Early trading Wednesday had two of the three major U.S. indexes in the green. Tuesday’s up-and-down regular session ended with the Nasdaq up 1% while the Dow Jones industrials and the S&P 500 finished the day down and up a quarter-point, respectively. The monthly consumer price index (CPI) rose 0.3% month over month in April, a steep drop from the 1.2% increase between March and April. The annual rate declined from 8.5% to 8.3%. Core inflation, excluding food and energy, rose 0.6% month over month and stands at 6.2% for the past 12 months.
After markets closed Tuesday, cryptocurrency exchange Coinbase missed analysts’ estimates on both the top and bottom lines. The company said it expects lower trading volume in the current quarter. The stock traded down about 12.6% shortly after Wednesday’s opening bell.
Kinross Gold matched analysts’ consensus earnings estimate but missed the forecast revenue number. The company also said it plans to reduce its capital spending in each of the next three years. Shares were up about 0.4% early Wednesday.
Occidental Petroleum traded up by about 1.9% after beating both the top-line and bottom-line estimates.
SoFi Technologies released its earnings report before markets closed Tuesday, following an early leak of the results. Trading was halted on the stock and shares closed down 12% for the day. In early trading Wednesday, the stock was down about 2.6%, after meeting the profit estimate and beating on revenue. The decentralized finance company also lowered its revenue guidance for the current quarter but guided full-year sales above estimates.
We already have previewed four companies set to report results after markets close Wednesday: Bakkt, Coupang, Disney and Rivian. And we have taken a look at what to expect when Affirm, Aurora Cannabis and Toast report earnings late on Thursday.
Here is a look at three more companies set to report results after Thursday’s close.
Algonquin Power
Over the past 12 months, only one market sector, energy, has outperformed the utilities sector. Algonquin Power & Utilities Corp. (NYSE: AQN) did not help, dropping more than 10% from its share price over the 12-month period. Since posting a new 52-week high in early April, the stock has fallen by more than 15%.
Yet, Algonquin, which provides electricity, natural gas and water services to customers in the United States, Canada, Chile, and Bermuda, pays a handsome dividend that is quite safe because most of the company’s businesses are regulated and include the company’s profit margin.
Of 14 analysts covering the stock, six have a Buy or Strong Buy rating and six more rate the stock at Hold. At a recent price of around $13.55 a share, the implied gain based on a median price target of $16.75 is nearly 23.6%. Based on the high price target of $20.00, the upside potential for the stock is about 47.6%.
24/7 Wall St.Analysts expect the company to report first-quarter revenue of $709.61 million, which would be up 19.3% sequentially and 11.8% higher year over year. Adjusted earnings per share (EPS) are expected to come in at $0.21, down 0.1% sequentially but up by 5.0% year over year. For the full 2022 fiscal year, Algonquin is expected to post EPS of $0.74, up 4.5%, on revenue of $2.75 billion, up 20.1%.
The company’s stock trades at 18.3 times expected 2022 earnings, 16.8 times estimated 2023 earnings of $0.81 per share and 15.9 times estimated 2024 earnings of $0.85 per share. The stock’s 52-week range is $13.38 to $16.25. Algonquin pays an annual dividend of $0.68 (yield of 5.04%). Total shareholder return for the past year was negative 10.7%.
Joby Aviation
Since mid-August’s SPAC IPO, shares of Joby Aviation Inc. (NYSE: JOBY) have fallen by about 66%. Late last month, analysts at J.P. Morgan Securities initiated coverage on several electric aircraft makers that are development stage companies and have yet to recognize any revenue. Santa Cruz, California-based Joby was given a Neutral rating and a December 2022 price target of $7.00.
Rival Archer Aviation also reports results after markets close Thursday and was J. P. Morgan’s top pick, with an Overweight rating and $7 price target. Joby’s stock is more liquid however and might be a safer choice for investors wanting some exposure to the coming electric flight revolution.
Joby’s growth-stock status has not yet attracted much coverage. Of five brokerages covering the firm, one rates the shares at Strong Buy, three rate the stock a Buy and one more has a Hold rating. At a share price of around $3.30, the upside potential based on a median price target of $10.00 is 203%. At the high price target of $15.00, the upside potential is about 355%.
Four analysts have forecast a first-quarter loss per share of $0.24 and a full year loss per share of $0.94. Joby posted a 2021 loss per share of $2.11. There is no revenue forecast until 2024, when sales of $14.35 million are projected.
Total shareholder return over the past 12 months is negative 66.1%.
Nio
Shares of China-based electric vehicle maker Nio Inc. (NYSE: NIO) have plunged by nearly 64% over the past 12 months. From a 52-week high posted in late June, the stock is down by 75%. The company delivered nearly 26,000 vehicles in the first quarter.
Nio also has been identified as one of more than 80 China-based companies that may be kicked off U.S. stock exchanges for failing to meet recently enacted federal accounting requirements. The company completed a secondary listing in Singapore on Tuesday. The company has until May 25 to dispute the federal listing that could get the stock delisted.
There are 25 analyst ratings on Nio’s stock, and 22 of those are Buy or Strong Buy ratings. At a share price of around $13.50, the upside potential based on a median price target of $32.16 is about 138%. At the high target of $82.29, the upside potential is 510%.
For the first quarter of fiscal 2022, the consensus estimates call for revenue of $1.46 billion, down 6% sequentially and up 19.7% year over year. Nio is expected to post an adjusted loss per share of $0.17, flat sequentially, and worse than the year-ago loss of $0.04 per share. For the full year, the company is expected to report a per-share loss of $0.50, worse than the $0.30 loss last year, on sales of $9.37 billion, up about 65%.
Analysts estimate that Nio will trade at 59.8 times earnings in 2024. Until then, the company is not expected to post a profit. The enterprise value-to-sales multiple is expected to be 1.9 in 2022 and 1.1 in 2023. The stock’s 52-week range is $12.86 to $55.13, and the low was posted Tuesday. The company does not pay a dividend. Total shareholder return for the past year is negative 60.9%.
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