Before U.S. markets opened on Monday, Tyson Foods posted earnings per share (EPS) and revenue that both missed consensus estimates. The company reported impairment charges totaling $448 million for the quarter. Tyson also maintained its fiscal year revenue guidance slightly below the Wall Street estimates. By mid-morning Monday, Tyson’s shares traded down 7.3%.
Lucid, Palantir and Paramount Global will report quarterly results after markets close on Monday. First thing Tuesday morning, Barrick Gold, Datadog, Li Auto and UPS are on deck to share their latest results. And look for AMC, Lyft, Marathon Digital, Rivian and Upstart to share their results later on Tuesday.
Here is a look at what analysts expect to hear from two companies reporting quarterly earnings early on Wednesday.
Roblox
Interactive entertainment platform Roblox Corp. (NYSE: RBLX) has seen its stock price tumble by about around 23% over the past 12 months. That loss would be even worse had the shares not added about 30% so far this year. The less-good news is that the share price has fallen by about 19% in just over two weeks.
Roblox’s stock price is tied to the company’s performance. Analysts had raised hopes after the company announced first-quarter results. The company has provided little or no information during the second quarter, perhaps leading investors to believe that no news is not good news.
Of 28 analysts covering the stock, 15 have a Buy or Strong Buy rating and seven more rate it at Hold. At a price of around $37.00 a share, the implied gain based on a median price target of $45.00 is 21.6%. At the high target of $65.00, the upside potential is about 75.7%.
The consensus first-quarter revenue estimate is $777.97 million, which would be up 0.5% sequentially and by 21.6% year over year. Analysts also expect Roblox to post a loss per share of $0.44, equal to the prior quarter’s loss and worse than the year-ago quarter’s loss of $0.30. For the full fiscal year, the company is expected to post a loss of $1.83 per share, compared to last year’s loss of $1.55 per share. Revenue is forecast at $3.42 billion, up 19.2%.
Roblox is not expected to post a profit in 2023, 2024 or 2025. For those three years, the company’s enterprise value to sales multiple is 6.4, 5.5 and 4.9, respectively. The stock’s 52-week trading range is $25.32 to $53.88, and the company does not pay a dividend. The total shareholder return for the past year was negative 23.29%.
WeWork
Office space rental firm WeWork Inc. (NYSE: WE) has posted a share price decline of about around 95% over the past 12 months, and shares now trade at well under $1.00. Once valued at some $47 billion, by the time the company held its IPO the valuation had fallen to $9 billion. The market cap now is around $460 million.
The collapse in commercial rentals provides increased competition from other building owners looking for any way to salvage some cash flow from their empty buildings. Operating cash flow is negative, and free cash flow for the past four quarters totals just over $1 billion. The company also lost its CEO in June in a dispute with Softbank, WeWork’s largest shareholder. The once high-flying company looks set for a dramatic crash.
Just three analysts cover the stock, and only one of them has a Buy rating. The other two have Hold ratings. At a share price of around $0.22, the upside potential based on a median price target of $0.30 is 36.4%. At the high target of $3.00, the implied gain is more than 1,300%.
Fiscal second-quarter revenue is forecast at $840.07 million, down 1.1% sequentially but up 3.2% year over year. Analysts expect an adjusted loss per share of $0.09, better than the prior quarter’s loss per share of $0.32 and better than the $0.74 loss per share a year ago. For the full 2023 fiscal year, the revenue estimate is $3.4 billion, up 4.9%, and the estimated per-share loss is $0.63, compared with a loss of $2.11 per share in 2022.
WeWork is not expected to make a profit in 2023 or 2024. The stock trades at an enterprise value to sales multiple of 5.7 times 2023 sales of $3.4 billion and 5.2 times estimated 2024 sales of $3.72 billion. The 52-week trading range is $0.16 to $5.93. WeWork does not pay a dividend. Total shareholder return for the past year was negative 95.42%.
Originally published at 24/7 Wall St.
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