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Earnings Previews: Coupa Software, CTI BioPharma, Westport Fuel

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After markets closed Thursday, electric truck maker Rivian reported a wider-than-expected loss and lower-than-expected revenue, topped off with a downside outlook for both production and revenue. Shares opened more than 6% lower Friday morning. DocuSign opened down nearly 20% after matching profit estimates and beating on revenues. Guidance for the current quarter and the full year came in below expectations, and the stock was being punished.

Software giant Oracle also reported quarterly results late Thursday that missed earnings estimates while beating on revenue. The stock traded down about 2.5% early Friday. A similar mixed report from Blink Charging (although using much smaller numbers) sent shares down by more than 5%.

Until Monday afternoon, only one earnings report of note is due for release. That’s Ballard Power. Here is a look at three companies set to report results after markets close Monday and before the open on Tuesday.

Coupa Software

Shares of cloud-based business spending management provider Coupa Software Inc. (NASDAQ: COUP) have dropped by about 61% over the past 12 months. The stock posted its 52-week high exactly one year ago, and it has been sliding ever since. Coupa recently introduced a travel and expense solution and joined Billtrust’s Business Payments Network, which will speed up a customer’s automated electronic payments to Billtrust’s network. Coupa reports results after the closing bell on Monday.

Of 27 brokerages covering the company, 15 have rated the stock at Buy or Strong Buy and 11 have a Hold rating. At a recent price of around $106 a share, the upside potential based on a median price target of $175 is 65%. At the high price target of $320, the upside potential is 202%.

Fourth-quarter revenue is forecast at $186.16 million, which would be up 0.2% sequentially and about 13.8% higher year over year. Adjusted earnings per share (EPS) are forecast at $0.05, down 83% sequentially and down about 70.5% year over year. For the full 2022 fiscal year that ended in January, Coupa is expected to post EPS of $0.69, down 10.4%, on sales of $718.11 million, up 32.6%.

The stock trades at 152.1 times expected 2022 EPS, 142.8 times estimated 2023 earnings of $0.73 and 80.5 times estimated 2024 earnings of $1.30 per share. The stock’s 52-week range is $100.82 to $391.40. Coupa does not pay a dividend. Total shareholder return for the past year is negative 63.5%.

CTI BioPharma

On February 25, shares of CTI BioPharma Corp. (NASDAQ: CTIC) closed at $1.90, down nearly 20% for the past year. In barely two weeks, the stock has added more than 150% and traded Friday morning at a new 52-week high.

The company announced on February 28 that its anti-inflammatory treatment for treating a type of bone marrow cancer was approved by the U.S. Food and Drug Administration. One analyst believes that the drug (pacritinib, or Vonjo) could nab 30% of the market and generate $390 million in revenue. Annual Vonjo treatment is expected to cost about $260,000 annually, less than Bristol Myers’ Inrebic and more than Incyte’s Jakafi.
The company could report results before markets open on Tuesday, but that date is unconfirmed.

Just six analysts cover the stock, and all rate the shares at Buy or Strong Buy. At a share price of around $4.80, the upside potential based on a median price target of $8.50 is 77%. At the high price target of $15, the upside potential is 233%.

There are no revenue forecasts for the fourth quarter or the 2021 fiscal year. The company is expected to post a per-share loss of $0.28, worse by two cents than the prior quarter loss. For the year, CTI is expected to post a loss per share of $0.98, compared to a year-ago loss of $0.74 per share.

CTI is not expected to post a profit in 2022. The stock currently trades at 71.1 times estimated 2023 earnings of $0.07 per share. The stock’s 52-week range is $1.43 to $4.87. The high was posted Friday. CTI does not pay a dividend. Total shareholder return for the past year is 48.8%, all in the last two weeks.

Westport Fuel

Westport Fuel Systems Inc. (NASDAQ: WPRT) designs, manufactures and sells alternative fuel systems for transportation original equipment manufacturer and after-market suppliers to them. Over the past 12 months, the stock price has declined by about 83%. Westport reports results after markets close on Monday.

Earlier this month, Westport sold its remaining stake in a joint venture with Cummins to the larger company for $20 million. Westport plans to invest the proceeds in the development of a hydrogen high-pressure direct injection system that Cummins may use for a planned natural gas-powered engine.

Just seven analysts cover the stock, with five giving the shares a Buy or Strong Buy rating and the others rating it at Hold. At a share price of around $1.50, the upside potential based on a median price target of $11.00 is 633%. At the high price target of $12, the upside potential is 700%.

Fourth-quarter revenue is forecast at $82.50 million, up 11% sequentially and about 2% year over year. Analysts forecast a quarterly loss per share of $0.02, less than the prior-quarter loss of $0.04 and down from EPS of $0.03 in the same quarter last year. For full fiscal 2021, Westport is expected to post a loss per share of $0.01, compared with a loss per share of $0.05 in 2020 on sales of $312.18 million, up 23.6%.

Westport is not expected to post a profit in 2022. The stock currently trades at 23.7 times estimated 2023 earnings of $0.11 per share. The stock’s 52-week range is $1.33 to $10.83. Westport does not pay a dividend. Total shareholder return for the past year was negative 84.2%.

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