Investing

Earnings Previews: Boeing, Enphase, Shopify, Starbucks

We’ll be previewing only a small percentage of the more than 900 publicly traded companies scheduled to report March quarter earnings this week. We have selected a couple of dozen to preview over the next few days from the nearly endless list.

First out of the chute this week (Monday afternoon) is Tesla, then General Electric and UPS are scheduled to report results before markets open Tuesday. All three will be watched closely.


Our earlier report on Monday included coverage of AMD, Google, Microsoft and Texas Instruments, all of which report after markets close on Tuesday.

This report covers four companies scheduled to report earnings either after markets close on Tuesday or before markets open Wednesday morning.

Enphase Energy

Solar energy component maker Enphase Energy Inc. (NASDAQ: ENPH) saw its share price rise by some 570% in 2020. Since the beginning of 2021, however, the tide has turned and the shares have posted a loss of nearly 4%. At one time, the shares were down nearly 25% for the year to date.

Like many other solar stocks, Enphase, which makes microinverters that convert direct current at the solar module level, got a big boost from the infrastructure plan introduced by President Joe Biden in late March. The company reports result after markets close Tuesday.

Positive ratings are the order of the day, with 12 of 20 analysts giving the stock a Buy or Strong Buy rating and the rest rating the stock at Hold. The consensus price target on the shares is about $209, some $40 above the current trading price, implying a potential upside of almost 24%. At the high target of $264, the upside potential is 56%.

For the March quarter, the consensus earnings per share (EPS) estimate is $0.44, an increase of almost 16% year over year. Sales are expected to improve by 42% to $292.04 million. For the 2021 fiscal year, analysts are looking for EPS of $2.14 on sales of $1.35 billion.

At the current price, Enphase’s shares trade at 81.9 times expected 2021 EPS, 60.5 times estimated 2022 earnings and 46.7 times estimated 2023 earnings. The stock’s 52-week trading range is $36.91 to $229.04. Enphase does not pay a dividend.

Starbucks

Coffee shop operator Starbucks Corp. (NASDAQ: SBUX) reports its fiscal second-quarter results late on Tuesday. Like all restaurant companies, Starbucks had to dig itself out of a deep hole due to the COVID-19 pandemic and related lockdowns, but shares did manage to post a 24% price gain for the year. So far in 2021, the stock is up about 8.5%, and as more people are vaccinated in the United States and elsewhere, analysts expect the company’s business to improve even more.

Of 33 analysts covering the stock, 24 rate Starbucks a Buy or Strong Buy and the other nine rate the stock a Hold. The consensus price target on the shares is $114.76, and the stock traded Monday at around $115.50. At the high target of $137, the potential upside on the stock is 18%.