Investing

Earnings Previews: Coinbase, Nio, Plug Power, 23andMe

Nearly 500 companies are reporting quarterly earnings this week. The one in our watch list for Monday morning, Coty, beat estimates on both the top and bottom lines.

We already have previewed four reports due out after markets close Monday (PayPal, Roblox, SmileDirectClub and Virgin Galactic) and three more set to report earnings first thing on Tuesday (BioNTech, Palantir and Workhorse).

Here are previews of four reports due out after Tuesday’s closing bell or before trading begins Wednesday morning.

Coinbase

Since its IPO in mid-April, Coinbase Global Inc. (NASDAQ: COIN) have added about 6% to its share price. The company came public in a direct listing that went out at $381 per share, soared to $429.54, and closed the day at $328.28. Coinbase reports third-quarter results after markets close Tuesday.

The largest institutional holder of Coinbase stock is Cathie Wood’s ARK Invest, which has amassed slightly more than 6 million shares, valued at $1.88 billion, in three of its exchange-traded funds (ETFs). The company recently branched out into non-fungible token (NFTs) but remains concerned about expected regulatory measures.

Of 22 analysts covering the stock, 15 have the shares rated at Buy or Strong Buy, and another five rate the stock at Hold. At a recent price of around $350, the stock has outrun its median price target of $348.50. At the high target of $500, the upside potential at the current price is about 43%.

For the third quarter, the current consensus calls for revenue of $1.58 billion, which would be down 29% sequentially. Adjusted earnings per share (EPS) are forecast at $1.72, down 75% sequentially. Data for last year is unavailable. For the full year, analysts expect EPS of $7.74 on sales of $6.58 billion.

The stock trades at 26.2 times expected 2021 EPS. Based on estimated earnings for 2022 and 2023, multiples are 45.5 and 40.5 times estimated earnings, respectively. The stock trades in a post-IPO range of $208 to $429.54. Coinbase does not pay a dividend.

Nio

China-based EV maker Nio Inc. (NYSE: NIO) has added about 5% to its share price over the past 12 months. At one point in early February, the stock was up 50% but later dropped to 25% below the year-ago share price. It bounced higher in late June and fell again in early October.

Rising competition for EVs, especially recently from Lucid, has cooled enthusiasm for Nio, as did a weak report on October deliveries. What the company has to say about that when it reports earnings Tuesday afternoon could have a big impact on the share price.

There are 22 analyst ratings on Nio’s stock, and 18 of those are Buy or Strong Buy. At a price of around $43.80, the upside potential based on a median price target of $59.38 is about 35.6%. At the high target of $92.01, the upside potential is 110%.

For the third quarter, the consensus estimates call for revenue of $1.47 billion, up 12.4% sequentially and 120% year over year. Nio is expected to post an adjusted loss per share of $0.05, worse than the $0.03 per-share loss in the prior quarter and better than the year-ago loss of $0.12 per share. For the full year, the company is expected to report a per-share loss of $0.42, better than the $0.66 loss last year, on sales of $5.67 billion, up about 128%.

Analysts estimate that Nio will trade at 116.5 times earnings in 2023. Until then, it will not post a profit. The enterprise value-to-sales multiple is expected to be 12.0 in 2021 and 7.2 in 2022. The stock’s 52-week range is $30.71 to $66.99. The company does not pay a dividend.