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Earnings Previews: Albemarle, Fisker, MGM Resorts, Qualcomm, Skillz
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More than 1,500 companies are expected to report quarterly earnings this week. Of two in our watch list for Monday afternoon, one (Diamondback Energy) beat on both revenue and profits, while the other (NXP Semiconductors) missed on profits. Three companies we previewed that reported early Tuesday (BP, Pfizer and Under Armour) all beat on both the top and bottom lines.
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Monday, we previewed three companies set to report results after markets close Tuesday (Activision Blizzard, Lyft and T-Mobile) and three more set to report results before markets open Wednesday (Cenovus Energy, Discovery and Norwegian Cruise Lines).
Here’s a look at five companies scheduled to report results after markets close Wednesday.
Albemarle
Lithium producer Albemarle Corp. (NYSE: ALB) has experienced a share price increase of 177% over the past 12 months. Since posting a recent low in early March, the stock has added 83%. Since our last look at the stock about two weeks ago, shares are up more than 10% and closed at a new 52-week high on Monday. Lithium prices have risen by around $6 per kilogram in the past two weeks, a jump of about 30%. There’s little sign that demand is going to cool off any time soon.
Analysts appear rather mixed on Albemarle. Of 24 brokerages covering the stock, nine rate the stock at Hold while 12 have Buy or Strong Buy ratings. At a recent price of around $255.90, the stock trades a shade above its median price target of $255. Based on the high price target of $300, the upside potential is 17.2%.
Third-quarter revenue is forecast at $764.1 million, which would be down about 1.3% sequentially but up 2.3% year over year. Adjusted earnings per share (EPS) are forecast at $0.76, down 14% sequentially and about a third lower year over year. For the full year, analysts expect Albemarle to report EPS of $3.61, down 12.3%, on sales of $3.24 billion, up about 3.6%.
The stock trades at 70.8 times expected 2021 EPS, 47.7 times estimated 2022 earnings and 35.3 times estimated 2023 earnings. The stock’s 52-week range is $93.00 to $259.18. Albemarle pays an annual dividend of $1.56 (yield of 0.62%).
24/7 Wall St.Fisker
Luxury electric vehicle maker Fisker Inc. (NYSE: FSR) has been a publicly traded company for just one year — but what a year. The stock’s share price increased by about 180% by late February, only to lose all that by mid-May. Since then, the stock is up about 76%, for a gain of nearly 73% for the 12 months. Next week’s IPO of electric pickup maker Rivian has juiced the EV sector. Fisker continues to burn cash and does not expect production of its Ocean SUV to begin until late next year.
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Only 10 analysts cover Fisker, but half of them give the stock a Buy or Strong Buy rating. Another four have rated the shares at Hold. At the price of around $17.50, the implied gain based on a median price target of $19 is about 8.6%. At the high target of $40, the implied gain is about 129%.
Analysts do not expect Fisker to post any revenue in the third quarter and only $30,000 for the full year. The expected loss per share for the quarter is $0.34 and for the year, $1.12.
Fisker is not expected to post a profit in any of 2021, 2022 or 2023. The projected enterprise value-to-sales multiple for 2022 is 13.8 and for 2023 is 1.9. Forecast revenue for 2022 totals $115.7 million, and for 2023 it is $1.35 billion. The stock’s 52-week range is $9.61 to $31.96. Fisker does not pay a dividend.
24/7 Wall St.MGM Resorts
Resort and casino operator MGM Resorts International (NYSE: MGM) has seen its share price rise by about 132% over the past 12 months but only by about 8.4% in the third quarter. For the year to date, MGM stock is up about 51%.
Like all casinos and resorts, MGM had a tough year in 2020, and 2021, while much better, has been bumpy. The company’s BetMGM sportsbook is expecting to rake in more than $1 billion next year as it continues to roll out in states that allow betting on sports.
Sentiment is mixed on the stock, with six of 15 analysts giving the shares a Hold rating, compared to seven who rate the stock a Buy or Strong Buy. At a price of around $47.80, the upside potential based on a median price target of $54 is 13%. At the high price target of $68, the upside potential is 42.3%.
The consensus third-quarter 2021 revenue estimate is $2.42 billion, up 6.8% sequentially and more than double last year’s third-quarter sales. MGM is forecast to post a loss per share of $0.02, better than the prior quarter’s loss of $0.13 and the year-ago loss of $1.08 per share. For the full year, analysts are expecting a loss per share of $0.80, much improved over last year’s loss per share of $3.94, on sales of $9 billion, up 74.3%.
MGM shares trade at 84.4 times estimated 2022 earnings and 40.5 times estimated 2023 earnings. The stock’s 52-week range is $21.27 to $49.13. MGM pays an annual dividend of $0.01 (yield of 0.02%).
Qualcomm
Networking chipmaker Qualcomm Inc. (NASDAQ: QCOM) has added about 12% to its share price over the past 12 months. That includes a drop of 3.8% in the third quarter and an increase of 4.7% in October. Between early February and early March, the stock dropped nearly 25% after missing revenue forecasts, even as the chip shortage was making news.
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The stock reached its break-even point for the year to date in late July but the stock price dropped 18% by mid-October and has recovered more than a third of that loss since announcing an acquisition of auto industry chipmaker Veoneer. Maybe the chip shortage will work to Qualcomm’s advantage this time.
Analysts still like the stock. Of 30 analysts covering the company, 21 have a Buy or Strong Buy rating on the shares, and the other nine rate the stock at Hold. At the price of around $134.60, the upside potential based on a median price target of $177 is 31.5%. At the high target of $225, the upside potential is 67%.
Fourth-quarter fiscal 2021 revenue is forecast to come in at $8.84 billion, up 10.6% sequentially and 36% year over year. Adjusted EPS are pegged at $2.26, up 17.7% sequentially and nearly 56% year over year. For the full fiscal year, this Dow Jones industrial average component is expected to post EPS of $8.25, up 97%, on sales of $32.98 billion, up 52%.
Qualcomm stock trades at 16.1 times expected 2021 EPS, 14.4 times estimated 2022 EPS and 13.6 times estimated 2023 EPS. The stock’s 52-week range is $122.17 to $167.94. Qualcomm pays an annual dividend of $2.72 (yield of 2.04%).
24/7 Wall St.Skillz
Since coming public in December of last year, shares of mobile games platform Skillz Inc. (NYSE: SKLZ) have dropped by nearly 50%. The stock posted its post-IPO low last month and has added nearly 50% since then. The company recently hired a new chief product officer, and Cathie Wood’s ARK Invest funds have maintained their positions in the stock since June.
Just seven analysts cover the stock, with four giving the shares a Hold rating and the others giving the stock a Buy rating. At a price of around $11.20, the potential upside based on a median price target of $16 is about 43%. At the high target of $25, the potential upside is 123%.
Third-quarter revenue is forecast at $102.61, up 14.7% sequentially and 71% year over year. On a GAAP basis, Skillz is forecast to post a loss of $0.15 per share, better than the prior quarter’s loss of $0.21 and far better than the year-ago loss of $3.08 per share. For the full year, current estimates call for a loss per share of $0.63, worse than last year’s loss of $0.42, on sales of $389.84 million, up 69.4%.
The company is not expected to post a profit in 2021, 2022 or 2023. The projected enterprise value-to-sales multiple for 2021 is 9.8, for 2022 is 6.9 and for 2023 is 5.2. Forecast revenue for 2022 and 2023 totals $489.7 million and $580.6 million, respectively. The stock’s 52-week range is $7.97 to $46.30. Skillz does not pay a dividend.
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