After U.S. markets closed on Wednesday, Mattel beat earnings per share (EPS), posting a profit of $0.10 where a loss of $0.03 was expected, and revenue came in 8.7% above the consensus forecast. The company also reaffirmed guidance. The stock traded up about 3% shortly after Thursday’s opening bell. Thanks, Barbie.

Meta Platforms also beat top-line and bottom-line estimates. Revenue was up 11% year over year for the quarter, and EPS was up 21.1%. Income from operations rose by just over $1 billion, and net income was up $1.1 billion year over year. Shares are up about 8%.
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ServiceNow beat Wall Street’s EPS estimate by 15.6% and the consensus revenue estimate by 1%. Subscription revenue rose 25% year over year for the quarter. The stock traded up by about 1.5% in early trading.

Before markets opened on Thursday, AbbVie reported better-than-expected EPS and revenue. The pharmaceutical giant also issued in-line EPS guidance for the full fiscal year. Shares traded about 3% higher.

Comcast beat the consensus EPS estimate by 15.3% and came in 11.9% higher than in the year-ago quarter. Revenue was up 1.7% year over year and 1.3% better than expected. The stock traded up 5.8% early Thursday.

Valero Energy also beat estimates on both the top and bottom lines. Revenue was a third lower than in the second quarter of last year, and EPS was nearly 42% lower. Shares were trading up about 0.6%.

After markets close on Thursday, Ford, Intel, T-Mobile and U.S. Steel will report quarterly earnings, and before Friday’s opening bell, Chevron, Exxon Mobil and Procter & Gamble are on deck to release earnings results.

No notable earnings reports are due out Friday afternoon. First thing Monday morning, these two companies will be reporting earnings.

ON Semiconductor

Chipmaker ON Semiconductor Corp. (NASDAQ: ON) posted an all-time high share price last week, and the shares are up more than 70% over the past 12 months, including a gain of 59% so far in 2023. Sales in the company’s key auto and industrial markets have cooled off in the past two quarters, but that is expected to have turned around in the second quarter as new vehicle sales have begun rising again. If something could just light a fire under consumer electronics sales …

Of the 30 analysts covering the stock, 19 have a Buy or Strong Buy rating. The others rate it at Hold. At a recent price of around $99.00 a share, the implied upside based on a median price target of $100.00 is 1%. At the high price target of $120.00, the implied gain is 21.2%.
Second-quarter revenue is forecast at $2.02 billion, which would be up 3.1% sequentially but down 2.9% year over year. Adjusted EPS are forecast at $1.21, up 1.7% sequentially and 9.7% lower year over year. For the full 2023 fiscal year, analysts have estimated EPS of $4.86, down 8.7%, on sales of $8.13 billion, down 2.3%.
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The stock trades at 20.4 times expected 2023 EPS, 18.3 times estimated 2024 earnings of $5.44 and 15.6 times estimated 2025 earnings of $6.38 per share. Its 52-week trading range is $54.93 to $105.35. The chipmaker does not pay a dividend, and total shareholder return over the past year was 70.39%.

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SoFi Technologies

Decentralized financial services firm SoFi Technologies Inc. (NASDAQ: SOFI) has posted a share price increase of 55% over the past 12 months, including a jump of 106.5% for the year to date. A good bit of that is the end of the federally mandated pause in student loan payments. SoFi’s primary business before the pandemic was refinancing student loans. Now that student loan repayments are set to begin again for some borrowers, this business could return.

The better news is that SoFi figured out how to make lemonade from the lemons it had been handed. It acquired a chartered bank, allowing the company to branch out into other kinds of financial services, and profitability may be closer than many people think.

Of 18 analysts covering the stock, only six have a Buy or Strong Buy rating, and nine more have Hold ratings. At a share price of around $9.50, the stock has passed its median 12-month price target of $7.50. At the high target of $14.00, the upside potential is about 47.3%.

Analysts expect the company to report first-quarter revenue of $475.78 million, up 3.4% sequentially and by 33.6% year over year. SoFi is expected to post a loss per share of $0.07, worse than the prior quarter’s loss of $0.04 but better than the year-ago quarterly loss of $0.11. For the 2023 fiscal year, analysts expect an adjusted loss of $0.22 per share, compared with a loss per share of $0.33 last year. Revenue for the year is pegged at $2 billion, up 29.6%.

SoFi is not expected to post a profit in 2023 or 2024. Based on estimated 2025 EPS of $0.17, the stock trades at 54.9 times the 2025 estimate. The 52-week trading range is $4.24 to $10.23, and SoFi does not pay a dividend. Total shareholder return for the past year is 55.05%.

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