5 big earnings reports: Costco, Dell slump after results | Pro Recap

By Davit Kirakosyan

Investing.com -- Here is your daily Pro Recap of the biggest earnings headlines you may have missed on InvestingPro since yesterday's close. Start your free 7-day trial to get this news first.

Costco reports mixed Q2 results, shares down 2%

Costco (NASDAQ:COST) shares were trading more than 2% lower pre-market after the company announced mixed Q2 results. EPS was $3.30, better than the consensus estimate of $3.21. Revenue increased 6.5% year-over-year to $54.24 billion, missing the consensus estimate of $55.55B as consumers are limiting their spending on discretionary items because of the continued high inflation.

Following the earnings release, Bernstein lowered its price target on the company to $568 from $586 while maintaining an Outperform rating.

Dell Technologies reports Q4 beat, announced CFO retirement, hikes dividend

Dell Technologies (NYSE:DELL) reported its Q4 results, with EPS of $1.80 coming in better than the consensus estimate of $1.65. Revenue was $25B, beating the Street estimate of $23.51B.

The company announced that Tom Sweet would retire as CFO at the end of Q2, and will be succeeded by Yvonne McGill.

Furthermore, the company hiked its dividend by 12.1% to $0.37 per share, or $1.48 annualized, for an annual yield of 3.7%.

Following the results, several analysts lowered their price targets on the stock, including Morgan Stanley with a new price target of $45.00 (from $47.00), Evercore ISI with a new price target of $46.00 (from $48.00), and Citi with a new price target of $50.00 (from $53.00).

Shares were down more than 3% pre-market today.

Hewlett Packard Enterprise beats Q1 estimates, raises 2023 guidance

Hewlett Packard Enterprise (NYSE:HPE) shares rose nearly 3% pre-market today after the company reported its Q1 results, with EPS coming in at $0.63, better than the Street estimate of $0.54. Revenue was $7.8B, beating the Street estimate of $7.44 billion.

The company expects Q2/23 EPS in the range of $0.44-$0.52, compared to the consensus of $0.47, and revenue in the range of $7.1-7.5B, compared to the consensus of $7.04B.

The company raised its full 2023 year guidance, now expecting EPS of $2.02-$2.10 (vs. $1.96-$2.04 previously), compared to the consensus estimate of $2.02.

Broadcom reports better-than-expected Q1 results and guidance

Broadcom (NASDAQ:AVGO) reported its Q1 results yesterday, with EPS of $10.33 coming in better than the consensus estimate of $10.18. Revenue increased 16% year-over-year to $8.92B, compared to the consensus estimate of $8.9B.

For Q2/2023, the company anticipates revenue of $8.7B, above the consensus estimate of $8.58B.

Following the results, several analysts raised their price targets on the company, including Deutsche Bank, with a new price target of $675.00 (from $590.00).

Nordstrom Q4 revenue misses, announces wind-down of Canadian business.

Nordstrom (NYSE:JWN) reported its Q4 results, with EPS of $0.74 coming in better than the consensus estimate of $0.67. Revenue fell 4.1% year-over-year to $4.2B, missing the consensus estimate of $4.35B.

CEO Erik Nordstrom said the company doesn't see a realistic path to profitability for the Canadian business, despite its best efforts.

For fiscal 2023, the company expects revenue, including retail sales and credit card revenues, to decline 4-6% year-over-year, including an approximately 250-basis-point negative impact from the wind-down of the Canadian business. Full-year adjusted EPS, excluding the wind-down charges, is expected in the range of $1.80-$2.20, compared to the consensus estimate of $1.93.