Investing

Earnings Previews: Airbnb, Fisker, Nikola, Salesforce, Cinemark, Cronos and DraftKings

Paul Ausick

Published: February 24, 2021 1:26 pm

The Nasdaq Composite index traded down Wednesday morning, hurt most by Apple, which traded down about 1.6%, with Constellation Pharmaceuticals the biggest loser with a 16.8% pullback. Boeing and Chevron were leading the Dow Jones industrials up, with the S&P 500 trading about flat.

In our earnings preview yesterday, we looked at 3D Systems and Nvidia, both of which were scheduled to report results after markets close Wednesday. However, 3D Systems announced early Wednesday morning that it would not announce earnings until after markets close on Monday, March 1. Four companies are reporting Thursday morning: Best Buy, Li Auto, Moderna and Plug Power.
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Looking ahead to Thursday afternoon, here are previews of Airbnb, Fisker, Nikola and Salesforce.com. For Friday morning, we’ve previewed three more firms we expect to hear from: Cinemark, Cronos and DraftKings.

Airbnb

Airbnb Inc. (NASDAQ: ABNB) came public in early December and will report its first earnings as a publicly traded company after markets close on Thursday. The company does not appear to have fared as badly as many other travel-related firms during the pandemic. Yet, that’s not what will be driving the stock price after the company’s earnings report. A good report will include a bright outlook for the quarter and year ahead, but a poor report will have a dimmer outlook.

Since its IPO, Airbnb stock has added about 38%, and it traded up more than 6.5% late Wednesday morning at around $200. The stock’s post-IPO high is nearly $220, posted earlier in February, and the price is already nearly 25% higher than the consensus price target of around $164.

Analysts are looking for net losses per share of $9.16 for the quarter and $13.35 for the full year. Revenue for the quarter is estimated at $747.6 million, with an estimated $3.3 billion in full-year revenue. The full-year revenue is down by almost a third year over year.

Airbnb is expected to post a loss of $1.81 per share in 2021 and a loss of $0.14 per share in 2022.

Fisker

Electric vehicle (EV) maker Fisker Inc. (NYSE: FSR) came public in last October and expects to deliver its first car, dubbed the Ocean, by late next year. Wednesday morning, the company announced a joint development deal with Taiwan-based Foxconn that has sent shares up as much as 20% in morning trading.

Analysts are looking for the company to report a net loss per share of $0.05 on no revenue. The full-year net loss per share is pegged at $0.29. No revenue is expected for all of 2020.

Fisker is not expected to post any revenue in 2021 either, and the loss per share is forecast to rise to $0.37. The good news is that Foxconn is going to take on building the cars, which should keep Fisker’s costs (and losses) down.

Nikola Corp. (NASDAQ: NKLA) was embroiled in a roaring controversy with short seller Hindenburg Research about three months after the EV maker’s June IPO. Shares had more than doubled from the IPO price and were trading about 50% higher at the time of Hindenburg’s report. Shares currently trade about 40% lower than the IPO price.
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Analysts expect Nikola to post a quarterly net loss of $0.23 per share and a full-year loss of $0.66 per share. Sales are not expected to be more than minimal: $20,000 for the quarter and $70,000 for the year.

Looking ahead to 2021, analysts expect the loss to widen to $0.86 per share for the full year, but revenue is expected to total $62.5 million for the company’s heavy-duty electric and hybrid fuel cell-electric trucks.

Salesforce

Salesforce.com Inc. (NYSE: CRM) has recovered nicely from the COVID-19 pandemic trough in March and finished the year with a share price gain of around 37%. Shares posted their 52-week high on September 1, following second-fiscal quarter results that included a 29% year-over-year increase in sales and earnings per share (EPS) more than double analysts’ consensus estimate. Revenue and earnings again soared past estimates in the following quarter, beating prior year revenue by 20% and EPS estimates by 132%.

Analysts have a consensus fiscal fourth-quarter EPS estimate of $0.75 on revenue of $5.7 billion. These estimates represent a year-over-year increase of nearly 14% in EPS and 17% in revenue. For the full year, EPS is forecast to come in at $4.64, a jump of 55% compared to the prior-year quarter, and revenue is tabbed to come in at $21.1 billion, an increase of 23.5%.

Shares traded Wednesday at around $238.27, compared to the consensus price target of $275.71, implying a potential upside to the share price of nearly 16%. Using the high price target of $320, the potential upside rises to around 34%.

At the current trading price, the stock trades at around 51 times expected fiscal 2021 EPS, 68 times expected 2022 EPS and 55 times expected 2023 earnings. Salesforce’s 2021 fiscal year ended in January.

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Cinemark

A recent decision by the state’s governor that New York City will allow theaters to reopen with limited capacity next month continues to provide a boost to Cinemark Holdings Inc. (NYSE: CNK). Along with airlines and cruise lines, movie theaters and live music venues have taken a big hit from the pandemic. Cinemark owns approximately 550 theaters with more than 6,000 screens in the United States and Latin America. The company is set to report quarterly results before the opening bell Friday.

Revenue dropped from about $788 million in the December quarter of 2019 to just under $9 million in the June quarter of 2020. Analysts expect a fourth-quarter loss per share of $1.46 and revenue of nearly $80 million. For the full year, the loss per share is expected to reach $4.70 on revenue of $666 million, a decline of 80% compared to 2019.
Cinemark shares traded at around $24.20 at the noon hour Wednesday, in a 52-week range of $5.71 to $29.03. The consensus price target on the stock is $19.67, well below the current trading price.

The company is expected to post a full-year loss of $2.80 per share in 2022 before reporting EPS of $0.82 in 2023.
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Cronos

Also reporting results before markets open Friday is Cronos Group Inc. (NASDAQ: CRON). Like most other publicly traded marijuana growers, the company’s stock got a boost from the U.S. elections in November, and shares have jumped 63% since January, after closing 2020 essentially flat.

The company expects to have lab-grown cannabis products available later this year, a development that would reduce the costs of producing both psychotropic marijuana and cannabidiol (CBD) for pennies per gram instead of farmed costs of more than $1.00 per gram.

Analysts expect Cronos to post a net loss per share of $0.06 for the quarter and EPS of $0.03 for the full year. Both are much worse than year-ago totals of $0.13 in fourth-quarter EPS and full-year earnings of $2.66 per share. Revenue is forecast up nearly 80% in the quarter and about 81% for the year. Cronos is expected to post a loss of $0.23 per share in 2021.

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DraftKings

In late April last year, DraftKings Inc. (NASDAQ: DKNG) came public through a reverse merger with a blank-check company. Since the completion of the merger, the stock has added nearly 210% to its value. DraftKings is a pure-play online gambling stock, and it was included in our January review of online gambling stocks.

Analysts expect the company to post a fourth-quarter net loss of $0.47 per share on revenue of $232.4 million. For the year, analysts believe the company will lose $1.95 per share on revenue of $552.8 million. The outlook for the current fiscal year calls for a loss per share of $1.29 and $870 million in revenue.

The stock traded about $3 below its consensus price target of $63.44 on Wednesday, implying an upside potential of around 4.7%. Using the high price target of $100 per share, the upside is around 37%. DraftKings is not expected to post a profit in 2022 either.