Earnings Previews: Lemonade, Nio, Zoom

Investing

February 26, 2021 12: 30 pm

After a rocky premarket session on Friday, the three predominant indexes managed to interchange no longer decrease than flat on the outlet bell. The Nasdaq Composite used to be up about 1%, the S&P 500 used to be up fractionally and the Dow used to be correct about a ticks below unchanged, but the blue chips later sank. The tech sector spread out about 1.3%, doubtlessly as a result of a tumble in ardour charges on the 10-12 months Treasury to below 1.5%.

In our earnings preview from Thursday, we checked out Berkshire Hathaway, Workhorse Neighborhood and Stratasys. Berkshire Hathaway releases Warren Buffett’s annual letter on Saturday, while Workhorse and Stratasys anecdote quarterly outcomes before the bell Monday. A separate preview covers expectations for Kohl’s, Sea and Target, which anecdote early Tuesday.

This edition of our earnings previews involves three companies expected to anecdote outcomes Monday after the closing bell.

Lemonade

Lemonade Inc. (NYSE: LMND) is scheduled to anecdote outcomes after markets shut Monday. The rating insurance firm came public in July and its portion mark had posted a salvage of larger than 160% by early January. Since then, shares own fallen assist by about half of, chopping the portion mark appreciation to around 84% for the reason that IPO.

Analysts inquire of Lemonade to put up a quarterly loss per portion of $0.64 and a paunchy-12 months lack of $3.81. Earnings for the quarter is forecast at $19.1 million and for the 12 months at $93 million. Analysts don’t inquire of the firm to put up a profit unless after 2023.

The stock’s put up-IPO fluctuate is $44.11 to $188.30, and the consensus mark aim is $86.17. Shares traded at around $126.60 on Friday, effectively above the consensus aim but about 28% below the high mark aim of $163.

Nio

Nio Ltd. (NYSE: NIO) shares obtained bigger than 1,100% in 2020 along with shares of near to every varied electrical car (EV) maker, whether positioned in China or no longer. Nio stock even outperformed Tesla, which rose by bigger than 740% final 12 months. Nio took merit of its soaring portion mark to scenario extra shares and extra debt in 2020 and in January of this 12 months. As of the cease of January, Nio reported that it had shipped near to 83,000 vehicles, including 7,225 within the month of January on my own.

The consensus estimates for the fourth-quarter demand a loss per portion of $0.07 on gross sales of $1 billion, while the paunchy-12 months estimates notion an absence of $0.06 per portion on gross sales of $2.5 billion. Nio has been publicly traded since 2018, on the choice hand it didn’t manage to cement a real salvage beyond its IPO mark unless July of ultimate 12 months.

Shares traded on Friday shut to $45.30, in a 52-week fluctuate of $2.11 to $66.99 and with a consensus mark aim of $55.05. At the sizzling mark, the stock has a doable upside of around 22%. At the high mark aim of $99.83, the prospective upside is a whopping 120%.

Nio is expected to put up a loss per portion of around $2.04 within the 2021 fiscal 12 months and put up its first profit ($0.06 per portion) in 2022. At its recent portion mark, the 2022 extra than one is around 760.

Zoom Video Communications

Zoom Video Communications Inc. (NASDAQ: ZM) came public in April 2019 and the stock took off following final 12 months’s lockdowns as a result of the COVID-19 pandemic. Between April 8 and October 19, Zoom’s stock added bigger than 380%. Since then, the shares own given about a 3rd assist and change up by about 206% as of Friday.

Analysts inquire of the firm to anecdote fourth quarter of fiscal 2021 (resulted in January) outcomes Monday, including earnings per portion (EPS) of $0.79 and income of $811.8 million, reflecting an amplify of 420% in EPS and 331% in income. For the paunchy 12 months, EPS is tabbed at $2.91, up from $0.35 in fiscal 2020, and income of $2.6 billion, up from $622.7 million.

The stock traded at around $361 on Friday in a 52-week fluctuate of $97.37 to $588.84. The consensus mark aim is $466.10, implying a doable upside of near to 23%. The high aim of $610 implies a doable salvage of near to 70%.

At recent costs, Zoom’s stock trades at around 126 cases expected 2021 EPS, 114 cases expected 2022 EPS and 91 cases expected 2023 earnings.

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