Nearly 80 companies in our watch list reported earnings after markets closed Monday and before they opened again on Tuesday. Of those, 20 missed consensus earnings estimates and 21 missed revenue estimates.
After markets close Tuesday, we’ll hear from half a dozen companies: Alphabet, AMD, Microsoft, Robinhood, Twitter and Visa. On Wednesday morning, reports are due from four more companies we follow: Boeing, Coca-Cola, GM and McDonald’s.
Here’s a look at three companies scheduled to report results after markets close Wednesday.
eBay
Shares of eBay Inc. (NASDAQ: EBAY) have added 50% to their price over the past 12 months. Since the beginning of 2020, eBay’s shares have risen by about 128%. Revenue has increased by an average of about 28% in each of the past four quarters, and operating income is up nearly 8% on average. Cash flow from operations is up by a factor of 10, from $105 million in the third quarter of last year to $1.07 billion in the second quarter of this year.
Given that history, it comes as a bit of a surprise that analysts are withholding judgment on the stock. Of 29 brokerages covering eBay, just 10 rate the stock a Buy or Strong Buy, while 18 have a Hold rating on the shares. At the recent price of around $80, the stock trades about $6 per share above the median price target. Based on the high price target of $85, the implied upside is about 6.3%.
Analysts’ consensus third-quarter revenue estimate is $2.46 billion, which would be down almost 8% sequentially and down about 5.7% year over year. Adjusted earnings per share (EPS) are forecast at $0.88, down nearly 11% sequentially but up by 3.5% year over year. For full fiscal 2021, eBay is expected to report EPS of $3.91, up 14.6%, on sales of $10.41 billion, up about 1.4%.
The stock trades at 20.6 times expected 2021 EPS, 18.0 times estimated 2022 earnings and 16.6 times estimated 2023 earnings. The stock’s 52-week range is $45.36 to $81.19. eBay pays an annual dividend of $0.72 (yield of 0.94%).
Ford
Both General Motors and Ford Motor Co. (NYSE: F) are reporting earnings on Wednesday–GM before the opening bell and Ford after the closing bell. Like nearly every automaker, both are also struggling with supply chain issues, but Ford is expected to see a revenue jump, while GM is forecast to see sales decline.
Ford’s electric vehicle lineup posted a gain of more than 90% year over year in September, and preorders for the electric F-150 Lightning, due out early next year, top 150,000. The pieces for a move to more EVs are falling into place for Ford. Now the company has to begin delivering on the hopes it has raised.
Analysts are a bit mixed on the stock, with eight of 20 rating the shares at Hold and 11 giving the stock a Buy or Strong Buy rating. At around $16.20 a share, the upside potential based on a median price target of $17 is 4.7%. At the high price target of $20, the upside potential is 22.3%.
Third-quarter revenue is forecast at $32.79 billion, 36% higher sequentially but down 5.5% year over year. Adjusted EPS are forecast at $0.27, up 108% sequentially and down 58.5% year over year. For full fiscal 2021, analysts currently estimate EPS of $1.57, up 283%, on sales of $127.31 billion, up nearly 10%.
Ford stock trades at 10.4 times expected 2021 EPS, 8.8 times estimated 2022 earnings and 7.6 times estimated 2023 earnings. The stock’s 52-week range is $7.61 to $16.70. Ford does not pay a dividend.
Teladoc
Over the past 12 months, shares of Teladoc Health Inc. (NYSE: TDOC) have dropped by a third. However, if we start counting in January of last year, the shares are up about 72%. In mid-February, the stock was up more than 240% compared to its level in January 2020.
There’s no question that last year’s growth spurt has left analysts wondering if Teladoc has much room left to run or if its online-first approach to health care has lost some of its appeal. Cathie Wood’s ARK Invest funds have increased their holdings in Teladoc by nearly 1 million shares (6%) since the end of the June quarter.
Sentiment among analysts remains mostly bullish, with ratings of Buy or Strong Buy from 18 of 30 and the remaining dozen all with Hold ratings. At a price of around $144.40, the upside potential based on a median price target of $185 is 28%. At the high price target of $291, the upside potential is 35%.
Analysts expect Teladoc to post third-quarter revenue of $516.79 million, up 2.7% sequentially and almost 80% year over year. Teladoc is expected to report a loss per share of $0.62, higher than the $0.58 loss per share reported in the second quarter, and 19 cents worse than the loss in the year-ago quarter. For the full year, Teladoc is pegged to lose $3.12 per share, down from $5.36, on revenue of $2.01 billion, up 84%.
Teladoc is not expected to post a profit in 2021, 2022 or 2023. Shares currently trade at 11.1 times, 8.7 times and 6.9 times the company’s enterprise value-to-sales ratio in each of those years respectively. The stock’s 52-week trading range is $120.67 to $308.00. Teladoc does not pay a dividend.
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