Investing

Earnings Previews: BioNTech, Coty, Duke Energy, Workhorse

As usual, even in a week when 1,500 U.S.-listed companies are reporting quarterly results, Friday afternoon hits the pause button. However, next Monday picks up right where this week left off with another 1,500 or so companies reporting results.

Looking at companies reporting earnings following Thursday’s closing bell, we have previewed AMC, DraftKings, Nikola, Peloton and Square. Our preview did not mention Peloton’s decision to recall its treadmills following a Consumer Products Safety Commission warning that cost investors $16 a share (15%) at Wednesday’s closing bell.

The four companies previewed in this story are scheduled to report earnings before Monday’s opening bell.

BioNTech

BioNTech S.E. (NASDAQ: BNTX), the Germany-based co-developer with Pfizer of a COVID-19 vaccine, has seen an increase of nearly 235% to its share price over the past 12 months. More than half that increase came after its vaccine was accepted for use in the United States.

The company’s stock suffered a huge setback on Wednesday, however, when the Biden administration reversed course and said it would be willing to waive patent protections for coronavirus vaccines. While such a waiver could be a long way off, investors fled BioNTech and Moderna shares.

Analysts had been cautious on the stock, even before Wednesday’s bloodbath. Only half of 10 analysts rate the firm a Buy or Strong Buy. The trading price, even after the news, continues to be around $155.70, well above the consensus price target of $138.98. At the high target of $213.02, the implied upside on the stock is nearly 37%.

BioNTech is expected to report quarterly earnings per share (EPS) of $3.72 on revenue of $1.78 billion, nearly 13 times larger than a loss of $0.29 in the year-ago quarter and more than 50 times prior-year revenue. For the full year, analysts have forecast EPS of $30.59 and sales of $11.95 billion, massively higher than in 2020.

At the current price, shares are trading at 18.7 times expected 2021 EPS, 7.7 times estimated 2022 earnings and 13.0 times estimated 2023 earnings. The stock’s 52-week range is $45.08 to $213.15. BioNTech does not pay a dividend, and the average daily trading volume is around 2.5 million shares.

Coty

Cosmetics giant Coty Inc. (NYSE: COTY) experienced a drop of 37% to its share price in 2020. Shares are up about 39% so far in 2021, but over the past 24 months, the stock has dropped by more than 10%. Last month, the company announced several initiatives to put Coty back on a path to sustainable and profitable growth. The announcement included a reaffirmation of its 2021 revenue target of $4.5 billion to $4.6 billion and adjusted EBITDA of $750 million.

While brokerage firms welcomed the announcement, it did not change a lot of minds. Of 17 firms covering the stock, 10 rate Coty a Hold and two say the stock is no better than Underperform. At the current price of around $9.75, upside potential is just 4.2% to a consensus price target of $10.16. At the high target of $15, upside potential is about 54%.