Investing

Earnings Previews: Box, FuboTV, HPE, Nordstrom, Dollar Tree

The pace of earnings reports are beginning to slow down, now that we’re into the first week of March. We still expect to hear from more than 400 listed companies this week, with the bulk of those in the books by Thursday afternoon.

After markets close Monday, online insurance firm Lemonade, electric car maker Nio and video conference firm Zoom Communications report quarterly results. And before markets open on Tuesday, retailers Target and Kohl’s, along with Singapore-based online services firm Sea, are scheduled to report.

Looking ahead to Tuesday after markets close, here we preview Box, fuboTV, Hewlett Packard Enterprise and Nordstrom. Before markets open Wednesday, Dollar Tree is expected to report results.

Box

Box Inc. (NYSE: BOX) reports after markets close on Tuesday. The stock lost nearly 50% of its value by mid-March last year and had an up-and-down ride before closing the year up by about 7.6%. Unlike Dropbox, which also offers a cloud-based storage platform, Box focuses on large enterprises. Out of nine analysts’ ratings over the past year, just one had been a downgrade (from Buy to Hold) and the rest have been upgrades. The consensus price target on the stock is $23.33.

Analysts are forecasting fiscal year 2021 fourth-quarter earnings per share (EPS) of $0.17 on sales of $196.5 million, year-over-year improvements of 10 cents per share, and 7.1% in sales. For the full fiscal year, Box is expected to report EPS of $0.66 (compared to $0.03 a year ago) and sales of $768.4 million, up more than 10% year over year.

Shares traded at around $19 on Monday, in a 52-week range of $8.64 to $22.09. At that price, the potential upside to the consensus target is around 23%. The upside potential to the high price target of $28 is about 48%.

The stock trades at around 29 times expected 2021 EPS, 25 times expected 2022 EPS, and 20 times estimated 2023 earnings.

FuboTV

This company operates a live streaming TV platform for sports, news and entertainment. FuboTV Inc. (NYSE: FUBO) stock soared to a gain of around 600% in late December, before giving back most of that to close 2020 with a gain of more than 200%. Still not bad for a stock that bounces around at more than double the volatility rate of the entire market.

The volatility reflects recent analysts’ bullish calls on the stock. Of seven ratings, six are Buy or Strong Buy, and just one is a Hold. The consensus price target on the stock is $45.50, and the high target is $60. At the current share price, the upside to the consensus target is nearly 20%. At the high target, the implied upside is about 58%.

Analysts expect FuboTV to post a quarterly loss of $0.73 per share on about $94 million in revenue and a full fiscal 2020 loss per share of $5.23 on sales of $251.4 million. The company is not expected to make a profit until after 2023.

HPE

Hewlett Packard Enterprise Co. (NYSE: HPE) is the server and enterprise-oriented part of HP’s legacy business. Since HP split up in October 2015, this stock has increased its share price by nearly 75% while the printer and PC business still known as HP has added about 170% to its share price.