Investing

Earnings Previews: AMC Entertainment, Cloudera, Oracle, Carnival, Ballard Power

A light week of earnings reports earnings is broken up by several interesting reports due over the next two days.

Tuesday morning’s results include a beat on earnings and revenues at Dick’s Sporting Goods that was dragged down by a weak outlook for the year ahead. The real battering was reserved for Stitch Fix, which reported a slightly narrower than expected loss Monday afternoon but a miss on revenues. Growth companies that miss revenue estimates are typically hammered, and Stitch Fix traded down nearly 30% Tuesday morning.

After markets close Tuesday, tax preparer H&R Block and speaker producer Sonos are scheduled to report earnings, with Campbell Soup and clothing retailer Express due out before markets open Wednesday.

Now we’ll take a look at five earnings results coming up Wednesday afternoon and Thursday morning.

AMC Entertainment

AMC Entertainment Holdings Inc. (NYSE: AMC) was among the big losers of 2020. The COVID-19 pandemic caused most theaters to remain closed for most of the year, and the impact on those businesses has been nothing less than awful. The stock plummeted more than 70% last year but has added more than 380% so far in 2021. Most of that year-to-date rise is the result of a short squeeze that sent shares rocketing by more than 800%.

Either anticipating more squeezing or the beginning of a return by paying customers, analysts remain bullish on the stock with three Strong Buy ratings and six Buy ratings. There are no Sell ratings, but six Holds. On Monday, analysts at Wedbush doubled their price target to $5 a share, while reiterating a Neutral rating. Of course, the stock has outrun its consensus price target of $2.86 and traded Tuesday morning at a high of $10.45.

When the company reports fourth-quarter results Wednesday afternoon, analysts are expecting a loss per share of $3.32 and revenue of $142.4 million. That’s a revenue drop of 90% year over year. For the 2020 fiscal year, the loss per share is forecast at $38.20 on revenue of $1.22 billion.

Shares traded up more than 11% Tuesday, in a 52-week range of $1.91 to $20.36. The company is not expected to post a profit in either 2021 or 2022.

Cloudera

Also expected to report results Wednesday afternoon is Cloudera Inc. (NYSE: CLDR). The data analytics and management firm saw its share price rise by nearly 20% last year, and shares have traded up another 4%, after rising more than 35% for the year to date before the tech stock selloff.

Since last September, Cloudera has enjoyed the equivalent of Buy or Hold ratings from seven firms, and the consensus price target is now $15.64, with the stock trading at around $14.50. That implies a potential gain of around 7.6% to the target, and a whopping 52% to the high target of $22.

Analysts are expecting earnings per share (EPS) for the company’s fiscal 2021 fourth quarter of $0.11 on revenue of $221.4 million. Those estimates represent a jump of 75% in EPS and 4.6% in sales. For the fiscal year, EPS is forecast at $0.41 (up from a loss of $0.13 last year) on sales of $864 million.

At the current share price, the stock trades around 35 times expected 2021 EPS, 30 times expected 2022 earnings and 25 times estimated 2023 EPS.

Oracle

Oracle Corp. (NASDAQ: ORCL) also reports Wednesday afternoon, following the $200 billion company’s share price gain of around 24% last year and a 13% gain so far this year. Its Cloud Infrastructure is beginning to gain some traction against competitors like Amazon, Microsoft and Alphabet, due partly to the halo effect of a contract with Zoom.