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Earnings Previews: Darden Restaurants, Fortuna Silver, Hello Group, Trip.com

Fourth-quarter fiscal 2021 revenue is forecast at $191.7 million, up 17.9% sequentially and 85.2% year over year. Adjusted EPS are forecast at $0.14, up 25.6% sequentially and 16.7% higher year over year. For the full fiscal year, analysts are expecting EPS of $0.47, up 176.2%, on sales of $593.11 million, up 112.6%.

Fortuna stock trades at 8.7 times expected 2021 EPS, 11.3 times estimated 2022 earnings of $0.36 and 9.3 times estimated 2023 earnings of $0.44 per share. The stock’s 52-week range is $2.91 to $7.98. The company does not pay a dividend. Total shareholder return for the past year was negative 42.4%.

Hello Group

Beijing-based Hello Group Inc. (NASDAQ: MOMO) provides a mobile platform for social media and entertainment in China. Over the past 12 months, the stock has dropped by about 51%, including a brief dip to around $4.50 a share following J.P. Morgan’s blanket cut on Chinese stocks last week. But the operator of two big dating sites has suffered about half its annual loss in the past month. Hello Group is expected to report results early Thursday.

Of 15 analysts covering the company, 11 have given the shares a Hold rating and four rate them at Buy. At a share price of around $7.65, the upside potential based on a median price target of $13.58 is about 77.5%. At the high price target of $28.01, the upside potential is 266%.

Fourth-quarter revenue is forecast at $569.01 million, down 2.4% sequentially and 2.0% lower year over year. Adjusted EPS are forecast at $0.27, down nearly 35% sequentially and 53.4% year over year. For full fiscal 2021, analysts are looking for EPS of $1.52, down 24.8%, on sales of $2.29 billion, down less than 1%.

Hello Group stock trades 5.0 times expected 2021 EPS, 4.7 times estimated 2022 earnings of $1.64 and 3.9 times estimated 2023 earnings of $1.97 per share. The stock’s 52-week range is $4.47 to $16.45. The company does not pay a dividend. Total shareholder return for the past year was negative 49.6%.

Trip.com

Travel services giant Trip.com Group Ltd. (NASDAQ: TCOM) has posted a 12-month share price decline of about 42%. The stock reached a multiyear low below $15 a share, a drop of around 60% for the 12-month period. New lockdowns in several major Chinese cities could hit the Shanghai-based travel company hard in the weeks to come. Trip.com is expected to report quarterly results late on Wednesday.

Notwithstanding J.P. Morgan’s downgrade of Chinese stocks last week, analysts remain bullish on the stock, with 24 of 32 rating the stock a Buy or Strong Buy. Another six have a Hold rating on the shares. At a share price of around $24.00, the upside potential based on a median price target of $32.07 is 33.6%. At the high target of $44.04, the upside potential rises to 83.5%.

Analysts expect Trip.com to report fourth-quarter revenue of $668.34 million, down by 19.4% sequentially and 13.8% year over year. The consensus forecast also calls for an adjusted loss per share of $0.08, compared to EPS of $0.02 in the prior quarter and year-ago EPS of $0.27 per share. For the 2021 fiscal year, analysts are looking for EPS of $0.17, better than the year-ago loss of $0.23 per share, on sales of $3.08 billion, up 9.8% year over year.

The stock trades at 138.2 times expected 2021 EPS, 42.0 times estimated 2022 earnings of $0.57 and 17 times estimated 2023 earnings of $1.42 per share. The stock’s 52-week range is $14.29 to $42.63, and Trip.com does not pay a dividend. Total shareholder return for the past year was negative 41.6%.

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