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.
DocuSign’s revenue growth for three of the past four quarters has been more than 50% per quarter. The consensus estimate for the third quarter calls for revenue growth of less than 40%. DocuSign reports quarterly results after markets close on Thursday.
Revenue considerations aside, analysts remain solidly bullish on the stock. Of 20 brokerages covering the company, 17 have rated the stock a Buy or Strong Buy and the other three have a Hold rating. At a share price of around $241.50, the upside potential based on a median price target of $327.50 is about 36%. At the high price target of $389, the upside potential is 61%.
Fiscal 2022 third-quarter revenue is forecast at $531.25, up 3.8% sequentially and about 39% year over year. Adjusted EPS are forecast at $0.46, down a penny sequentially and more than double the $0.22 per-share profit in the same quarter a year ago. For the full fiscal year ending in January, DocuSign is expected to post EPS of $1.75, up nearly 95%, on sales of $2.09 billion, up 43.6%.
DocuSign’s share price to earnings multiple for the 2022 fiscal year is 138.3. For fiscal 2023, the multiple to estimated EPS of $2.21 is 109.6, and for 2024, it is 83.1 times estimated EPS of $2.92. The stock’s 52-week range is $179.49 to $314.76. DocuSign does not pay a dividend. Total shareholder return for the past year is 12.3%.
Marvell
Chipmaker Marvell Technology Inc. (NASDAQ: MRVL) has seen its shares appreciate by about 61% over the past 12 months. All that growth has come since late May. Demand from data centers, the auto industry, and network equipment makers has lit a fire under Marvell’s stock.
In the second quarter, revenue rose 48% year over year and year-over-year growth for the current quarter is about 44%. Both those percentages are more than double sales growth in the two previous quarters. Marvell is firmly entrenched in three fast-growing industries, all of which are expected to continue growing at a compound annual growth rate of 20% through 2024. The company reports quarterly results after markets close Thursday.
Analysts are solidly bullish on Marvell stock. Of 30 brokerages covering the shares, 24 have given the stock a Buy or Strong Buy rating, and five more rate the stock at Hold. At a share price of around $74.20, the upside potential to a median price target of $80 is 7.8%. At the high price target of $100, the upside potential is more than 48%.
For the third quarter of fiscal 2022, Marvell’s revenue is forecast to come in at $1.15 billion, up 6.8% sequentially and more than 50% higher year over year. Adjusted EPS are forecast at $0.38, up 12.7% sequentially and up 52% year over year. For the full fiscal year ending in January, EPS are forecast at $1.45, up 57%, on sales of $4.27 billion, up nearly 44%.
Marvell’s share price to earnings multiple for fiscal 2022 is 51.5. For fiscal 2023, the multiple to estimated EPS of $1.94 is 38.4, and for 2024, it is 30.1 times estimated EPS of $2.48. The stock’s 52-week range is $37.92 to $76.12. Marvell pays an annual dividend of $0.24 (yield of 0.32%). Total shareholder return for the past year is just over 60%.
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