Thursday’s Market Insights: Blue Apron Holdings Inc (APRN), Macy’s Inc (M)


Blue Apron Holdings Inc

Blue Apron Holdings Inc (NYSE:APRN) shares sank nearly 16% to $5.22 in Thursday’s trading session, after the meal-kit maker reported a steep second-quarter loss in its first report as a public company. Specifically, Blue Apron reported a 2q loss of $31.6 million, or 47 cents a share, compared with a year-earlier profit of $5.5 million. The Street expected Blue Apron to post a second-quarter loss of 27 cents.

CEO Matt Salzberg said, “In the second quarter, we saw an 18 percent year-over-year increase in net revenue, and a $20.6 million improvement in our net loss between the first and second quarters. We recently strengthened our balance sheet as a result of our initial public offering, convertible note issuance and the expansion of our revolving credit facility [….] We are beginning a new chapter as a public company, and remain focused on our long-term strategy to build an iconic consumer brand, develop a more diverse product portfolio, and further build out an end-to-end supply chain platform.”

On the ratings front, Blue Apron has been the subject of a number of recent research reports. In a report issued on August 8, RBC analyst Mark Mahaney reiterated a Buy rating on APRN, with a price target of $10, which represents a potential upside of 86% from where the stock is currently trading. On August 4, Oppenheimer’s Jason Helfstein reiterated a Buy rating on the stock.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mark Mahaney and Jason Helfstein have a yearly average return of 22.7% and 12% respectively. Mahaney has a success rate of 73% and is ranked #14 out of 4628 analysts, while Helfstein has a success rate of 59% and is ranked #188.

Macy’s Inc

Macy’s Inc (NYSE:M) saw its shares tumbling nearly 5% this morning, after releasing second-quarter earnings. The reason? While Macy’s reported 2Q earnings and revenue that beat expectations, the company did not raise its full year forecast, which suggests it views these improvements as fragile. Specifically, Macy’s reported a $116 million profit on $5.6 billion in revenue, about $40 million better than analysts were forecasting.

CEO Jeff Gennette stated, “Macy’s, Inc.’s results for the second quarter were in line with our expectations, and we are on track to meet 2017 sales and earnings guidance. We saw a notable contribution from the full execution of our new women’s shoe and jewelry models and the continued successful testing of Backstage in store. We are excited about plans for fall, including the launch of a new loyalty program and the new marketing strategy, which we anticipate will further improve our sales trend in the back half of the year,”

“We are working with a mindset of continuous improvement and will adapt our business in order to reach our goal of stabilizing the brick-and-mortar business while investing for accelerated growth in digital and mobile. Key to this strategy is engaging our customers with an improved experience that includes more elevated and exclusive assortments, a better integration of technology both online and in the store, and additional enhancements intended to drive traffic and sales. There is still work ahead of us, however, I’m encouraged by the progress we’re making on overall performance,” Gennette continued.

On the ratings front, in a report issued on August 7, Wedbush analyst Liana Moussatos reiterated a Buy rating on M, without suggesting a price target. On July 31, Cowen’s Oliver Chen reiterated a Hold rating on the stock and has a price target of $26.00.

According to TipRanks.com, Liana Moussatos and Oliver Chen have a yearly average return of 10.5% and a loss of 1.2% respectively. Moussatos has a success rate of 42% and is ranked #464 out of 4628 analysts, while Chen has a success rate of 42% and is ranked #3812.