Earnings Previews: Airbnb, Amazon, Apple
After U.S. markets closed on Tuesday, AMD beat both earnings per share (EPS) and revenue estimates and issued third-quarter guidance in line with Wall Street estimates. The chipmaker also said it expects current quarter data center and client revenue to grow by double digits while gaming and embedded segments weaken. Shares traded down 0.2% shortly after Wednesday’s opening bell.
Devon Energy met EPS expectations and beat the consensus revenue estimate by almost 6%. However, revenue was down 38.6% year over year for the quarter, and shares traded down 5.9%.
Starbucks beat the consensus EPS estimate but missed on revenue, which rose by 12.5% year over year. The stock traded down 0.8%.
Virgin Galactic also beat the EPS estimate and missed on revenue. The company issued downside revenue guidance for the current and next quarters as well. The stock traded down 4.8%.
Before markets opened on Wednesday, Cameco reported a smaller loss per share than expected but missed the consensus revenue estimate. Revenue fell 13.6% year over year. Shares traded down 4.3%.
CVS Health beat estimates on both the top and bottom lines and reaffirmed fiscal 2023 EPS guidance. The stock traded up about 1% early Wednesday.
Kraft Heinz missed the consensus revenue estimate by about 1.1% and beat on EPS. Revenue rose 2.5% year over year. Shares traded essentially unchanged.
Albermarle, MGM Resorts, Occidental Petroleum, PayPal and Qualcomm will report quarterly results after markets close on Wednesday. The following morning, AB-InBev, ConocoPhillips and Warner Bros. Discovery are on deck to report quarterly earnings.
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Here is a preview of what to expect from three companies reporting results after U.S. markets close on Thursday.
Airbnb
Over the past 12 months, shares of vacation rental provider Airbnb Inc. (NASDAQ: ABNB) have increased by nearly 34%. Since the beginning of the year, they are up more than 74%. The company has surpassed revenue estimates in two of the past three quarters, but total revenue has declined. EPS has beaten estimates in eight consecutive quarters. But the bar had been set lower in the past two quarters. Growth is expected to recover for the second quarter. If it does not, the stock could get hammered.
Of 44 brokerages covering the stock, 22 have a Hold rating and 17 have either a Buy or Strong Buy rating. At a recent price of around $149.00 a share, the stock has outrun the median price target of $136.00. At the high price target of $185.00, the upside potential is 24.2%.
Second-quarter revenue is forecast at $2.42 billion, which would be up 33.0% sequentially and by 15.2% year over year. Airbnb is expected to post EPS of $0.89, up more than 300% sequentially and 21.5% higher year over year. For the full 2023 fiscal year, analysts are looking for EPS of $3.81, up 31%, on revenue of $9.55 billion, up 13.7%.
Airbnb stock trades at 39.1 times expected 2023 EPS, 36.2 times estimated 2024 earnings of $4.65 and 31.3 times estimated 2025 earnings of $4.75 per share. Its 52-week trading range is $81.91 to $154.95. The company does not pay a dividend, and total shareholder return over the past year was 33.91%.
Amazon
Since falling to a new 52-week low in the first week of 2023, shares of Amazon.com Inc. (NASDAQ: AMZN) have added more than 55%. Over the past 12 months, however, shares remain down by about 3%.
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