Earnings Hits and Misses for Thursday, May 20

Here’s a quick look at several earnings reports that were released after markets closed on Wednesday or before Thursday’s opening bell.

Cisco Systems Inc. (NASDAQ: CSCO | CSCO Price Prediction) managed to beat both top-line and bottom-line estimates when the Dow Jones industrial average component reported fiscal third-quarter results late Wednesday. Cisco beat the consensus estimate of earnings per share (EPS) by one cent and the revenue forecast by nearly $250 million, on EPS of $0.83 and sales of $12.8 billion.

The company’s fourth-quarter outlook included revenue growth of 6% to 8% year over year and adjusted gross margin of 64% to 65%, slightly below the 66% reported for the third quarter.

Shares traded down by about 5.4% in Thursday’s premarket session, at $49.62 in a 52-week range of $35.28 to $54.14. The consensus price target on the stock is $54.73.

L Brands Inc. (NYSE: LB) posted a more solid beat on both EPS and revenue, with a beat of $0.27 for EPS of $1.25 and revenue of $3.02 billion, a jump of 83% year over year. Same-store sales rose 16% at the Bath & Body Works stores, 25% at Victoria’s Secret stores and 21% overall, compared with the year-ago quarter. It was an easy comparison, however, since many of the company’s stores were closed last year due to the COVID-19 pandemic.

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Shares traded down by about 1.4% in Thursday’s premarket session, at $66.40 in a 52-week range of $13.01 to $71.99. The consensus price target on the stock is $75.30. The previously announced spinoff of Victoria’s Secret did not strengthen the company’s case with investors.

Canadian Solar Inc. (NASDAQ: CSIQ) reported mixed results before Thursday’s opening bell. EPS of $0.36 missed the consensus estimate of $0.39, while revenue of $1.1 billion was better than expected. The solar module maker raised its second-quarter revenue guidance to a range of $1.4 billion to $1.5 billion and reaffirmed full-year revenue guidance of $5.6 billion to $6.0 billion.

Shares traded up by less than 1% in Thursday’s premarket session to $37.15, in a 52-week range of $16.82 to $67.39. The consensus price target $51.57.

Kohl’s Corp. (NYSE: KSS) beat both top-line and bottom-line estimates, posting first-quarter EPS of $1.05 and revenue of $3.9 billion, sharply above expectations for a per-share loss of $0.12 and revenue of $3.35 billion. The comparison to the year-ago quarter was easy, and Kohl’s easily topped those numbers.

The company guided full-year revenue up by the mid-to-high teens and EPS in a new range of $3.80 to $4.20, sharply above the prior guidance of $2.45 to $2.95.

Shares traded down by about 6.6% in Thursday’s premarket session to $56.25. The 52-week trading range is $16.31 to $64.80. The stock’s consensus price target is $64.21 The tumbling share price could be the result of a Wednesday’s unusually high put option volume in Kohl’s shares, indicating that options traders were looking for a bearish result.

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