Earnings Previews: AMC, DraftKings, Nikola, Peloton, Square

We are halfway through a packed week of March quarter earnings, with heavy representation from energy exploration and production companies. Other top brands like Ferrari, Pfizer and T-Mobile also are reporting this week.

Looking at companies reporting earnings following Wednesday’s closing bell and before the opening bell Thursday, we have previewed AmBev, Norwegian Cruise, Uber, ViacomCBS and Zynga.

The five companies previewed in this story are scheduled to report earnings after Thursday’s close or before Friday’s opening bell.

AMC

Shares of theater operator AMC International Holdings Inc. (NYSE: AMC) dropped more than 70% of their value in 2020, while the nation’s movie houses were closed to help stop the spread of the coronavirus pandemic. In late January, the stock shot up more than 800% for 2021, as AMC was targeted by retail investors to run a squeeze on short sellers of its shares. Shares currently trade up 335% for 2021 to date.

On Tuesday, the company announced its annual shareholders meeting was being postponed until late July, presumably a date by which there might be some good news to report. AMC reports results after markets close Thursday.

Nine of 15 brokerages covering the company rate the shares Buy or Strong Buy. The recent trading price of around $9.25 is more than double the consensus price target of $4.44, while the upside potential to the high target of $13 is more than 40%.

For the March quarter, AMC is forecast to report a loss per share of $1.30 compared to a reported loss of $20.88 a year ago. Revenue is expected to drop by nearly 84% to $153.43 million. Results for the full year are forecast at a loss per share of $3.18 on revenue of $2.44 billion, an improvement of nearly 95%.

AMC currently is not expected to post positive earnings in 2021, 2022 or 2023. The stock’s 52-week trading range is $1.91 to $20.36. The average daily trading volume is 95.2 million shares.

Peloton

Fitness equipment maker Peloton Interactive Inc. (NASDAQ: PTON) posted a share price gain of more than 430% last year, but the stock has dropped about 43% for the year to date. The latest hit to the company’s fortunes was a Consumer Product Safety Commission warning issued in mid-April advising people to stop using the company’s Tread+ machines.

A longer-term problem the company hopes it has solved is the delay between taking an order and delivering a product. The recent acquisition of manufacturing firm Precor is expected to get deliveries moving again over the next few months. Peloton reports results after markets close Thursday.

Of 27 brokerage firms covering the stock, 24 rate the shares Buy or Strong Buy. At a current price of around $86.15, the stock’s upside potential to the consensus price target of $158.67 is 84%. At the high target of $190, upside potential reaches 120%.

Analysts expect Peloton to report a per-share loss of $0.12 for the March quarter, better than the $0.20 per share loss in the same quarter last year. Revenue is forecast to rise about 4.2% to $1.11 billion. In the fiscal year, the company is forecast to post earnings per share (EPS) of $0.31, nearly 200% greater than the $0.31 per share loss in 2019. Revenue is expected to rise by nearly 125% to $4.1 billion for the year.

At the current price, Peloton shares trade at 241.0 times expected 2021 EPS, 92.8 times estimated 2022 earnings and 45.8 times estimated 2023 earnings. The stock’s 52-week range is $35.21 to $171.09. The company does not pay a dividend and average daily trading volume is about 8.8 million shares. The ARK Next Generation Internet ETF owns less than 1% of Peloton’s outstanding shares, with a value of $132.5 million.

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