Wall Street expects Dollar Tree, Inc. (NASDAQ:DLTR) to post quarterly earnings at 87 cents per share on revenue of $7.18 billion before the opening bell. Dollar Tree shares gained 0.6% to $143.00 in after-hours trading.
NVIDIA Corporation (NASDAQ:NVDA) reported better-than-expected second-quarter financial results and issued strong revenue guidance for the third quarter. The company’s board also approved an additional $25 billion in share repurchases. NVIDIA shares jumped 6.6% to $502.15 in the after-hours trading session.
Analysts are expecting Ulta Beauty, Inc. (NASDAQ:ULTA) to have earned $5.85 per share on revenue of $2.51 billion for the latest quarter. The company will release after the markets close. Ulta Beauty shares gained 0.8% to $441.48 in after-hours trading.
Guess?, Inc. (NYSE:GES) reported upbeat financial results for the second quarter and issued FY24 earnings guidance above estimates. Guess shares surged 18.5% to $21.70 in the after-hours trading session.
Analysts expect Intuit Inc. (NASDAQ:INTU) to report quarterly earnings at $1.43 per share on revenue of $2.64 billion after the closing bell. Intuit shares gained 0.1% to $501.52 in after-hours trading.
NVIDIA Corporation (NASDAQ:NVDA) reported better-than-expected second-quarter financial results and issued strong revenue guidance for the third quarter. The company’s board also approved an additional $25 billion in share repurchases. NVIDIA shares jumped 6.6% to $502.15 in the after-hours trading session.
Analysts are expecting Ulta Beauty, Inc. (NASDAQ:ULTA) to have earned $5.85 per share on revenue of $2.51 billion for the latest quarter. The company will release after the markets close. Ulta Beauty shares gained 0.8% to $441.48 in after-hours trading.
Guess?, Inc. (NYSE:GES) reported upbeat financial results for the second quarter and issued FY24 earnings guidance above estimates. Guess shares surged 18.5% to $21.70 in the after-hours trading session.
Analysts expect Intuit Inc. (NASDAQ:INTU) to report quarterly earnings at $1.43 per share on revenue of $2.64 billion after the closing bell. Intuit shares gained 0.1% to $501.52 in after-hours trading.
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NewsTranscript
00:00 Good morning, Zinger Nation!
00:04 Today is Thursday, August 24th, 2023.
00:09 Welcome back to Daily Stocks to Watch.
00:12 Great to be with you here, folks.
00:14 Now 913 Eastern Time, 17 minutes before market open.
00:18 It is a beautiful sunny day where I am.
00:21 I hope that your Thursday is going well.
00:24 We've got a great list here for you fresh off the Benzinga Pro News Desk.
00:28 One obviously that we're going to talk about, but some other good stuff as well.
00:33 And let's get in there and dive in.
00:36 Stock to watch number one, we've got Dollar Tree.
00:39 That's ticker DLTR.
00:42 We have stock to watch number two.
00:43 We've got Nvidia Corporation.
00:45 That's ticker NVDA, the big one to talk about.
00:48 We're going to dive in there in just a little bit.
00:51 Stock to watch number three, we've got Ulta Beauty.
00:53 That's ticker ULTA.
00:54 Ulta, we love to see that.
00:57 Stock to watch number four is Guess Incorporated.
01:00 That's ticker GES.
01:01 And number five, we've got Intuit Incorporated.
01:04 That's ticker INTU.
01:08 Starting off with Dollar Tree, wanted to get this one out to you guys.
01:11 That's ticker DLTR.
01:12 It makes me think of TLDR, but I don't know if there actually is a ticker TLDR.
01:18 That could be a funky, for anyone who doesn't know, too long didn't read is the acronym
01:25 there.
01:26 But Dollar Tree is DLTR, and they're going to be posting their quarterly earnings expectations,
01:31 87 cents per share, revenue of 7.18 billion was the expectations.
01:39 However, trading significantly lower after results and not looking too great for Dollar
01:46 Tree on the morning.
01:47 Wanted to get this to you because this is a down remover as opposed to our next one,
01:51 but down over 7% already on the opening bell.
01:55 Things were doing pretty good after hours yesterday.
01:57 Expectations were doing okay.
01:59 Not great news this morning for Dollar Tree.
02:01 We've seen this out of a couple big retail names recently.
02:06 Some bad guidance, some bad news for some of these brick and mortar companies.
02:11 We had kind of, I want to tie this into the broader idea of, seemed like we had big fears
02:17 of a recession a few months ago for a while.
02:20 There was a long-term spat of, "Oh, things are going to get worse.
02:24 Things are going to get worse."
02:26 And then things kind of got better.
02:27 Things are, or at least stayed the same.
02:28 And a lot of these retail names were doing pretty well.
02:32 More recently, as optimism has increased and become more of the norm, it seems like things
02:38 for some of these companies are not doing as well.
02:40 I just had an interesting discussion with a colleague about this and about how the broader
02:46 markets are doing, how the macro environment is doing.
02:49 I think companies like Dollar Tree, ticker DLTR, are great to watch if you want some
02:54 insight into how things are going on, boots on the ground, storefronts, what's going on.
02:59 Now maybe there's an argument to be made for, "Oh, well, because Dollar Tree is on the extreme
03:07 low end cost savings, it's very, very cost-effective to shop at Dollar Tree side of things.
03:16 Maybe consumers are switching more towards the more expensive side."
03:19 But we've seen some of the luxury players with earnings coming out recently and not
03:25 always great results.
03:26 So I think watching names like Dollar Tree, 100% worthwhile, whether you own shares or
03:33 not, but to gauge how consumer environment is doing, how the macro environment is doing.
03:38 This is a loser for the day down almost, well, down below 7% now, maybe come back a little
03:45 bit.
03:46 Moving on to our big winner of the day and really of yesterday, but that's Nvidia Corporation,
03:51 that's ticker NVDA.
03:53 This was mind boggling, folks.
03:56 I was surprised at the raw percentages, the raw numbers coming out of Nvidia.
04:03 This is just wild.
04:06 Reporting better than expected second quarter financial results, more sales, beat on earnings,
04:11 beat on everything, strong revenue guidance as well for the third quarter, $25 billion
04:17 in share buybacks, shares jumping over 7.5% on the morning.
04:22 Now, I want to highlight this report that we have for you as well.
04:27 This is from Extreme Tech, a very interesting report that producer Asley found for us, reporting
04:33 that Nvidia is raking in a thousand percent, not a thousand dollars, a thousand percent
04:40 profit on every H100 AI accelerators.
04:45 This is a highly specialized GPU.
04:48 And I wanted to highlight this because I think this is getting to the meat of why Nvidia's
04:54 price is where it is, why they've done so well over the last few quarters, what is going
05:00 on and what the future could hold and why I think going back to the comparison we looked
05:05 at a couple of days ago, is Nvidia the next Apple type company where they just are able
05:12 to pile cash, they're able to innovate, create products.
05:16 Now this is something that the H100 AI accelerator is not going to be as ubiquitous as the iPhone.
05:24 Nvidia I think is the non-consumer Apple type company where they're making the stuff that
05:31 is powering the Apples of the world, the companies that are directly interfacing with you and
05:37 me.
05:38 Nvidia is the company behind them making these things possible.
05:42 So it's not as glamorous, it's not as easily recognized as Apple, but it's behind the scenes
05:49 and it's doing some crazy stuff that at least to me are ringing some similar bells to what
05:56 Apple has done over the last couple of, really last decade or so.
05:59 But to give you some perspective, the sticker price for one of these GPUs is $3,320 and
06:08 essentially the ballpark estimate of what each one would cost pulls in a profit of roughly
06:13 a thousand percent on every one sold, which is pretty darn wild.
06:17 This came from financial services from Raymond James and tweeted by Barron's advisor, Atae
06:23 Kim.
06:24 And the report's just that costs Nvidia roughly $3,320 for the chip and the components, the
06:30 bill of materials.
06:32 So that I'm sorry, that's the cost is $3,320 for Nvidia.
06:36 I forgot to get that in perspective.
06:39 It sells, Nvidia sells these chips for between $25,000 and $30,000 a pop depending on the
06:46 quantity.
06:47 So as low as $25,000, that's pretty darn insane.
06:52 That is, if that's accurate, that's absolutely bonkers.
06:58 And I think that shows the value add that Nvidia is able to pull off, the amount of
07:03 technology they've invested in, the amount of expertise that they have now.
07:08 Just wanted to give you that as some context for how we're seeing such a wild movement
07:13 market cap over $1.16 trillion now, $504 per share about, and a monster $2.70 EPS compared
07:26 to $2.09 estimate.
07:28 Pretty darn wild guys.
07:29 I got to admit, I'm surprised.
07:31 I'm impressed.
07:33 Nvidia going wild and 100% a stock to be watching today and coming up in the future.
07:41 Number three, we've got Ulta Beauty, that's ticker ULTA, Ulta.
07:46 And we've got another earnings for you.
07:47 We want to get you these, we've talked a lot about earnings recently, but we've got good
07:51 earnings and good ones to watch.
07:54 Expectations are $5.85 per share on revenue of just over $2.5 billion for the previous
08:01 quarter.
08:02 They're going to be releasing today after markets close.
08:06 And this is one to be looking at as well, folks, especially in the consumer environment.
08:09 You got to watch and see because I think the difference between something like Ulta and
08:14 Dollar Tree is important to be looking at.
08:17 We're also going to talk about one more consumer retail company as well right after here.
08:24 But I wanted to highlight Ulta because we've talked about Ulta numerous times in the past.
08:29 Really whenever they're reporting earnings are a good one to watch.
08:32 The street is watching these types of names closely that are tied into the lipstick trend.
08:39 Even if markets in a downward position, there's generally still people going out and buying
08:46 makeup.
08:47 It's a cheap thing to cheap luxury product.
08:50 There's all sorts of research and reports on how these type of names can do well in
08:55 multiple environments, more dependent on consumer preferences on changing trends than you might
09:03 think, than even market conditions.
09:05 So beauty, definitely one to watch and whether or not you're invested worthwhile to listen
09:11 in on to get their take on where things are going.
09:15 Stock to watch number four, we've got Guess Incorporated.
09:18 And this is one I wanted to highlight, especially as well as a comparison to Dollar Tree, a
09:23 little context for Ulta, a little context for Nvidia as well, reporting pretty darn
09:28 good upbeat financial results for the second quarter and issuing solid fiscal year 2024
09:34 earnings guidance above estimates jumped up over 18% after ours yesterday, still up over
09:41 17%.
09:42 This was a big move for Guess.
09:46 This is a company that I definitely know people who shop at Guess and buy the jeans and buy
09:52 the clothes and everything.
09:54 I'm not necessarily a huge person, but when you look at the raw numbers, I mean, a P/E
09:58 ratio of 9.74, that's pretty darn good.
10:02 We've got a 5.32% dividend yield.
10:05 This is like industrial, it's almost an oil company with those types of numbers.
10:12 Pretty darn decent, $0.72 per share, well over the $0.40 per share estimate.
10:19 Guess what?
10:20 Maybe Guess is a value name, a real, I mean, a bona fide value stock at this point.
10:26 Not necessarily, you know, we don't give financial advice out here, but that's legitimately impressive.
10:31 This was another one that I wanted to highlight as, wow, that was impressive.
10:36 I don't know tons of people who anecdotally shop at Guess, but maybe they're just good
10:41 at keeping costs low.
10:43 Maybe they're just good at what they're doing and are a standout retailer.
10:47 Who knows?
10:49 Definitely one to watch though.
10:51 Stock to watch, number five, closing it out, we've got Intuit Incorporated, that's ticker
10:56 I-N-T-U, and they're also going to be reporting their earnings after the closing bell, similar
11:02 to Ulta, so pick and choose, but 100% one to watch.
11:07 Their expectations of about $1.43 per share on revenue of just over $2.6 billion, and
11:16 shares are fluctuating around a little bit, pretty darn stable though, right around that
11:21 $503, $504 per share mark.
11:25 Intuit is one of the big names, everyone knows TurboTax, most people know TurboTax, one of
11:32 those big consumer professional services companies.
11:36 Interesting to see whether or not they comment on, and I think this is something to watch
11:39 for the increased budget for the IRS, the increased, at least anecdotally, it seems
11:47 there's more audits going on, more of a crackdown on US tax, and I think Intuit could be a company
11:55 that is one to watch, especially if this becomes a significant trend, a long-term trend, could
12:02 mean more business for Intuit.
12:04 All right, we're going to go back over our list, get you out to your trading day, we've
12:09 still got five minutes before market opens, so I'm going to get a cup of coffee and sit
12:13 down and relax and enjoy the show, if you know what I'm saying.
12:16 Stock to watch number one, we've got Dollar Tree, that's ticker D-L-T-R.
12:20 Number two is Nvidia, that's ticker N-V-D-A.
12:24 Number three was Ulta Beauty, that's ticker U-L-T-A.
12:27 Number four was Guess, that's ticker G-E-S.
12:31 And stock to watch number five is Intuit, that's ticker I-N-T-U.
12:35 Hope everyone has a wonderful Thursday, wonderful closeout to the week.
12:39 We'll still be sending out the newsletter Friday and Monday, but I will be gone, so
12:44 you won't be able to watch us live tomorrow or Monday, but we'll be back live and better
12:49 than ever on Tuesday.
12:51 Hope everyone has a wonderful day and a wonderful weekend.
12:55 We'll catch you Tuesday.
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