Only around 200 quarterly earnings reports are due out this week. With the Memorial Day holiday coming up (and after more than a year of restricted movement due to the COVID-19 pandemic), the flow of earnings reports will be slowing to a trickle until a couple of weeks after the June quarter closes.
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No notable earnings reports were released Friday afternoon or Monday morning, but we have selected two reports due out Monday afternoon and one expected Tuesday morning that deserve some attention: AutoZone, Lordstown Motors and Zymergen.
This preview looks at two companies reporting quarterly results Tuesday afternoon and two more scheduled to release results Wednesday morning.
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Nordstrom
Department store operator Nordstrom Inc. (NYSE: JWN) will report first-quarter results after markets close Tuesday. Nordstrom managed to cut its 2020 share price loss from about 70% in late October to around 22% by the end of the year. For the year to date, the stock has added about 21%. Revenue tumbled by nearly a third in 2020, and it’s that revenue total that will get the most attention Tuesday afternoon. Macy’s set a high bar for revenue improvement with a year-over-year revenue jump of more than 50%.
Of 26 analysts covering the company, 17 rate the shares a Hold and just four rate the stock a Buy or Strong Buy. The stock already has outrun its consensus price target of $35.88, with a current trading price of around $37.60. At the high price target of $48, upside potential based on the current price is about 28%.
Analysts expect Nordstrom to post a per-share loss of $0.57 on sales of $2.9 billion. For the full 2022 fiscal year, consensus estimates call for earnings per share (EPS) of $1.12 on sales of $13.57 billion.
At the current price, Nordstrom’s stock trades at about 31.4 times expected 2022 EPS and 16.7 times estimated 2023 earnings. The stock’s 52-week trading range is $11.72 to $46.45, and the average daily trading volume is around 3.4 million shares. Nordstrom has suspended its $0.37 per share quarterly dividend.
Zscaler
Cloud security provider Zscaler Inc. (NASDAQ: ZS) also reports fiscal third-quarter results Tuesday. The stock added nearly 330% to its share price last year but has dipped about 12.6% so far in 2021 as tech stocks have sold off. Over the past 12 months, shares are up nearly 128%. The company was among the first to promote the “zero trust” platform that continuously verifies credentials and permissions for network users. Revenue rose 55% year over year in the prior quarter, and expectations for sequential revenue growth for the third quarter hover around 48%.
Analysts have been mostly bullish on the stock, with 14 of 26 firms rating the stock a Buy or Strong Buy. At price of around $175.20, the stock sports upside potential of 34% based on a consensus price target of $234.92. At the high target of $260, upside potential is just over 48%.
Consensus estimates call for quarterly EPS of $0.07 on sales of $163.7 million. For the 2021 fiscal year that ends in July, analysts are looking for EPS of $0.40 on sales of $638.21 million.
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Zscaler’s shares trade at 438 times expected 2021 EPS, 287 times estimated 2022 earnings and 178.8 times estimated 2023 earnings. The stock’s 52-week range is $69.83 to $230.88, and the average daily trading volume is 1.9 million shares. Zscaler does not pay a dividend.
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Abercrombie & Fitch
Specialty retailer Abercrombie & Fitch Co. (NYSE: ANF) reports fiscal first-quarter results before Wednesday’s opening bell. After plunging by more than 50%, it managed to post a share price gain of almost 20% last year. The stock has soared by around 87% so far in 2021. Last week, the shares traded briefly at an eight-year high of nearly $43.
Analysts are, at best, cool to the stock. Nine of 16 brokerages rate the stock a Hold, while just two rate the shares at Strong Buy. The shares currently trade near $37.95, less than a dollar below the consensus price target of $38.89, implying upside potential of just 2.5%. At the high target of $50, upside potential is about 32%.
Consensus estimates call for the retailer to post a per-share loss of $0.38 in the quarter on sales of $687.35 million. For the 2022 fiscal year, current estimates call for EPS of $1.61 on sales of $3.53 billion.
The stock trades at around 23.6 times expected 2022 EPS and 20.4 times estimated 2023 earnings. The stock’s 52-week range is $9.30 to $43.60, and the average daily trading volume is around 1.5 million shares. The company does not pay a dividend.
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Li Auto
Beijing-based Li Auto Inc. (NASDAQ: LI) also is scheduled to post quarterly results before markets open Wednesday. Following the July 2020 IPO, the stock traded up nearly 170% and closed out 2020 up about 75% over the IPO price. So far in 2021, the stock is down nearly 28%. The company’s SUV, the Ideal One, sold 5,539 units in China last month, good enough to rank fourth behind Wuling HongGuang’s Mini EV (29,251 units sold), Tesla’s Model 3 (6,264) and BYD’s Han EV (5,746). The Ideal One sold more units than Tesla’s Model Y (5,407). U.S. automaker GM’s China division owns a 44% stake in Wuling HongGuang.
As with virtually all other EV makers, analysts are heavily bullish on Li Auto’s stock, with 13 of 17 rating the stock a Buy or Strong Buy. At a price of around $20.80, the implied upside to a consensus price target of $36.50 is about 75%. At the high target of $59.98, the implied upside is a whopping 188%.
Li Auto is expected to post a loss of $0.02 per share in the first quarter on sales of $521.25 million. For the full 2021 fiscal year, the per-share loss is forecast to reach $0.08 on sales of $2.94 billion, more than double the company’s total in 2020.
The company is not expected to post a profit this year but, based on estimated EPS of $0.12 in fiscal 2022, the shares currently trade at a multiple of about 173. Li Auto does not pay a dividend. The average daily trading volume is nearly 14 million shares.
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