Investing

Earnings Previews: Activision, Lyft, Occidental, Skillz

This week will bring June-quarter results from several oil and gas exploration and production companies, along with some big health care firms, media companies and utilities. We already have previewed three stocks that will report results after markets close Monday: NXP Semiconductors, Take-Two Interactive and Transocean.

Alibaba, Nikola and Under Armour will post quarterly earnings before Tuesday’s opening bell.

Here are previews of four companies set to report quarterly results after markets close on Tuesday.

Activision-Blizzard

Video game maker Activision-Blizzard Inc. (NASDAQ: ATVI) has managed to post a share price gain of just 1.4% over the course of the past 12 months. For the year to date, the stock is down nearly 10%, including a dive of more than 9% since a lawsuit was filed against the company alleging sexual harassment, unequal pay and retaliation against female employees. That acrimonious overhang just adds to the company’s weak performance over the past year.

Analysts either have ignored the recent charges against the company or are waiting to see what Tuesday afternoon’s results will be. Of 31 surveyed analysts covering the company, 28 rate the stock a Buy or Strong Buy and the other three have a Hold rating. At a recent price of around $83.50, the stock’s implied upside to a median price target of $119.50 is 43%. At the high price target of $126, the upside potential is 51%.

Second-quarter revenue is forecast to slip by nearly 9% sequentially to $1.89 billion. That’s an increase of more than 22% year over year. Earnings per share (EPS) are expected to come in at $0.74, down 10% sequential and down about 23% year over year. For the full fiscal year, current forecasts call for EPS of $3.75, up 7.1%, and revenue of $8.76 billion, up 4%.

Activision stock trades at 22.3 times expected 2021 EPS, 19.1 times estimated 2022 earnings and 17.7 times estimated 2023 earnings. The stock’s 52-week range is $71.19 to $104.53. The company pays an annual dividend of $0.47 (yield of 0.56%).

Lyft

Ride-hailing provider Lyft Inc. (NASDAQ: LYFT) has posted a share price gain of about 96% over the past 12 months. So far in 2021, the stock is up nearly 17%. The company, and main rival Uber, are seeing rising demand from riders, but are having difficulty filling the demand for drivers.

Surging coronavirus infections may have sliced into second-quarter results, but it will be what the company sees going forward that could determine how well quarterly results are received. Lyft has said that it will be profitable by the third quarter. Guidance must endorse that promise. And lack of guidance will be interpreted as backing away from that promised profitability.

Sentiment on the company tends to be bullish, with 23 of 38 analysts putting Buy or Strong Buy ratings on the stock. Another 13 rate the shares at Hold. At a price of around $57.70, the stock’s implied upside based on a median price target of $72 is about 25%. At the high target of $86, upside potential on the stock is 49%.