Investing

Earnings Previews: Oatly, Tyson Foods, Warner Music

The number of companies reporting quarterly earnings this week has swelled to more than 1,000 as more companies confirm their plans. Among companies we previewed and that reported late Wednesday, Disney and Progenit missed both on earnings and revenue, while Affirm and SoFi both beat on revenue and missed on profits. ArcelorMittal missed on revenue and beat on profits Thursday morning, while bitcoin miner Hut 8 beat on both.

After markets close Thursday, Blink, Lordstown Motors, Phunware, Sundial and TMC are expected to report quarterly results. Before markets open on Friday, AstraZeneca, Bakkt and Hyzon are scheduled to report results.

No reports are scheduled for release Friday afternoon. Here are previews of three quarterly reports due out before markets open next Monday.

Oatly

Malmö, Sweden-based alternative-source dairy products maker Oatly AB (NASDAQ: OTLY) came public in mid-May of this year and, after reaching a peak of $29.00 a month later, shares dropped to a post-IPO low of $12.33 on Wednesday. The stock has lost about 39% of its value since the IPO.

As the company’s name implies, Oatly currently focuses on oat-based dairy alternatives like oat milk. Investors are probably wondering if and how Oatly will weather the next round of alternative foods. Is oat milk just a fad? Are the company’s expansion plans sufficient to beat back competition from far bigger players like Chobani and Danone? Maybe the earnings report will address these issues and deliver the encouragement investors seek.

Oatly is popular among analysts. Of 17 brokerages covering the stock, 13 have a Buy or Strong Buy rating on the shares. The other four have Hold ratings. At a recent price of around $12.35, the implied upside based on a median price target of $26 is about 111%. At the high price target of $36, the implied upside is 191%.

For the company’s first quarter of fiscal 2022, analysts are expecting revenue of $253.22 million, which would be up 27.3% sequentially. Oatly is expected to post a loss per share of $0.07, an improvement over the prior quarter’s loss per share of $0.10. For the full fiscal year, the consensus estimates call for a loss per share of $0.25, compared to a loss of $0.36 last year, on sales of $1.28 billion, up 85%.

Oatly is not expected to post a profit in 2022 or 2023. The forecast enterprise value-to-sales multiple is 5.1 for 2022 and 3.3 for 2023. The stock’s post-IPO range is $12.33 to $29.00, and Oatly does not pay a dividend.