Monday afternoon’s and Tuesday morning’s noteworthy earnings reports were included in our Friday preview covering scheduled reports from robotics firm Raven Industries, cannabis industry software maker Akerna and China-based gaming platform Huya.
Here’s a look at four stocks scheduled to report quarterly results after markets close Tuesday or before they open on Wednesday.
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GameStop
GameStop Corp. (NYSE: GME) is scheduled to report fiscal 2021 fourth-quarter and full-year results after markets close Tuesday. There’s not an analyst currently drawing breath who does not believe that the company’s share price is completely disconnected from the company’s business.
Even if GameStop reports record results (no one’s predicting that), the share price remains untethered from the company’s performance. In calendar year 2020, the stock rose about 210%. To date in 2021, shares are up another 930%, though that is down more than 50% from their January high of $483.
By now, GameStop’s story is well known: total short interest in the stock exceeding 100% of shares outstanding, a short squeeze applied by retail investors and massive options buying by those same retail investors. Analysts covering the stock are expecting earnings per share of $1.35 for the January quarter on revenue of $2.21 billion. For the full year, estimates call for a loss per share of $2.17 on sales of $5.2 billion. GameStop posted losses totaling $2.54 per share in the first three quarters of its 2021 fiscal year.
Among 12 analyst firms covering the stock, seven have Hold ratings and one has a Sell rating. Two each rate the stock a Buy or a Strong Buy, but not at the current price of around $193.90. The current consensus price target is $14.64 and the stock now trades at 1,500 times expected 2022 earnings and is not expected to post an annual profit until 2023.
The stock’s 52-week low is $2.57 and the average daily trade volume is nearly 45 million.
Adobe
Also set to report quarterly results after markets close on Tuesday is Adobe Systems Inc. (NASDAQ: ADBE). In the 2020 calendar year, Adobe posted a share price gain of nearly 52%, but the gain over the past 12 months is slightly lower at just over 50%. That’s pretty impressive for a company that is nearly 30 years old and has just gone through a long period of transforming itself into a cloud-based company.
For the company’s first fiscal 2021 quarter, analysts are expecting Adobe to post EPS of $2.78 on revenue of $3.76 billion, a year-over-year jump of 22% in EPS and nearly as much in revenue. Analysts’ current consensus estimate for full-year EPS is $11.26 on revenue of $15.2 billion, increases of more than 12% to profits and nearly 15% to revenue.
At the current market price of around $455.50, Adobe stock trades below the low end of its price target range of $510 to $605, indicating a potential upside of around 12% at the low end and 33% at the high target. Of 31 analysts following the firm, 25 rate the stock a Buy or Strong Buy and the rest have given Adobe a rating of Hold.
Adobe’s 52-week trading range is $287.78 to $536.88, and the consensus price target is $566.05. If Adobe paid a dividend, it would likely be classified as a value stock.
General Mills
Before markets open Wednesday, General Mills Inc. (NYSE: GIS) is expected to report results. Like many other companies in other sectors, the maker of Cheerios and dozens of other consumer packaged food brands got a sales boost as people stocked up on food to get through the COVID-19 induced lockdowns. The share price rose 13.6% in 2020, and the dividend payments totaled $1.98 for the year, yielding a total return of almost 17.5%.
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For the company’s fiscal third quarter that ended in February, analysts are forecasting EPS of $0.84 on sales of $4.45 billion. Sequential revenue growth is forecast to be down by about half a percentage point, reflecting an anticipated slowdown in consumer sales. For the fiscal year ending in May, consensus estimates call for EPS of $3.75 on sales of $17.8 billion.
The consensus price target on the stock is $62.99, implying a potential upside of about 3.8% to the current price of around $60.70. At the high price target of $73 a share, the implied gain is about 20%.
The stock’s 52-week range is $46.88 to $66.14, and the current annual dividend is $2.04 (a yield of 3.4%). General Mills stock trades an average of around 4.5 million shares a day.
24/7 Wall St.Winnebago
And Winnebago Industries Inc. (NYSE: WGO) is scheduled to report fiscal 2021 second-quarter results on Wednesday morning. Recreational vehicle (RV) sales boomed last year as the consumers saw them as a way safely to get out of the house. The RV Industry Association (RVIA) reported that Class B motorhome sales soared 98% last year.
The number of Americans planning to take a trip in their RVs this year is figured to increase from 46 million to 61 million. Here’s the RVIA’s demographic breakdown of likely RV buyers this year: Millennials, 31%; Gen X, 26%; and Gen Z, 21%. The RVIA survey showed that 25% of all respondents were likely to buy an RV by November 2021.
Winnebago’s stock price rose by about 14.2% last year but has jumped by 37% so far in 2021. Over the past 12 months, the stock soared 263%, with more than half the gain coming between late March and late June of last year.
Analysts are looking for EPS of $1.41 on sales of $805.2 million for the quarter that ended in February. That’s a sequential increase of just 1.5% compared with a prior quarter gain of around 7.5%. The year-over-year revenue total is forecast to jump 86%, which seems a little optimistic given that year-over-year growth in the two prior quarters was less than 40%.
At the current trading price of around $81.50, the stock trades above the consensus price target but 19% below the high target of $97.00. The stock’s 52-week range is $20.42 to $87.53, and Winnebago trades an average of around 700,000 shares a day.
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