Earnings announcements that we had previewed for Tuesday evening and Wednesday morning all topped bottom-line expectations, and just one (Heico) missed on the top line.
After markets close this afternoon, we shall see results from four companies we previewed on Tuesday: Pure Storage, Salesforce, Snowflake and Splunk. Thursday morning brings reports from four more firms we have previewed: Academy Sports, Dollar General, Dollar Tree and Xpeng.
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After markets close Thursday, we expect to hear seven interesting reports. Here, we look at three companies that have one thing in common: all are included in one or another of Cathie Wood’s ARK Invest exchange-traded funds
Bill.com
A provider of cloud-based services to small and medium-sized businesses, Bill.com Holdings Inc. (NYSE: BILL) has seen its shares add about 133% over the past 12 months. For the year to date, shares are up nearly 60%. As of Tuesday’s close, the ARK Innovation ETF held 207,907 shares of the company’s stock, a decline of more than 10% from the 224,060 shares the fund owned at the end of June.
Analysts remain bullish on the stock, with 11 of 13 having ratings of Buy or Strong Buy. The other two ratings are Hold. At a recent price of around $217.20, the shares had outrun their median price target of $190. At the high price target of $250, the implied upside is about 15%.
For the company’s fourth quarter of fiscal 2021, analysts expect revenue of $64.98 million, up about 8.8% sequentially and up 54% year over year. The expected adjusted loss per share of $0.03 is a penny better than the prior quarter’s loss. For the 2021 fiscal year, revenue is forecast at $224.98 million, up nearly 43%, and the net loss per share is forecast at $0.12, compared with last year’s loss per share of $0.17.
Bill.com is expected to post a profit of $0.01 in fiscal year 2022 and $0.39 in fiscal 2023. At the current price, the stock trades at 87.5 times estimated 2021 enterprise value-to-sales, 53.6 times 2022 EV/sales and 37.1 times 2023 EV/sales. The stock’s 52-week range is $82.19 to $221.98. The high was posted early Wednesday morning. Bill.com does not pay a dividend.
Peloton
Peloton Interactive Inc. (NASDAQ: PTON) makes and sells fitness products that include tech features like livestreams and on-demand classes. Since early April of 2020, Peloton’s stock has increased by nearly 300%. At its peak in mid-January of this year, the shares traded up about 490%. At Tuesday night’s close, the ARK Next Generation Internet ETF held about 1.57 million shares of Peloton stock valued at $178.7 million, about 1.1 million fewer than the 1.69 million in the fund at the end of June.
Even though year-to-date performance has been poor (down about 25%), of 28 analysts covering the stock, 21 rate the shares a Buy or Strong Buy. Another five have a Hold rating on the stock. At a price of around $113.50, the stock’s upside potential based on a median price target of $135 is nearly 19%. At the high price target of $185, the implied share-price gain is 63%.
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For Peloton’s fourth quarter of fiscal 2021, analysts expect revenue of $932.62 million, a sequential decline of almost 27% but a year-over-year increase of 52%, and an adjusted loss per share of $0.34, compared to a profit per share a year ago of $0.30. For the 2021 fiscal year, the forecast calls for adjusted earnings per share (EPS) of $0.17, compared with a loss of $0.01 per share in 2020. Revenue is pegged to come in at $4.01 billion, nearly 120% higher than the year-ago total.
The stock trades at 118.9 times estimated 2022 earnings and 59.5 times estimated 2023 earnings. The stock’s 52-week range is $66.74 to $171.09, and Peloton does not pay a dividend.
Workday
Enterprise software developer Workday Inc. (NASDAQ: WDAY) has added about 28% to its share price over the past 12 months. During that period, it peaked at a gain of around 47% in mid-February. For the year to date, however, the stock is up less than 2.5%. At the end of June, the Ark Fintech Innovation ETF held 283,920 shares of Workday stock, down from the 327,228 shares the fund held at the end of March. As of Tuesday’s close, the fund held 186,607 shares of Workday stock.
Analyst sentiment remains bullish on the stock, with 23 of 31 brokerage houses rating the stock a Buy or Strong Buy. Another seven rate the shares a Hold. At a price of around $244.90, the stock’s upside potential based on a median price target of $280 is 14.2%. At the high price target of $320, the implied upside is nearly 31%.
For its second quarter of fiscal 2022, Workday is expected to report revenue of $1.24 billion, which would be up about 5.6% sequentially and 17% year over year. The EPS forecast is $0.77, down nearly 12% sequentially and more than 8% year over year. For the 2022 fiscal year, current estimates call for EPS of $2.94, a penny better than last year, and revenue of $5.03 billion, up 16.6% year over year.
The stock trades at 82.4 times expected 2022 EPS, 51.3 times estimated 2023 earnings and 39.1 times estimated 2024 earnings. The stock’s 52-week range is $195.81 to $282.77, and Workday does not pay a dividend.
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