In early trading Friday, the Dow Jones industrials were up 0.23%, the S&P 500 up 0.46% and the Nasdaq up 0.58%.

After U.S. markets closed on Thursday, Marvell missed the consensus earnings per share (EPS) estimate by a penny and posted better-than-expected revenue. The chipmaker issued downside first-quarter EPS and revenue guidance. Marvell did say that swollen inventory and a wrong product mix affected guidance but that the company expects the issues to be solved later this year. Investors are not waiting around; the shares traded down 7.4% early Friday.

ChargePoint posted a smaller-than-expected loss but missed revenue estimates. The EV charging station provider also issued first-quarter revenue guidance that was well short of the consensus estimate. Shares traded down 8.4%.

Costco reported a beat on EPS and a miss on revenue for its fiscal second quarter. Same-store sales growth came in weaker than expected and e-commerce revenue fell 9.6%. Sales of big-ticket items have fallen while demand for groceries has picked up. Shares traded down 3.7% Friday morning.

Broadcom beat consensus estimates on the top and bottom lines and issued upside revenue guidance for the April quarter. The stock traded up 4.6%.

Dell also beat top-line and bottom-line estimates but issued downside guidance for the current quarter and for its 2024 fiscal year, which ends in January. A long-term commitment to a compound annual growth rate (CAGR) of 3% to 4% in EPS, a CAGR of at least 6% in revenue and a net income to free cash flow ratio of 100% were not enough to convince investors. Shares traded up by about 0.3%.

Hewlett Packard Enterprise also beat consensus estimates on the top and bottom lines, and it issued guidance for the current quarter and its 2023 fiscal year that were in line with expectations. The stock traded up 1.4%.

Nordstrom beat the consensus EPS estimate but missed on revenue. Earnings guidance for the company’s 2024 fiscal year was in line with analysts’ consensus, but revenue guidance was below expectations. The stock traded up 2.1%.

No notable earnings reports are expected on Friday, but Lordstown Motors and Trip.com are on deck first thing Monday morning.

Here is a look at what to expect when the following two companies report quarterly results before Tuesday’s opening bell.

Dick’s Sporting Goods

Sporting gear retailer Dick’s Sporting Goods Inc. (NYSE: DKS) has posted a share price gain of about 16.5% over the past 12 months, including a jump of nearly 7.7% so far in 2023. Its share price growth for the past year trails rivals Academy Sports and Hibbett Sports.
A week ago, Dick’s agreed to acquire online outdoor retailer Moosejaw from Walmart. No purchase price was revealed, but Walmart paid $51 million to acquire Moosejaw six years ago. Like its competitors, Dick’s prospered during the pandemic and is looking to retain some of the growth it had in that period.

Analyst sentiment trends bullish, with 13 of 27 ratings at Buy or Strong Buy. Another 13 analysts rate the stock a Hold. At a recent share price of around $129.50, the upside potential based on a median price target of $138.00 is 6.6%. At the high target of $166.00, the upside potential is 28.2%.

For the company’s fourth quarter of fiscal 2023, analysts expect revenue of $3.44 billion, which would be up 16.4% sequentially and by 2.7% year over year. Adjusted EPS are forecast at $2.89, up 11.1% sequentially but down 20.6% year over year. For the full fiscal year that ended in January, EPS are forecast to come in at $11.97, down 23.8%, on sales of $12.21 billion, down 0.7%.

The stock trades at at 10.8 times expected 2023 EPS, 10.7 times estimated 2024 earnings of $12.07 and 10.2 times estimated 2025 earnings of $12.74 per share. The stock’s 52-week trading range is $63.45 to $138.43. Dick’s pays an annual dividend of $1.95 (yield of 1.52%). Total shareholder return for the past year was 18.67%.

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Sea Limited

Singapore-based Sea Limited (NYSE: SE) operates Asia’s leading online gaming and entertainment platform. Over the past 12 months, the stock has dropped by about 46%, including a bump of more than 22% so far in 2023.

Sea Limited exploded during the pandemic, and the company tried to expand its success in Asia into other markets. That did not work out too well, and the company has now refocused its emphasis on its home market. The company has cut its spending and narrowed its losses, leading some analysts and investors to believe that profitability may be in sight. Keep an eye on guidance.

Of 32 analysts covering the stock, 22 have a Buy or Strong Buy rating and eight others rate it at Hold. At a share price of around $64.00, the stock’s implied upside based on a median price target of $82.50 is 28.9%. At the high price target of $159.00, the upside potential is 148.4%.

Analysts expect Sea to report second-quarter revenue of $3.06 billion, down about 3% sequentially and 5% lower year over year. The expected quarterly loss per share is $0.55, better than the prior quarter’s loss of $0.66, and $0.33 better than the year-ago loss. For the full fiscal year, the loss per share is forecast at $3.51, worse than the loss per share of $2.96 in 2021, on sales of $12.01 billion, up about 20.7% year over year.

Sea Limited is not expected to post a profit in 2022 or 2023. The estimated price-to-sales multiple in 2024 is 124.2. The stock’s 52-week range is $40.66 to $136.43. The company does not pay a dividend, and total shareholder return for the past year is negative 46.02%.

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