Earnings Previews: Algonquin Power, Ballard Power, FedEx, Xpeng
In Wednesday morning trading, the Dow Jones industrials were down 1.72%, the S&P 500 down 1.53% and the Nasdaq down 1.27%.
After U.S. markets closed on Tuesday, SentinelOne reported a smaller-than-expected loss per share and better-than-expected revenue. The cybersecurity firm also raised revenue guidance for the current quarter while lowering full-year revenue guidance below consensus. Shares traded up 11.8% Wednesday morning.
Lennar reported earnings per share (EPS) and revenue that topped consensus estimates. The homebuilder said it expects to deliver 62,000 to 66,000 new homes this year. Shares traded up 2.6%.
StoneCo also beat estimates on the top and bottom lines, but first-quarter guidance was light. Shares traded up 5.3%.
After U.S. markets close Wednesday, Adobe and UiPath are scheduled to report earnings. then look for results from Academy Sports, Dollar General, KE Holdings and Lithium Americas the following morning.
Here is a preview of what analysts will be looking at when the following four companies report results late Thursday or early Friday.
Algonquin Power & Utilities Corp. (NYSE: AQN) has dropped nearly 48% from its share price over the past 12 months. The Canada-based company offers regulated and non-regulated utility services, including electricity generated from renewables. The company cut its dividend by 40% in January (for the current quarter), causing a drop of 43% in its share price since then. The good news is that even with that horrible start to the year, the stock is up almost 8% over the past three months. The utility firm reports quarterly earnings before Friday’s opening bell.
Of 15 analysts covering the stock, four have a Buy or Strong Buy rating and nine rate it at Hold. At a recent price of around $7.70 a share, the implied gain based on a median price target of $8.16 is 6%. Based on the high price target of $17.98, the upside potential for the stock is about 134%.
Analysts expect the company to report fourth-quarter revenue of $703.54 million, which would be up 5.5% sequentially and by 18.3% year over year. Adjusted EPS are expected to come in at $0.19, up 75.5% sequentially but down by 9.5% year over year. For the full 2022 fiscal year, Algonquin is expected to post EPS of $0.66, down 7.2%, on revenue of $2.69 billion, up 17.6%.
The company’s stock trades at 11.7 times expected 2022 earnings, 13.4 times estimated 2023 earnings of $0.58 per share and 12.6 times estimated 2024 earnings of $0.61 per share. The stock’s 52-week trading range is $13.38 to $16.25. Algonquin pays an annual dividend of $0.72 (yield of 9.62%). The dividend and yield do not reflect the cut announced in January. Total shareholder return for the past year was negative 44.1%.
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