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 selected firms in other sectors including electric vehicles, online gaming and a sprinkling of tech companies.

On Monday, we previewed four companies releasing earnings reports Tuesday afternoon or Wednesday morning: JD.com, Lowes, Take-Two, Target and TJX. We also have done a wrap-up on several firms that reported results after markets closed Monday or before they reopened Tuesday morning.
[in-text-ad]
This preview looks at two companies reporting quarterly results Wednesday afternoon and two more scheduled to release results Thursday morning.

Cisco Systems

Network equipment giant Cisco Systems Inc. (NASDAQ: CSCO) reports its fiscal third-quarter results after the closing bell Wednesday. Unlike many other tech companies, the Dow Jones industrial average stock missed out on 2020’s massive share price increases. Cisco’s stock actually lost about 3.5% last year. Revenue is expected to rise this year, and that could put the company back on firmer footing with investors and analysts.

Underscoring that optimism, the number of brokers rating the stock a Hold has dropped from a high of 15 of 27 in March to just eight of 27 in May. All the moves have been higher. The stock trades at around $53 a share, implying an upside potential of 3.3% to the consensus price target of $54.73. At the high target of $65, the implied upside is about 23%.

Consensus estimates for quarterly earnings per share (EPS) and revenue are $0.85 and $12.57 billion, respectively. For the full year, analysts are looking for EPS of $3.24 on revenue of $49.38 billion.

At the current price, the shares at 16.4 times expected 2021 EPS, 15.4 times estimated 2022 earnings and 14.7 times estimated 2023 earnings. The stock’s 52-week trading range is $35.28 to $54.14. Cisco pays an annual dividend of $1.48 (yield of 2.80%), and the average daily trading volume is 20.7 million shares.

L Brands

Retailer L Brands Inc. (NYSE: LB) operates in two segments: Bath & Body Works and Victoria’s Secret. Last week the company announced that it is spinning off Victoria’s Secret into a separate company. At the same time, the company boosted its outlook for its first-quarter results, and some analysts raised their sights for the company, saying the spinoff likely will unlock value for both parts of the company.

Of 30 brokerage firms covering the shares, only eight rate the shares a Buy or Strong Buy, while 19 give the stock a Hold rating. A price of $69.80 per share implies a potential upside of 7.9% at the consensus price target of $75.30. At the high target of $96, upside potential rises to 37.5%.

Analysts anticipate L Brands will report EPS of $1.21 on revenue of $1.65 billion. The company said last week it expects to post adjusted EPS of $1.25. For the 2022 fiscal year, analysts project that EPS will come in at $5.41 on revenue of $4.95 billion.

L Brands stock trades at 12.9 times expected 2022 EPS and 13.6 times estimated earnings. The stock’s 52-week range is $11.51 to $71.99, and the high was posted Tuesday morning. The company does not pay a dividend, and the average daily trading volume is around 3.6 million shares.
[in-text-ad]

Canadian Solar

Solar module maker Canadian Solar Inc. (NASDAQ: CSIQ) saw its shares gain more than 130% in 2020. So far this year, the stock has given back nearly 30% of its price at the end of last year. Over the past 12 months, the stock has gained about 112%, more than competitor First Solar (up about 82%), but well behind industry leader Sunworks’s 1,900% share price gain in 2020. Canadian Solar’s operating margins have dropped to 6.3%, far below sector leader First Solar’s 19.1%.

Analysts are keeping their powder dry on Canadian Solar with five of 11 brokers rating the shares a Hold and two more rating the stock either Underperform or Sell. Trading near $36.60, upside potential to the consensus price target of $51.57 is nearly 41%. At the high target of $63, implied upside is 72%.

Analysts are expecting EPS of $0.39 on revenue of $1.04 billion when Canadian Solar reports first-quarter results Thursday morning. The forecast for the 2021 fiscal year calls for sales of $5.71 billion and EPS of $1.78.

Shares traded at 20.5 times expected 2021 EPS and 12.8 times estimated 2022 earnings. The stock’s 52-week range is $16.82 to $67.39. Canadian Solar does not pay a dividend, and the average daily trading volume is around 2.2 million shares.

Kohl’s

Department store owner Kohl’s Corp. (NYSE: KSS) also reports first-quarter results before markets open Thursday. After slumping to a loss of 75% of its value in early April of last year, Kohl’s stock closed the year down about 17%. As the economy revives, so does Kohl’s stock. So far in 2021, the share price is up 54%. The retailer’s deal with Sephora cosmetics, along with a revamped line of women’s apparel, is believed by some to be an indicator of more upside ahead.

Sentiment on the stock is mixed, with 10 of 21 brokers rating Kohl’s a Hold and seven rating the shares a Buy or Strong Buy. The price of $62.49 per share implies upside potential of about 2.8%. At the high target of $75, the potential upside is 20%.

Analysts are looking for first-quarter EPS of $0.02 on sales of $3.46 billion. For the full fiscal year, consensus estimates call for EPS of $3.04 on sales of $17.8 billion.

Kohl’s stock trades at 20.5 times expected fiscal 2022 EPS and 14.6 times estimated fiscal 2023 EPS. The stock’s 52-week range is $16.31 to $64.79, and the high was posted early Tuesday morning. Kohl’s pays an annual dividend of $1.00 (yield of 1.56%), and the average daily trading volume is 3.1 million shares.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.