In early trading on Tuesday, the Dow Jones industrial average was flat, the S&P 500 was up 0.01% and the Nasdaq was up 0.2%.

After U.S. markets closed on Monday, Trip.com reported better-than-expected earnings per share (EPS) and revenue. China’s largest online travel site said business has picked in China since the beginning of the year, and it expects the pace to continue quickening. Shares traded down about 3% early Tuesday.
[in-text-ad]
Before markets opened Tuesday morning, Dick’s Sporting Goods reported beating consensus estimates on both the top and bottom lines. The company guided fiscal 2024 EPS in a range of $12.90 to $13.80, well above the consensus estimate of $12.03. Dick’s also raised its dividend to $4.00 (annualized), a 105% jump. Shares traded up more than 8% in the morning.

Sea Limited also beat consensus estimates. The Asian gaming and e-commerce giant dramatically cut costs and made some accounting adjustments, as well as cutting salaries and slashing sales and marketing expenses. The stock traded up 16.7%.

After U.S. markets close Tuesday and before they open again on Wednesday, Campbell Soup, Crowdstrike and Stitch Fix will release earnings reports

Here is a look at what to expect when the following three companies report earnings late Wednesday or early Thursday.

FuelCell Energy

Hydrogen fuel cell maker FuelCell Energy Inc. (NASDAQ: FCEL) has seen its share price decline by about 37% over the past 12 months, including a jump of nearly 23% since the beginning of 2023. The entire fuel cell industry remains a case of potentiality rather than performance. There are a number of companies, large and small, trying to elbow their way into a predominant position, including Shell, now building a green hydrogen plant in the Netherlands that will be Europe’s largest when it opens in 2025. Air Products & Chemicals is another deep-pocketed rival.

Of 10 analysts covering the stock, none has a Buy or Strong Buy rating, and two have a Sell or Strong Sell rating. Shares currently trade at around $3.40, above the median price target of $3.20. At the high price target of $5.00, the implied gain is about 67%.

Consensus estimates call for fiscal first-quarter revenue of $25.4 million, which would be down 35.6% sequentially and down 20.6% year over year. The company is expected to post a per-share loss of $0.07, better than the prior quarter’s loss per share of $0.11, and two pennies worse than the year-ago loss. For the full 2023 fiscal year that ended in October, analysts expect a loss per share of $0.30, slightly better than last year’s loss of $0.32 per share, on sales of $128.3 million, down 1.7%.

FuelCell Energy is not expected to post a profit in 2023, 2024 or 2025. The stock trades at a 2023 enterprise value to sales multiple of 8.6. The estimated multiple for 2024 is 5.5, and for 2024 it is 3.8.  The stock’s 52-week trading range is $2.47 to $7.33. The company does not pay a dividend, and the total shareholder return for the past year was negative 37.32%.

Beijing-based JD.com Inc. (NASDAQ: JD) is China’s second-largest e-commerce company. Shares have dropped by nearly 25% over the past 12 months. JD.com’s fintech business, JD Tech, is still waiting to hold an initial public offering in Hong Kong. Another overhang going forward is JD’s massive $1.5 billion price war with its Chinese rivals. Called a subsidy campaign, customers will find lower prices on virtually every category of goods sold by JD. The company has committed to a long-term lower-price future.
[in-text-ad]
Of 39 analysts covering the stock, 35 have a Buy or Strong Buy rating. At a recent price of around $48.00 a share, the stock’s implied upside based on a median price target of $81.42 is nearly 70%. At the high price target of $102.37, the upside potential is 113.3%.

Analysts expect JD.com to report fourth-quarter revenue of $42.29 billion, up 23.5% sequentially but down 2.6% year over year. Adjusted EPS are expected to come in at $0.50, down 43.2% sequentially and 42.9% higher year over year. For the full 2022 fiscal year, EPS are forecast at $2.37, up 40.1%, on sales of $151.02 billion, up 0.9% year over year.

JD.com stock trades at 19.9 times expected 2022 EPS, 16.1 times estimated 2023 earnings of $2.94 and 12.5 times estimated 2024 earnings of $3.77 per share. The stock’s 52-week range is $33.17 to $69.43, and the company does not pay a dividend. Total shareholder return over the past year is negative 20.23%.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

KE Holdings

KE Holdings Inc. (NYSE: BEKE) is a Beijing-based online real estate brokerage. The share price is up about 31% over the past 12 months. Virtually all that growth has come in 2023. Lifting the strict COVID-19 lockdowns boosted the fortunes of the stock among hedge fund managers. The shares saw the second-largest gain in hedge fund activity (behind only Tesla) in the first two months of this year.

Of 18 analysts covering the stock, 17 have a Buy or Strong Buy rating and the other has a Hold rating. At a share price of around $19.00, the stock’s implied upside based on a median price target of $23.09 is about 21.5%. At the high price target of $30.94, the upside potential is 105.5%.

Analysts expect KE Holdings to report fourth-quarter 2022 revenue of $2.37 billion, down 4.0% sequentially and by 15.4% year over year. EPS are pegged to come in at $0.08, down 63.7% sequentially but up from EPS of $0.01 in the year-ago quarter. For the full 2022 fiscal year, EPS are forecast at $0.25, down 18.8%, on sales of $8.58 billion, down 32.5% year over year.

KE Holdings stock trades at 77.2 times expected 2022 EPS, 29.2 times estimated 2023 earnings of $0.65 and 25.4 times estimated 2024 earnings of $0.75 per share. The stock’s 52-week range is $7.31 to $21.08, and the company does not pay a dividend. Total shareholder return over the past year is around 38%.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.