Investing

Earnings Previews: Big Lots, DocuSign, Marvell

Two firms we covered in earlier previews reported earnings results after markets closed on Tuesday. Both beat on both the top and bottom lines, but their share prices fell in early trading Wednesday.

Hewlett Packard Enterprise reported revenue growth of just 1% year over year in two of its four segments, sending shares down about 1%. Salesforce.com lowered guidance while promoting Chief Operating Officer Brett Taylor to co-CEO. The stock was down more than 6% Wednesday morning.

After markets close Wednesday, CrowdStrike, Snowflake and Splunk are set to report quarterly results.

Here’s a look at three companies set to report quarterly results after markets close Thursday or before they open on Friday.

Big Lots

Discount retailer Big Lots Inc. (NYSE: BIG) will report fiscal third-quarter results before markets open on Friday. Had the past year ended in early June, Big Lots would have posted a share price gain of more than 40%. As it is, for the past 12 months, the stock is down nearly 11%. Since June 8, shares have dropped almost 37%, while Dollar Tree (up 34.4%) and Dollar General (up 10.8%) have prospered.

July quarter results missed on the top and bottom lines, largely due to supply chain issues and higher freight costs. Those headwinds continue to blow and investors apparently have not seen any progress to overcoming them, at least not from Big Lots.

Analyst sentiment is mixed on the stock, with seven of 10 brokerages having a Hold rating while just one rates the stock a Buy. At a recent price of around $44.90 a share, the stock’s upside potential based on a median price target of $50 is 11.3%. At the high target of $63, the upside potential is 40%.

Fiscal 2022 third-quarter revenue is forecast at $1.32 billion, which would be down 9% sequentially and down 4.3% year over year. Analysts are forecasting an adjusted loss per share of $0.16 for the quarter, down from earnings per share (EPS) of $1.09 in the second quarter, and down from EPS of $0.76 in the year-ago quarter. For the full fiscal year ending in January, the consensus estimates call for EPS of $6.00, down 18.4%, on sales of $6.15 billion, down 0.8%.

Big Lots’ share price to earnings multiple for fiscal 2022 is 7.5. For fiscal 2023, the multiple to estimated EPS of $5.95 is 7.5, and for 2024, it is 6.4 times estimated EPS of $7.02. The stock’s 52-week range is $41.76 to $73.23. Big Lots pays an annual dividend of $1.20 (yield of 2.77%). Total shareholder return for the past year is 16.9%.

DocuSign

Shares of cloud-based signature and contract management software provider DocuSign Inc. (NASDAQ: DOCU) have risen by about 6.5% over the past 12 months. At the end of its July quarter, DocuSign was trading up about 33% for the 12-month period. Shares plummeted by 13% in September, bounced about halfway back by early November, and have dipped by nearly 15% since then.

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