Investing

Earnings Previews: Canadian Solar, Cisco Systems, Kohl's, L Brands

Analysts anticipate L Brands will report EPS of $1.21 on revenue of $1.65 billion. The company said last week it expects to post adjusted EPS of $1.25. For the 2022 fiscal year, analysts project that EPS will come in at $5.41 on revenue of $4.95 billion.

L Brands stock trades at 12.9 times expected 2022 EPS and 13.6 times estimated earnings. The stock’s 52-week range is $11.51 to $71.99, and the high was posted Tuesday morning. The company does not pay a dividend, and the average daily trading volume is around 3.6 million shares.

Canadian Solar

Solar module maker Canadian Solar Inc. (NASDAQ: CSIQ) saw its shares gain more than 130% in 2020. So far this year, the stock has given back nearly 30% of its price at the end of last year. Over the past 12 months, the stock has gained about 112%, more than competitor First Solar (up about 82%), but well behind industry leader Sunworks’s 1,900% share price gain in 2020. Canadian Solar’s operating margins have dropped to 6.3%, far below sector leader First Solar’s 19.1%.

Analysts are keeping their powder dry on Canadian Solar with five of 11 brokers rating the shares a Hold and two more rating the stock either Underperform or Sell. Trading near $36.60, upside potential to the consensus price target of $51.57 is nearly 41%. At the high target of $63, implied upside is 72%.

Analysts are expecting EPS of $0.39 on revenue of $1.04 billion when Canadian Solar reports first-quarter results Thursday morning. The forecast for the 2021 fiscal year calls for sales of $5.71 billion and EPS of $1.78.

Shares traded at 20.5 times expected 2021 EPS and 12.8 times estimated 2022 earnings. The stock’s 52-week range is $16.82 to $67.39. Canadian Solar does not pay a dividend, and the average daily trading volume is around 2.2 million shares.

Kohl’s

Department store owner Kohl’s Corp. (NYSE: KSS) also reports first-quarter results before markets open Thursday. After slumping to a loss of 75% of its value in early April of last year, Kohl’s stock closed the year down about 17%. As the economy revives, so does Kohl’s stock. So far in 2021, the share price is up 54%. The retailer’s deal with Sephora cosmetics, along with a revamped line of women’s apparel, is believed by some to be an indicator of more upside ahead.

Sentiment on the stock is mixed, with 10 of 21 brokers rating Kohl’s a Hold and seven rating the shares a Buy or Strong Buy. The price of $62.49 per share implies upside potential of about 2.8%. At the high target of $75, the potential upside is 20%.

Analysts are looking for first-quarter EPS of $0.02 on sales of $3.46 billion. For the full fiscal year, consensus estimates call for EPS of $3.04 on sales of $17.8 billion.

Kohl’s stock trades at 20.5 times expected fiscal 2022 EPS and 14.6 times estimated fiscal 2023 EPS. The stock’s 52-week range is $16.31 to $64.79, and the high was posted early Tuesday morning. Kohl’s pays an annual dividend of $1.00 (yield of 1.56%), and the average daily trading volume is 3.1 million shares.