Investing

Earnings Previews: Albemarle, Fisker, MGM Resorts, Qualcomm, Skillz

Qualcomm

Networking chipmaker Qualcomm Inc. (NASDAQ: QCOM) has added about 12% to its share price over the past 12 months. That includes a drop of 3.8% in the third quarter and an increase of 4.7% in October. Between early February and early March, the stock dropped nearly 25% after missing revenue forecasts, even as the chip shortage was making news.

The stock reached its break-even point for the year to date in late July but the stock price dropped 18% by mid-October and has recovered more than a third of that loss since announcing an acquisition of auto industry chipmaker Veoneer. Maybe the chip shortage will work to Qualcomm’s advantage this time.

Analysts still like the stock. Of 30 analysts covering the company, 21 have a Buy or Strong Buy rating on the shares, and the other nine rate the stock at Hold. At the price of around $134.60, the upside potential based on a median price target of $177 is 31.5%. At the high target of $225, the upside potential is 67%.

Fourth-quarter fiscal 2021 revenue is forecast to come in at $8.84 billion, up 10.6% sequentially and 36% year over year. Adjusted EPS are pegged at $2.26, up 17.7% sequentially and nearly 56% year over year. For the full fiscal year, this Dow Jones industrial average component is expected to post EPS of $8.25, up 97%, on sales of $32.98 billion, up 52%.

Qualcomm stock trades at 16.1 times expected 2021 EPS, 14.4 times estimated 2022 EPS and 13.6 times estimated 2023 EPS. The stock’s 52-week range is $122.17 to $167.94. Qualcomm pays an annual dividend of $2.72 (yield of 2.04%).

Skillz

Since coming public in December of last year, shares of mobile games platform Skillz Inc. (NYSE: SKLZ) have dropped by nearly 50%. The stock posted its post-IPO low last month and has added nearly 50% since then. The company recently hired a new chief product officer, and Cathie Wood’s ARK Invest funds have maintained their positions in the stock since June.

Just seven analysts cover the stock, with four giving the shares a Hold rating and the others giving the stock a Buy rating. At a price of around $11.20, the potential upside based on a median price target of $16 is about 43%. At the high target of $25, the potential upside is 123%.

Third-quarter revenue is forecast at $102.61, up 14.7% sequentially and 71% year over year. On a GAAP basis, Skillz is forecast to post a loss of $0.15 per share, better than the prior quarter’s loss of $0.21 and far better than the year-ago loss of $3.08 per share. For the full year, current estimates call for a loss per share of $0.63, worse than last year’s loss of $0.42, on sales of $389.84 million, up 69.4%.

The company is not expected to post a profit in 2021, 2022 or 2023. The projected enterprise value-to-sales multiple for 2021 is 9.8, for 2022 is 6.9 and for 2023 is 5.2. Forecast revenue for 2022 and 2023 totals $489.7 million and $580.6 million, respectively. The stock’s 52-week range is $7.97 to $46.30. Skillz does not pay a dividend.

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