Earnings Previews: JD.com, Lowe’s, Take-Two, Target, TJX

The number of March quarter earnings reports we expect to see this week has dipped to around 200. Traditional retailers will be among the most-watched for first-quarter results, along with other firms in other sectors including electric vehicles, online gaming and a sprinkling of tech companies.

There were no reports of note on Friday and one company, Lordstown Motors, which originally planned to report results after markets closed Monday, has postponed its report until March 24. We also have covered four companies expected to report quarterly earnings after markets close Monday afternoon: Canoo, ExOne, Fisker and Tencent Music. We’ve also previewed other companies reporting before Tuesday’s opening bell: Baidu, Home Depot, iQiyi, Macy’s and Walmart.

This preview looks at one gaming company reporting Tuesday afternoon and four other notable companies scheduled to announce results Wednesday morning.

Take-Two

Video gaming company Take-Two Interactive Software Inc. (NASDAQ: TTWO) is scheduled to report results after markets close Tuesday. The company’s stock added about 70% last year but has dropped by about 20% so far in 2021. Analysts and investors will be paying close attention to any change in Take-Two’s outlook for both sales and profits.

Of 26 brokerage firms covering the stock, 15 give the shares a Buy or Strong Buy rating and two have Strong Sell ratings on the shares. At the recent price of around $167 per share, the upside potential at the stock’s average price target of $216.71 is nearly 30%. At the high target of $262, upside potential increases to almost 57%.

Analysts expect the company to report earnings per share (EPS) of $0.68 for the company’s fourth fiscal quarter and full-year EPS of $6.18, up more than 16% compared with the total for the past fiscal year. Revenue for the quarter is forecast at $668.62 million, a dip of 22% year over year, and full-year revenue is forecast to rise by nearly 11% to $3.43 billion.

The stock trades at 26.9 times estimated 2021 EPS, 28.0 times estimated 2022 earnings and 20.7 times estimated 2023 earnings. The stock’s 52-week range is $124.86 to $214.91. Take-Two does not pay a dividend, and the average daily trading volume is 1.2 million shares.

JD.com

One of China’s largest e-commerce retailers, JD.com Inc. (NASDAQ: JD), announced Sunday that it hopes to raise $3.4 billion following the IPO of JD Logistic, its logistics division first spun off as a separate company in 2017. The IPO is expected to raise $3.4 billion in its Hong Kong debut on May 28. The company reports results before markets open on Wednesday.

With 20 brokers covering the company, all but one rate the shares a Buy or Strong Buy. At a price of around $67.70, the stock’s upside potential to the average price target of $108.26 is about 60%. At the high target of $145.82, the upside potential is 115%.

The company is expected to report first-quarter EPS of $2.22 on sales of $29.71 billion. For the full year, the EPS estimate is $11.75  on sales of $145.12 billion.

At the current trading price, the shares trade at 5.8 times expected 2021 EPS and 4.1 times estimated 2022 EPS. The stock’s 52-week range is $49.33 to $108.29, and the average daily trading volume is 11.8 million shares.

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