Investing

Earnings Previews: Medtronic, Xpeng, Zoom Video

All 14 analysts covering the stock have a Buy (eight) or Strong Buy (six) rating on the stock. At a share price of around $46.80, the upside potential based on a median price target of $56.55 is almost 21%. At the high price target of $87.12, the upside potential is 86%.

The automaker reports third-quarter results before U.S. markets open on Tuesday. Third-quarter revenue is forecast at $820.86 million, up 41% sequentially and down from $1.99 billion a year ago. The company’s adjusted loss per share is forecast at $0.33, much improved over the prior quarter’s loss of $1.38. A year ago, Xpeng reported a loss per share of $2.16 in the third quarter. For full fiscal 2021, the company is expected to post a loss per share of $0.86, compared with 2020’s loss of $1.11 per share, on sales of $3.00 billion, up 235%.

Xpeng is not expected to report a profit in 2021, 2022 or 2023. The stock’s price-to-enterprise value multiple this year is expected to be 12.1. For 2022, the multiple is estimated at 6.8 and, for 2023, the estimate is 4.5. The stock’s 52-week range is $22.73 to $74.49. Xpeng does not pay a dividend and total shareholder return for the past year is negative 2.4%.

Zoom Video

Since the beginning of last year, shares of Zoom Video Communications Inc. (NASDAQ: ZM) have added about 275% to their price. The not-so-good news is that as of mid-October of 2020, the shares were up about 735%. Just as was the case with Peloton, Zoom’s stock began to decline as the economy began returning to normal late last year.

Zoom is not expected to take the same hammering Peloton did when it reported results a couple of weeks ago, but analysts and investors are going to be on the lookout for better margins and customers for Zoom’s latest products. Zoom will report third-quarter results after markets close Monday.

Analysts are showing mixed sentiment on the stock, with 11 Hold ratings, 11 Buy ratings and four Strong Buy ratings out of a total of 27 brokerages covering the shares. At a share price of around $259.30, the upside potential based on a median price target of $350 is about 35%. At the high price target of $469, the upside potential is almost 81%.

Third-quarter revenue is forecast at $1.02 billion, flat with the prior quarter and up 31% year over year. Adjusted EPS are pegged at $1.10, down 19.5% sequentially and 10% higher year over year. For the full fiscal year, current estimates call for EPS of $4.83, up 44.5%, on sales of $4.01 billion, up 51.4%.

Zoom’s share price to earnings multiple for fiscal 2021 is 17.9. For fiscal 2022, the multiple to estimated EPS of $4.72 is 15.2, and for 2024, it is 12.9 times estimated EPS of $5.57. The stock’s 52-week range is $245.16 to $486.83. Zoom does not pay a dividend. Total shareholder return for the past year is negative 37.6%.

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