Investing

Earnings Previews: Airbnb, Peloton, Square, Uber

More than 1,500 companies are expected to report quarterly earnings this week. Of three in our watch list for Tuesday afternoon, two (Activision Blizzard and Lyft) beat on both revenue and profits while the other (T-Mobile) missed on revenue. Three companies we previewed that reported early Wednesday (Cenovus Energy, Discovery and Norwegian Cruise Lines) posted mixed results.

Tuesday, we previewed five companies set to report results after markets close Wednesday (Albemarle, Fisker, MGM Resorts, Qualcomm and Skillz) and three more set to report results before markets open Thursday (Barrick Gold, Moderna and Nikola).

Here’s a look at four companies scheduled to report results after markets close on Thursday.

Airbnb

Over the past 12 months, shares of vacation rental provider Airbnb Inc. (NASDAQ: ABNB) have added nearly 19%. That includes a spike to more than a 50% increase in mid-February before a third wave of COVID-19 swept in. Since bottoming out in mid-July, the stock has added 31%.

As the travel business picks up again, Airbnb is expected to regain its earlier form. The company garners more than 50% of the so-called alternative lodging market, along with about a third of the dollars spent on such lodging.

Most analysts appear to be waiting for evidence. Of 30 brokerages covering the stock, 16 have a Hold rating on the shares, while 19 have either a Buy or Strong Buy rating. At a recent price of around $172.40, the upside potential based on a median price target of $174.50 is 1.8%. At the high price target of $220, the upside potential is nearly 28%.

Third-quarter revenue is forecast at $2.06 billion, which would be up 54% sequentially. Adjusted earnings per share (EPS) are expected to come in at $0.85, up from a per-share loss of $0.11 in the prior quarter. Data for the year-ago quarter is unavailable. For the full year, Airbnb is expected to post a loss per share of $0.70 compared to a loss per share of $15.39 in 2020. Revenue is forecast at $5.7 billion, up 69%.

Airbnb stock trades at 385.4 times estimated 2022 earnings and 151.5 times estimated 2023 earnings. The stock’s 52-week range is $121.50 to $219.94, and the company does not pay a dividend.

Peloton

Fitness product maker Peloton Interactive Inc. (NASDAQ: PTON) had a gigantic year in 2020. The stock jumped more than 430% last year. So far in 2021, the stock has dropped 41%. Since the June quarter ended, Cathie Wood’s Ark Next Generation Internet ETF has shed almost half a million shares of Peloton stock, including a sale of 741,000 shares just last week. The company has lowered prices for some products, trading margins for revenue. We’re about to see how that worked out.

Analysts continue to back the stock. Of 30 brokerages covering the shares, 22 have a Buy or Strong Buy rating on the shares, and six more rate the stock at Hold. At a price of around $90.90, the upside potential based on a median price target of $130 is 43%. At the high target of $160, the upside potential is 76%.

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