Investing

Earnings Previews: Bath & Body Works, Cisco, Nvidia, Robinhood

After markets closed Monday, Roblox and Tencent Music reported results that were less than hoped for. In Tencent Music’s case, much less.

Home Depot, Sea and Walmart reported results Tuesday morning that were disappointing, encouraging, and just okay, respectively.

We have already previewed four reports set for release first thing Wednesday morning: Analog Devices, Lowe’s, Target and TJX.

Here is a look at four companies reporting after markets close on Wednesday.

Bath & Body Works

Earlier this month, the company formerly known as L Brands spun off its Victoria’s Secret business into a separate company and renamed itself Bath & Body Works Inc. (NYSE: BBWI). Over the past 12 months, L Brands/Bath & Body Works stock has jumped by almost 180%. Since the spin-off, the company’s stock is down about 6%. The company operates about 1,750 company-owned locations and 300 franchised locations worldwide under brand names Bath & Body Works, White Barn, C.O. Bigelow and others.

Of 21 surveyed analysts covering the firm, 14 have given the stock a Buy or Strong Buy rating, and the other seven rate the shares a Hold. At the recent trading price of around $59.50, the upside potential based on a median price target of $79 is almost 33%. Using the high price target of $100, the upside potential is 68%.

The company’s fiscal second quarter ended in July, and the reported results will include pre-spin-off data. Analysts forecast revenue growth of 12.7% sequentially to $3.41 billion. The year-over-year increase rings in at 47%. Analysts expect adjusted earnings per share (EPS) of $1.16, down about 7.3% sequentially and up 360% year over year. For the full fiscal year ending in January of 2022, analysts currently estimate EPS growth of 13.3% to $3.92 and a sales decline (due to the spin-off) of around 37% to $7.52 billion.

Bath & Body Works stock trades at 15.4 times expected 2022 earnings, 14.9 times estimated 2023 earnings and 13.9 times estimated 2024 earnings. The stock’s 52-week range is $22.16 to $66.29, and the company pays an annual dividend of $0.60, half of which will be paid this year, for a yield of 0.48%.

Cisco

Dow Jones industrial average component Cisco Systems Inc. (NASDAQ: CSCO) has added more than 35% to its share price over the past 12 months, including a 27% increase this year alone. The networking giant recently has pinned its hopes for growth on its ability to raise prices as its own costs rise. This ability is expected to boost both the top and bottom lines and help the company reinvigorate its war chest as it continues to seek opportunities for subscription revenue and not just selling routers and switches.

Analysts remain mostly bullish on the stock, with 15 of 28 brokerages giving the stock a Buy or Strong Buy rating and all the rest with a Hold rating. At a trading price of around $55.80, the upside potential is only about 1.3%, based on a median price target of $56.50. At the high price target of $65, the upside potential on Cisco stock is 15%.