LULU - Are Lululemon's Investors Overreacting To Lackluster Guidance? 8 Analysts Explore Q4 Results Future Outlook | Benzinga
Shares of Lululemon Athletica Inc (NASDAQ: LULU) tanked in early trading on Friday, even after the company reported upbeat earnings results for its fourth quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.
Truist Securities On Lululemon Athletica
Analyst Scot Ciccarelli reiterated a Buy rating, while reducing the price target from $561 to $498.
Although Lululemon Athletica reported a "solid” beat for the fourth quarter, its 2024 guidance came in below expectations "due to slowing US trends in a challenging environment,” Ciccarelli said in a note.
The main concerns for investors include the company's revenue growth forecast for fiscal 2024 at 11% to 12%, which falls short of the Street's earlier projection of about a 14% increase. Additionally, the forecasted revenue growth of 9% to 10% for the first quarter indicates "an incrementally more back-weighted outlook,” the analyst stated. "While the slowdown is concerning, we view the outlook as conservative and expect beats & raises this year,” he added.
JPMorgan On Lululemon Athletica
Analyst Matthew Boss maintained an Overweight rating, while cutting the price target from $531 to $509.
Lululemon Athletica’s revenue growth in the fourth quarter was driven by 54% year-on-year growth in International, with the People’s Republic of China growing 74% versus 53% in the previous quarter, Boss said.
Although the company’s earnings guidance for fiscal 2024 came in the range of $14.00 to $14.20 per share, below the Street expectations of $14.30 per share, management has "outpaced initial EPS guidance by ~14% over the past 3 years,” the analyst noted.
Wedbush On Lululemon Athletica
Analyst Tom Nikic reaffirmed an Outperform rating, while slashing the price target from $548 to $492.
While growth in North America is moderating, Lululemon Athletica’s international performance "remains hot,” ...