After markets closed on Wednesday, GoHealth missed earnings and revenue estimates and guided fiscal 2022 revenue below estimates. Shares traded flat shortly after the opening bell. SentinelOne also reported, beating top-line and bottom-line estimates and raising current quarter guidance. The stock traded up 5% in the morning. Markforged reported mixed results and shares traded up nearly 4% early Wednesday.
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Jabil stock jumped nearly 10% early Wednesday, after beating profit estimates by more than 8% and revenue estimates by about 1.6%.
We have already previewed seven companies set to report results after markets close Wednesday or before then open Thursday: Commercial Metals, Dollar General and Lennar, as well as Canadian Solar, Hut 8 and Li-Cycle.
Here is a look at four companies scheduled to report earnings after markets close Thursday or before they open on Friday.
FedEx
Following its earnings report in September, FedEx Corp. (NYSE: FDX) shares plummeted to a 52-week low. Ahead of Thursday’s earnings report, shares dipped last week to a new 52-week low. Over the past 12 months, FedEx shares have dipped by around 16%. Over the same period, rival UPS has added about 35% to its share price.
The company recently suspended service to Ukraine and Belarus, and FedEx is expected to discuss the impact of the Russian invasion on the company’s outlook. In light of complaints from independent contracts about FedEx Ground division’s overly optimistic expectations for holiday deliveries, analysts and investors are going to pay close attention to the company’s outlook going forward.
Analysts are solidly bullish on the shares, with 22 of 30 brokerages that cover the stock having a rating of Buy or Strong Buy. The other eight rate the stock at Hold. At a recent price of around $220.50 a share, the upside potential based on a median price target of $300.00 is 36%. At the high price target of $364.00, the upside potential is 65%.
The consensus third-quarter revenue estimate is $23.33 billion, which would be down by less than 1% sequentially but up 8.5% year over year. Adjusted earnings per share (EPS) are forecast at $4.65, down 3.8% sequentially and up 34% year over year. For the full 2022 fiscal year ending in May, analysts are currently expecting EPS of $20.58, up 13.3%, on sales of $92.97 billion, up 10.7%.
FedEx stock trades at 10.7 times expected 2022 EPS, 9.7 times estimated 2023 earnings of $22.78 and 8.9 times estimated 2024 earnings of $24.79 per share. The stock’s 52-week range is $199.03 to $319.90. FedEx pays an annual dividend of $2.90 (yield of 1.36%). Total shareholder return for the past year was a negative 14.6%.
GameStop
Video gaming retailer GameStop Corp. (NYSE: GME) has watched its share price fall by around 60% over the past 12 months. Since reaching an all-time high late last January, the stock is down about 75%, but that level is still about double its all-time high prior to last year’s meme stock boom. GameStop reports quarterly results after markets close on Thursday.
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The company has still not revealed a strategy to stop the bleeding, and board member Reggie Fils-Aime, former president of Nintendo’s U.S. business, resigned Tuesday, citing management’s refusal to listen to his turnaround ideas with the comment that CEO Ryan Cohen and his hand-picked management team “don’t know this business; don’t understand the players.”
Just three analysts have had anything to say on the stock. Two rate the stock a Sell and one has a Hold rating. At a share price of around $89.50, the stock trades well above its median price target of $34.00 and nearly double its high price target of $45.00.
Fourth-quarter revenue is forecast at $2.22 billion, up nearly 71% sequentially and 4.7% higher year over year. Adjusted earnings per share (EPS) are forecast at $0.84, up from an adjusted loss per share of $1.39 in the prior quarter and down 37.4% year over year. For the full 2022 fiscal year that ended in January, analysts are forecasting an adjusted loss per share of $1.69, compared to the prior-year loss of $2.14 per share, and sales of $5.97 billion, up 17.4%.
GameStop is not expected to post a profit until fiscal 2024 ($0.03 per share). Based on estimates of GameStop’s enterprise value ranging between $5.97 billion and $6.16 billion for the three fiscal years, the sales to enterprise value multiple is around 1.0. The stock’s 52-week range is $77.58 to $344.66, and GameStop does not pay a dividend. Total shareholder return for the past year is about negative 57.7%.
On Holding
Switzerland-based On Holding AG (NYSE: ONON) designs, makes and sells sports apparel. The share price has dropped by about 33% since the firm’s initial public offering in mid-September of last year. At its IPO, the stock closed at nearly $35 a share, and it rose to around $56 in mid-November before beginning its slide. The shares dropped by about 5% on Monday when the company’s post-IPO lockup period ended. On Holding reports quarterly results first thing Friday morning.
Of eight brokerages covering the stock, seven have given it a Buy or Strong Buy rating, and the other one rates the shares at Hold. At a share price of around $23.50, the implied upside to a median price target of $49.02 is almost 109%. At the high price target of $55.29, the upside potential rises to 135%.
There are no estimates available for fourth-quarter revenue or earnings. In the third quarter, On Holding reported revenue of $231.77 million (CHF218.00 million). In its federal filing, the company forecast fiscal year 2021 revenue at $754.84 million (CHF710.00). Diluted EPS in the third quarter totaled $0.04 (CHF0.04). For the first nine months of last year, the company reported diluted EPS of $0.06 (CHF0.06). For fiscal 2022, On Holding guided revenue of “at least” $1.02 billion (CHF960.00 million), an increase of around 35% year over year.
The stock trades at 150.9 times expected 2021 EPS of $0.16, 91.7 times estimated 2022 earnings of $0.26 and 51.3 times estimated 2023 earnings of $0.46 per share. The stock’s post-IPO range is $19.75 to $55.87. On Holding does not pay a dividend.
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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, StoneCo shares have dropped more than 87%. At the end of June 2021, Cathie Wood’s ARK Fintech Innovation ETF owned 585,570 shares of the stock. At the closing bell Tuesday afternoon, the fund had increased its holdings to 2.66 million shares valued at $21.95 million. StoneCo reports quarterly results after Thursday’s closing bell.
Analysts have adopted a cautious view on the shares. Of 16 brokerages covering the firm, 11 have a Hold rating on the stock and another four rate the shares a Buy or Strong Buy. At a share price of around $8.,90, the implied upside based on a median price target of $20.51 is about 130%. At the high price target of $42.79, the upside potential is about 380%.
When StoneCo reports fourth-quarter results, analysts are looking for revenue of $331.37 million, up 22.9% sequentially and nearly 72% higher year over year. Adjusted EPS are forecast at $0.3, down 61.6% sequentially and 86.0% lower year over year. For the full year, analysts are expecting EPS of $0.16, down 75.6%, on revenue of $907.86 million, up 42%.
StoneCo stock trades at 58.1 times expected 2021 EPS, 23.1 times estimated 2022 earnings of $0.39 and 11.9 times estimated 2023 earnings of $0.76 per share. The stock’s 52-week range is $8.05 to $73.00. StoneCo does not pay a dividend. Total shareholder return for the past year was negative 87%.
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