Investing
Earnings Previews: Bath & Body Works, Cisco, Nvidia, Robinhood
August 17, 2021 12:31 pm
For Cisco’s fourth quarter of fiscal 2021, analysts are forecasting revenue of $13.04 billion, up about 1.9% sequentially and 7.3% year over year. Adjusted EPS are expected to come in at $0.83, flat sequentially and three cents higher year over year. For the full fiscal year, analysts are estimating EPS of $3.21 (flat year over year) and revenue of $49.72 billion (up less than 1%).
The stock trades at a multiple of 17.6 times expected 2021 EPS, 16.6 times estimated 2022 earnings and 15.7 times estimated 2023 earnings. Cisco’s 52-week range is $35.28 to $56.62, and the company pays an annual dividend of $1.48 (yield of 2.62%).
Chipmaker Nvidia Corp. (NASDAQ: NVDA) has added 240% to its share price since January of 2020. The stock has been volatile this year, with dips following on earnings reports in February and April. Share prices have slipped by about 3% so far this week, largely due to the market slide, but partly due to a rather cool note from Credit Suisse analyst John Pitzer who reiterated his Outperform rating on the stock but worries about lower sales to cryptocurrency miners who use Nvidia’s specialized number-crunching chips to speed up their mining activities.
Analysts remain bullish on the stock though, with 34 of 41 brokerages rating the stock a Buy or Strong Buy. Another five rate the shares at Hold. At a trading price of around $194.40, the upside potential based on a median price target of $212.50 is about 9.3%. At the high target of $250, the upside potential is more than 28%.
For Nvidia’s fiscal second quarter, which ended in July, analysts expect revenue of $6.34 billion, up 12% sequentially and nearly 64% year over year. Adjusted EPS are forecast to rise by about 11% sequentially to $1.02, a gain of 90% year over year. For the fully 2022 fiscal year, analysts currently estimate EPS of $3.95, up 58%, and revenue of $24.93 billion, or nearly a 50% gain.
Nvidia stock trades at 51.1 times expected 2022 EPS, 46.3 times estimated 2023 earnings and 40.1 times estimated 2024 EPS. The stock’s 52-week range is $115.67 to $208.75. Nvidia pays an annual dividend of $0.16 (yield of 0.08%).
Less than a month after its initial public offering, Robinhood Markets Inc. (NASDAQ: HOOD) is set to report second-quarter 2021 earnings before the ink is even dry on stock certificates. The 40-day quiet period following the IPO does not end until early September, and that’s when we’ll get ratings from the IPO’s underwriters and many other analysts. Wednesday’s release has no real precedent but can offer a baseline from which to look ahead.
Just three brokerages have weighed in on the stock so far. One rates the stock a Peer Perform and the other two have the equivalent of Buy ratings. The median price target is $51.68. With the stock trading at about $47.20, the upside potential is about 9.5%.
Robinhood is expected to report quarterly revenue of $559.55 million and an adjusted loss per share of $0.26. For the full fiscal year, the adjusted loss per share is forecast to come in at $1.40 and revenue is expected to total $2.19 billion. The current estimates for revenue growth in each of the next two years is 22.6% in 2022 and 21.5% in 2023.
Robinhood stock trades at 364.3 times estimated 2023 EPS of $0.50. Its post-IPO range is $33.25 to $85.00, and Robinhood does not pay a dividend.
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