To The Moon

Let’s check out the top movers after earnings!

1. $Snowflake(SNOW)$ soars 32%: improves net income and expands customer base

• Q3 revenue: $942.1 million, a 28% YoY increase, beating analyst estimates of $900.3 million. (beat 4.64%)

• Adjusted net income: $73.3 million, significantly surpassing expectations of $55.3 million. (beat 32.55%)

• Raised its full-year product revenue forecast to $3.43 billion, up from its previous projection of $3.36 billion.

The company expanded its roster of major clients during the quarter, with the number of customers generating over $1 million in annual revenue growing by 25% year-over-year.

It also sustained a strong net revenue retention rate of 127%, underscoring its ability to maintain and grow relationships with high-value clients.

2. $Target(TGT)$ Q3 earnings miss expectations across the board, plunges 21.97%

• Revenue: $25.67 billion, below the market estimate of $25.9 billion (miss by 0.89%）

• Same-store sales: 0.3% growth, lower than expected 1.5% (a 80% miss)

• EPS: $1.85, lower than expected $2.30(a 19.57% miss)

• Full-year earnings guidance lowered: The company now expects adjusted EPS between $8.30 and $8.90, lower than the consensus estimate of $9.55 and also below the August forecast of $9.00 to $9.70. (Missed by 13.1% using lower bound of guidance)

The macroeconomic environment, including declining consumer confidence and inflation, has further dampened Target’s performance. Despite discounting efforts, consumers are becoming more cautious, impacted by economic uncertainty.

While digital sales showed strong growth, high inventory levels and slower product adjustments affected profitability. Target also faces increasing competition from rivals like Walmart, Amazon, and Costco.

3. $Gap, Inc(GAP)$ jumps 15% with 26% EPS beat and lifted guidance

• EPS: $0.72, beat estimate of $0.57, marking a 26.32% beat.

• Revenue: $3.82 billion, narrowly surpassed the $3.81 billion expectation, achieving a 0.26% beat.

• Raised its full-year guidance: 1.5%-2% net sales growth (previously forecasted as “up slightly”), signaling confidence heading into the holiday season.

Gap’s net sales grew 2% YoY, with comparable sales up 1%. The performance across brands showed steady growth. Brand performance included Old Navy at $2.2B (+1%), Gap at $899M (+1%), Athleta at $290M (+4%), and Banana Republic at $469M (+2%).