Investing

Earnings Previews: Affirm, Disney, Progenity, SoFi

The number of companies reporting quarterly earnings this week has swelled to more than 1,000 as more companies confirm their plans. None of the four companies we previewed that reported results after markets closed on Monday beat both on both the top and bottom lines. Of three previews for Tuesday morning, only one (BioNTech) beat on both.

After markets close Tuesday or before they open Wednesday morning, Coinbase, Nio, Plug Power and 23andMe are set to report quarterly results. ArcelorMittal and Hut 8 take their turns in the earnings spotlight first thing on Thursday.

Here are previews of four reports expected after markets close on Wednesday.

Affirm

Buy now, pay later (BNPL) payment processor Affirm Holdings Inc. (NASDAQ: AFRM) has posted a share price gain of 63% over the past 12 months, including a dip of around 50% in mid-May. A late August spike following an announced deal as the BNPL provider for Amazon has continued ever since. Adding to Affirm’s luster was a deal for BNPL services with American Airlines. Last week’s poor showing by Peloton, one of Affirm’s largest customers, threw a little shade on the company. Affirm is reporting first-quarter fiscal 2022 results on Wednesday.

Of 12 analysts covering the stock, seven have given the shares a Buy or Strong Buy rating, and another four rate the stock at Hold. At a recent price of around $161.20, the share price has surpassed the median price target of $145. Based on the high price target of $220, the upside potential for the stock is about 36.5%.

Analysts expect Affirm to report first-quarter revenue of $249.36 million, which would be down about 4.7% sequentially. They also expect the company to report an adjusted loss per share of $0.28, much better than the prior quarter loss of $0.48 per share. For the full fiscal year, Affirm is expected to post a loss per share of $0.65, sharply better than last year’s loss of $2.59 per share, on revenue of $1.21 billion, up 38.6%.

Affirm is not expected to post a profit in 2022, 2023 or 2024. The enterprise value-to-sales multiple is expected to be 38.2 in 2022. Based on estimated earnings for 2023 and 2024, multiples are 27.9 and 20.1, respectively. The stock’s 52-week range is $46.50 to $176.65. Affirm does not pay a dividend.

Disney

Dow Jones industrial average component Walt Disney Co. (NYSE: DIS) traded nearly 60% higher than it did a year ago on this date. Since the early March high, shares have slipped by more than 12%. Disney will be sharing its fiscal fourth-quarter results.

Analysts and investors worry that growth at the company’s Disney+ streaming service is slowing and a delay in the production of the next film in the “Star Wars” franchise could mean a delay in the planned release date in December 2023. And then there was the Shanghai Disney resort lockdown. That didn’t boost confidence in a quick return to business as usual.

Analysts are strongly bullish on the stock. Of 29 brokerages covering the firm, 18 have a Buy rating on the stock and another five rate it a Strong Buy. There are no Sell or Strong Sell ratings. At a price of around $173.70, the upside potential based on a median price target of $210 is about 21%. At the high target of $263, the upside potential is 51.4%.