Earnings Previews: Alibaba, Bilibili, Bumble, Coupang, Xpeng

There are still plenty of interesting quarterly earnings reports due out before the end of this week. Among those scheduled for late Wednesday and early Thursday are four closely watched Asian stocks and a dating app designed for women that came public in February.

Looking at companies reporting earnings following Tuesday’s close and Wednesday’s opening bell, we find Electronic Arts, FuboTV, Kinross Gold, QuantumScape and Sundial Growers.

This preview covers two firms reporting earnings after markets close Wednesday afternoon and three more due to report before markets open Thursday morning.

Bumble

Bumble Inc. (NASDAQ: BMBL) owns two dating apps: Bumble, one of the first dating apps “built with women at the center,” and Badoo, a dating app in Latin America and Europe. Since coming public in early February, the shares had dropped by about 25%, as of Monday’s close.

The company’s eponymous app accounted for about 62% of 2020 annual revenue and Badoo accounted for the rest. The Bumble app generates slightly more than twice as much revenue per subscriber as the Badoo app. Even though Bumble has fewer paying subscribers, the Bumble subscription cost is twice that of Badoo. The company reports results after markets close Wednesday.

Analysts are about evenly split on the ratings, with seven of 15 rating the shares a Buy and the rest giving the stock a Hold rating. At a recent price of around $50.50, the stock’s implied upside to a median price target of $69.50 is nearly 38%. Based on a high target of $82, the upside potential is 62.4%.

The company is expected to post a loss per share of $0.04 on revenue of $164.59 million. December quarter revenue totaled $166 million. For the full year, analysts are forecasting a loss per share of $0.02 on sales of $723.9 million, a jump of 33.5% in revenue, and a loss that is narrower by three cents per share.

The stock trades at 1,755.0 times estimated 2022 earnings per share (EPS) of $0.03 and 151.3 times estimated 2023 earnings of $0.34 per share. The stock’s post-IPO range is $49.53 to $84.80, and the low was set Tuesday morning. The average daily trading volume is 3.2 million shares.

Coupang

South Korea’s e-commerce giant, Coupang Inc. (NYSE: CPNG) is also set to report first-quarter results after markets close Wednesday. Last month, Goldman Sachs said the company grabbed 50% of the 2020 e-commerce growth in Korea. The company came public in the United States in early March, raising $4.6 billion in its IPO. That’s the largest foreign company IPO since Alibaba’s 2014 debut. Like Bumble, however, shares have dropped almost 25% since the IPO, likely the result of the slowdown in the tech sector.

Sentiment is decidedly cool on the stock, with five of six brokerages rating Coupang a Hold. The median price target is $49, implying a potential upside of nearly 32% to a current price of around $37.20. At the high target of $62 (from Goldman Sachs), upside potential on the stock is 67%.

There are no consensus estimates for first-quarter results, but in its report on Coupang, Goldman said it estimated EPS for 2021 at $0.29, rising to $0.47 in 2022 and $0.73 in 2023. Revenue is expected to rise from $1.88 billion in 2020 to $2.19 billion this year, $2.72 billion in 2022 and $3.55 billion in 2023.

The stock trades at about 128 times estimated 2021 EPS (Goldman’s estimate), 79 times estimated 2022 earnings and 51 times estimated 2023 earnings. The stock’s post IPO range is $36.38 to $69.00, and the low was posted Tuesday morning. The average daily trading volume is 8.4 million shares.

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