Investing

Earnings Previews: Airbnb, Fisker, Nikola, Salesforce, Cinemark, Cronos and DraftKings

Nikola

Nikola Corp. (NASDAQ: NKLA) was embroiled in a roaring controversy with short seller Hindenburg Research about three months after the EV maker’s June IPO. Shares had more than doubled from the IPO price and were trading about 50% higher at the time of Hindenburg’s report. Shares currently trade about 40% lower than the IPO price.

Analysts expect Nikola to post a quarterly net loss of $0.23 per share and a full-year loss of $0.66 per share. Sales are not expected to be more than minimal: $20,000 for the quarter and $70,000 for the year.

Looking ahead to 2021, analysts expect the loss to widen to $0.86 per share for the full year, but revenue is expected to total $62.5 million for the company’s heavy-duty electric and hybrid fuel cell-electric trucks.

Salesforce

Salesforce.com Inc. (NYSE: CRM) has recovered nicely from the COVID-19 pandemic trough in March and finished the year with a share price gain of around 37%. Shares posted their 52-week high on September 1, following second-fiscal quarter results that included a 29% year-over-year increase in sales and earnings per share (EPS) more than double analysts’ consensus estimate. Revenue and earnings again soared past estimates in the following quarter, beating prior year revenue by 20% and EPS estimates by 132%.

Analysts have a consensus fiscal fourth-quarter EPS estimate of $0.75 on revenue of $5.7 billion. These estimates represent a year-over-year increase of nearly 14% in EPS and 17% in revenue. For the full year, EPS is forecast to come in at $4.64, a jump of 55% compared to the prior-year quarter, and revenue is tabbed to come in at $21.1 billion, an increase of 23.5%.

Shares traded Wednesday at around $238.27, compared to the consensus price target of $275.71, implying a potential upside to the share price of nearly 16%. Using the high price target of $320, the potential upside rises to around 34%.

At the current trading price, the stock trades at around 51 times expected fiscal 2021 EPS, 68 times expected 2022 EPS and 55 times expected 2023 earnings. Salesforce’s 2021 fiscal year ended in January.

Cinemark

A recent decision by the state’s governor that New York City will allow theaters to reopen with limited capacity next month continues to provide a boost to Cinemark Holdings Inc. (NYSE: CNK). Along with airlines and cruise lines, movie theaters and live music venues have taken a big hit from the pandemic. Cinemark owns approximately 550 theaters with more than 6,000 screens in the United States and Latin America. The company is set to report quarterly results before the opening bell Friday.

Revenue dropped from about $788 million in the December quarter of 2019 to just under $9 million in the June quarter of 2020. Analysts expect a fourth-quarter loss per share of $1.46 and revenue of nearly $80 million. For the full year, the loss per share is expected to reach $4.70 on revenue of $666 million, a decline of 80% compared to 2019.