The number of March quarter earnings reports we expect to see this week has dipped to around 200. Traditional retailers will be among the most-watched for first-quarter results, along with other firms in other sectors including electric vehicles, online gaming and a sprinkling of tech companies.
There were no reports of note on Friday and one company, Lordstown Motors, which originally planned to report results after markets closed Monday, has postponed its report until March 24. We also have covered four companies expected to report quarterly earnings after markets close Monday afternoon: Canoo, ExOne, Fisker and Tencent Music. We’ve also previewed other companies reporting before Tuesday’s opening bell: Baidu, Home Depot, iQiyi, Macy’s and Walmart.
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This preview looks at one gaming company reporting Tuesday afternoon and four other notable companies scheduled to announce results Wednesday morning.
Take-Two
Video gaming company Take-Two Interactive Software Inc. (NASDAQ: TTWO) is scheduled to report results after markets close Tuesday. The company’s stock added about 70% last year but has dropped by about 20% so far in 2021. Analysts and investors will be paying close attention to any change in Take-Two’s outlook for both sales and profits.
Of 26 brokerage firms covering the stock, 15 give the shares a Buy or Strong Buy rating and two have Strong Sell ratings on the shares. At the recent price of around $167 per share, the upside potential at the stock’s average price target of $216.71 is nearly 30%. At the high target of $262, upside potential increases to almost 57%.
Analysts expect the company to report earnings per share (EPS) of $0.68 for the company’s fourth fiscal quarter and full-year EPS of $6.18, up more than 16% compared with the total for the past fiscal year. Revenue for the quarter is forecast at $668.62 million, a dip of 22% year over year, and full-year revenue is forecast to rise by nearly 11% to $3.43 billion.
The stock trades at 26.9 times estimated 2021 EPS, 28.0 times estimated 2022 earnings and 20.7 times estimated 2023 earnings. The stock’s 52-week range is $124.86 to $214.91. Take-Two does not pay a dividend, and the average daily trading volume is 1.2 million shares.
JD.com
One of China’s largest e-commerce retailers, JD.com Inc. (NASDAQ: JD), announced Sunday that it hopes to raise $3.4 billion following the IPO of JD Logistic, its logistics division first spun off as a separate company in 2017. The IPO is expected to raise $3.4 billion in its Hong Kong debut on May 28. The company reports results before markets open on Wednesday.
With 20 brokers covering the company, all but one rate the shares a Buy or Strong Buy. At a price of around $67.70, the stock’s upside potential to the average price target of $108.26 is about 60%. At the high target of $145.82, the upside potential is 115%.
The company is expected to report first-quarter EPS of $2.22 on sales of $29.71 billion. For the full year, the EPS estimate is $11.75 on sales of $145.12 billion.
At the current trading price, the shares trade at 5.8 times expected 2021 EPS and 4.1 times estimated 2022 EPS. The stock’s 52-week range is $49.33 to $108.29, and the average daily trading volume is 11.8 million shares.
Lowe’s
Home improvement giant Lowe’s Companies Inc. (NYSE: LOW) also reports first thing Wednesday morning. The company added 36.4% to its share price last year and another 21% since the beginning of 2021. As is the case with rival Home Depot, which reports Tuesday morning, analysts and investors wonder how the home improvement stores will perform now that vaccinations are encouraging people to get out more.
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Analysts are bullish on Lowe’s shares, with 27 of 34 rating the stock a Buy or Strong Buy. At around $193 a share, the stock’s upside potential to a price target of $217.53 is 12.7%. At the high target of $250, the upside potential is almost 30%.
For the first quarter, analysts are looking for EPS of $1.77 on sales of 19.68 billion. For the full year, estimates call for sales of $88.64 billion and EPS of $8.73.
The stock is trading at a multiple of 22.1 times expected 2021 EPS, 19.2 times estimated 2022 earnings and 17.0 times estimated 2023 earnings. Its 52-week range is $115.45 to $215.22, and Lowe’s pays an annual dividend of $2.40 (yield of 1.21%). The average daily trading volume is 4.2 million shares.
Target
Retailer Target Corp. (NYSE: TGT) will report results Wednesday morning, one day after Walmart announces its results. The company’s stores do not depend as heavily on grocery sales as do its rival’s stores, and that wider category mix could carry Target to better results.
Even with 22 of 30 brokerages bullish on the stock, there is less than 1% of upside potential with the price near $209.50 and an average price target of $210.90. At the high price target of $260, upside potential rises to 24%.
Consensus estimates call for EPS of$0.59 for the quarter on sales of $19.62 billion. For the full year, analysts are looking for EPS of $9.20 and sales of 92.6 billion.
Shares are trading at a multiple of 22.8 times expected 2021 EPS, 23.5 times estimated 2022 EPS and 21.5 times estimated 2023 EPS. The stock’s 52-week range is $114.23 to $217.39. Target pays an annual dividend of $2.72 (yield of 1.29%), and the average daily trading volume is about 3.6 million shares.
TJX
Apparel retailer The TJX Companies Inc. (NYSE: TJX) reports results Wednesday morning as well, one day after Macy’s announcement. The revenue outlook for TJX is much better now that people are returning to shopping in stores instead of online. TJX revenue could double as a result, and the company should probably invest more in e-commerce with its newfound wealth.
Analysts are bullish on the stock, with 22 or 28 firms rating the stock a Buy or Strong Buy. At a price of around $72, the shares trade with an upside potential of 6.8% to the average price target of $76.92. At the high target of $90, the upside potential is 25%.
First-quarter sales are forecast at $4.41 billion, with a loss per share of $0.74. For the full year, EPS is expected to reach $0.43 on sales of $32.64 billion.
Shares trade at a multiple of 166.1 times expected 2021 EPS, 30.5 times estimated 2022 earnings and 24.6 times estimated 2023 earnings. The stock’s 52-week range is $48.47 to $74.65. TJX pays an annual dividend of $1.04 (yield of 1.44%), and the average daily trading volume is 6.5 million shares.
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