Earnings Previews: FedEx, GameStop, On Holding, StoneCo

After markets closed on Wednesday, GoHealth missed earnings and revenue estimates and guided fiscal 2022 revenue below estimates. Shares traded flat shortly after the opening bell. SentinelOne also reported, beating top-line and bottom-line estimates and raising current quarter guidance. The stock traded up 5% in the morning. Markforged reported mixed results and shares traded up nearly 4% early Wednesday.

Jabil stock jumped nearly 10% early Wednesday, after beating profit estimates by more than 8% and revenue estimates by about 1.6%.

We have already previewed seven companies set to report results after markets close Wednesday or before then open Thursday: Commercial Metals, Dollar General and Lennar, as well as Canadian Solar, Hut 8 and Li-Cycle.

Here is a look at four companies scheduled to report earnings after markets close Thursday or before they open on Friday.

FedEx

Following its earnings report in September, FedEx Corp. (NYSE: FDX) shares plummeted to a 52-week low. Ahead of Thursday’s earnings report, shares dipped last week to a new 52-week low. Over the past 12 months, FedEx shares have dipped by around 16%. Over the same period, rival UPS has added about 35% to its share price.

The company recently suspended service to Ukraine and Belarus, and FedEx is expected to discuss the impact of the Russian invasion on the company’s outlook. In light of complaints from independent contracts about FedEx Ground division’s overly optimistic expectations for holiday deliveries, analysts and investors are going to pay close attention to the company’s outlook going forward.

Analysts are solidly bullish on the shares, with 22 of 30 brokerages that cover the stock having a rating of Buy or Strong Buy. The other eight rate the stock at Hold. At a recent price of around $220.50 a share, the upside potential based on a median price target of $300.00 is 36%. At the high price target of $364.00, the upside potential is 65%.

The consensus third-quarter revenue estimate is $23.33 billion, which would be down by less than 1% sequentially but up 8.5% year over year. Adjusted earnings per share (EPS) are forecast at $4.65, down 3.8% sequentially and up 34% year over year. For the full 2022 fiscal year ending in May, analysts are currently expecting EPS of $20.58, up 13.3%, on sales of $92.97 billion, up 10.7%.

FedEx stock trades at 10.7 times expected 2022 EPS, 9.7 times estimated 2023 earnings of $22.78 and 8.9 times estimated 2024 earnings of $24.79 per share. The stock’s 52-week range is $199.03 to $319.90. FedEx pays an annual dividend of $2.90 (yield of 1.36%). Total shareholder return for the past year was a negative 14.6%.

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