Earnings Preview: Baidu, Dick’s Sporting Goods, Lowe’s, Macy’s, Zoom Video
After U.S. markets closed on Thursday, Applied Materials beat consensus estimates for earnings per share (EPS) and revenue. Both numbers were down year over year. Shares were up about 1% in the first half-hour of regular trading on Friday.
Farfetch reported a smaller-than-expected per-share loss Friday morning, but revenue missed by nearly 12% and was down 1.3% year over year. The luxury goods retailer also issued downside revenue guidance for the 2023 fiscal year. Shares were pummeled, down almost 40%.
Deere beat Street estimates on both the top and bottom lines. EPS exceeded the consensus by 24% and was up a whopping 65.6% year over year. Revenue came in 10% above the consensus estimate and was up 9.9% year over year. Shares traded 3.3% lower on investor fears that the farm market has stalled.
Xpeng reported a loss per share of $0.22, better than the expected loss of $0.34 per share. Revenue of $700 million was slightly better than a forecast of $698 million. Shares traded down 8.2% early Friday, likely due to overall concern about China’s equity markets.
Palo Alto Networks is on deck to report earnings after markets close on Friday. The reporting time is highly unusual.
Here is a preview of what analysts expect from one company reporting earnings after U.S. markets close Monday and four others reporting first thing Tuesday morning. No notable reports are on the calendar for Monday morning.
Baidu
Beijing-based Baidu Inc. (NASDAQ: BIDU) is China’s premier search engine, and the company easily topped expectations when it reported first-quarter results in May. The company released its AI chatbot, Ernie, in March, but that had little to no effect on results. In fact, the shares fell following the report and did not recover the pre-report level for two weeks.
Shares closed on Thursday down 2.1% from that May level. Chinese stocks face a multitude of problems, and what Baidu has to say about its prospects for the rest of the year will be critical. The company reports results on Tuesday morning.
Of 37 brokerages covering the stock, 32 have a Buy or Strong Buy rating, and the others rate it at Hold. At a recent price of around $130.00 a share, the stock’s upside potential based on a median price target of $176.38 is about 35.7%. At a high price target of $225.28, the upside potential is 73.3%.
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Analysts expect Baidu to post second-quarter revenue of $4.56 billion, which would be a sequential increase of 0.5% and a gain of 3.2% year over year. Adjusted EPS are forecast at $2.33, down 0.6% sequentially and by 1.3% year over year. For the full 2023 fiscal year, the consensus estimate calls for EPS of $9.39, up 9.9% year over year, and revenue of $118.82 billion, up 5%.
The stock trades at 13.8 times expected 2023 EPS, 12.2 times estimated 2024 earnings of $10.62 and 10.9 times estimated 2025 earnings of $11.93 per share. Its 52-week trading range is $73.58 to $160.88. Baidu does not pay a dividend, and the total shareholder return for the past year was negative 2.09%.
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