.
Canopy Growth Upgraded by Bank of America
“The worst looks over” for the stock, said Bank of America, which also upgraded the stock to a buy rating from neutral.
Better, the House Judiciary Committee to advance a bill that would lift the federal ban on cannabis known as the Marijuana Opportunity Reinvestment and Expungement Act (More Act). “Our marijuana laws disproportionately harm individuals and communities of color, leading to convictions that damage job prospects, access to housing, and the ability to vote.” Committee Chairman Jerrold Nadler said, as quoted by MarketWatch.
“Recognizing this, many states have legalized marijuana. It’s now time for us to remove the criminal prohibitions against marijuana at the federal level,” he added.