Earnings Previews: Lennar, SentinelOne, StoneCo

Of 29 brokerages covering SentinelOne, 16 have a Buy or Strong Buy rating and the other 13 have Hold ratings. At a share price of around $14.00, the upside potential based on a median price target of $18.00 is about 28.6%. At the high price target of $49.00, the upside potential is 250%.

Fourth-quarter revenue is forecast at $124.69 million, up 8.1% sequentially and 90.0% higher year over year. The company’s adjusted loss per share is forecast at $0.16, flat sequentially, and a penny better year over year. For the full 2023 fiscal year that ended in January, the company is expected to post a loss per share of $0.73, compared to a loss of $1.03 per share last fiscal year, on sales of $420.72 million, up 105.4%.

SentinelOne is not expected to post a profit in 2023, 2024 or 2025. The stock’s 2023 enterprise value to sales multiple is 7.7, 4.3 times estimated 2024 sales of $621.26 million and 3.4 times estimated 2025 sales of $949.42 million. The stock’s 52-week range is $12.69 to $42.84. The company does not pay a dividend, and the total return for the past year was negative 60.53%.

StoneCo

StoneCo Ltd. (NASDAQ: STNE) provides fintech services to merchants and their partners in Brazil. The company is headquartered in the Cayman Islands and is a subsidiary of HR Holdings. Over the past 12 months, the shares have dropped about 8%. Since posting an all-time high of $95.12 just over two years ago, the stock is down by about 90%.

Contrary to what most people expect, Berkshire Hathaway owns a stake of 3.4% in the Brazilian firm, most of which it acquired in late 2018. Cathie Wood’s Ark Invest owned a stake of 958,000 shares in the first quarter of 2022 but has cut its stake by about 60% since then. Ark sold 151,000 thousand shares in the fourth quarter of 2022.

Analysts have adopted a holding pattern on the shares, with 13 of 19 having Hold ratings and five more rating the stock at Buy. At a share price of around $8.70, the upside potential based on a median price target of $12.19 is 40.1%. At the high price target of $42.61, the upside potential is about 390%.

StoneCo is expected to report fourth-quarter revenue of $511.72 million, up 10.3% sequentially and up 52.3% year over year. Adjusted EPS is forecast at $0.12, up 24.5% sequentially, and up from $0.02 in fiscal 2021. For the full 2022 fiscal year, analysts are expecting EPS of $0.32, up 147.7%, on revenue of $1.83 billion, 111.1%.

StoneCo’s share price to earnings multiple for the 2022 fiscal year is 27.3. For the 2023 fiscal year, the multiple to estimated EPS of $0.60 is 14.6 and for 2024, the multiple is 11.1 times estimated EPS of $0.79. The stock’s 52-week range is $6.81 to $15.01. StoneCo does not pay a dividend, and total shareholder return for the past year is negative 8.31%.

Originally published at 24/7 Wall St.

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