7 stocks reporting profits the week of May 30, 2022
Earnings season continues with several notable names on deck to release their quarterly financials next week.
In the coming days, we’ll be hearing from electric vehicle companies, retailers, tech giants and popular meme stock, to name just a few of the highly anticipated results.
With 95% of S&P500 77% of companies that reported their first-quarter results reported earnings that beat expectations, while 73% reported revenue that beat analysts’ expectations, according to FactSet data.
And we continue to see how some companies are rewarded for posting strong financial results and bullish forecasts, while others who disappoint with earnings and provide gloomy forecasts are punished.
With the market remaining volatile and continuing to swing from gains to losses almost daily, it will be interesting to see how the following companies influence investors in the days ahead.
Here are seven stocks reporting profits the week of May 30.
Winners: Mullen Automotive (MULN)
Electric vehicle startup based in Brea, California Mullen Automotive (NASDAQ:MULN) saw its stock explode recently on news that the company has applied for a loan from the US Department of Energy that will allow it to ramp up production of its electric minivan. Specifically, Mullen Automotive said it has applied for an ATVM loan that will help it ramp up production of its ONE EV Cargo van program. He filed the application on April 29 and is awaiting agency approval.
Mullen’s ONE EV is a light-duty van that the company hopes will be one of the first in its class to hit the market. However, news of the government’s loan request and potential production ramp-up was not enough to help MULN stock recover much of the 83% its share price lost. This year.
Currently, shares of Mullen are trading at around $1 per share. At the rate its inventory has fallen, the company cannot start production of its electric delivery van soon enough. Wall Street wants the company to report no earnings per share and revenue of about $37 million.
Shares of the cloud computing giant Selling power (NYSE:RCMP) have been in the investor niche throughout this year as they ditch popular technology stocks for the safety of consumer staples and energy companies.
Over the past six months, CRM stock has fallen 45%, including a 39% decline so far this year. Sentiment towards the company has been hurt by several downgrades to its shares by analysts in recent weeks. Swiss investment bank UBS (NYSE:UBS) is one of the latest companies to lower its outlook, giving Salesforce stock a “neutral” rating and lowering its price target to $185 per share from $225 previously.
Despite the downgrades, Salesforce has consistently exceeded Wall Street earnings forecasts, both up and down. In March, the company reported earnings per share (EPS) of 84 cents, which beat the 74 cents per share that analysts had called for. Revenue totaled $7.33 billion, up 26% from the prior year, and better than the $7.24 billion forecast.
Will the company be able to continue its streak when it next publishes its results on May 31? Analysts expect EPS of $0.94 on revenue of $7.38 billion. They will also monitor any indications provided by Salesforce.
Earnings: ChargePoint (CHPT)
Share this Charging point (NYSE:CHPT), maker of charging stations for electric vehicles, has been battered this year, down nearly 50% since early January. The Campbell, California-based company currently operates the largest network of electric vehicle charging stations in the world, recently announcing that it has opened its 30,000e charging station at a mall in Chattanooga, Tennessee.
The company says there are now more electric vehicle charging stations in America than Starbucks (NYSE:SBUX) Coffees.
ChargePoint also has the federal government in its corner. On May 2, the White House announced it was committing $3 billion in infrastructure funding to fund the manufacturing of electric vehicles in the United States, as part of President Biden’s pledge to ensure that half (50%) of all vehicles sold in America will run on electricity by 2030. .
Although the market in front of ChargePoint is potentially huge, it is still in the development phase, which helps explain the drop in CHPT stock. For its next earnings release, analysts expect the company to report an EPS loss of -19 cents per share on revenue of $75.72 million.
The original meme stock reports its latest numbers on June 1 and analysts and investors will be watching to see if GameStop (NYSE:EMG) manages to get its finances and operations in order. As usual at this point, GME’s stock continues to spin wildly in the markets. Since mid-March, the company’s stock price has risen from $78 to $190, and is currently trading around $130. The stock is likely to move on any news and can be expected to rise or fall sharply based on the company’s latest earnings report.
In recent days, ahead of its quarterly results, GameStop launched its highly anticipated digital wallet for holding non-fungible tokens (NFTs) and cryptocurrencies. Entering the world of digital coins and tokens is part of the company’s plan to transform into a much more digitally-oriented business and branch out from its core business of selling video games in stores. physical details.
It remains to be seen if the digital strategy and the move to crypto will pay off for GameStop. Analysts expect the company to report an EPS loss of -$1.45 on revenue of $1.32 billion.
Earnings: Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is in the news ahead of its latest earnings due to its $61 billion takeover bid for vmware (NYSE:vmw). If the cash and stock deal is successful, VMware will allow Broadcom to expand into enterprise software. Under the terms of the proposed acquisition, each VMware shareholder will receive $142.50 in cash or 0.2520 shares of Broadcom common stock for each VMware share held. This represents a premium of more than 45% over the recent VMW share price.
Although the VMWare acquisition appears friendly, the deal still needs to pass a gauntlet of shareholder and regulatory approvals before it can be finalized. In the meantime, Broadcom will continue to focus on its core business of manufacturing semiconductors and infrastructure software.
For the first quarter of this year, analysts expect San Jose, Calif.-based Broadcom to report EPS of $8.70 on revenue of $7.90 billion.
Down nearly 40% in the past six months, including a 27% pullback this year, shares of the Canadian sportswear retailer lululemon (NASDAQ:LULU) couldn’t escape the market’s wrath this year. However, the fall in LULU stock presents a buying opportunity, according to Morgan Stanley (NYSE:MRS). The investment bank recently upgraded its rating on Lululemon shares from “overweight” to “equal weight” with a price target of $303.00, implying an additional 7% upside from the current stock price. the share of $284.14.
Lululemon is under pressure to make its next profit as the Vancouver, Canada-based company has delivered better-than-expected results for four straight quarters now. However, investors and analysts are increasingly concerned about supply chain issues and their potential impact on Lululemon’s numbers, especially after earnings losses and pessimistic forecasts from companies like walmart (NYSE:WMT) and Target (NYSE:TGT). For its print next week, Wall Street expects Lululemon to report EPS of $1.43 on revenue of $1.53 billion.
Earnings: CrowdStrike (CRWD)
Cybersecurity remains a hot topic and priority, especially with the ongoing war in Ukraine. However, CrowdStrike (NASDAQ:CRWD) did not escape the massive sell-off in technology stocks. Year-to-date, the company’s share price is down 20%. While much of this drop can be attributed to the market slowdown, valuation is also an issue for the Austin, Texas-based cybersecurity firm. CrowdStrike’s price-to-earnings (P/E) ratio is around 300 compared to an average of just 22 among stocks listed on the S&P 500 index. Additionally, CrowdStrike trades at a price-to-sales ratio (P/S ) raised by 32.
This high valuation is pushing many investors away from CRWD stocks as interest rates rise and the economic outlook becomes more uncertain. Still, the cloud-based cybersecurity company continues to grow at an aggressive pace. Between 2019 and January of this year, CrowdStrike increased its number of customers to 16,325 from 2,516, and increased its annual revenue to $1.45 billion from $250 million.
Will high growth rates continue? Analysts have forecast CrowdStrike to report EPS of $0.23 on revenue of $463.11 million when it reports earnings on June 2.
Disclosure: As of the date of publication, Joel Baglole had a long position in MS. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.