Investing
Earnings Previews: Palantir, Roblox, 3D Systems, Tilray, Velodyne
May 7, 2021 1:48 pm
More than 550 U.S.-listed companies are reporting quarterly results on the first three days of next week, May 10 through 12. That’s less than half as many as reported earnings this past week, and the totals will begin to dwindle as the month marches along.
For the end of this week, however, there are no notable companies reporting results after markets close Friday. Looking at companies reporting earnings following Monday’s opening bell, we have two reports. One covers BioNTech, Coty, Duke Energy and Workhorse while the second looks at Kandi Technologies, Marriott, Tyson Foods and Yalla.
This preview covers four firms reporting earnings after markets close Monday and one reporting before they reopen on Tuesday.
Since its March initial public offering, online entertainment platform Roblox Corp. (NYSE: RBLX) has seen its shares bounce from down 7% to up more than 18% around its IPO price of around $64.50. The stock recently traded down about 2.9%.
ARK Invest’s Next Generation Internet ETF owns about $62.5 million worth of the company’s stock, just over 1% of all the fund’s assets.
Analysts are going to be most interested in how the gaming platform for pre-teens evaluates its prospects for the rest of the year, now that the pandemic appears to be on the wane. The company presents its first earnings report as a public company after markets close Monday.
Of seven surveyed brokers with coverage on Roblox, three rate the stock a Strong Buy and four at Buy. With the median price target is $80, and shares trading at around $67.50, the upside potential is about 18.5%. At the high target, the potential upside is about 26.0%.
Analysts expect Roblox to report March quarter earnings per share (EPS) of $0.13 on sales of $504.61 million. For the full year, analysts are looking for EPS of $0.44 on sales of $1.92 billion.
At the current price, the stock trades at around 154.0 times expected 2021 EPS and 125.0 times estimated 2022 earnings. The stock’s post-IPO trading range is $60.50 to $83.41, and the average daily trading volume is 10.7 million shares.
3D printer and digital manufacturing company 3D Systems Corp. (NYSE: DDD) posted a share price gain of nearly 20% last year, and it is up more than 82% so far in 2021. In early February, the stock traded up more than 400%. The biggest dip followed lackluster December quarter earnings.
Two of Cathie Wood’s ARK Invest funds combined own about $86.81 million worth of the stock (about 3.65% of outstanding shares). The company is scheduled to report quarterly results after markets close Monday.
Despite the vote of confidence from ARK Invest, brokers are solidly behind a Hold rating (10 of 16) on the stock, with two ratings of Sell and three Underperform ratings. At around $19.20 a share, the upside potential on this stock is around 29% on a consensus price target of $24.83. At the high target of $31, upside potential rises to more than 61%.
Analysts expect the company to post EPS of $0.02 for the March quarter, three times better than the $0.04 per share loss last year. Revenue is forecast to rise by 1.2% to $136.63 million. For the full year, 3D Systems is expected to post EPS of $0.21 on sales of $578.82 million.
The stock trades at 91.3 times expected 2021 EPS and 52.3 times estimated 2022 earnings. The 52-week range is $4.60 to $56.60. 3D Systems does not pay a dividend, and the average daily trading volume is about 4.4 million shares.
Canada-based marijuana producer Tilray Inc. (NASDAQ: TLRY) got a big boost on Friday following an upgrade and price target hike from Jefferies analysts. Tilray stock lost about 48% of its value last year but trades up about 64% so far in 2021. After completing its merger with Aphria last week, the stock traded down about 21% for the first four trading sessions of this week. The stock now trades down about 8% for the week.
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