The three major U.S. equity indexes closed lower on Monday. The Dow Jones industrials ended the day down 1.45%, the S&P 500 closed 1.54% lower and the Nasdaq retreated 1.58%. All 11 sectors closed lower, with real estate (−2.8%) and energy (−2.74%) falling the most. Consumer staples and cyclicals (−0.31% and −0.6%, respectively) posted the smallest losses.

The Conference Board’s Consumer Confidence Index is due Tuesday morning. The consensus November estimate calls for a reading of 100.0, down from 102.5 in October. On Wednesday, the U.S. Energy Information Administration releases its weekly report on the country’s petroleum inventories. But the big economic events come later, with the weekly report on claims for unemployment benefits and the October report on personal consumption expenditures (PCE) on Thursday, and the nonfarm payrolls report for November due Friday.

The three major indexes traded mixed in Tuesday’s premarket session.

China’s leading online entertainment platform for children and teens, Bilibili, reported quarterly results before markets opened on Tuesday that we better than analysts expected. The adjusted loss per share was smaller by more than 4%, and revenue was higher by about 2.4%. Year over year, revenue was up 11.3%, but the per-share loss was larger this year. The company issued downside guidance for the current quarter, but investors reacted more favorably, boosting the share price by more than 8% in Tuesday’s premarket.

CrowdStrike and Hewlett Packard Enterprise are set to report quarterly results after markets close Tuesday, and Frontline, KE Holdings and Nordic American Tankers will share their quarterly results Wednesday morning.

Here is a preview of four companies set to post quarterly results later on Wednesday.

Okta

Enterprise software company Okta Inc. (NASDAQ: OKTA) has seen its share price sink by nearly 78% over the past 12 months. Earlier this month, Okta launched its security suite for the U.S. military and Pentagon-approved partners. Now the company just has to sell the product widely throughout the large and lucrative U.S. defense establishment. The stock has bounced by around 14% from a new 52-week low set earlier this month, largely on the strength of this new product offering.

Of 33 analysts covering the stock, 19 have a Buy or Strong Buy rating and another 13 rate the shares at Hold. At a recent price of around $50.20 a share, the implied upside on the stock based on a median price target of $70.50 is about 40.4%. At the high price target of $130.00, the upside potential is nearly 160%.
Third-quarter revenue is forecast at $465.35 million, which would be up 3.0% sequentially and by 32.7% year over year. Okta is expected to post a loss per share of $0.24 for the quarter, 14 cents worse than the prior quarter’s loss and 17 cents worse than the year-ago loss. For the full 2023 fiscal year ending in January, analysts are looking for a loss per share of $0.73, compared with a year-ago loss of $0.46 per share, on sales of $1.82 billion, up 40.2%.

Okta is not expected to post a profit in 2023 or 2024. At the current share price, the multiple for estimated 2025 earnings of $0.29 per share is 171.8. The stock’s 52-week trading range is $44.12 to $244.18, and Okta does not pay a dividend. Total shareholder return for the past year is negative 77.6%.

Pure Storage

Shares of storage technology firm Pure Storage Inc. (NYSE: PSTG) have dropped about 8% over the past 12 months. The company is poised to post a GAAP earnings per share (EPS) profit in the current fiscal year, a first for the firm. Free cash flow for the past 12 months totals $540 million, and the company has repaid some $250 million in debt during the same period. Pure Storage has beaten the adjusted EPS consensus estimate in the past 13 consecutive quarters.

Of 20 brokerages covering the firm, 16 have a Buy or Strong Buy rating and the other four rate the shares at Hold. At a share price of around $29.50, the potential upside based on a median price target of $39.00 is 32.2%. At the high price target of $47.00, the upside potential is 59.3%.

Pure Storage is expected to report third-quarter 2023 revenue of $672.08 million, up 3.9% sequentially, and 19.4% higher year over year. The adjusted EPS estimate of $0.25 would be down 20.3% sequentially but up 13.6% year over year. For the full fiscal year ending in January, estimates call for EPS of $1.17, up 76.2%, and sales of $2.75 billion, up 26.2%.

The stock trades at 25.2 times expected 2023 EPS, 22.5 times estimated 2024 earnings of $1.31 and 19.6 times estimated 2025 earnings of $1.51 per share The stock’s 52-week range is $21.89 to $36.71, and Pure Storage does not pay a dividend. Total shareholder return for the past year is negative 7.9%.

Salesforce

Shares of enterprise software maker Salesforce Inc. (NYSE: CRM) have struggled over the past 12 months. The 52-week high was set one year ago, and shares currently trade nearly 50% below that level. The Dow component lowered guidance when it reported second-quarter results in August, it fired hundreds of employees earlier this month on its way to a reported total of around 2,500, and activist investor Starboard Value has acquired a so-far undisclosed position in Salesforce. What the company has to say about what comes next is almost certain to be more compelling than its quarterly numbers.
Of 50 analysts covering Salesforce stock, 40 have a Buy or Strong Buy rating. The other 10 rate the shares at Hold. At a share price of around $153.70, the upside potential based on a median price target of $215.00 is almost 40%. At the high price target of $310, the upside potential is 101.7%.

The consensus revenue estimate for the third quarter of fiscal 2023 is $7.83 billion, up nearly 2.8% sequentially and by 14.1% year over year. Adjusted EPS are forecast at $1.22, up 4.9% sequentially but down 3.9% year over year. For the full fiscal year ending in January, current estimates call for EPS of $4.73, down 1%, on sales of $31.01 billion, up about 17.1%.

Salesforce stock trades at 32.5 times expected 2023 EPS, 27.4 times estimated 2024 earnings of $5.60 and 22.5 times estimated 2025 earnings of $6.82 per share. The 52-week range is $136.04 to $299.27. The company does not pay a dividend. Total shareholder return for the past year was negative 48.2%.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Snowflake

Over the past 12 months, cloud-based data platform provider Snowflake Inc. (NYSE: SNOW) has seen its share price plunge by more than 61%. Since posting its 52-week high exactly one year ago, the stock has dropped by nearly 63%. The cloud computing space was hammered by indifferent results from industry leaders Amazon and Microsoft when they reported quarterly results last month. In a recent SEC filing, the nation’s second-largest pension fund, the California State Teachers Retirement System (Calstrs), revealed the addition of 53,841 shares of Snowflake stock to its portfolio in the third quarter, raising its position in the company to 409,742 shares.

Despite the plummeting stock price, analyst sentiment remains positive. Of 39 brokerages covering the stock, 10 rate it at Hold, and 27 have a Buy or Strong Buy rating. At a share price of around $140.10, the upside potential based on a median price target of $200.00 is 41.7%. At the high price target of $500.00, the upside potential is 254%.

Fiscal third-quarter revenue is forecast at $538.91 million, up 8.4% sequentially and 61.1% higher year over year. Snowflake is expected to post adjusted EPS of $0.05 in the quarter, up 500% sequentially and up 25% year over year. For the full 2023 fiscal year ending in January, Snowflake is expected to post adjusted EPS of $0.17, up from the year-ago EPS of $0.01, on sales of $2.04 billion, up 67.7%.

Snowflake stock trades at 377.0 times expected 2024 earnings of $0.40 and 183.3 times estimated 2025 earnings of $0.83 per share. The stock’s 52-week range is $110.27 to $405.00. The company does not pay a dividend, and the total shareholder return for the past year was negative 43.2%.

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