Investing

Earnings Previews: Heico, Intuit, Nordstrom

Monday morning’s earnings announcement from JD.com beat consensus estimates on both the top and bottom lines, but the general dissatisfaction with the Chinese government’s recent moves to rein in public companies is a high hurdle to leap over.

We have already previewed five firms reporting after markets close Monday or before they open Tuesday morning: Best Buy, Medtronic, New Oriental Education, Palo Alto Networks and Pinduoduo.

Later this week we are expecting quarterly results from Dell, Peloton, Salesforce, Snowflake, Xpeng  and more. Here, we examine three companies set to report results after markets close Tuesday.

Heico

While not a household name, Heico Corp. (NYSE: HEI) is included in Cathie Wood’s ARK Space Exploration and Innovation ETF. The fund’s Heico holding has a weighting of just under 1% of the total assets of around $580 million. Like most aerospace stocks, Heico plunged in March of last year as global air travel ground to a halt due to the COVID-19 pandemic. Since March 18, 2020, the stock is up about 115%, although it has staggered again, down for the year to date by about 3.2%. The stock trades less than half a million shares a day on average.

Analyst sentiment is mixed on the stock. Of 11 surveyed brokerages covering the shares, five give the stock a Buy or Strong Buy rating and four rate the shares at Hold. At a price of around $128.20, the upside potential based on a median price target of $139 is about 8.4%. At the high target of $160, the upside potential is nearly 25%.

For the company’s fiscal third quarter ended in July, analysts expect revenue of $486 million, up 4.1% sequentially and 26.4% year over year. Adjusted earnings per share (EPS) are forecast at $0.55, up 7.8% sequentially and 27.5% year over year. For the full fiscal year, the current estimates call for EPS of $2.17, down 5.2%, on sales of $1.9 billion, up 6.1%.

The stock trades at a multiple of 59.1 times expected 2022 EPS and 47.1 times estimated 2022 earnings. The stock’s 52-week range is $99.55 to $148.95, and Heico pays an annual dividend of $0.18 (yield of 0.14%).

Intuit

Intuit Inc. (NASDAQ: INTU) has been a publicly traded company since 1983 and the share price has increased by about 275 times in those 38 years. Shares have added about 71.5% over the past 12 months, including a gain of 45.5% since the beginning of 2021. Cathie Wood’s ARK Fintech Innovation ETF holds 136,230 shares of Intuit stock, for a weighting of just over 2% in the fund. The value of this investment is $74.29 million.

Of 23 analysts covering the stock, 19 rate the stock a Buy or Strong Buy, and three rate the shares at Hold. Trading at $552.40, the stock has outrun its median price target of $510 and the high target of $550.

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