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Earnings Previews: Box, FuboTV, HPE, Nordstrom, Dollar Tree
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The pace of earnings reports are beginning to slow down, now that we’re into the first week of March. We still expect to hear from more than 400 listed companies this week, with the bulk of those in the books by Thursday afternoon.
After markets close Monday, online insurance firm Lemonade, electric car maker Nio and video conference firm Zoom Communications report quarterly results. And before markets open on Tuesday, retailers Target and Kohl’s, along with Singapore-based online services firm Sea, are scheduled to report.
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Looking ahead to Tuesday after markets close, here we preview Box, fuboTV, Hewlett Packard Enterprise and Nordstrom. Before markets open Wednesday, Dollar Tree is expected to report results.
Box
Box Inc. (NYSE: BOX) reports after markets close on Tuesday. The stock lost nearly 50% of its value by mid-March last year and had an up-and-down ride before closing the year up by about 7.6%. Unlike Dropbox, which also offers a cloud-based storage platform, Box focuses on large enterprises. Out of nine analysts’ ratings over the past year, just one had been a downgrade (from Buy to Hold) and the rest have been upgrades. The consensus price target on the stock is $23.33.
Analysts are forecasting fiscal year 2021 fourth-quarter earnings per share (EPS) of $0.17 on sales of $196.5 million, year-over-year improvements of 10 cents per share, and 7.1% in sales. For the full fiscal year, Box is expected to report EPS of $0.66 (compared to $0.03 a year ago) and sales of $768.4 million, up more than 10% year over year.
Shares traded at around $19 on Monday, in a 52-week range of $8.64 to $22.09. At that price, the potential upside to the consensus target is around 23%. The upside potential to the high price target of $28 is about 48%.
The stock trades at around 29 times expected 2021 EPS, 25 times expected 2022 EPS, and 20 times estimated 2023 earnings.
FuboTV
This company operates a live streaming TV platform for sports, news and entertainment. FuboTV Inc. (NYSE: FUBO) stock soared to a gain of around 600% in late December, before giving back most of that to close 2020 with a gain of more than 200%. Still not bad for a stock that bounces around at more than double the volatility rate of the entire market.
The volatility reflects recent analysts’ bullish calls on the stock. Of seven ratings, six are Buy or Strong Buy, and just one is a Hold. The consensus price target on the stock is $45.50, and the high target is $60. At the current share price, the upside to the consensus target is nearly 20%. At the high target, the implied upside is about 58%.
Analysts expect FuboTV to post a quarterly loss of $0.73 per share on about $94 million in revenue and a full fiscal 2020 loss per share of $5.23 on sales of $251.4 million. The company is not expected to make a profit until after 2023.
HPE
Hewlett Packard Enterprise Co. (NYSE: HPE) is the server and enterprise-oriented part of HP’s legacy business. Since HP split up in October 2015, this stock has increased its share price by nearly 75% while the printer and PC business still known as HP has added about 170% to its share price.
24/7 Wall St.Two analysts currently have Underperform ratings on HPE stock, while 16 have Hold ratings and seven have Buy or Strong Buy ratings. The consensus price target is $14.32, and shares traded at around $14.71 on Monday after posting a new 52-week high of $14.98. At the high price target of $18, the potential upside on the stock is around 18%.
Analysts expect the company to report first-quarter fiscal 2021 EPS of $0.41 on sales of $6.7 billion. Both are below the numbers posted a year ago. The forecast for the full fiscal year ending in October calls for EPS of $1.67 on sales of $27.7 billion, an increase in profits of about 4.4%, and sales of about 1.2%. HP Enterprise shares trade at around nine times expected fiscal 2021 earnings and eight times expected EPS in 2022 and 2023.
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Nordstrom
The last of our previews for reports due Tuesday afternoon is on Nordstrom Inc. (NYSE: JWN). The stock lost about 23% in 2020, after regaining well over half its 73% deficit at its low point in October. For the year to date, the stock is up 22.6%, and shares are up 11.7% for the past 12 months.
The company has raised more liquidity (through debt), and the shares received a bit of a boost based on the likelihood of a new COVID-19 relief package. The company is expected to post EPS for its fourth quarter of fiscal 2021 of $0.14 and a full-year loss of $4.40. Revenue for the quarter is expected to drop by nearly 21% year over year to $3.6 billion, and full-year sales are forecast to decline by 31% to $10.7 billion.
Analysts mostly like the stock for its prospects, with only five giving it an Underperform rating while 17 rate the stock a Hold and four rate it a Buy or Strong Buy. The consensus price target on the stock is $33.06, and shares traded Monday at around $38.40. At the high price target of $45, the potential upside on Nordstrom stock is 17%.
Fiscal 2022 earnings per share are currently forecast at around $1.40, for a multiple of more than 25 times expected EPS for the year.
Dollar Tree
On Wednesday morning, low-price retailer Dollar Tree Inc. (NASDAQ: DLTR) reports fiscal 2021 (ended in January) results. For the calendar year, Dollar Tree stock gained nearly 15%. A downbeat report from BofA Securities that lowered the company’s rating from Neutral to Underperform weighed on the share price last month, and shares are trading down about 8% for the year to date.
Analysts are expecting fourth-quarter EPS of $2.11, up about 18% year over year, on sales of $6.8 billion (up 7.4%). For the full year, EPS is forecast at $5.61, up 18%, and sales are forecast to rise 8.2% to $25.6 billion.
At the current share price of around $99.20, the stock traded about 22% below the consensus price target of $121 and about 41% below the high target of $140.
The stock’s 2021 EPS multiple to its trading price is around 18, while the multiple to 2022 EPS is around 16 and the multiple to 2023 earnings is about 14.
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