Earnings Previews: Amazon, First Solar, T-Mobile

Now that three of the five largest U.S. traded companies have reported June quarter earnings, we are looking forward to the remaining two. One of those, Facebook, along with Ford, PayPal and Qualcomm, reports quarterly results after markets close today.

Before markets open on Thursday, we shall hear from AstraZeneca, Comcast and Merck.

Looking ahead to Thursday afternoon, we shall hear from the fifth of the five largest U.S. companies along with two other companies that attract a lot of investor attention.

Amazon

Amazon.com Inc. (NASDAQ: AMZN) is the fourth-largest U.S. traded company, with a market cap of around $1.88 trillion. Over the past 12 months, the e-commerce giant has seen its share price increase by more than 19%. In 2021, the stock is up almost 12%, and since January of 2020, the share price has almost doubled. The company’s AWS business is expected to post a year-over-year revenue increase of nearly 40%. Amazon’s ad revenue also will get some attention from analysts and investors.

Of 47 analysts covering the stock that were surveyed, nearly all (45) rate the stock a Buy or Strong Buy. At a recent price of around $3,635, the implied upside on the stock at a median price target of $4,202 is 18.3%. At the high price target of $5,500, the upside potential is around 51%.

For the company’s second quarter, analysts forecast revenue of $115.02 billion, which would be an increase of 6% sequentially and about 29% year over year. Adjusted earnings per share (EPS) are expected to come in at $12.24, down by about 22.5% sequentially but up by 19% year over year. For the full fiscal year, the current revenue estimate is $489.91 billion, up nearly 27%, and the EPS estimate is $55.53, or nearly 33% higher.

Amazon stock trades at 66.7 times expected 2021 EPS, 50.8 times estimated 2022 earnings and 37.6 times estimated 2023 earnings. The stock’s 52-week range is $2,871.00 to $3,773.08. Amazon does not pay a dividend.

First Solar

Solar energy provider First Solar Inc. (NASDAQ: FSLR) has posted a share price gain of about 32.3% over the past 12 months. For the year to date, though, shares are down 16%. The company’s operating earnings growth over the past four quarters is more than 450%, and over the past 12 months, operating earnings have doubled. Investors want to hear what First Solar plans to do next.

Of the 18 analysts covering the stock, just six rate the stock a Buy or Strong Buy, with eight having a Hold rating on the shares. At a price of around $82.80, the implied upside on the stock at a median price target of $90 is 8.7%. At the high price target of $125, upside potential is nearly 51%.

For the company’s second quarter, analysts project revenue of $620.45 million, a decrease of 23% sequentially and about 3.4% year over year. Adjusted EPS are expected to come in at $0.56, down by about 30% sequentially and up by 54% year over year. For the full fiscal year, the current revenue estimate is $2.93 billion, up 8.1%, and the EPS estimate is $4.04, up by 8.4%.

First Solar stock trades at 20.1 times expected 2021 EPS, 23.2 times estimated 2022 earnings and 25.6 times estimated 2023 earnings. The stock’s 52-week range is $58.34 to $112.50. First Solar does not pay a dividend.

T-Mobile

Wireless network carrier T-Mobile US Inc. (NASDAQ: TMUS) has seen its share price rise by more than 37% over the past 12 months. So far in 2021, the shares have added 7.6%. The introduction last year of the 5G-capable iPhone gave T-Mobile a shot in the arm, and it could get another one in September when the next iPhone is introduced. A planned increase by Deutsche Telekom from its current 44% stake in T-Mobile to more than 50% may dash investors’ hopes for a share buyback.

Of the 31 analysts covering the stock, all but six rate the stock a Buy or Strong Buy. The six recommend holding the shares. At a price of around $144.90, the implied upside on the stock at a median price target of $160.50 is about 10.8%. At the high price target of $250, the upside potential is nearly 73%.

For the company’s second quarter, analysts expect revenue of $19.39 billion, a decrease of almost 2% sequentially and an increase of 9.7% year over year. Adjusted EPS are expected to come in at $0.50, down by about 47% sequentially and by 40% year over year. For the full fiscal year, the current revenue estimate is $2.93 billion, up 16.8%, and the EPS estimate is $3.11, down by nearly 32%.

T-Mobile stock trades at 46.6 times expected 2021 EPS, 42.1 times estimated 2022 earnings and 23.4 times estimated 2023 earnings. The stock’s 52-week range is $104.54 to $150.20. T-Mobile does not pay a dividend.

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