The three major U.S. equity indexes closed mixed on Friday, but the gain or loss was small. A late bounce higher had six of 11 sectors closing the day in the green, with health care (up 1.3%) and real estate (up 1.2%) leading the pack. All three indexes traded up about 1% in Monday’s premarket session. What was really moving markets in the morning was a report that networking giant Broadcom is in negotiations to acquire VMware in a deal that could fetch up to $70 billion for VMware investors.
Before markets opened, Chinese electric vehicle maker Xpeng reported a slightly better than expected loss and met revenue expectations. The less good news is that gross margins came in lower than expected and guidance was light. Shares traded down slightly more than 1%.
We already have previewed four companies set to report quarterly results late Monday or early Tuesday: Abercrombie & Fitch, Best Buy, NetEase and Petco. After markets close Monday or before they open on Tuesday, Zoom Video and Frontline are due to report results.
Here is a look at three more firms set to report earnings after U.S. markets close on Tuesday.
Dick’s Sporting Goods
Sporting gear retailer Dick’s Sporting Goods Inc. (NYSE: DKS) has had a share price dip of about 4.5% over the past 12 months, including a decline of nearly 42% since a 52-week high in early September. In March, Dick’s executive board chair said investors should not be afraid that the company would experience lower deliveries from Nike, now that the apparel giant is focusing more on direct-to-consumer sales. That pronouncement seems to have had little influence on the stock’s price. The company reports results first thing Wednesday morning.
Analyst sentiment trends toward bullish, with 12 of 25 ratings at Buy or Strong Buy. Another 12 analysts rate the stock at Hold. At a recent price of around $77.50 a share, the upside potential based on a median price target of $132.00 is 70.3%. At the high target of $180, the upside potential is more than 132%.
For the company’s first quarter of fiscal 2023, analysts expect revenue of $2.62 billion, which would be down 21.7% sequentially and 10.3% lower year over year. Adjusted earnings per share (EPS) are forecast at $2.53, down 30.5% sequentially and 33.2% year over year. For the full fiscal year ending in January, EPS are forecast to come in at $12.59, down 19.8%, on sales of $12.13 billion, down 1.4%.
The stock trades at 9.2 times expected 2023 EPS, 5.9 times estimated 2024 earnings of $13.04 and 5.5 times estimated 2025 earnings of $14.06 per share. The stock’s 52-week trading range is $74.12 to $147.39. The company pays an annual dividend of $1.60 (yield of 2.52%). Total shareholder return for the past year was negative 1.8%.
24/7 Wall St.Intuit
Tax filing software company Intuit Inc. (NASDAQ: INTU) has seen its share price decline by about 12.3% over the past 12 months. Since a 52-week high in mid-November, the shares are down nearly 47%. Earlier this month the company announced an agreement under which it will pay $141 million to customers who were “unfairly charged” for services that were promoted as being free. Intuit will report results after Tuesday’s closing bell.
Of 22 analysts covering Intuit stock, 20 have a Buy or Strong Buy rating and the others rate the shares at Hold. At a share price of around $367.80, the upside potential based on a median share price of $600.00 is 63%. At the high price target of $700.00, the upside potential is 90.3%.
For Intuit’s third quarter of fiscal 2022, which ended in April, analysts are looking for revenue of $2.01 billion, up 106.2%% sequentially and 52.3% higher year over year. Adjusted EPS of $7.58 would be up 388.7% sequentially and 24.9% year over year. The April quarter is historically Intuit’s best. For the full fiscal year, the forecast calls for EPS of $11.66, up 19.7%, on revenue of $12.32 billion, up 27.9%.
Intuit stock trades at 31.6 times expected 2022 EPS, 26.7 times estimated 2023 earnings of $13.76 and 22.5 times estimated 2024 earnings of $16.34 per share. The stock’s 52-week range is $339.36 to $716.86. The company pays an annual dividend of $2.54 (yield of 0.74%). Total shareholder return for the past year was negative 15.1%.
Toll Brothers
Shares of homebuilder Toll Brothers Inc. (NYSE: TOL) have dropped by 19.3% over the past 12 months. Since an all-time high in early December, the stock price has fallen nearly 36%. High home prices, high materials costs and rising interest rates may be a threat to share price growth this year, not only for Toll Brothers but for the homebuilding industry in general. Forward sales estimates have been sliding since the beginning of the year but have more or less settled into a narrow range over the past six weeks. The company reports quarterly results late on Tuesday.
Sentiment on the stock is not exactly bullish. Of 20 brokerages covering the stock, 10 have a Buy or Strong Buy rating and seven rate the shares at Hold. At a share price of around $47.70, the upside potential based on a median price target of $63.50 is 33.1%. At the high price target of $85.00, the upside potential is 78.2%.
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