Intel stock spikes after report of possible US government stake
Thursday, Warby Parker Inc. (NYSE:WRBY) faced a reduction in its price target from $24.00 to $22.00 by Evercore ISI, while the firm maintained an In Line rating on the company’s shares. The adjustment followed Warby Parker’s release of its first-quarter earnings, which showed mixed results and a lowered earnings per share (EPS). According to InvestingPro data, the company’s stock has shown significant volatility, with a beta of 2.02, while trading at a relatively high EBITDA multiple of 114.45x.
The company reported a first-quarter revenue of $223.8 million, marking an 11.9% increase year-over-year, and a gross profit of $126.0 million, resulting in a 56.3% margin. Both figures came in slightly below market expectations. However, Warby Parker’s earnings before interest, taxes, depreciation, and amortization (EBITDA) of $29.2 million, or a 13.1% margin, exceeded analyst predictions. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 2.5, and despite current losses, analysts expect profitability this year.
Warby Parker’s management has updated the fiscal year 2025 outlook, which appears conservative in light of the current economic headwinds. The company anticipates a gross margin impact of approximately 200-300 basis points for FY25, assuming the current China tariff rates of 145% continue throughout the year. Warby Parker expects to offset the majority of the potential $45-50 million impact from these tariffs. For deeper insights into Warby Parker’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis, including 12 additional ProTips and detailed valuation metrics.
Shares of Warby Parker initially fell roughly 6% in premarket trading due to the Q1 revenue shortfall and the downward revision of guidance. However, the stock recovered to trade slightly positive after management outlined its plan to mitigate tariffs and expressed caution in its FY25 forecast during the conference call.
Despite facing several potential growth catalysts, such as acceleration in active customer growth, e-commerce growth recovery, and EBITDA margin expansion, Evercore ISI remains neutral on Warby Parker. The firm cites softer consumer sentiment and uncertainties related to tariffs and macroeconomic conditions as reasons for their stance. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, though analyst targets range from $16 to $30, suggesting potential upside opportunities.
In other recent news, Warby Parker Inc. reported its Q1 2025 financial results, highlighting an 11.9% increase in revenue to $223.8 million, though this was slightly below the forecast of $225.46 million. The company also reported earnings per share (EPS) of $0.03, which fell short of the anticipated $0.11. Warby Parker’s active customer base grew by 8.7% to 2.57 million, with retail revenue increasing by 14.8% and e-commerce by 5.5%. The company opened 11 new stores, marking its highest number of Q1 store openings. Warby Parker is also diversifying its supply chain to mitigate the impact of tariffs, which are expected to affect gross margins by 200-300 basis points. Analyst firms have not provided any recent upgrades or downgrades for the company’s stock. The company projects full-year 2025 revenue between $869 million and $886 million and plans to open 45 new stores, including five shop-in-shops within Target (NYSE:TGT) locations.
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