Earnings Previews: Bill.com, Peloton, Workday

Earnings announcements that we had previewed for Tuesday evening and Wednesday morning all topped bottom-line expectations, and just one (Heico) missed on the top line.

After markets close this afternoon, we shall see results from four companies we previewed on Tuesday: Pure Storage, Salesforce, Snowflake and Splunk. Thursday morning brings reports from four more firms we have previewed: Academy Sports, Dollar General, Dollar Tree and Xpeng.

After markets close Thursday, we expect to hear seven interesting reports. Here, we look at three companies that have one thing in common: all are included in one or another of Cathie Wood’s ARK Invest exchange-traded funds

Bill.com

A provider of cloud-based services to small and medium-sized businesses, Bill.com Holdings Inc. (NYSE: BILL) has seen its shares add about 133% over the past 12 months. For the year to date, shares are up nearly 60%. As of Tuesday’s close, the ARK Innovation ETF held 207,907 shares of the company’s stock, a decline of more than 10% from the 224,060 shares the fund owned at the end of June.

Analysts remain bullish on the stock, with 11 of 13 having ratings of Buy or Strong Buy. The other two ratings are Hold. At a recent price of around $217.20, the shares had outrun their median price target of $190. At the high price target of $250, the implied upside is about 15%.

For the company’s fourth quarter of fiscal 2021, analysts expect revenue of $64.98 million, up about 8.8% sequentially and up 54% year over year. The expected adjusted loss per share of $0.03 is a penny better than the prior quarter’s loss. For the 2021 fiscal year, revenue is forecast at $224.98 million, up nearly 43%, and the net loss per share is forecast at $0.12, compared with last year’s loss per share of $0.17.

Bill.com is expected to post a profit of $0.01 in fiscal year 2022 and $0.39 in fiscal 2023. At the current price, the stock trades at 87.5 times estimated 2021 enterprise value-to-sales, 53.6 times 2022 EV/sales and 37.1 times 2023 EV/sales. The stock’s 52-week range is $82.19 to $221.98. The high was posted early Wednesday morning. Bill.com does not pay a dividend.

Peloton

Peloton Interactive Inc. (NASDAQ: PTON) makes and sells fitness products that include tech features like livestreams and on-demand classes. Since early April of 2020, Peloton’s stock has increased by nearly 300%. At its peak in mid-January of this year, the shares traded up about 490%. At Tuesday night’s close, the ARK Next Generation Internet ETF held about 1.57 million shares of Peloton stock valued at $178.7 million, about 1.1 million fewer than the 1.69 million in the fund at the end of June.

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