Investing

Earnings Previews: Hyliion, Range Resources, Square, Lowe's, TJX and Vertiv

Another busy week of earnings reports began Monday morning, with Discovery and Royal Caribbean and Air Lease, Occidental Petroleum and Palo Alto Networks coming up after the closing bell.

Here’s a look at three companies set to report results after the bell on Tuesday and three more scheduled to report Wednesday morning.

Hyliion

Hyliion Holdings Corp. (NYSE: HYLN), a maker of drive trains for electric trucks, reports results Tuesday afternoon. The company came public last October in a reverse merger with a special-purpose acquisition company. Through the final three months of the year, the company’s stock price dropped by 58%, but shares are up about 16% so far this year. Overall, shares are down about 52% since the IPO.

Earlier this month the company introduced a new battery module that the company said will offer up to five times the life cycle of current electric vehicle batteries, with higher charging rates, faster-charging speeds and improved safety. The stock jumped more than 20% on the news, but it has pulled back somewhat since then.

Just three analysts have a consensus estimate calling for a net loss per share of $0.37 for the quarter and a net loss of $1.01 for the fiscal year. The fiscal year revenue estimate is $330,000. For fiscal 2021, analysts expect the company to post a net loss per share of $0.75 on revenue of $7.5 million. Hyliion is not expected to post a profit in either 2021 or 2022.

Range Resources

Range Resources Corp. (NYSE: RRC), an independent oil and gas producer, also reporting late Tuesday, posted a share price hike of around 38% in 2020, and shares have jumped more than 60% so far this year. Essentially all that gain is due to rising prices for crude oil, now at more than $61 a barrel. In early May of last year, a barrel of crude was fetching barely $20.

Of four analyst notes issued this month, three either reiterated or started coverage of the stock at the equivalent of a Hold rating, and one lifted its rating from Equal Weight to Overweight. The consensus price target on the stock is $9.48, and the high target is $15.00.

Analysts are expecting Range Resources to post earnings per share (EPS) of $0.06 on revenue of $497.6 million for the quarter and a net loss per share of $0.14 for the fiscal year on sales of $1.83 billion. These estimates are below last year’s results on both a quarterly and an annual basis.

The stock currently trades at around $10.80, already above its consensus target. Based on the current price, shares trade at around 11 times both 2021 and 2022 expected EPS.

Square

Square Inc. (NYSE: SQ) had a good year in 2020. The stock price rose nearly 250% for the mobile payments company and shares are up another 25% so far in 2021. The company’s Cash app enables people to trade stocks, and the app may have attracted more users following Robinhood’s short-lived restriction on trading GameStop stock. Square reports results after markets close Tuesday.

Analysts are bullish on the stock. Evercore ISI claims that Square is the “most disruptive company in payments and banking.” Deutsche Bank has a price target of $330 on the stock and one of the hottest investments of the moment, the Ark Fintech Innovation ETF (NYSEARCA: ARKF), holds nearly 1.8 million shares in Square (the fund’s top holding) that were valued at more than $485 million as of Friday’s close.

The consensus EPS estimate for the fourth quarter is $0.24, just a penny better than last year, on sales of $3.09 billion, up near 400% year over year. For the full year, EPS is forecast at $0.75, down by a nickel year over year, on $9.4 billion in revenue, up more than 300%.

The stock trades at around $270, above its consensus price target of $231.64. At the current price, the shares trade about 360 times expected 2020 EPS, 237 times expected 2021 earnings and 149 times expected 2022 earnings.