Target’s (TGT) muted margins performance in fiscal 1Q17 shouldn’t surprise investors.
Target’s 1Q17 sales of $16.0 billion surpassed analysts’ estimate of $15.6 billion but fell 1.1% YoY (year-over-year).
Target’s investment into store remodeling is showing signs of improvement as newly remodeled stores are already generating healthy sales growth.
Target’s 1Q17 adjusted EPS (earnings per share) of $1.21 surpassed the Wall Street estimate of $0.92.
On May 15, 2017, T-Mobile was trading at a forward PE multiple of ~26.1x.
T-Mobile has achieved 4G LTE coverage parity with Verizon with 314 million PoPs covered, up from zero 4G LTE coverage four years ago.
According to RootMetrics’s 2H16 RootScore report, Verizon (VZ) topped all six network performance categories—overall performance, network reliability, speed, data, call performance, and text performance.
T-Mobile’s postpaid subscriber growth has significantly outpaced its peers in the saturated US wireless space.
According to Cisco Systems’ (CSCO) Visual Networking Index at the end of 2015, video constituted ~61% of mobile data traffic in the United States.
T-Mobile’s equipment revenues in 1Q17 comprised lease revenues of $0.3 billion and nonlease revenues of $1.7 billion.
AT&T (T) is an aggressive player in the 5G market, and it has tried to outbid its rivals in order to gain spectrum advantage.
In 1Q17, T-Mobile’s branded postpaid phone ARPU rose ~2.9% YoY (year-over-year) to reach $47.53.
T-Mobile (TMUS) once again led the industry in year-over-year service revenue percentage growth in 1Q17. This marks the 12th consecutive quarter that TMUS has led the industry in this metric.
On May 17, 2017, Home Depot (HD) was trading at $156.09. This price may have already factored in the various estimates we’ve discussed in this series.
Due to the high visibility of Home Depot’s (HD) earnings, we’ve considered its forward PE (price-to-earnings multiple) for our analysis of its valuation.
Home Depot posted a gross margin, EBITDA (earnings before interest, tax, depreciation, and amortization) margin, and net margin of 34.1%, 16.1%, and 8.4%, respectively, in 1Q17.
In 1Q17, Home Depot (HD) posted adjusted EPS (earnings per share) of $1.67, representing a rise of 16% compared to $1.44 in 1Q16.
Analysts expect Home Depot (HD) to post revenue of $100.3 billion in the next four quarters, representing a rise of 4.8% from $95.7 billion in the corresponding quarters of the previous year.
Home Depot (HD) posted revenue of $23.9 billion in 1Q17, reflecting a rise of 4.8% compared to $22.8 billion in 1Q16. The company outperformed analysts’ consensus revenue estimate by 0.62%.
In 1Q17, Home Depot posted SSSG of 5.5%, with the rise in its traffic contributing 1.5% and the growth in its average ticket size contributing 3.9%.