The three major U.S. equity indexes closed higher Tuesday for the second consecutive day. The Nasdaq added 0.9%%, the S&P 500 rose by almost 1.0% and the Dow Jones industrials closed up 0.8%. A profit warning from Target and record average pump prices for gasoline weighed early, but traders reversed course by mid-morning and stocks began a steady climb in the afternoon. Wednesday morning, the U.S. Energy Information Administration will release its weekly report on petroleum production and inventories.
Before markets opened on Wednesday, Campbell Soup beat consensus estimates on both the top and bottom lines and issued fiscal year revenue guidance above the consensus estimate. Shares were up about 4.6% in premarket trading.
Thor Industries also beat consensus estimates for second-quarter profits and revenue. The RV maker also said it is working through inventory issues and expects shipments to dealers and dealer sales to customers to reach “closer to one-to-one parity” in the second half of the year. The stock had added almost 5% in premarket trading Wednesday.
After markets close Wednesday or before they open Thursday, Bilibili, Five Below, FuelCell Energy and Nio are expected to report quarterly results.
Here is a look at three companies scheduled to release quarterly results after markets close on Thursday.
DocuSign
Shares of cloud-based signature and contract management software provider DocuSign Inc. (NASDAQ: DOCU) have dropped by about 62% over the past 12 months. Since posting a 52-week low in mid-May, the stock has added more than 25%, and that promises to climb higher following Tuesday’s announcement of a deal with Microsoft that integrates DocuSign’s cloud-based products with Microsoft products like Teams, Word and 365. Shares rose more than 4% on Tuesday and traded up nearly 5% in Wednesday’s premarket.
Of 19 brokerages covering the company, 10 have Buy or Strong Buy ratings and eight rate the shares at Hold. At a recent price of around $87.75 a share, the upside potential based on a median price target of $97.50 is about 11.1%. At the high price target of $108.00, the upside potential is 23.1%.
Fiscal first-quarter revenue is forecast at $581.85 million, which would be up 0.2% sequentially and about 24.0% year over year. Adjusted earnings per share (EPS) are forecast at $0.46, down 3.8% sequentially, but about 4.5% higher year over year. For the full 2023 fiscal year ending in January, DocuSign is expected to post EPS of $1.96, down about 1%, on sales of $2.48 billion, up 17.6%.
DocuSign trades at 44.7 times expected 2023 EPS, 38.3 times estimated 2024 earnings of $2.29 and 30.6 times estimated 2025 earnings of $2.87 per share. The stock’s 52-week trading range is $64.84 to $314.76. The company does not pay a dividend, and the total shareholder return for the past year is negative 63.6%.
Stitch Fix
Online apparel retailer Stitch Fix Inc. (NASDAQ: SFIX) has seen its stock price drop by about 85% over the past 12 months. The stock tumbled to its 52-week low in mid-May and has added 12.6% since. Department store giant Nordstrom recently gave up on its clothing subscription service, Trunk Club, and shut the service down after years of losses. This could be good news for Stitch Fix (one less competitor) or not-so-good news (the business model has some holes).
Analysts are withholding judgment on the stock. Of 17 brokerages covering the shares, 15 have Hold ratings and just one rates the stock at Buy. At a share price of around $8.25, the upside potential based on a median price target of $11.00 is 33.3%. At the high target of $20.00, the upside potential is about 144%.
Fiscal third-quarter revenue is forecast at $493.71 million, down 4.5% sequentially and 7.8% lower year over year. Stitch Fix is expected to post an adjusted per-share loss of $0.54, compared to a loss of $0.28 in the prior quarter and a loss of $0.18 per share a year ago. For the full fiscal year ending in July, the adjusted net loss is forecast at $1.31, much worse than last year’s loss of $0.08 per share. Full-year revenue is forecast at $2.09 billion, down 0.7% compared to the prior year.
Stitch Fix is not expected to post a profit in 2022, 2023 or 2024. The stock’s 52-week range is $6.71 to $69.20. Stitch Fix does not pay a dividend, and the total shareholder return for the past year is negative 85.8%.
Vail Resorts
Since tumbling by 47% just six weeks after the coronavirus hit the United States, shares of Vail Resorts Inc. (NYSE: MTN) rose by 50% from that February 2020 starting point by last November. Since then, shares have fallen by about 30% and, for the entire period from February 2020 until Tuesday’s closing, the stock is up by about 5%. The company is expected to post results that are mostly in line with expectations, but analysts will be paying closer attention to sales of season passes for the ski season that begins later this year. Showing overall growth in a mature business is tricky.
Just 11 brokerages cover the company, and seven of those have a Hold rating. The other four rate the shares at Buy or Strong Buy. At a share price of around $257.70, the upside potential based on a median price target of $289.50 is about 12.3%. At the high price target of $379.00, the upside potential is 47%.
Fiscal third-quarter revenue is forecast at $1.16 billion, up 27.6% sequentially and about 30.0% year over year. Adjusted EPS are forecast at $9.01, up nearly 65% sequentially, and up about 34.1% year over year. For full fiscal 2022 ending in July, Vail Resorts is expected to post EPS of $8.15, up 126%, on sales of $2.49 billion, up 30.4%.
The stock trades at 31.6 times expected 2022 EPS, 28.8 times estimated 2023 earnings of $8.94 and 25.3 times estimated 2024 earnings of $10.24 per share. The stock’s 52-week range is $221.38 to $376.24. Vail Resorts pays an annual dividend of $1.76 (yield of 2.96%). The total shareholder return for the past year is negative 21.9%.
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