The three major U.S. equity indexes closed mixed on Friday. The Dow Jones industrials added 0.2%, while the S&P 500 slipped by 0.16% and the Nasdaq fell by 0.5%. Six of 11 sectors ended the day lower, led by consumer cyclicals (1.7%) and communications services (1.2%). The energy sector rose by 2%, and the financial sector was up 0.7%. All three indexes were higher shortly after Monday’s opening bell.
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This week’s big economic news comes first thing on Wednesday and Thursday, when the Bureau of Labor Statistics reports the consumer price index (CPI) and the producer price index (PPI), respectively. Economists currently expect CPI to rise by 0.2% month over month, far below June’s increase of 1.3%. The PPI is forecast to rise by 0.3% in July, much lower than June’s 1.1% rise.

Before markets opened on Monday, Barrick Gold beat estimates on both the top and bottom lines. The stock traded up by about 4.9% in early Monday trading.

Palantir missed both earnings and revenue estimates and issued downside guidance for the third quarter and for the full year. The stock traded down more than 12%.

Tyson Foods beat revenue estimates but missed on earnings. The shares traded down about 9.4%.

Viatris reported adjusted EBITDA of $0.26 per share and sales of $4.1 billion. Both were lower than estimates, but the earnings estimate and actual may not be comparable. The company also issued downside guidance. The stock traded up nearly 8% Monday morning.

After markets close Monday, Upstart and Velodyne Lidar will be reporting quarterly results. Tuesday’s premarket reports include those from GlobalFoundaries and Norwegian Cruise Lines.

After Tuesday’s closing bell, Coinbase, Roblox, Trade Desk and Unity Software are on deck to report quarterly earnings.

Here are previews of two more earnings reports due out after markets close on Tuesday and one due first thing Wednesday morning.

Array Technologies

Array Technologies Inc. (NASDAQ: ARRY) makes and sells the hardware and software that allows solar arrays and panels to track the sun. Over the past year, the stock has increased its value by about 42%. That is less than half the stock’s value at its peak back in November but more than 250% above its 52-week low set in mid-May. The company reports quarterly results after markets close Tuesday.
Some investors apparently saw the writing on the wall. The Senate on Friday passed the Inflation Reduction Act that will pump some $44 billion into promoting clean energy projects if it passes the House and is signed by President Biden. Perhaps the best news for Array is that incentives for installing solar will last 10 years instead of the previous two-year renewal cycle.
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Of 14 brokerages covering the stock, nine have a Buy or Strong Buy rating and the other five have awarded the stock a Hold rating. At a recent price of around $19.20 a share, the stock trades above its median price target of $18.00. At the high target of $28.00.00, the upside potential is 45.8%.

Second-quarter revenue is forecast at $336.93 million, which would be up 12.1% sequentially and by 66.1% year over year. The company is expected to post adjusted earnings per share (EPS) of $0.02, compared to the prior quarter’s per-share loss of $0.02 and year-ago EPS of $0.07. For the 2022 fiscal year that ended in December, the company is forecast to post earnings per share (EPS) of $0.31, up 340% year over year, on revenue of $1.4 billion, up 63.7%.

The stock trades 91.7 times expected 2022 EPS, 20.1 times estimated 2023 earnings of $1.23 and 16.4 times estimated 2024 earnings of $1.16 per share. The stock’s 52-week range is $5.45 to $27.67. Array Technologies does not pay a dividend, and the total shareholder return for the past year was negative 39.9%.

Ballard Power

Shares of hydrogen fuel-cell maker Ballard Power Systems Inc. (NASDAQ: BLDP) peaked in mid-November, fell to a 52-week low in mid-June, and have risen by about 55% since that trough. The company is scheduled to report results before markets open on Wednesday.

Ballard is another potential beneficiary of the clean energy investments included in the Inflation Reduction Act. According to a report from S&P Global, the act includes a tax credit of up to $3 per kilogram for low-carbon hydrogen. Ballard’s hydrogen fuel cell powers a delivery van that will begin real-world trials in the United Kingdom early next year.

Analysts are cautious on the stock. Of 24 brokerages covering the company, 13 have a Hold rating while eight have a Buy or Strong Buy rating. At a share price of around $9.20, the stock has outrun its median price target of $9.00. At the high price target of $35.00, the upside potential is about 172%.
Ballard Power is expected to report second-quarter revenue of $24.16 million, up 15.1% sequentially but down 3.2% year over year. Analysts are forecasting a loss per share of $0.12, better than the prior-quarter loss of $0.14 but worse than the loss of $0.07 in the year-ago quarter. For the 2022 fiscal year,  analysts are forecasting a loss per share of $0.53, worse than the $0.39 per-share loss last year, on sales of $110.58 million, 5.8%.
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The company is not expected to post a profit in 2022, 2023 or 2024. The stock’s enterprise value to sales multiple for 2023 is 15.2, for 2022 is 10.8 and for 2024 is 7.1. Ballard Power does not pay a dividend, and the total shareholder return for the past 12 months was negative 41.7%.

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Plug Power

Over the past 12 months, shares of hydrogen fuel cell maker Plug Power Inc. (NASDAQ: PLUG) are trading up by less than 1%. That is far below the 72% high point and well above the negative 48% low point for the past year. Since early October, the shares have added nearly 95%.

Last Friday, Plug Power and New Fortress Energy announced that the two firms are going to build a green hydrogen plant on the Texas Gulf Coast capable of producing 50 metric tons of hydrogen daily. Green hydrogen costs about $7.66 per kilogram according to S&P Global Platts compared to costs for grey hydrogen of $1.77 per kilogram. The $3 per kilo tax credit for low-carbon, green hydrogen will help make the plant more competitive as will the added benefit of the low emissions of green hydrogen.

Of 29 analysts covering the stock, 20 have a Buy or Strong Buy rating and the rest have a Hold rating. At a share price of around $26.30, the implied gain based on a median price target of $30.50 is 16%. At the high target of $78, the implied gain is about 197%.

Second-quarter revenue is forecast at $163.97 million, up 16.5% sequentially and about 31.6% higher year over year. Analysts are forecasting an adjusted loss per share of $0.20, better than the $0.27 loss per share in the prior quarter but worse than the year-ago loss of $0.18 per share. For the full year, Plug Power is expected to post a loss per share of $0.72, compared to a loss last year of $0.79, on sales of $914.86 million, up 82.1% year over year.

Plug Power is not expected to post a profit until 2024. The enterprise value to sales multiple for 2022 is forecast at 13.7. For 2023 and 2024, the multiples are expected to be 8.9 and 6.1, respectively. The stock’s 52-week range is $12.70 to $46.50, and Plug Power does not pay a dividend. The total shareholder return for the past year was 0.97%.

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