Investing

Earnings Previews: Kandi, Marriott, Tyson Foods, Yalla

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. We also have previewed reports from BioNTech, Coty, Duke Energy and Workhorse, also due out Monday morning.

Kandi

Electric vehicle (EV) producer Kandi Technologies Group Inc. (NASDAQ: KNDI) had a down-and-up-and-down year in 2020. Shares did not pop to gain until late July and then soared to reach an increase of nearly 220%. The stock ended the year up about 46%, after a short seller attack in November sank the shares. The stock has trailed down an additional 25% in 2021. In March, Kandi launched its $22,500 K23 and $15,500 K27 in the United States as neighborhood EVs, a category generally given over to converted golf carts.

Analyst coverage on the stock is scarce, with just a single analyst rating of Overweight and a price target of $12. At a recent price of around $5.20, upside potential on the stock is 130%.

The March quarter forecast calls for a loss per share of $0.02 on sales of $28 million. For the full year, the forecast calls for a loss per share of $0.18 on sales of $137.1 million.

Kandi is not expected to post a profit in 2021, 2022 or 2023. More than 16% of the company’s float is short, and more than 2.8 million shares are traded on an average day.

Marriott

Shares of hotel operator Marriott International Inc. (NASDAQ: MAR) have added 57% since the end of October and 74% over the past 12 months. Considering that the stock dropped by more than 60% to a 2020 low in early April, the results are remarkable. For the three-month period ending March 15, Marriott outperformed its industry growth by 3.4 percentage points.

Brokerage ratings remained mixed, though, with just 13 of 25 rating the stock a Buy or Strong Buy. At a price of around $141.30, the upside potential to the consensus price target of $143.67 is just 1.7%. At the high target of $175, upside potential is almost 24%.