After U.S. markets closed on Thursday, Applied Materials beat consensus estimates for earnings per share (EPS) and revenue. Both numbers were down year over year. Shares were up about 1% in the first half-hour of regular trading on Friday.

Farfetch reported a smaller-than-expected per-share loss Friday morning, but revenue missed by nearly 12% and was down 1.3% year over year. The luxury goods retailer also issued downside revenue guidance for the 2023 fiscal year. Shares were pummeled, down almost 40%.
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Deere beat Street estimates on both the top and bottom lines. EPS exceeded the consensus by 24% and was up a whopping 65.6% year over year. Revenue came in 10% above the consensus estimate and was up 9.9% year over year. Shares traded 3.3% lower on investor fears that the farm market has stalled.

Xpeng reported a loss per share of $0.22, better than the expected loss of $0.34 per share. Revenue of $700 million was slightly better than a forecast of $698 million. Shares traded down 8.2% early Friday, likely due to overall concern about China’s equity markets.

Palo Alto Networks is on deck to report earnings after markets close on Friday. The reporting time is highly unusual.

Here is a preview of what analysts expect from one company reporting earnings after U.S. markets close Monday and four others reporting first thing Tuesday morning. No notable reports are on the calendar for Monday morning.

Baidu

Beijing-based Baidu Inc. (NASDAQ: BIDU) is China’s premier search engine, and the company easily topped expectations when it reported first-quarter results in May. The company released its AI chatbot, Ernie, in March, but that had little to no effect on results. In fact, the shares fell following the report and did not recover the pre-report level for two weeks.

Shares closed on Thursday down 2.1% from that May level. Chinese stocks face a multitude of problems, and what Baidu has to say about its prospects for the rest of the year will be critical. The company reports results on Tuesday morning.

Of 37 brokerages covering the stock, 32 have a Buy or Strong Buy rating, and the others rate it at Hold. At a recent price of around $130.00 a share, the stock’s upside potential based on a median price target of $176.38 is about 35.7%. At a high price target of $225.28, the upside potential is 73.3%.

Analysts expect Baidu to post second-quarter revenue of $4.56 billion, which would be a sequential increase of 0.5% and a gain of 3.2% year over year. Adjusted EPS are forecast at $2.33, down 0.6% sequentially and by 1.3% year over year. For the full 2023 fiscal year, the consensus estimate calls for EPS of $9.39, up 9.9% year over year, and revenue of $118.82 billion, up 5%.

The stock trades at 13.8 times expected 2023 EPS, 12.2 times estimated 2024 earnings of $10.62 and 10.9 times estimated 2025 earnings of $11.93 per share. Its 52-week trading range is $73.58 to $160.88. Baidu does not pay a dividend, and the total shareholder return for the past year was negative 2.09%.

Sporting gear retailer Dick’s Sporting Goods Inc. (NYSE: DKS) has posted a share price gain of 28.5% over the past 12 months, led by a year-to-date jump of 20%. After reporting good first-quarter results, the stock dropped about 18% over the next four weeks before recovering. In recent weeks, however, it has given some of the gains back as investors worry about consumer spending in the back half of the year. Again, guidance could make the difference between good news and bad for the company’s stock. Look for the report before markets open on Tuesday.
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Analyst sentiment is mildly bullish, with 13 of 27 ratings at Buy or Strong Buy. Another 13 analysts rate the stock at Hold. At a share price of around $144.30, the upside potential based on a median price target of $160.00 is 10.9%. At the high target of $200.00, the upside potential is 38.6%.

For the company’s second quarter of fiscal 2024, analysts are expecting revenue of $3.24 billion, up 13.9% sequentially and by 4.2% year over year. Adjusted EPS are forecast at $3.80, up 11.9% sequentially and 3.3% higher year over year. For the full fiscal year ending in January, EPS are forecast to come in at $13.50, up 12.1%, on sales of $12.85 billion, up 3.9%.

The stock trades at 10.7 times expected 2024 EPS, 10.5 times estimated 2025 earnings of $13.78 and 9.8 times estimated 2026 earnings of $14.70 per share. The 52-week trading  range is $98.01 to $152.61. The company pays an annual dividend of $2.98 (yield of 2.03%). Total shareholder return for the past year was 31.50%.

Lowe’s

Over the past 12 months, the share price of Lowe’s Companies Inc. (NYSE: LOW) has increased by a modest 1.3%. The stock has added 9.5% to date in 2023, and the shares were climbing steadily until late July. Then macroeconomic worries set in. For Lowe’s and rival Home Depot, the weak housing market continues to put pressure on revenue and sales. Investors will want to hear good news about improved performance. Lowe’s reports results early  Tuesday.

Of 33 analysts covering the company, 19 have a Buy or Strong Buy rating. Another 13 rate the stock at Hold. At a share price of around $218.00, the upside potential to a median price target of $238.50 is 9.4%. At the high price target of $290.00, the upside potential is 33%.

Fiscal second-quarter revenue is forecast at $24.98 billion, up 11.8% sequentially but down 9.1% year over year. Adjusted EPS are expected to come in at $4.48, up 22.1% sequentially and 4.1% lower year over year. For the full 2024 fiscal year ending in January, analysts expect EPS of $13.38, down 2.6%, on sales of $88.05 billion, down 9.3%.

Lowe’s stock trades at 16.3 times expected 2024 EPS, 15.0 times estimated 2025 earnings of $14.56 and 13.4 times estimated 2026 earnings of $16.27 per share. The 52-week range is $176.50 to $237.21, and the company pays an annual dividend of $4.40 (yield of 1.97%). Total shareholder return for the past year is 3.36%.

Shares of Macy’s Inc. (NYSE: M) have tumbled by more than 26% over the past 12 months. After posting a new 52-week low in early June, shares were recovering until the U.S. economic outlook for consumer spending started weakening. The company’s results have to satisfy 12 institutional investors that own a combined 52% of Macy’s stock. If they do not like what they hear, shares will dive. If they get good news, the stock could spike more than appears reasonable. You pay your money and you take your chances. Macy’s reports results early Tuesday.
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Just six of 16 analysts rate Macy’s stock as a Buy or a Strong Buy. Another eight have Hold ratings. At a share price of around $15.00, the upside potential based on a median price target of $18.00 is 20%. Based on a high price target of $26.00, the potential upside on the shares is 73.3%.

Analysts anticipate second-quarter revenue of $5.11 billion, up 2.6% sequentially but 8.8% lower year over year. Adjusted EPS are tabbed at $0.14, down 75.6% sequentially and by 86.0% year over year. For the 2024 fiscal year ending in January, analysts are looking for EPS of $2.89, down 35.5%, on sales of $23.22 billion, down about 5%.

Macy’s stock trades at 5.2 times expected 2024 EPS, 5.0 times estimated 2025 earnings of $3.00 and 4.9 times estimated 2026 earnings of $3.10 per share. The 52-week range is $12.80 to $25.12. The company pays an annual dividend of $0.66 (yield of 4.25%). Total shareholder return for the past year was negative 23.71%.

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Zoom Video

Over the past 12 months, shares of Zoom Video Communications Inc. (NASDAQ: ZM) have dropped by about 36.2%. The stock has now given back all the gains, and more, that it had accumulated in the March quarter. The company reports quarterly earnings after markets close on Monday.

A week ago, Zoom announced that it would require employees who live within 50 miles of a company office to show up at that office at least on some days each week. For a company that made its name and fortune from the work-from-home regime forced on employers by the pandemic, Zoom’s requirement fairly drips with irony.

Of 33 brokerages covering the stock, 23 have a Hold rating and nine have Buy or Strong Buy ratings. At a share price of around $65.40, the upside potential based on a median price target of $80.00 is 22.3%. At the high price target of $105.00, the upside potential is 60.6%.

Fiscal second-quarter revenue is forecast at $1.11 billion, up 0.8% sequentially and by 0.9% year over year. Adjusted EPS are pegged at $1.06, down 8.6% sequentially and 13.1% lower year over year. For the full 2024 fiscal year ending in January, current estimates call for EPS of $4.32, down 1.1%, on sales of $4.49 billion, up 2.2%.

Zoom Video’s stock trades at 15.1 times expected 2024 EPS, 14.9 times estimated 2025 earnings of $4.39 and 14.3 times estimated 2025 earnings of $4.58 per share. The 52-week range is $60.45 to $104.57. Zoom does not pay a dividend, and the total shareholder return for the past year is negative 36.16%.

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