After U.S. markets closed on Thursday, IonQ reported a wider-than-expected loss per share while posting revenue of $5.52 million, nearly 27% higher than the consensus estimate and more than double the reported revenue in the year-ago quarter. The quantum computing firm makes its systems available through the cloud on Amazon Braket, Microsoft Azure and Google Cloud, as well as through direct API access. The shares traded up more than 15% shortly after Friday’s opening bell.

News Corp posted adjusted earnings per share (EPS) of $0.14, double the expected total, but missed the revenue estimate by about 2.5%. Revenue was down more than 9% year over year and adjusted EPS fell by 62.2% year over year in the company’s fiscal fourth quarter. Shares traded up about 2.2%.

No notable earnings reports are due Friday. A China-based solar module maker and a lithium battery recycler, Jinko Solar and Li-Cycle, are on deck to report quarterly earnings before U.S. markets open on Monday.

After U.S. markets close Monday and before they open on Tuesday, these four firms will be reporting quarterly results.

Canoo

Over the past 12 months, shares of electric vehicle (EV) maker Canoo Inc. (NASDAQ: GOEV) have dropped by almost 58%, and the stock has not traded above $1.00 since February. Shares added more than a third in July, largely due to its delivery of three crew transport vehicles to NASA. Canoo’s quarterly earnings announcement is due late on Monday.

The NASA vehicles represent one of three designs that Canoo builds on the same platform. The others are a lifestyle delivery vehicle and a pickup truck. Canoo said in May that it has received some $2.8 billion in orders and expects to ramp production to 20,000 units by the end of the year. It will need far more cash than it has in order to meet that target, and investors are dubious, to say the least.

Just four brokerages cover the stock, and three of them have a Buy or Strong Buy rating. At a recent price of around $0.50 a share, the upside potential based on a median price target of $1.75 is about 250%. The high price target is $10.00.

No revenue is forecast for the second quarter, and Canoo posted no revenue last year or in the first quarter of this year. The company is expected to post a loss per share of $0.19 for the second quarter, equal to its first-quarter loss,  and a loss per share of $0.78 for the full fiscal year. Last year the company lost $0.68 per share in the first quarter and $1.81 for the full year. In the 2023 fiscal year, the consensus revenue estimate is $97.96 million.

The enterprise value to sales multiple for 2023 is 3.7. Based on revenue estimates of $831.88 million in 2024 and $1.94 billion in 2025, the multiples are 0.4 and 0.2, respectively. The stock’s 52-week trading range is $0.41 to $4.39. Total shareholder return for the past year is negative 85.48%.

Home Depot Inc. (NYSE: HD) has added about 4.3% to its share price over the past 12 months, including a boost of 14% in the past three months. Following negative sales growth in the company’s fiscal fourth quarter that ended in January, sales picked up in the first quarter of fiscal 2024 but missed the consensus estimate by 2.7%.

A weak housing market is weighing on Home Depot’s stock, as it is on rival Lowe’s shares. When Home Depot reported first-quarter earnings in May, it guided EPS and revenue sharply lower. Anything less than a solid beat will be bad news for shareholders. Home Depot reports results early Tuesday.

Of 36 analysts covering the stock, 20 have a Buy or Strong Buy rating, and 15 have rated it at Hold. At a share price of around $330.00, the stock trades above its median price target of $328.50. At the high price target of $380.00, the upside potential is 15.1%.

Analysts expect Home Depot to report fiscal second-quarter revenue of $42.21 billion, up 13.3% sequentially but 3.6% lower year over year. Adjusted EPS are forecast at $4.44, up 16.3% sequentially and down 12.1% year over year. For the full 2024 fiscal year ending in January, EPS are forecast at $14.96, down 10.4%, on sales of $152.28 billion, down 3.3% year over year.

Home Depot stock trades at 22.0 times expected 2024 EPS, 20.7 times estimated 2025 earnings of $15.88 and 19.4 times estimated 2026 earnings of $16.69 per share. Its 52-week range is $265.61 to $347.25. The Dow Jones industrial average component pays an annual dividend of $8.36 (yield of 2.55%). Total shareholder return for the past year was 8.6%.

Sea Limited

Singapore-based Sea Ltd. (NYSE: SE) operates Asia’s leading online gaming and entertainment platform. Over the past 12 months, the stock has fallen by 34.4%, including a gain of about 10.5% so far in 2023. Since posting a 52-week high exactly one year ago, shares are down nearly 39%.

The company’s e-commerce business has been growing rapidly while its gaming business has been shrinking. Sea Limited has been doing a better job of controlling costs, but investors are going to be looking for solid evidence that the company has turned around. The company reports quarterly results Tuesday morning.
Of 32 analysts covering Sea Limited, 24 have a Buy or Strong Buy rating, while seven others have a rating of Hold. At a share price of around $57.00, the stock’s implied upside based on a median price target of $94.00 is 64.9%. At the high price target of $159.00, the upside potential is 178.9%.

Analysts expect the company to report first-quarter revenue of $3.25 billion, up 6.8% sequentially and by 10.5% year over year. EPS are pegged at $0.71, up 56.6% sequentially and far better than the year-ago loss per share of $0.66. For the full 2023 fiscal year, EPS are forecast at $2.81, well above last year’s loss per share of $1.69, on sales of $13.45 billion, up about 8.1% year over year.

The stock trades at 20.3 times expected 2023 EPS, 16.0 times estimated 2024 earnings of $3.57 and 12.6 times estimated 2025 earnings of $4.53 per share. The 52-week trading range is $40.66 to $93.70. The company does not pay a dividend, and the total shareholder return for the past year was negative 34.40%.

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Tencent Music

Tencent Music Entertainment Group Inc. (NYSE: TME), China’s largest online music entertainment platform, is a subsidiary of Tencent Holdings, the owner of WeChat and an owner of more than 18% of Sea Limited stock. Over the past year, shares of Tencent Music have added slightly more than 50% to their value, even after a 25% haircut so far in 2023. The company reported subscriber growth of nearly 18% in the first quarter for a total paying customer base of 94.4 million. Tencent Music reports second-quarter earnings Tuesday morning.

Analysts remain bullish on the stock, with 17 of 25 having a Buy or Strong Buy rating, while the others rate it at Hold. At a share price of around $6.25, the potential upside based on a median price target of $9.37 is almost 50%. At the high target of $11.75, the implied upside is 88%.

Analysts expect the company to post second-quarter revenue of $1.01 billion, down 0.9% sequentially and 1.9% lower year over year. Adjusted EPS are pegged at $0.14, up 4.7% sequentially and by 16.7% year over year. For the full 2023 fiscal year, EPS are forecast at $0.53, up 23.7%, on revenue of $4.06 billion, down 1.1%.

The stock trades at a multiple of 11.9 times expected 2023 EPS, 11.1 times estimated 2024 earnings of $0.56 and 10.3 times estimated 2025 earnings of $0.60 per share. Tencent Music’s 52-week trading range is $3.14 to $9.29. The company does not pay a dividend, and total shareholder return over the past 12 months was 50.72%.

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