The three major U.S. equity indexes closed lower last Friday. The Dow Jones industrials and the S&P 500 both dropped by 1.07%, and the Nasdaq fell by 1.31%. Ten of 11 sectors ended the day with losses, ranging from 1.9% (communications services) to 0.1% (materials). The single winner, energy, added 1.8%.

Friday’s report on nonfarm payrolls perked up investors until about noon, when a report that Russia would not reopen the Nord Stream 1 gas pipeline as it had promised sent stocks tumbling. All three major indexes traded higher before Tuesday’s opening bell.

U.S. markets were closed Monday, and no earnings reports were released, nor were any due out Tuesday morning. After Tuesday’s close today and before markets open again on Wednesday, Coupa Software, GitLab, Uipath, Academy Sports and Nio will be reporting quarterly results.

Here is a look at what to expect from four companies posting results after markets close Wednesday or before they open on Thursday.

American Eagle Outfitters

Apparel retailer American Eagle Outfitters Inc. (NYSE: AEO) has seen its share price plunge by almost 59% over the past 12 months. Since posting a 52-week high in mid-November, the stock has dropped 60%.

The peak came shortly after the company announced a $350 million all-cash deal to acquire Quiet Logistics. It was American Eagle’s second logistics-related acquisition of 2021 and reflected the company’s move to add to its revenue stream by offering its logistics services to other, smaller firms. The jury is still out on that one, but retail sales are not expected to have improved much in the previous quarter. American Eagle reports after markets close on Wednesday.

Of 11 analysts covering the stock, just three rate the shares at Buy or Strong Buy, while another six rate the stock at Hold. At a recent price of around $11.15 a share, the stock’s upside potential based on a median price target of $13.00 is about 16.6%. At the high price target of $17.00, the implied upside is 52.5%.

Second-quarter fiscal 2023 revenue is expected to come in at $1.2 billion, which would be up 13.5% sequentially but flat year over year. Adjusted earnings per share (EPS) are forecast to slide by 15.6% sequentially to $0.14 and tumble by almost 77% year over year. For the full year, analysts expect EPS of $1.05, down 52.4%, on sales of $5.04 billion, up 0.6% year over year.

The stock trades at 10.7 times expected 2023 EPS, 8.8 times estimated 2024 earnings of $1.27 and 7.5 times estimated 2025 earnings of $1.49. The stock’s 52-week range is $10.82 to $29.19, and American Eagle pays an annual dividend of $0.72 (yield of 5.74%). Free cash flow was negative $167 million in the first quarter, and a similar result in the second quarter could put pressure on the dividend. Total shareholder return for the past year was negative 57%.

Bilibili Inc. (NASDAQ: BILI) offers gaming, video and live broadcasting platforms for children and teens in the People’s Republic of China. Over the past year, Bilibili shares have dropped by about 72%. The stock has traded in a narrow range around its current price since March.

Continuing lockdowns, a faltering Chinese economy, and regulatory oversight have weighed heavily on Bilibili and other U.S.-traded China-based companies. Last week’s agreement on U.S. audits of Chinese companies is the most recent bit of good news for them. Bilibili will report quarterly results before Thursday’s opening bell.

Of 34 brokerages covering the company, 26 have a Buy or Strong Buy rating with the other eight have Hold ratings. At around $23.60 per share, the upside potential based on a median price target of $39.70 is 68.2%. At the high target of $114.34, the implied upside is a whopping 385%.

The consensus estimates call for fiscal second-quarter revenue of $703.56 million, down 11.4% sequentially and by 1.5% year over year. Analysts have forecast an adjusted loss per share of $0.66, flat with the prior quarter’s loss and considerably worse than the year-ago loss of $0.35 per share. For the full 2022 fiscal year ending in December, analysts are expecting Bilibili to post a per-share loss of $2.48 compared to a loss last year of $2.27 on sales of $3.3 billion, up 8.2%.

Bilibili is not expected to post a profit in 2022, 2023 or 2024. The stock’s 52-week range is $14.93 to $93.47. Bilibili does not pay a dividend. Total shareholder return for the past year is negative 71.8%.

FuelCell Energy

Hydrogen fuel cell maker FuelCell Energy Inc. (NASDAQ: FCEL) has seen its share price decline by nearly 39% over the past 12 months, reaching a new 52-week low in mid-May and a recent low in late July. Shares shot up more than 25% on the passage of the Inflation Reduction Act and its commitment to all sorts of alternative energy, including fuel cells. But a deal between Amazon and FuelCell competitor Plug Power sent shares lower again. The company reports quarterly results first thing Thursday morning.

Of 10 analysts covering the stock, none has a Buy or Strong Buy rating, and two have a Sell or Strong Sell rating. Shares trade at around $3.95, implying an upside of 26.6% based on a median (and high) price target of $5.00.
Consensus estimates call for third-quarter revenue of $35.16 million, up 114.6% sequentially and by 31.1% year over year. The company is expected to post a per-share loss of $0.06, a penny worse sequentially and two pennies better than the year-ago loss. For the full 2022 fiscal year ending in October, analysts are expecting a loss per share of $0.23, better than last year’s loss of $0.30 per share, on sales of $129.78 million, up 86.5%.

FuelCell Energy is not expected to post a profit in 2022, 2023 or 2024. The stock trades at a 2022 enterprise value to sales multiple of 9.4 times. The estimated multiple for 2023 is 8.1, and for 2024 it is 5.8. The stock’s 52-week range is $2.87 to $11.63. The company does not pay a dividend, and the total shareholder return for the past year was negative 38.6%.

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GameStop

Video gaming retailer GameStop Corp. (NYSE: GME) has watched its share price fall by nearly half over the past 12 months. It has been worse. In mid-March, the stock traded down by 63%. GameStop is expected to share its results after Wednesday’s close.

The stock’s most recent dive occurred last month when Chairman Ryan Cohen dumped his entire stake in Bed Bath & Beyond after driving up the stock’s price in a maneuver that a recent lawsuit alleges was a pump and dump scheme orchestrated by Cohen and the company’s late chief financial officer, Gustavo Arnal, who fell 18 stories from a New York apartment building.

Just two analysts have had anything to say on the stock. One has a Sell rating and the other has a Hold rating. At a share price of around $27.40, the stock trades well above its median price target of $17.50. At the high target of $27.50, the upside potential is 4%.

Second-quarter revenue is forecast at $1.27 billion, down 8.2% sequentially but 7.6% higher year over year. Analysts expect GameStop to report an adjusted loss per share of $0.44, compared to the prior quarter’s loss of $0.52 and the year-ago loss of $0.19. For the full 2023 fiscal year ending in January, analysts are forecasting an adjusted loss per share of $1.58, compared to the prior-year loss of $1.14 per share, and sales of $6.46 billion, up 7.5%.

GameStop is not expected to post a profit in either fiscal 2023 or 2024. Based on estimates of GameStop’s enterprise value ranging between $6.5 billion and $6.7 billion for the two fiscal years, the enterprise value to sales multiple is around 1.2. The stock’s 52-week range is $16.39 to $63.92, and GameStop does not pay a dividend. Total shareholder return for the past year is about negative 49%.

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