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Earnings Previews: Analog Devices, Lowe's, Target, TJX Companies
August 16, 2021 12:21 pm
Last Updated: August 16, 2021 12:24 pm
Some of the country’s largest retailers are reporting their latest quarterly results this week. Most retailers operate on a slightly different quarterly schedule, with their annual calendar beginning in February and ending in January. For these firms, their second quarter of the 2022 fiscal year ended in July. A few big tech companies are also reporting results this week.
After markets close Monday, Roblox, StoneCo and Tencent Music are scheduled to report results. Home Depot, JD.com, Sea and Walmart are on deck for Tuesday before the opening bell.
Here are five companies reporting results before markets open on Wednesday.
Analog Devices Inc. (NASDAQ: ADI) makes a wide range of analog, mixed-signal and digital signal processing chips. The company’s share price has risen by about 48% over the past 12 months, including a 16% increase so far in 2021. Its automotive business should benefit from the constraint in availability, but profits tied to scarcity rarely last very long. Analysts will be looking for some longer-range outlook that includes production increases and higher sales.
Twenty of 25 surveyed analysts have Buy or Strong Buy ratings on the stock, and another four rate the shares a Hold. At a recent price of about $170.10, the stock’s upside potential based on a median price target of $185 is about 8.8%. At the high target price of $206, the upside potential is about 21%.
For its fiscal third quarter ended in July, analysts are forecasting revenue of $1.71 billion, which would be up about 2.9% sequentially and 17.1% year over year. Adjusted earnings per share (EPS) are forecast at $1.61 for the quarter, up 4.7% sequentially and 18.4% year over year. For the 2021 fiscal year, the forecasts call for EPS of $6.29, up 28%, and revenue of $6.72 billion, up 20%.
The stock trades at 27.0 times expected 2021 EPS, 24.3 times estimated 2022 earnings and 22.3 times estimated 2023 earnings. The stock’s 52-week range is $110.66 to $175.25, and the company pays an annual dividend of $2.76 (yield of 1.62%).
Home improvement retailer Lowe’s Companies Inc. (NYSE: LOW) has added about 25% to its share price over the past 12 months, including a gain of about 21% for the year to date. That’s better than the 12-month gain of almost 21% at rival Home Depot but lower than Home Depot’s 27% gain for 2021 to date. Lowe’s appears to have been hit harder by the sharp drop in lumber prices.
Of 33 analysts covering the stock, 26 rate the shares a Buy or Strong Buy, and six have given the stock a Hold rating. Shares trade at around $192.80, implying a potential upside based on a median price target of $225 of 16.7%. At the high target of $266, the implied upside is nearly 38%.
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