In early trading on Wednesday, the Dow Jones industrials and the S&P 500 were each down 0.04% while the Nasdaq was up 0.08%.
After U.S. markets closed Tuesday, Crowdstrike reported earnings per share (EPS) and revenue that beat consensus estimates. The security software maker also raised EPS and revenue guidance for the first quarter of its 2024 fiscal year. Full-year guidance was mixed, however. Shares traded up 5.54% early in Wednesday’s regular session.
Stitch Fix missed consensus estimates on both the top and bottom lines. Revenue was down 20% year over year, and the company’s number of active clients has declined by 11% in the past 12 months. The stock traded down 11.77% early Wednesday.
Before markets opened Wednesday morning, Campbell Soup reported better-than-expected EPS and revenue. The company also raised fiscal 2023 guidance. Shares traded up 1.74%.
FuelCell Energy, JD.com and KE Holdings are scheduled to report quarterly results before U.S. markets open on Thursday.
Here is a look at what to expect when the following three companies post quarterly earnings after Thursday’s closing bell.
DocuSign
Shares of cloud-based signature and contract management software vendor DocuSign Inc. (NASDAQ: DOCU) have dropped by nearly 32% over the past 12 months. Just three months ago, the 12-month decline was 72%. The stock price has risen by about 54% in that three-month period.
Since the pandemic lockdowns have ended, DocuSign has had trouble showing any growth. So, last September it cut its workforce by about 9% and plans another reduction of about 10% in the weeks ahead. Over the past five years, sales have grown every quarter, while EPS has beaten estimates in all but two quarters over the same period.
Of 22 brokerages covering the company, six have a Buy or Strong Buy rating and 14 have Hold ratings. At a recent share price of around $65.00, the stock trades right at its median price target. At the high price target of $90.00, the upside potential is 38.5%.
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Fourth quarter revenue is forecast at $639.49 million, which would be down 0.9% sequentially but up about 10.1% year over year. Adjusted EPS are forecast at $0.52, down 8.8% sequentially and up 8.3% year over year. For the full 2023 fiscal year that ended in January, DocuSign is expected to post EPS of $1.93, down 2.7%, on sales of $2.5 billion, up 18.4%.
DocuSign trades at 33.7 times expected 2023 EPS, 29.0 times estimated 2024 earnings of $2.24 and 25.8 times estimated 2025 earnings of $2.52 per share. The stock’s 52-week trading range is $39.57 to $113.67. The company does not pay a dividend and the total shareholder return for the past year is negative 31.71%.
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