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 moved higher in Monday’s premarket trading.
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 2.6% in Monday’s premarket.
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 14%.
Tyson Foods beat revenue estimates but missed on earnings. The shares traded down about 3.4% in Monday’s premarket.
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 more than 4% in the premarket session.
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.
Here are previews of four earnings reports due out after markets close on Tuesday.
24/7 Wall St.Coinbase
Following a disappointing few months after its April 2021 initial public offering, shares of Coinbase Global Inc. (NASDAQ: COIN) reached a post-IPO peak in early November. Since then, the stock is down about 74%. Over the past 12 months, shares are down about 64%. Since posting its 52-week low in mid-May, the shares are up 59%, and since a recent low on July 26, shares are up nearly 76%. It is no surprise that the cryptocurrency exchange’s fortunes have followed the misfortunes of Bitcoin and every other cryptocurrency.
Of 26 analysts covering Coinbase stock, 16 have a Buy or Strong Buy rating and another eight rate the shares at Hold. At a recent price of around $93.00 a share, the stock traded above its median price target of $90.00. At the high target of $290.00, the upside potential at the current price is about 212%.
For the second quarter of 2022, the consensus revenue estimate is $868.39 million, which would be down by about 25.6% sequentially and by 61.0% year over year. Analysts are forecasting an adjusted loss per share of $1.23, compared to a loss of $0.12 per share in the first quarter and adjusted earnings per share (EPS) of $6.78 in the year-ago quarter. For the full year, analysts now expect a loss per share of $3.59, compared to 2021 EPS of $17.10, on sales of $3.76 billion, down 52%.
Coinbase is not expected to post a profit in 2022, 2023 or 2024. The enterprise value to sales multiple for 2022 is 5.0. For 2023, the multiple is 3.9, and for 2024 it is 3.4. The stock trades in a 52-week range of $40.83 to $368.90. Shares were up about 4.6% in Monday’s premarket. Coinbase does not pay a dividend, and the total shareholder return for the past year was negative 63.6%.
Roblox
Interactive entertainment platform Roblox Corp. (NYSE: RBLX) has seen its stock price tumble by nearly 40% over the past 12 months. The stock fell more than 95% between its high in mid-November and its low in mid-May, before more than doubling as of Friday’s closing bell. Over the past five weeks, the stock has added almost 50%. The company is developing a way to monetize all the platform’s users through advertising. If it can deliver (and users don’t rebel), share prices could continue marching higher.
Of 20 analysts covering the stock, 11 have a Buy or Strong Buy rating and seven more have Hold ratings. At a price of around $49.20 a share, the stock trades above its median price target of $40.00. At the high target of $80.00, the upside potential is about 62.2%.
The consensus second-quarter revenue estimate is $645.43 million, down 0.9% sequentially and 6.0% lower year over year. Analysts also expect Roblox to post a loss per share of $0.26, compared to the prior quarter’s loss of $0.27 per share and the year-ago quarter’s loss of $0.25. For the full fiscal year, the company is expected to post a loss of $1.12 per share, compared to last year’s loss of $0.97 per share. Revenue is forecast at $2.73 billion, up 0.2%.
Roblox is not expected to post a profit in 2022, 2023 or 2024. The stock’s enterprise value to sales multiple for 2022 is 10.0. For 2022 and 2023, the multiples are 8.4 and 7.2, respectively. The stock’s 52-week trading range is $21.65 to $141.60, and the company does not pay a dividend. The total shareholder return for the past year was negative 38.9%.
Trade Desk
Like every other tech company, Trade Desk Inc. (NASDAQ: TTD) has had a tough 12 months. Shares have tumbled by 42% over the past 12 months and by 51% since posting a 52-week high in mid-November. The 52-week low was posted in mid-July, and the shares have added 28% since then, as tech stocks make a comeback.
Trade Desk may face some pretty stiff competition soon, though. Apple is reportedly looking to hire a senior product manager for a demand-side platform for advertisers, and that product would compete directly with Trade Desk’s programmatic ad platform. After last week’s report of Apple’s intention, Trade Desk shares traded higher, so maybe there is no imminent threat.
Of 19 analysts covering the stock, 15 have a Buy or Strong Buy rating, and the rest have Hold ratings. At a share price of around $52.80, the implied upside based on a median price target of $65.00 is 23.1%. At the high price target of $100.00, the upside potential is about 89.4%.
The consensus revenue estimate for the second quarter is $365.2 million. That would be up 15.8% sequentially and by about 30.4% year over year. Adjusted EPS are forecast at $0.20, down 5.2% sequentially but 11.1% higher than in the year-ago quarter. For the full year, analysts are expecting EPS of $0.98, up 7.9%, and revenue of $1.58 billion, up 31.7%.
Trade Desk stock trades at 53.7 times expected 2022 EPS, 46.2 times estimated 2023 earnings of $1.14 and 35.1 times estimated 2024 earnings of $1.50 per share. The stock’s 52-week range is $39.00 to $114.09. Trade Desk does not pay a dividend, and the total shareholder return for the past year was negative 36.7%.
Unity Software
Real-time 3D video development platform maker Unity Software Inc. (NYSE: U) has seen its share price decline by nearly two-thirds over the past 12 months. After announcing a $4.4 billion acquisition of Israel-based ironSource on July 13, the stock has risen by 46%. The shares might have been drafting behind the general runup in tech stocks, but it is also possible that investors might be agreeing with Ark Invest’s Cathie Wood’s view that ironSource is “a more mature, scaled mediation platform that should improve the developer experience with UnityAds.”
Of 17 analysts covering the stock, 11 have a Buy or Strong Buy rating and four rate the stock at Hold. At a share price of around $48.10, the upside potential to the median price target of $50.00 is 4%. At the high target of $105.00, the upside potential is more than 118%.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
