Earnings Previews: Best Buy, Bilibili, Canadian Natural Resources, Kroger

U.S. markets continue to be attuned to developments in Europe and Ukraine and what they could mean going forward. Energy stocks continue to trade higher, as crude oil prices continue rising (up about 7% currently) while financial stocks are threatened by a Russian ban on foreign companies from dumping their investments in the country.

Electric vehicle maker Lucid traded down about 14.3% Tuesday morning and another EV maker that reported results late Monday, Canoo, traded down about 1.2%. Velodyne Lidar beat expectations on both the top and bottom lines but issued downside revenue guidance for the first quarter and traded down about 1.6%.

We already have previewed five earnings reports due out after markets close Tuesday (AMC, Nio, Nordstrom, Salesforce and SoFi) three due to report first thing Wednesday morning (Abercrombie & Fitch, Dollar Tree and Lithium Americas) and three more due to release results after markets close Wednesday (Coupang, Snowflake and Splunk.)

Here is a look at four companies scheduled to report quarterly results before Thursday’s opening bell.

Best Buy

Over the past 12 months, shares of technology retailer Best Buy Co. Inc. (NYSE: BBY) could do no better than remain essentially flat. Since late November when shares traded up about 40%, the shares have dropped more than 29%. The stock hit its 52-week low last week. Investors and analysts will be paying close attention to a promised update on strategic initiatives and guidance during Thursday’s conference call.

Analysts have mixed sentiments on the stock. Of 29 brokerages covering the company, 13 rate the shares at Hold and an equal number have Buy or Strong Buy ratings. At a recent price of around $97.25 a share, the upside potential based on a median price target of $116.00 is 19.3%. Based on a high price target of $155, the upside potential is almost 59%.

For the company’s fiscal 2022 fourth-quarter revenue, analysts are forecasting $16.57 billion, which would be up 39% sequentially but down 2% year over year. Adjusted earnings per share (EPS) are forecast at $2.71, up 30.3% sequentially and 22.1% lower year over year. For the full fiscal year that ended in January, current estimates call for EPS of $9.99, up 26.3%, on sales of $51.95 billion, up 9.9%.

The stock trades at 9.8 times expected 2022 EPS, 10.6 times estimated 2023 earnings of $9.25 and 9.7 times estimated 2024 earnings of $11.22 per share. The stock’s 52-week range is $85.58 to $141.97. Best Buy pays an annual dividend of $2.80. Total shareholder return for the past year is negative 1.54%.

Bilibili

Bilibili Inc. (NASDAQ: BILI) offers gaming, video and live broadcasting platforms for children and teens in the People’s Republic of China. Over the past year, its shares have dropped by more than 74%. The government’s regulatory battles with the country’s tech companies have taken a toll on Bilibili as it has on all the others. In early February, a content moderator for the company died at his desk. The death once again raised questions about China’s work culture. The company has promised to add 1,000 content moderators (censors) to its current total of more than 2,400 monitors.

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