Investing

Earnings Previews: Chico's FAS, NetEase, StoneCo, Zoom Video

The consensus estimate calls for second-quarter 2022 revenue of $990.24 million, a 3.5% sequential increase and a year-over-year increase of 49%. Adjusted EPS are forecast at $1.16, down about 12% sequentially, but up 26% year over year. For the full 2022 fiscal year, EPS are forecast to rise nearly 40% to $4.66 on a sales increase of about 51% to $4 billion.

Zoom Video’s stock trades at 72.4 times expected 2022 EPS, 71.2 times estimated 2023 earnings and 67.9 times estimated 2024 earnings. The stock’s 52-week range is $273.20 to $588.84, and the company does not pay a dividend.

Chico’s FAS

Women’s apparel retailer Chico’s FAS Inc. (NYSE: CHS) has posted a share price gain of around 280% over the past 12 months, including a 277% gain so far in 2021. The pandemic year of 2020 saw the stock drop about 57% of its value. Chico’s is on deck to report second-quarter 2022 results before the opening bell on Tuesday, August 31.

The company gets very little coverage, with just two brokerages rating the stock a Hold. At a price of $6.00, the stock trades right at the high price target.

The consensus estimate calls for revenue of $407.35 million, up 5% sequentially and 33% year over year. The forecast loss per share is $0.07, a penny better sequentially and 26 cents better year over year. For the full year, Chico’s is expected to post a per-share loss of $0.17, compared to a loss per share of $1.38 last year. Sales are expected to rise by 32% to $1.75 billion.

Chico’s is expected to post a profit of $0.39 in fiscal year 2023, The stock trades at 0.9 times estimated 2021 enterprise value-to-sales and 0.8-times 2023 EV/sales. The stock’s 52-week range is $0.91 to $7.29. Chico’s does not pay a dividend.

NetEase

China-based NetEase Inc. (NASDAQ: NTES) operates online gaming services, communications and commerce in China and elsewhere. It owns U.S.-traded online services company, Youdao. Shares have dropped about 8.5% over the past 12 months, including a drop of about 2% so far in 2021. The company reports second-quarter 2021 results early Tuesday.

Of 28 brokerage houses covering the stock, 24 rate the shares a Buy or Strong Buy and the other four rate the stock at Hold. At a price of around $92.80, the stock’s implied gain based on a median price target of $132 is 42%. At the high price target of $159.41, the upside potential is around almost 72%.

Analysts are forecasting second-quarter revenue of $3.19 billion, up about 1.8% sequentially and 24% year over year. Adjusted EPS of $0.94 are down by more than 17% sequentially and by about 18% year over year. For the full year, analysts are looking for EPS of $4.17, up more than 500% year over year, on a year-over-year sales increase of nearly 20% to $13.53 billion.

The stock trades at 22.1 times expected 2021 EPS, 18.7 times estimated 2022 earnings and 16.4 times estimated 2023 earnings. Its 52-week range is $77.97 to $134.33, and NetEase pays an annual dividend of $0.85 (yield of 0.93%).

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