In the first half-hour of Friday trading, the Dow Jones industrials were down 0.57%, the S&P 500 down 0.25% and the Nasdaq down 0.08%.

After U.S. markets closed on Thursday, FedEx beat the consensus earnings per share (EPS) estimate by nearly 25% but missed the revenue target. The company also issued upside EPS guidance for fiscal 2023 (which ends in May) and said that its efforts at cutting costs are starting to pay off. Shares traded up more than 10% early Friday.

Before markets opened on Friday, Algonquin Power reported better-than-expected results on both the top and bottom lines. The utilities firm also reaffirmed previous EPS guidance, and shares traded up 1.8%.

Ballard Power beat the consensus EPS estimate but missed on revenue. The company pointed to the “delayed adoption” of its technology in China and “low activity” in its partnership with Weichai. Shares traded down 3.6% Friday morning.

Here is a preview of what to expect when the following three companies post results on Monday or Tuesday.

Foot Locker

Shares of Foot Locker Inc. (NYSE: FL) have risen by more than 33% over the past 12 months, despite dumping Kanye West’s (aka, Ye) Yeezy brand following the rapper’s antisemitic comments in October. The company’s relationship with Nike continues to be frayed, but the damage has been contained so far. Foot Locker’s guidance, any comments on Nike and its solid dividend are likely to carry more weight than quarterly results. Look for the company to report earnings before Monday’s opening bell.

Of 21 analysts covering the company, 16 are waiting on the sidelines with a Hold rating. Five have a Buy or Strong Buy rating. At a recent share price of around $43.00, the stock traded above its median price target of $40.00. At the high price target of $62.00, the upside potential is 44.2%.

Fourth-quarter revenue is forecast at $2.14 billion, which would be down 1.7% sequentially and by 8.5% year over year. Adjusted EPS are forecast at $0.50, down 60.9% sequentially and 70.0% lower year over year. For the full 2023 fiscal year that ended in January, Foot Locker is expected to report EPS of $4.48, down 42.3%, on revenue of $8.56 billion, down 4.5%.

Shares trade at 9.5 times expected 2023 EPS, 10.4 times estimated 2024 earnings of $4.09 and 9.5 times estimated 2025 earnings of $4.48 per share. Foot Locker’s 52-week trading range is $23.85 to $47.22. The company pays an annual dividend of $1.60 (yield of 3.9%). Total shareholder return for the past year was 40.44%.

PDD

PDD Inc. (NASDAQ: PDD) focuses on an e-commerce marketplace Pinduoduo, which matches China’s farmers and agricultural product wholesalers directly with the country’s consumers. The stock has soared by nearly 122% over the past 12 months, with nearly half the increase coming in the past six months. The company, formerly known as Pinduoduo, reports first thing Monday morning.
Pinduoduo is winning the price war with Chinese rivals Alibaba and JD.com, according to a Bloomberg report. Shares are up 12% so far this year, compared to a drop of nearly 8% in Alibaba stock and a plunge of 30% for JD.com.

Of 42 analysts covering the stock, 38 have a Buy or Strong Buy rating. The other four rate it at Hold. At a share price of around $94.50, the upside potential based on a median price target of $110.27 is about 16.7%. At the high price target of $140.12, the upside potential is 48.3%.

Analysts are expecting fourth-quarter revenue of $5.93 billion, up 18.8% sequentially and 38.6% higher year over year. Adjusted EPS are forecast at $1.24, up 2.1% sequentially and by 33.3% year over year. For the full 2022 fiscal year, PDD is forecast to post EPS of $3.92, up 160.1%, on sales of $19.13 billion, up 29.4%.

PDD shares trade at 24.1 times expected 2022 EPS, 21.7 times estimated 2023 earnings of $4.37 and 17.0 times estimated 2024 earnings of $5.55 per share. The stock’s 52-week range is $31.01 to $106.38. The company does not pay a dividend, but the total shareholder return for the past year was 121.77%.

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Tencent Music

Tencent Music Entertainment Group Inc. (NYSE: TME) is China’s largest online music entertainment platform and a subsidiary of Tencent Holdings, also the owner of WeChat. Over the past year, the share price has jumped by 69.3%. Last month the company fired 300 employees after giving up its virtual reality/metaverse plans. It also walked away from a phone gaming deal that could have added 1,000 more employees. The company reports quarterly results before U.S. markets open on Tuesday.

Analysts have turned bullish on the stock, with 17 of 25 analysts having a Buy or Strong Buy rating, while seven others rate the shares a Hold. At a price of around $8.00 a share, the potential upside based on a median price target of $9.73 is about 21.6%. At the high target of $12.28, the implied upside is around 53.5%.

Analysts expect the company to post fourth-quarter revenue of $1.06 billion, up 2.9% sequentially but 11.7% lower year over year. Adjusted EPS are pegged at $0.13, up 7.2% sequentially and by 62.5% year over year. For the full 2022 fiscal year, EPS are forecast at $0.43, up 10.4%, on revenue of $4.1 billion, down 16.7%.

The stock trades at 18.3 times expected 2022 EPS, 16.3 times estimated 2023 earnings of $0.48 and 15.2 times estimated 2024 earnings of $0.52 per share. Tencent Music’s 52-week range is $3.14 to $9.29. The company does not pay a dividend. Total shareholder return over the past 12 months was 69.33%.

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