Investing

Earnings Previews: CrowdStrike, First Majestic Silver, JD.com, KE Holdings

Paul Ausick

Published: March 8, 2022 11:41 am

After markets closed Monday, electronic instruments maker 908 Devices reported a smaller than expected fourth-quarter loss and a better-than-expected revenue total. Guidance was unchanged and shares jumped by around 10% in premarket trading before pulling back.

Before markets opened Tuesday morning, Dick’s Sporting Goods reported beats on both earnings and revenues and issued upside guidance for the 2023 fiscal year. Petco also beat on the top and bottom lines and issued upside guidance. Both traded higher in Tuesday’s premarket.

We already have previewed reports due out after markets close Tuesday and before they open on Wednesday: Campbell Soup, Express, Stitch Fix, W&T Offshore and Zim Integrated Shipping.

Here is a look at four companies set to report results after markets close Wednesday or before they open on Thursday.

CrowdStrike

Cloud security platform maker CrowdStrike Holdings Inc. (NASDAQ: CRWD) has seen its share price decline by about 11.2% over the past 12 months. The stock posted its 52-week low in late January and its high in early November. Since then, shares are down by about 45%.

On Monday, three brokerages cut their price targets on the stock while maintaining their ratings. Two had Buy ratings on the stock and one had an Underperform rating. Since announcing earnings a month ago, competitor Cloudflare had dropped about 19% and CrowdStrike is down about 15%. The company reports results after markets close Wednesday.

Overall, analysts remain solidly bullish on the stock. Of 32 brokerages covering the firm, 21 rate the shares at Buy and seven more have Strong Buy ratings. Another three have rated the shares at Hold. At a recent price of around $160.10 a share, the upside potential based on a median price target of $270 is 68.6%. At the high price target of $350, the upside potential is about 117%.

Fourth-quarter fiscal 2022 revenue is forecast at $412.38 million, which would be up 8.5% sequentially and 55.7% higher year over year. Adjusted earnings per share (EPS) are forecast at $0.20, up 19.4% sequentially and 53.8% year over year. For the full fiscal year that ended in January, analysts expect CrowdStrike to report EPS of $0.58, up almost 116%, on sales of $1.43 billion, up nearly 64%.

CrowdStrike stock trades at 272.8 times expected 2022 EPS, 169.8 times estimated 2023 earnings of $0.94 and 111.7 times estimated 2024 earnings of $1.42 per share. The stock’s 52-week range is $150.02 to $298.48. CrowdStrike does not pay a dividend. Total shareholder return for the past year is negative 12.2%.

First Majestic Silver

Canada-based First Majestic Silver Corp. (NYSE: AG) owns and operates gold and silver mining operations in Mexico. Since a brief spike last June, the stock is down by about 33%, although it has added 31% after posting a 52-week low set in late January. The price of gold has risen by more than 10% since late January, and silver prices are up more than 18%. The company is set to report quarterly results first thing Thursday morning.

Sentiment on the stock is mixed, with three of six brokerages giving the stock a Hold rating and the other three having Buy ratings. At a share price of around $12.90, the upside potential based on a median price target of $17.25 is 33.7%. At the high price target of $22.50, the upside potential is 74.4%.

For the company’s fourth quarter of fiscal 2021, the consensus revenue estimate is $205.8 million, up 68.51% sequentially and up 38.3% year over year. Adjusted EPS are forecast at $0.07, compared to a loss per share of $0.07 in the prior quarter and down 36.3% year over year. For the full fiscal year, current estimates call for EPS of $0.07, down nearly 60%, on sales of $572.49 million, up 57.6%.

First Majestic stock trades at 46.7 times expected 2022 EPS of $0.40 and 20.6 times estimated 2023 earnings of $0.61. The stock’s 52-week range is $9.29 to $18.93. The company pays an annual dividend of $0.02 (yield of 0.12%). Total shareholder return for the past year was negative 16.3%.

Beijing-based JD.com Inc. (NASDAQ: JD) is the second-largest Chinese e-commerce company, a distant second to Alibaba and double the size of number three, Pinduoduo. Over the past 12 months, the stock has dropped by about 37%, virtually all of it since mid-November. China’s big tech companies have been plagued by government regulations announced in early 2021 and that will be further implemented in 2022. In JD.com’s case, this may affect the investments the company made in financial services last year. The company is scheduled to report results before markets open Thursday.

Of 40 analysts covering the stock, 39 give the company a Buy or Strong Buy rating. At a share price of around $56.50, the stock’s implied upside based on a median price target of $100.88 is about 78.5%. At the high price target of $123.08, the upside potential is about 118%.

Analysts expect JD.com to report fourth-quarter revenue of $43.33 billion, up 27.8% sequentially and 26.0% year over year. Adjusted EPS are expected to come in at $0.27, up 7.1% sequentially and 17.4% year over year. For full fiscal 2021, EPS are forecast at $1.63, up about 100%, on sales of $150.24 billion, up 31.5% year over year.

JD.com stock trades at 34.9 times expected 2021 EPS, 26.4 times estimated 2022 earnings of $2.15 and 18.2 times estimated 2023 earnings of $3.13 per share. The stock’s 52-week range is $56.41 to $94.40, and the company does not pay a dividend. Total shareholder return over the past year is negative 33.4%.

KE Holdings

KE Holdings Inc. (NYSE: BEKE) is a Beijing-based online real estate brokerage. The share price is down nearly 75% over the past 12 months. It trades more than 10 million shares daily on average, and the company reports quarterly results after markets close Wednesday.

While China Evergrande Group was last year’s poster child for the country’s property bubble, inflated housing prices and towers full of empty apartments affected banks, real estate brokers and other related industries. The government has set about trying to deflate that bubble without crippling an industry that accounts for more than a quarter of the country’s debt capital.

Of 15 analysts covering the stock, 11 have a Buy or Strong Buy rating. At a share price of around $13.50, the stock’s implied upside based on a median price target of $25.99 is about 92.5%. At the high price target of $39.71, the upside potential is about 194%.

Analysts expect KE Holdings to report fourth-quarter revenue of $2.52 billion, down 10% sequentially and 89% lower year over year. The expected adjusted loss per share is $0.07, down from a profit of $1.71 in the year-ago quarter. For the full 2021 fiscal year, EPS are forecast at $0.23, down nearly 59%, on sales of $12.48 billion, up 15.6% year over year.

The stock trades at a multiple of 57.1 times expected 2021 EPS, 24 times estimated 2022 earnings of $0.55, and 14.8 times estimated 2023 earnings of $0.90 per share. The stock’s 52-week range is $13.24 to $72.49, and the company does not pay a dividend. Total shareholder return over the past year is negative 71.8%.