Investing

Earnings Hits and Misses: Broadcom, ChargePoint, CrowdStrike, DocuSign, Lululemon, Slack

Paul Ausick

Published: June 4, 2021 9:17 am

After markets closed Thursday, more than 15 firms reported quarterly earnings results. There were no notable reports Friday morning and there are none due either Friday after markets close or on Monday morning.  Our next preview will be posted later Friday and include Marvell Technologies and StitchFix, both scheduled to report after markets close Monday.

Thursday afternoon’s results for the six companies we previewed earlier in the week were mostly better than expected. Some of that success is due to the miserable performance last year due to the COVID-19 pandemic.

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Broadcom

Chipmaker Broadcom Inc. (NASDAQ: AVGO) reported fiscal second-quarter results that beat estimates on both the top and bottom lines. Earnings per share (EPS) of $6.62 were about 2.5% better than expected, while revenue of $6.61 was about 1.6% better than expected and more than 15% higher than in the same quarter last year. The company raised revenue fiscal third-quarter guidance to approximately $6.75 billion, above the S&P Capital IQ consensus of $6.59 billion.

Shares traded up less than 1% in Friday’s premarket, at $467.00 in a 52-week range of $292.41 to $495.41.

ChargePoint

Electric vehicle charging network ChargePoint Holdings Inc. (NYSE: CHPT) reported a fiscal first-quarter loss per share of $0.17, a nickel worse than the consensus estimate for a $0.12 per share loss. Revenue of $40.51 million beat the consensus estimate by about 8.6%. The company reaffirmed fiscal 2021 revenue guidance of $195 million to $205 million.

Shares traded up about 2.8% in Friday’s premarket, at $27.00 in a 52-week range of $9.82 to $49.48.

CrowdStrike

Cloud security firm CrowdStrike Holdings Inc. (NASDAQ: CRWD) reported fiscal first-quarter results after markets closed Thursday. The company posted EPS of $0.10, four cents better than the estimate, and revenue of $302.8 million, about 3.8% above the consensus and 70% better than in the first quarter of last year.

CrowdStrike raised second-quarter EPS guidance to a range of $0.07 to $0.09 (above consensus of $0.06) and revenue guidance to a range of $318.3 million to $324.4 million (consensus was $311.56 million). Full-year EPS guidance was raised to $0.35 to $0.41 (consensus was $0.29) and revenues are forecast to rise to $1.35 to $1.37 billion (consensus was $1.32 billion).

Shares traded up less than 1% at $217.00 Friday in a 52-week range of $88.87 to $251.28.

DocuSign

E-signature software firm DocuSign Inc. (NASDAQ: DOCU) also reported first-quarter 2022 results late Thursday. EPS of $0.44 beat estimates by 57% and revenue of $469.08 million was more than 7% better than expected and nearly 58% better than the year-ago quarter.

CrowdStrike raised second-quarter revenue guidance to a range of $479 million to 485 million (above consensus of $474.73 million). Full-year revenue was guided to a new range of $2.03 to $2.04 billion (consensus of $1.99 billion). Adjusted gross margins on subscription revenues were guided to a range of 79% to 81% for both the second quarter and the full year.

Shares traded up about 6.9% in Friday’s premarket, at $208.19 in a 52-week range of $131.26 to $290.23.

Lululemon

Apparel retailer Lululemon Athletica Inc. (NASDAQ: LULU) reported first-quarter EPS of $1.61, 27% better than the consensus estimate of $0.91. Revenue of $1.23 billion topped the consensus estimate of $1.13 billion by less than 1% but beat last year’s revenue total by 88%.

Lululemon raised second-quarter EPS guidance to a range of $1.10 to $1.15 (above consensus of $1.01) and revenue guidance to $6.52 billion to $6.65 billion (consensus was $6.49 billion). For the full year, EPS guidance was raised to $6.52 to $6.65 (consensus was $6.49) and revenue guidance was increased to a range of $5.83 billion to $5.91 billion (consensus was $5.69 billion).

Shares traded up less than 1% in Friday’s premarket to $319.15, in a 52-week range of $269.28 to $399.90.

Slack

Workplace communications provider Slack Technologies Inc. (NYSE: WORK) has posted what is likely to be its final earnings report as a publicly traded company. Salesforce.com’s $27.7 billion acquisition of the company is expected to close this month. For Slack’s fiscal first quarter, EPS of $0.08 hammered the consensus estimate of a loss per share of $0.01. Revenue of $273.4 million beat the consensus estimate by more than 3% and topped last year’s first-quarter revenue by nearly 36%.

Shares were virtually unchanged at $43.65, in a 52-week range of $24.09 to $44.57.