This week\u2019s earnings reports dwindle to just two of note, with one due Thursday afternoon and the other before markets open Friday.<\/p>\n
Wednesday morning\u2019s noteworthy reports included Campbell Soup, which met profit estimates but missed on revenue, and clothing retailer Express, which beat both top-line and bottom-line expectations. Tuesday evening\u2019s releases included H&R Block, which posted a smaller-than-expected loss but missed on revenue.<\/p>\n
After markets close Wednesday, AMC Entertainment, Cloudera and Oracle are scheduled to report results while Thursday morning includes reports from cruise line operator Carnival and fuel cell maker Ballard Power.<\/p>\n
After markets close Thursday, DocuSign Inc. (NASDAQ: DOCU), a cloud-based software company offering an e-signature solution that businesses large and small use to prepare, execute and act on agreements, reports fourth-quarter and fiscal 2021 results. The shares added 200% to their price last year and had added nearly 20% on top of that before the late February sell-off in tech stocks.<\/p>\n
Since February 23, shares have dropped from up 20% to down more than 4% for the year to date. Part of that is likely due to the stock\u2019s inclusion in three popular ARK Invest exchange-traded funds: the ARK Fintech Innovation ETF (NYSEARCA: ARKF), the ARK Innovation ETF (NYSEARCA: ARKK) and the ARK Next Generation Internet ETF (NYSEARCA: ARKW). Combined, the three funds hold just over 3 million shares in DocuSign, about 1.6% of the company\u2019s shares outstanding. Since the end of 2020, the Innovation ETF has increased its stake in DocuSign by more than 250,000 shares.<\/p>\n
Analysts are bullish on the stock as well, placing a consensus price target on the shares of $278.41. Shares closed Tuesday at $213.22 and were trading fractionally higher midday Wednesday. The potential upside on the stock at its current trading price is around 30%. At the high target of $300, the potential upside is more than 40%.<\/p>\n
Estimates for DocuSign\u2019s fiscal fourth quarter (ended in January) call for earnings per share (EPS) of $0.22, up by 45% year over year, and revenue of $407.7 million, up 48%. For the full year, analysts are looking for EPS of $0.74, up nearly 140% year over year, on sales of $1.43 billion, a jump of 47%. Over the past 12 months, DocuSign shares have returned about 175%.<\/p>\n
Even with such generous potential, shares still trade at rich multiples to expected earnings. For fiscal 2021, the multiple is 288, dropping to 190 in 2022 and 122 in 2023.<\/p>\n
China-based solar photovoltaic maker JinkoSolar Holding Co. Ltd. (NYSE: JKS) is set to report earnings before markets open on Friday. After posting an all-time high share price of $90.20 in October of last year, shares have declined by about 50%. At its peak in 2020, JinkoSolar stock was up about 290% and closed the year up 175%, before dropping more than 25% for 2021. That\u2019s still a share-price gain of 150% over the past 12 months.<\/p>\n
Analysts have a median price target on the stock of $58, about 29% above its trading price on Wednesday morning. At the high target of $75 a share, the potential upside on JinkoSolar. The company trades American depositary shares (ADSs) in the United States, with each one equal to four ordinary shares. The company completed an at-the-market offering of $100 million of ADSs in early January.<\/p>\n
The consensus EPS estimate for the fourth quarter is $0.36, a decline of 76% year over year, on sales of $1.38 billion, up less than 1%. For fiscal 2020, analysts expect the company to report EPS of $3.24, five cents lower than a year ago on sales of $5.12 billion, up nearly 20%. While revenue is rising, profits are slipping, and that is largely the result of ever-declining prices for solar panels. Caveat emptor: Selling more products at lower margins only works until it doesn\u2019t.<\/p>\n
The ADSs trade at a multiple of around 14 times expected 2020 earnings per share, 10 times expected 2021 earnings and nine times expected EPS in 2022.<\/p>\n<\/p>\n