Earnings announcements that we had previewed for Thursday evening and Friday morning posted mixed results. Bill.com hammered the revenue estimate but reported a larger loss than forecast, and the stock traded up about 28% late Friday morning. Peloton also beat on revenues but missed badly on profits, and the stock traded down about 8.5%. Big Lots missed on both and traded down about 3%. Workday beat on both and shares was up about 11% Friday morning.
We already have previewed Cloudera and Li Auto earnings, due out before markets open on Monday.
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Here is a look at four companies reporting results late Monday or first thing on Tuesday.
StoneCo
StoneCo Ltd. (NASDAQ: STNE) provides fintech services to merchants and their partners in Brazil. The company is headquartered in the Cayman Islands and is a subsidiary of HR Holdings. Over the past 12 months, the shares have added about 4.7%, including a spike to a gain of more than 90% in mid-February. For the year to date, including that spike, the stock is down about 39%.
At the end of June, Cathie Wood’s ARK Fintech Innovation ETF owned 585,570 shares of StoneCo stock. As of Thursday’s close, the fund holds more than 1.35 million shares valued at $68.25 million.
Of 17 analysts covering the company, 10 rate the shares as a Buy or Strong Buy, and the rest rate the stock a Hold. At a recent price of around $51.00, the stock’s upside potential based on a median price target of $80.83 is about 58.5%. At the high target of $105.59, the upside potential is 107%.
StoneCo is expected to report second-quarter 2021 revenue of $210.6 million, which would be up 36.6% sequentially and nearly 72% year over year. Adjusted earnings per share (EPS) are tabbed at $0.19, or up 77% sequentially and 90% year over year. The current consensus estimates for the full fiscal year call for EPS of $0.91, up 42%, on sales of $976.39 million, nearly 53% higher.
The stock trades at 58.2 times expected 2021 EPS, 34.5 times estimated 2022 earnings and 27.3 times estimated 2023 earnings. The stock’s 52-week trading range is $46.60 to $95.12. StoneCo does not pay a dividend.
Zoom Video
After a blistering rise of nearly 400% in 2020, Zoom Video Communications Inc. (NASDAQ: ZM) stock has risen by less than 1% so far in 2021. While enforced work-from-home rules drove the share price last year, investors appear to believe that once offices reopen, Zoom’s video calling service won’t be in such high demand. The ARK Innovation and ARK Next Generation Internet ETFs combined held 3,394,864 shares of Zoom stock as of Thursday’s close, a decrease of about 7.5%. Zoom Video reports quarterly results after markets close on Monday.
Analysts remain bullish on the stock, with 14 of 25 rating the shares a Buy or Strong Buy and nine more putting a Hold rating on the stock. At a price of around $339.80, the stock’s upside potential based on a median price target of $428 is about 26%. At the high price target of $525, the upside potential is 54.5%.
The consensus estimate calls for second-quarter 2022 revenue of $990.24 million, a 3.5% sequential increase and a year-over-year increase of 49%. Adjusted EPS are forecast at $1.16, down about 12% sequentially, but up 26% year over year. For the full 2022 fiscal year, EPS are forecast to rise nearly 40% to $4.66 on a sales increase of about 51% to $4 billion.
Zoom Video’s stock trades at 72.4 times expected 2022 EPS, 71.2 times estimated 2023 earnings and 67.9 times estimated 2024 earnings. The stock’s 52-week range is $273.20 to $588.84, and the company does not pay a dividend.
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Chico’s FAS
Women’s apparel retailer Chico’s FAS Inc. (NYSE: CHS) has posted a share price gain of around 280% over the past 12 months, including a 277% gain so far in 2021. The pandemic year of 2020 saw the stock drop about 57% of its value. Chico’s is on deck to report second-quarter 2022 results before the opening bell on Tuesday, August 31.
The company gets very little coverage, with just two brokerages rating the stock a Hold. At a price of $6.00, the stock trades right at the high price target.
The consensus estimate calls for revenue of $407.35 million, up 5% sequentially and 33% year over year. The forecast loss per share is $0.07, a penny better sequentially and 26 cents better year over year. For the full year, Chico’s is expected to post a per-share loss of $0.17, compared to a loss per share of $1.38 last year. Sales are expected to rise by 32% to $1.75 billion.
Chico’s is expected to post a profit of $0.39 in fiscal year 2023, The stock trades at 0.9 times estimated 2021 enterprise value-to-sales and 0.8-times 2023 EV/sales. The stock’s 52-week range is $0.91 to $7.29. Chico’s does not pay a dividend.
24/7 Wall St.NetEase
China-based NetEase Inc. (NASDAQ: NTES) operates online gaming services, communications and commerce in China and elsewhere. It owns U.S.-traded online services company, Youdao. Shares have dropped about 8.5% over the past 12 months, including a drop of about 2% so far in 2021. The company reports second-quarter 2021 results early Tuesday.
Of 28 brokerage houses covering the stock, 24 rate the shares a Buy or Strong Buy and the other four rate the stock at Hold. At a price of around $92.80, the stock’s implied gain based on a median price target of $132 is 42%. At the high price target of $159.41, the upside potential is around almost 72%.
Analysts are forecasting second-quarter revenue of $3.19 billion, up about 1.8% sequentially and 24% year over year. Adjusted EPS of $0.94 are down by more than 17% sequentially and by about 18% year over year. For the full year, analysts are looking for EPS of $4.17, up more than 500% year over year, on a year-over-year sales increase of nearly 20% to $13.53 billion.
The stock trades at 22.1 times expected 2021 EPS, 18.7 times estimated 2022 earnings and 16.4 times estimated 2023 earnings. Its 52-week range is $77.97 to $134.33, and NetEase pays an annual dividend of $0.85 (yield of 0.93%).
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