Following a rather downbeat opening to the week on Monday, stocks were moving slightly higher Tuesday morning. Downgrades to Tesla and Alphabet sent large-cap growth stocks 0.8% lower on Monday. Tesla traded higher Tuesday morning, while Alphabet struggled to reach the break-even line.
Before U.S. markets opened on Tuesday, Walgreens released mixed earnings results. The pharmaceutical retailer fell short of earnings per share (EPS) expectations but beat revenue estimates by about 3%. Walgreens also issued downside EPS guidance for the full 2023 fiscal year and preliminary 2024 guidance that is below expectations. The stock traded down by more than 9% shortly after Tuesday’s opening bell.
Before markets open on Wednesday, General Mills will report quarterly results.
Here is a preview of three companies set to report earnings late Wednesday or early Thursday.
BlackBerry
Shares of BlackBerry Ltd. (NYSE: BB) have added about 47% to their price so far this year, cutting the 12-month share price decline from about 50% in late March to around 17% at Monday’s close. The company releases results after markets close Wednesday.
The company said Monday that tech analysis and research firm TechInsights reported that BlackBerry’s QNX software is now embedded in 235 million vehicles around the world. The royalty backlog now totals about $640 million, up 14% over the past three quarters.
BlackBerry’s early days as a cellphone giant named Research in Motion are the subject of a recently released movie, BlackBerry, that a Wired review says “plays like the comedy equivalent of the industrious dorks pulling an all-nighter in the garage, attempting to reengineer the world in their image.”
Of 10 brokerages covering the stock, nine have a Hold rating, and the other rates it at Sell. At a recent share price of around $4.80, the stock trades above its median price target of $4.59. At the high price target of $4.99, the upside potential is 4%.
Fiscal 2024 first-quarter revenue is forecast at $159.29 million, which would be up 5.5% sequentially but down about 5.2% year over year. BlackBerry is expected to post an adjusted loss per share of $0.05, compared to the prior quarter’s per-share loss of $0.02 and equal to its loss in the year-ago quarter. For the fiscal year ending in February, the company is forecast to post a loss per share of $0.09, compared with a loss of $0.18 per share in the 2023 fiscal year. Revenue is forecast to rise by 6.6% to $699.22 million.
BlackBerry trades at 83.9 times estimated 2025 earnings of $0.06 and 23.3 times estimated 2026 earnings of $0.21 per share. The stock’s 52-week trading range is $3.17 to $7.20. BlackBerry does not pay a dividend. Total shareholder return for the past year is negative 16.87%.
Micron
Shares of semiconductor maker Micron Technology Inc. (NASDAQ: MU) have added 12% to their price over the past 12 months, courtesy of a 31% jump so far in 2023. The stock reached a new 52-week high at the end of May but has dropped by about $10 per share since then. The company announces results after markets close Wednesday.
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