Earnings reports released Tuesday morning were again overwhelmingly positive, with the vast majority of companies reporting profits that beat consensus estimates.
After markets close on Tuesday, four firms we covered in an earlier preview (Activision-Blizzard, Lyft, Occidental Petroleum and Skillz) are due to report results. Before markets open on Wednesday, CVS Health, General Motors, Marathon Petroleum and Royal Caribbean will release results.
We also posted a preview of five companies reporting June quarter results after markets close Wednesday: Electronic Arts, Fastly, Lumen, MGM Resorts and Uber.
Here are previews of three companies set to report quarterly results before Thursday’s opening bell.
Hecla Mining
Idaho-based Hecla Mining Co. (NYSE: HL) is the largest U.S. producer of silver. Over the past 12 months, the stock price is up more than 20%. It spiked to an 11-year high in early June but has pulled back significantly as silver prices have come down. Those prices have dropped by about $4.00 per ounce or about 23% since their peak in February. Second-quarter silver production rose by 5% in the first half of 2021 to 6.98 million ounces. Gold production dipped 6% to 111,143 ounces.
Of 10 surveyed brokerages covering the stock, there are six Hold ratings and four Buy or Strong Buy ratings. At the recent trading price of around $6.60, the upside potential to the median price target is 21%. At the high price target of $11, the upside potential is 67%.
Second-quarter revenue is forecast to rise 5% sequentially and 33% year over year to $221.49 million. Adjusted earnings per share (EPS) are forecast at $0.05, down a penny sequentially and up by four cents year over year. For the full year, EPS are forecast to rise by 410% to $0.20 and revenue is expected to increase by nearly 25% to $862.37 million.
Hecla stock trades at a multiple of 32.8 times expected 2021 EPS, 22.7 times estimated 2022 earnings and 23.5 times estimated 2023 earnings. The stock’s 52-week range is $4.32 to $9.44, and the company pays an annual dividend of $0.04 per share (yield of 0.67%).
24/7 Wall St.Moderna
Over the past 12 months, shares of COVID-19 vaccine producer Moderna Inc. (NASDAQ: MRNA) have soared almost 375%. Since January of 2020, the stock’s price has risen by nearly 1,700%. The U.S. Food and Drug Administration is expected to remove the emergency use approval for the company’s vaccine and grant the drug full authorization later this year. Moderna also has received fast-track designation for another mRNA treatment for a respiratory ailment.
Of 17 brokerages covering the stock, eight have Buy or Strong Buy ratings and five have Hold ratings. The stock trades at about a dollar above its high price target and more than $160 above its median price target. Shares currently trade at around $359.60.
Second-quarter revenue is forecast to come in at $4.23 billion, up nearly 120% sequentially and more than six times year-ago revenue of $66.35 million. Forecast EPS of $5.86 is more than double first-quarter EPS of $2.84. In the second quarter of last year, Moderna posted a loss per share of $0.31. For the full year, EPS are forecast to be $25.67, compared to a loss of $1.96 in 2020. Revenue of $19.12 billion would be up nearly 2,300% year over year.
Moderna stock trades at 13.8 times expected 2021 EPS, 18.7 times estimated 2022 earnings and 54.6 times estimated 2023 earnings. The stock’s 52-week range is $54.21 to $365.60. Moderna does not pay a dividend.
ViacomCBS
Media and entertainment company ViacomCBS Inc. (NASDAQ: VIAC) has posted a share price gain of about 50% over the past 12 months, including a drop of about 60% since peaking in late March. For the year to date, the stock is up just under 4%.
With a market cap of nearly $25 billion, it is a little surprising that ViacomCBS recently was rumored to be an acquisition target for Comcast. Certainly, Comcast, a $265 billion behemoth, could afford to make the deal, but it likely would double Comcast’s debt. Recent moves by Amazon to swallow MGM and AT&T to combine its WarnerMedia business with Discovery would, if approved, leave even less competition in the streaming entertainment sector.
Analysts are evenly split, with 11 rating the stock a Hold and 11 rating it at Buy or Strong Buy. There are also six Sell or Strong Sell ratings. At around $38.30 a share, upside potential to the median price target of $50 is about 31%. At the high price target of $90, the upside potential is 135%.
ViacomCBS is expected to post second-quarter revenue of $6.5 billion, down 12.3% sequentially but up 3.5% year over year. Expected EPS of $1.00 are 34% lower sequentially and 20% lower year over year. For the full year, analysts anticipate EPS of $4.05, down 3.6% year over year, on revenue of $27.82 billion, up 10%.
ViacomCBS stock trades at 10.2 times expected 2021 EPS, 9.9 times estimated 2022 earnings and 10.3 times estimated 2023 earnings. The stock’s 52-week range is $25.61 to $101.97. The company pays an annual dividend of $0.96 (yield of 2.35%).
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