Investing

Earnings Previews: Boeing, Enphase, Shopify, Starbucks

For the March quarter, analysts expect Starbucks to report EPS of $0.53, up about 66% compared with the year-ago quarter. Revenue is forecast to rise by nearly 14% to $6.81 billion. For the 2021 fiscal year, analysts are looking for EPS of $2.85, more than double the 2020 result, and sales of $28.6 billion, up nearly 22% year over year.

At the current price, shares trade at around 40.4, 33.2 and 29.1 times estimated EPS in 2021, 2022 and 2023 earnings, respectively. The stock’s 52-week range is $70.65 to $118.98. Starbucks pays an annual dividend of $1.80 (a yield of 1.53%).

Boeing

Shares of Boeing Co. (NYSE: BA) dropped nearly 34% in 2020, but over the past 12 months, the stock is up 88%, thanks mainly to a lifting of the grounding order on Boeing’s 737 Max commercial jet. Customers are ordering and taking delivery of the company’s bread-and-butter airplane again, but there are plenty of issues remaining for CEO David Calhoun to solve. Maybe that’s why Boeing lifted its mandatory retirement age from 65 to 70 for Calhoun. Or maybe it was to offset any negative feeling among investors to the announced retirement of CFO Greg Smith at the age of 54.

What investors want most from Boeing is a return of the company’s dividend. Maybe that will be announced Wednesday morning, along with first-quarter results, but don’t count on it.

Analysts remain upbeat on Boeing, with 14 of 25 giving the shares a Buy or Strong Buy rating. The stock’s consensus price target is $251.91 and shares recently traded at around $242.70, implying an upside of around 3.8%. At the high target of $314, the upside potential on the shares is 29%.

Boeing is expected to post a quarterly loss per share of $1.15, an improvement of 32% over the loss in the same quarter last year. Forecast revenue of $15.21 billion is about 10% lower than in the same period last year. Boeing is expected to post a loss of $0.44 for the full fiscal year, miles better than the $12.08 per share loss posted in 2020. Revenue is forecast to rise by nearly 38% to $80.07 billion for the year.

At the current trading price, Boeing stock trades at around 44.9 and 30.8 times estimated 2022 and 2023 earnings, respectively. The stock’s 52-week range is $113.89 to $278.57. Boeing suspended its dividend in 2019.

Shopify

E-commerce platform provider Shopify Inc. (NYSE: SHOP) also reports results first thing Wednesday. In 2020, the stock jumped nearly 185%, with most of the gain coming between April and August. Since September 1, Shopify’s stock has traded down less than 1%. The company doubled its subscriber total in 2020, but investors have not been treating Shopify like one in which growth is paramount. Even four straight quarters of positive per-share earnings and solid earnings beats cannot seem to lure investors.

Well over half of brokerages, 18 of 29, rate Shopify a Buy or Strong Buy, and 10 have a Hold rating. The consensus price target is $1,434.78, and shares recently traded at $1,147.46, implying a potential upside of about 25%. At the high target of $1,900, the upside potential is nearly 66%.

Analysts are expecting EPS of $0.74, up by nearly 300% year over year, on sales of $861.02 million, up 83.2%. For the full fiscal year, EPS is forecast to reach $3.94, essentially flat with last year, with revenue up 40% to $4.1 billion.

At its current price, Shopify traded at a multiple of 280.8 times expected 2021 earnings, 218.4 times estimated 2022 earnings and 147.3 times estimated 2023 earnings. The stock’s 52-week range is $595.03 to $1,499.75. Shopify does not pay a dividend.