Earnings Previews: Chipotle, Enphase, Global Foundries, Lyft, Peloton

Merger Monday was living up to its name, as Frontier Airlines has announced a merger with Spirit Airlines aimed at creating the lowest-cost U.S. carrier. The even bigger news was a bidding war for Peloton. As for earnings, both ON Semiconductor and Tyson Foods beat estimates and traded up more than 6% early Monday.

Three notable earnings reports are due out after markets close Monday: Amgen, Simon Property and Tenet Healthcare. Three more, BP, Pfizer and Sysco, are due before markets open on Tuesday.

Here is a look at five firms scheduled to report results after Tuesday’s closing bell.

Chipotle Mexican Grill

Shares of fast-food chain Chipotle Mexican Grill Inc. (NYSE: CMG) have traded down by about 1% over the past 12 months. Since reaching a high in late September, the shares have dropped by almost 24%. The company has nearly 3,000 stores worldwide and believes that North America alone can support a total of 6,000 stores on its own. That is an awful lot of potential growth. At the same time, Chipotle wants customers to use its digital ordering. Can it achieve both simultaneously?

Of 32 analysts following the stock, 23 have given the shares a Buy or Strong Buy rating and the other nine have rated the stock at Hold. At a recent share price of around $1,483.40, the stock’s upside potential based on a median price target of $1,925 is nearly 30%. At the high price target of $2,600, the implied upside is almost 75%.

Analysts expect the restaurant chain to post fourth-quarter revenue of $1.96 billion, which would be up 0.3% sequentially and 21.7% higher year over year. Adjusted earnings per share (EPS) are expected to come in at $5.29, down by 24.6% sequentially but up 52% year over year. For the full 2021 fiscal year, analysts are looking from EPS of $25.13, up 134% year over year, with revenue 26.1% higher to $7.55 billion.

Chipotle’s stock trades at around 59 times expected 2021 EPS, 45.2 times estimated 2022 earnings of $32.82 and 35.3 times estimated 2023 earnings of $42.02. The 52-week range is $1,256.27 to $1,958.55. The company does not pay a dividend. Total shareholder return for the past 12 months was negative 1.56%.

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