In the first half-hour of Monday’s trading, the Dow Jones industrials were down 0.12%, the S&P 500 down 0.13% and the Nasdaq 0.33% lower.
Before U.S. markets opened on Monday, BioNTech beat consensus estimates for both earnings per share (EPS) and revenue. The Germany-based firm also confirmed its earlier estimate of around $5 billion in revenue from its COVID-19 vaccine. Shares traded up 2.5%.
Tyson Foods missed estimates on both the top and bottom lines. In its outlook for fiscal 2023, beef production is expected to decline by 4%, pork production is forecast roughly flat and chicken production is expected to rise by 3%. The company has forecast adjusted operating margins in the three segments ranging from down 2% to up 1% year over year. Shares traded down 13.1%.
Devon Energy, Lucid and Palantir are on deck to report results after U.S. markets close on Monday, with Duke Energy, Fox, Fisker and Nikola set to report results the following morning.
The following five companies are scheduled to report quarterly earnings later on Tuesday.
Affirm
Since posting a 12-month low in late December, shares of payment processor Affirm Holdings Inc. (NASDAQ: AFRM) have risen by more than 24%. Even that sharp increase is not enough to overcome the decline the stock suffered last year. Shares traded down about 60% for the past year.
The company announced a 19% job cut (about 500 people) when it reported quarterly results in February. In a letter to employees, founder and CEO Max Levchin blamed a decline in consumer spending and higher interest rates, along with his failure to act quickly enough to the macro changes. The release due Tuesday afternoon should be a report card on the company’s efforts.
Of 18 analysts covering the stock, only five have a Buy or Strong Buy rating, while 10 others rate it at Hold. At a recent price of around $10.70 a share, the implied upside based on a median price target of $14.00 is 30.8%. Based on the high price target of $18.00, the upside potential for the stock is 68.2%.
Analysts expect Affirm to report fiscal third-quarter revenue of $371.96 million, which would be down 6.9% sequentially but up 4.8% year over year. They also expect the company to report an adjusted loss per share of $0.84, better than the prior quarter’s loss of $1.08 per share and worse than the year-ago loss of $0.19 in the comparable quarter. For the full 2023 fiscal year ending in June, Affirm is expected to post a loss per share of $3.14, worse than last year’s loss of $2.51 per share, on revenue of $1.52 billion, up 12.6%.
Affirm is not expected to post a profit in 2023, 2024 or 2025. The enterprise value to sales multiple is expected to be 4.4 in 2023. Based on average estimated sales of $1.85 billion and $2.31 billion for 2024 and 2025, respectively, the multiple is 3.6 for 2024 and 2.9 for 2025. The stock’s 52-week trading range is $8.62 to $40.97. Affirm does not pay a dividend. Total shareholder return for the past year was negative 60.36%.
Airbnb
Over the past 12 months, shares of vacation rental provider Airbnb Inc. (NASDAQ: ABNB) have declined by 16.2%. Since the beginning of the year, shares are up 40%. CEO Brian Chesky spent six months last year living in Airbnbs. The results of that hejira were some 50 updates and new features for the vacation rental service that Airbnb announced last week. Chesky also said the company expects more than 300 million guests at its locations this year.
Of 42 brokerages covering Airbnb stock, 21 have a Hold rating and 17 have a Buy or Strong Buy rating. At a share price of around $120.00, the upside potential based on a median price target of $144.00 is 20%. At the high price target of $190.00, the upside potential is 58.3%.
First-quarter revenue is forecast at $1.79 billion, down 6% sequentially but 18.5% higher year over year. Airbnb is expected to post EPS of $0.14, down 70% sequentially and up from a one-cent loss year over year. For the full 2023 fiscal year, analysts are looking for EPS of $3.55, up 22.2%, on revenue of $9.57 billion, up 13.9%.
Airbnb stock trades at 33.7 times expected 2023 EPS, 28.4 times estimated 2024 earnings of $4.22 and 25.4 times estimated 2025 earnings of $4.72 per share. Its 52-week range is $81.91 to $144.63. The company does not pay a dividend, and total shareholder return over the past year is negative 16.21%.
Luminar
Lidar maker Luminar Technologies Inc. (NASDAQ: LAZR) began trading as a public company in December 2020, and after an initial spurt, the stock has dropped nearly 74%. Since the beginning of the year, shares have added more than 22%.
Luminar makes lidar (light detection and ranging, or laser-light) systems for self-driving cars and trucks. A recent surge in demand from China for lidar-equipped vehicles has caused the company to expand its manufacturing footprint in Taiwan with partner TPK. Except for Tesla, lidar is the preferred sensor technology for self-driving features. It is still early days in the market, though, and investor patience is likely to be rewarded.
Analysts from 12 brokerages cover Luminar, with eight having a Buy or Strong Buy rating and three with Hold ratings. At a share price of around $6.00, the stock’s potential upside based on a median price target of $12.00 is 100%. At the high target of $24, the upside potential is 300%.
The company is expected to report sales of $11.94 million for the first quarter, up 7.3% sequentially and about double year over year. An expected loss per share of $0.21 is five cents better than the prior quarter’s loss and 5 cents worse than the loss per share in 2022. For the full year, analysts are forecasting a loss per share of $0.74, better than last year’s loss per share of $0.78, on sales of $88.71 million, up 118% year over year.
Luminar is not expected to post a profit in 2023, 2024 or 2025. The stock trades at a 2023 enterprise value to sales multiple of 27.5, a multiple of 9.0 for 2024 and a multiple of 4.1 for 2025. The 52-week range is $3.91 to $11.35. The company does not pay a dividend, and total shareholder return for the past year is negative 45.66%.
24/7 Wall St.Occidental Petroleum
Low prices have taken their toll on Occidental Petroleum Corp. (NYSE: OXY), just as they have on other oil and gas companies. Over the past 12 months, Oxy’s shares have lost about 2.5%. Three months ago, shares were up 53% for the 12-month period ending in February. Crude oil prices have lost more than 26% in the past 12 months, and natural gas prices have fallen by nearly 69%.
During Berkshire Hathaway’s annual meeting last Saturday, Warren Buffett said the company will not acquire full control of Oxy because “we wouldn’t know what to do with it.” Buffett owns a stake of around 23.5% in Oxy.
Of 27 brokerages covering the stock, 15 have Hold ratings, while 10 have a Buy or Strong Buy rating. At a share price of around $61.00, the implied gain based on a median price target of $69.00 is 13.1%. At the high price target of $93.00, the upside potential is 52.55%.
First-quarter revenue is forecast at $7.37 billion, down 11.4% sequentially and by 13.6% year over year. Adjusted EPS are pegged at $1.25, down 22.1% sequentially and 41.0% lower year over year. For the full 2023 fiscal year, analysts anticipate EPS of $5.38, down 42.4%, on revenue of $29.98 billion, down 19.2%.
Occidental stock trades at 11.2 times expected 2023 EPS, 10.2 times estimated 2024 earnings of $5.91 and 11.5 times estimated 2025 earnings of $5.25 per share. The stock’s 52-week range is $54.30 to $77.13. Occidental pays an annual dividend of $0.72 (yield of 1.19%). Total shareholder return for the past year was negative 2.27%.
Rivian
Rivian Automotive Inc. (NASDAQ: RIVN) produced fewer vehicles in the first quarter as it set about beefing up production of its electric delivery vans. For Rivian and other EV makers, like Lucid, Fisker and Nikola, the cash burn is the compelling metric. Without cash, they cannot scale up, and without scaling up, they have a hard time showing smaller losses.
Rivian also has been in discussions with Amazon about terminating its deal to sell all its electric vans to Amazon. If Rivian gets its way, Amazon is likely to dump some or all of its 17% stake in the company. Rivian does not need that right now.
Of 22 analysts covering the stock, 14 have a Buy or Strong Buy rating and seven more have Hold ratings. At a share price of around $13.40, the upside potential based on a median price target of $25.00 is 86.6%. At the high target of $58.00, the upside potential is about 333%.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
