Earnings Previews: Amazon, Apple, Robinhood

Analysts expect the Dow Jones industrial average component to report fiscal 2022 second-quarter revenue of $94 billion, down 24.2% sequentially and up 4.9% year over year. Adjusted EPS are expected to come in at $1.43, down 31.8% sequentially but 2.1% higher year over year. For the fiscal year ending in September, analysts expect the company to report EPS of $6.54, up 9.6%, on sales of $395.42 billion, up about 8.1%. The fiscal year growth estimates are nearly double what they were at the end of the prior quarter.

Apple stock trades at 25.5 times expected 2022 EPS, 24.0 times estimated 2023 earnings of $6.15 and 22.7 times estimated 2024 earnings of $6.89 per share. The stock’s 52-week range is $122.25 to $182.94. Apple pays an annual dividend of $0.88 (yield of 0.54%). Total shareholder return for the past 12 months was 17.1%.


Within a week of its initial public offering in late July last year, shares of Robinhood Markets Inc. (NASDAQ: HOOD) doubled in price. As of Tuesday’s close, the stock traded down nearly 86% below that high and 71% below its IPO price.

Late Tuesday, the company announced that it is cutting its full-time workforce by about 9%. Based on a reported 3,800 employees, that amounts to about 340 people who will lose their jobs. CEO Vlad Tenev said in a blog post that the firings are the “right decision” and are “a deliberate step to ensure we are able to continue delivering on our strategic goals and furthering our mission to democratize finance.” Shares dropped 3.8% on Tuesday and traded down another 4.5% in Wednesday’s premarket.

Just 15 brokerages cover the stock. Of those, five have a Buy or Strong Buy rating and seven more rate the stock at Hold. At Wednesday’s closing price of $10.00, the upside potential to the median price target of $15 is 50%. At the high price target of $41, the upside potential is 310%.

For the first quarter of fiscal 2022, revenue is forecast at $357.21 million, down 1.5% sequentially. Analysts are looking for an adjusted loss per share of $0.36, compared to a loss of $0.49 per share in the previous quarter. For the full fiscal year, current consensus estimates call for an adjusted loss per share of $1.26, far below the 2021 fiscal year loss of $7.49 per share. Revenue is forecast at $1.84 billion, up 1.4%.

Robinhood is not expected to post a profit in 2022, 2023 or 2024. The stock’s post-IPO trading range is $9.85 to $85.00. The company does not pay a dividend.

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