Investing

Earnings Previews: American Eagle Outfitters, Marvell, Snowflake, Kroger, Michaels

As earnings season winds down, there are still some interesting companies left to report. Many retailers are reporting results for the quarter that ended in January, and there are a few tech companies on the schedule as well.

Looking ahead, after markets close today, we are scheduled to receive earnings reports from Box, fuboTV, HP Enterprise and Nordstrom, and before markets open Wednesday, Dollar Tree is expected to report results.

Among the stocks that reported after markets closed Monday and before they reopened Tuesday morning, Singapore-based Sea has made the biggest positive noise, even though the company missed estimates by a fair bit.

After markets close on Wednesday we are scheduled to get three earnings reports, followed by two before markets open Thursday morning.

American Eagle Outfitters

American Eagle Outfitters Inc. (NYSE: AEO) is a specialty retailer of clothing for young men and women at more than 1,000 stores across the United States under the American Eagle, Aerie and Todd Snyder New York brands. The company posted a share price increase of almost 39% in 2020, even following a plunge of more than 50% related to the coronavirus pandemic. The company is set to report after markets close Wednesday.

Since late January, a host of analysts have boosted their price targets on the stock, and most have the equivalent of a Buy rating. The consensus 12-month price target on the stock is $27.31, about 6% above the current trading price of around $25.60. At the high price target of $31, the potential upside is more than 21%.

Analysts expect American Eagle to post earnings per share of $0.36 for the quarter, along with a net loss per share of $0.08 for the full year. Fourth-quarter revenue is forecast at $1.28 billion, while full-year sales are pegged at $3.75 billion. All the estimates are lower than posted results for the same periods a year ago.

Based on estimated EPS for fiscal 2022, which began last month, the stock trades at a multiple of 18, while the multiple is around 15 for estimated 2023 earnings.

Marvell Technology

This is a designer and supplier of a variety of analog and signal processing semiconductors used in a variety of technology products. Marvell Technology Group Ltd. (NASDAQ: MRVL) shares added about 80% last year, but growth has slowed to only about 2% so far in 2021.

Since the beginning of the year, four analysts have raised their price target on the stock and all held their Buy ratings. At a current trading price of around $48.25, the potential upside to the consensus price target of $53.50 is nearly 11%. At a high target of $64.00, the potential upside is almost 33%.

Consensus estimates call for fourth-quarter EPS of $0.29 on sales of $794.3 million and full-year EPS of $0.92 on sales of nearly $3 billion. Revenue projections are around 11% higher than actual results for last year, and EPS estimates are 70% higher for the quarter and nearly 40% higher for the year.

The stock is richly valued at 52 times expected fiscal 2021 earnings, 35 times expected 2022 earnings and 27 times 2023 estimated EPS.