Before markets opened on Tuesday, Best Buy beat consensus earnings per share (EPS) and revenue estimates, and it issued in-line guidance for fiscal 2024. The stock traded up 2.2% shortly after Tuesday’s opening bell.

Big Lots also beat Wall Street’s estimates on both the top and bottom lines. Not much was expected (a loss per share of $4.12 and an 18.5% drop in revenue), but Big Lots beat the loss per share estimate by $0.87 and the revenue estimate by enough to hold the year-over-year decline to 15.4%. Shares soared nearly 17%.

Nio reported results that failed to reach either the loss-per-share or revenue estimate. Sales fell by nearly 15% year over year. Even upside guidance could not overcome the disappointing outcome in a quarter when most analysts and investors were expecting bad news–just somewhat less of it. Shares traded down almost 13%.

Hewlett Packard Enterprise and HP are reporting quarterly results after markets close Tuesday. There are no notable earnings reports due out early Wednesday morning.

Here is a look at what analysts expect when these four companies release quarterly results after U.S. markets close on Wednesday.

Chewy

Chewy Inc. (NYSE: CHWY) is a pure-play e-commerce provider of pet supplies and a one-time subsidiary of privately held PetSmart. Over the past 12 months, the stock has slipped by about 31.5%, including a drop of nearly 39% in 2023. Half of that loss came in the past three months, and the six-month decline was nearly 36%.

Chewy reported better-than-expected revenue in the April quarter and met EPS estimates. However, the company’s customer base declined, and the falling stock price indicates that investors are not expecting much improvement in the July quarter. The good news for Chewy is that the bar has been set pretty low.

Analysts remain bullish on the stock. Of 27 brokerages covering Chewy, 15 have a Buy or Strong Buy rating, while 11 more have Hold ratings. At a recent price of $26.00 a share, the upside potential to a median price target of $44.00 is 69.2%. At the high price target of $56.00, the upside potential is 115%.

Revenue in the second quarter of fiscal 2024 is forecast to come in at $2.76 billion, which would be down about 0.9% sequentially but up 9.5% year over year. Analysts expect EPS of $0.09, up a penny sequentially and about 80% higher year over year. For the full 2024 fiscal year that ends in January, analysts forecast EPS of $0.53, up 256.4%, on sales of $11.3 billion, up 11.9%.

Chewy stock trades at 48.8 times expected 2024 EPS, 38.1 times estimated 2025 earnings of $0.68 and 29.6 times estimated 2026 earnings of $0.88 per share. Its 52-week trading range is $22.22 to $52.88. Chewy does not pay a dividend. Total shareholder return for the past year is negative 31.50%.

Cloud security platform maker CrowdStrike Holdings Inc. (NASDAQ: CRWD) has seen its share price rise by more than 36% so far in 2023. But the stock is still down by nearly 26% over the past 12 months.The company’s AI platform, Falcon, has been around for a few years, and the boost the tech sector is getting from AI-enabled applications has lit a fire under companies like CrowdStrike. That has lifted expectations, and if CrowdStrike can deliver a solid beat, the stock price could zoom higher.

Of 47 brokerages covering the firm, 40 have a Buy or Strong Buy rating. At a share price of around $144.00, the upside potential based on a median price target of $180.00 is 25%. At the high price target of $235.00, the upside potential is 63.2%.

Second-quarter revenue is forecast at $724.39 million, up 4.6% sequentially and 35.4% higher year over year. Adjusted EPS are forecast at $0.56, down a penny sequentially but up 55.6% year over year. For the full fiscal year ending in January, analysts expect CrowdStrike to report EPS of $2.39, up 55.2%, on sales of $3.02 billion, up 34.9%.

CrowdStrike stock trades at 60.3 times expected 2024 EPS, 46.5 times estimated 2025 earnings of $3.10 and 35.5 times estimated 2026 earnings of $4.06 per share. The 52-week trading range is $92.25 to $198.14. CrowdStrike does not pay a dividend. Total shareholder return for the past year is negative 25.97%.

Pure Storage

Shares of storage technology firm Pure Storage Inc. (NYSE: PSTG) reached an all-time high in mid-July but have pulled back by about 8% since then. Still, shares are up 18.5% over the past 12 months, including a year-to-date jump of almost 35%.

When the company reported first-quarter results in May, CEO Charles Giancarlo gushed confidence about the company’s future, even though the quarter’s revenue was down by 5% year over year. How that confidence translates into sales and profits will be revealed Wednesday afternoon.
Of 19 brokerages covering Pure Storage, 16 have a Buy or Strong Buy rating and the others rate the stock at Hold. At a share price of around $36.00, the potential upside based on a median price target of $42.00 is 16.7%. At the high price target of $47.00, the upside potential is 30.6%.

Pure Storage is expected to report second-quarter 2024 revenue of $679.94 million, up 15.4% sequentially and by 5.1% year over year. The adjusted EPS estimate of $0.28 would be up almost 250% sequentially but down 12.5% year over year. For the full year, estimates call for EPS of $1.37, up 4.2%, and sales of $2.95 billion, up 7.1%.

The stock trades at 26.2 times expected 2024 EPS, 21.6 times estimated 2025 earnings of $1.66 and 20.3 times estimated 2026 earnings of $1.77 per share. The 52-week trading range is $22.14 to $39.19. Pure Storage does not pay a dividend, and the total shareholder return for the past year was 18.53%.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Salesforce

Enterprise software maker Salesforce Inc. (NYSE: CRM) has enjoyed a share price increase of almost 60% so far in 2023, lifting the Dow Jones industrial average component’s 12-month share price change to plus 28%.

Salesforce has jumped on the AI bandwagon with a generative AI product called Service GPT and an AI Cloud “starter” pack priced at $360,000. Wonder what the Rolls Royce version costs? In any event, analysts and investors will want to hear more about these products, both of which were introduced after Salesforce reported April-quarter results.

Of 48 analysts covering the stock, 33 have a Buy or Strong Buy rating. Another 14 rate it at Hold. At a share price of around $212.00, the upside potential based on a median price target of $245.00 is 15.6%. At the high price target of $329.00, the upside potential is 55.2%.

The consensus revenue estimate for the second quarter of fiscal 2024 is $8.53 billion, up 3.4% sequentially and by 10.5% year over year. Adjusted EPS are forecast at $1.89, up 11.5% sequentially and 58.8% higher year over year. For the full fiscal year ending in January, estimates call for EPS of $7.45, up 42.2%, on sales of $34.65 billion, up about 10.5%.

Salesforce trades at a multiple of 28.4 times expected 2024 EPS, 23.5 times estimated 2025 earnings of $9.02 and 19.8 times estimated 2026 earnings of $10.71 per share. The 52-week trading range is $126.34 to $238.22. The company does not pay a dividend. Total shareholder return for the past year was 28.14%.

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