Investing
Earnings Previews: Dell Technologies, Urban Outfitters, Zoom Video
November 18, 2022 9:45 am
Third-quarter fiscal 2023 revenue is forecast to come in at $1.16 billion, down 2.2% sequentially but up 2.7% year over year. Analysts are forecasting EPS of $0.42, down 34.6% sequentially and by 52.8% year over year. For the full fiscal year ending in January, analysts expect EPS of $1.76, down 43.7%, on sales of $4.75 billion, up 4.5%.
Urban Outfitters stock trades at 14.4 times expected 2023 EPS, 11.5 times estimated 2024 earnings of $2.21 and 9.7 times estimated 2025 earnings of $2.61 per share. The stock’s 52-week range is $17.81 to $38.17. The company does not pay a dividend, and the total shareholder return for the past year was negative 32.1%.
Over the past 12 months, shares of Zoom Video Communications Inc. (NASDAQ: ZM) have dropped by about 67.7%. The stock reached its 52-week high almost exactly one year ago and its 52-week low last month. The company is seeking new venues for its video conferencing program and recently partnered with AMC to launch simultaneous meetings in several Zoom Rooms at selected AMC theaters and with Tesla to deliver in-car video conferencing. While these developments are interesting, neither seems like a game changer for the company.
Analysts remain unconvinced, too. Of 32 brokerages covering the stock, 21 have a Hold rating and 10 have Buy or Strong Buy ratings. At a share price of around $82.60, the upside potential based on a median price target of $95.00 is 15%. At the high price target of $130.00, the upside potential is 57.4%.
The stock trades at 22.2 times expected 2023 EPS, 22.5 times estimated 2024 earnings of $3.67 and 21.6 times estimated 2025 earnings of $3.83 per share. The stock’s 52-week range is $70.44 to $265.23. Zoom does not pay a dividend, and total shareholder return for the past year is negative 67.7%.
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