A relatively uneventful week for corporate earnings has turned into a bad-news week for a couple of companies. Zoom Video reported big numbers, but investors are looking ahead and not seeing significant growth. Apparel retailer Chico’s FAS also reported sharply higher revenues and profits, but, again, the future is foggy.
Our report on late Tuesday and early Wednesday reports included just two companies: Campbell Soup and CrowdStrike.
Here’s a look at three companies reporting results late Wednesday or before markets open on Thursday.
American Eagle Outfitters
Apparel retailer American Eagle Outfitters Inc. (NYSE: AEO) has seen its share price rise by more than 150% over the past 12 months, including an increase of around 60% through Monday’s close. Since late July, however, the stock is down about 30%, largely due to the resurgence of coronavirus infections. The company operates more than a thousand stores and licenses more than 225 in 28 countries. American Eagle is expected to report results before Thursday’s opening bell.
Of 13 analysts covering the stock, eight rate the shares a Buy or Strong Buy, and the other five rate the stock at Hold. At a recent price of around $30.60, the stock’s upside potential based on a median price target of $42 is about 37.3%. At the high price target of $49, the implied upside is 60%.
Second-quarter 2022 revenue is expected to come in at $1.22 billion, which would be up 18.3% sequentially and 38% year over year. Adjusted earnings per share (EPS) are forecast to rise by nearly 15% sequentially to $0.55, well above last year’s quarterly loss per share of $0.03. For the full year, analysts expect EPS of $2.17, compared to a loss per share of $0.13 in fiscal 2021, on sales of $5.01 billion, 33% higher year over year.
The stock trades at 15 times expected 2022 EPS, 13.8 times estimated 2023 earnings and 12.7 times estimated 2024 earnings. The stock’s 52-week range is $12.22 to $38.99, and American Eagle pays an annual dividend of $0.72 (yield of 2.21%).
ChargePoint
Electric vehicle charging network provider ChargePoint Holdings Inc. (NYSE: CHPT) has seen its stock price drop by nearly 30% since coming public in a SPAC merger in March. Following a rocky start, shares popped to trade at 20% above the IPO price, but a poor earnings report in June and a secondary offering of shares by early investors sent the shares down to their current level. The company is due to report second-quarter fiscal 2022 results after markets close Wednesday.
Analysts remain bullish on the stock, with eight of 10 brokerages rating the shares a Buy or Strong Buy and the other two with Hold ratings. At a price of around $21.15, the stock’s implied upside based on a median price target of $39 is about 84%. At the high price target of $46, the implied upside is 117%.
Revenue is forecast to reach $54.71 million, up 21% sequentially, and a forecast loss per share of $0.11 is seven cents better than the prior quarter loss of $0.18. For the full year, ChargePoint is expected to post a loss of $0.47, far better than the 2020 loss of $7.77 per share. Full-year revenue of $206.55 million is 41% higher than 2020 revenue of $146.49 million.
The company is not expected to post a profit in 2022, 2023 and 2024. ChargePoint’s enterprise value-to-sales ratio for 2022 is 30.2, dipping to 18.0 in 2023 and 10.8 in 2024. The stock’s 52-week range is $10.10 to $49.48, and the company does not pay a dividend.
24/7 Wall St.Okta
Enterprise software company Okta Inc. (NASDAQ: OKTA) has added about 26% to its share price over the past 12 months. For the year to date, however, the gain is less than 4%. Cathie Wood’s ARK Next Generation Internet ETF held 365,899 shares of Okta at the end of June. The fund has pared its holdings to 297,502 as of Monday’s close. Okta reports second-quarter 2022 results after markets close Wednesday
Of 28 analysts covering the stock, 18 rate the shares a Buy or Strong Buy, and the other 10 rate them at Hold. At a price of around $263.80, the implied upside on the stock based on a median price target of $280 is about 6%. At the high price target of $320, the upside potential is about 21%.
Quarterly revenue is forecast at $293.16 million, up 16.8% sequentially and 46% year over year. Okta is expected to post a loss per share of $0.33 for the quarter, 23 cents worse than the first-quarter loss. For the full year, analysts are looking for a loss per share of $1.11 compared with EPS of $0.11 in 2020.
Okta is not expected to post a profit in 2022, 2023 or 2024. The company’s enterprise value-to-sales ratio is 32.2 for 2022, 23.4 for 2023 and 17.5 for 2024. The stock’s 52-week range is $185.05 to $294.00, and Okta does not pay a dividend.
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