BRK.B, RIDE, BGFV, PRTY, ABUS: Earnings Preview

By Kirsteen Mackay

Share:

In this article

  • Loading...
  • Want to see what you should be buying? Check out our top picks.

This week's company earnings reports include updates from BRK.A, BRK.B, RIDE, BGFV, PRTY, and ABUS.

Another busy week of company earnings news lies ahead. We've picked out Berkshire Hathaway (NYSE: BRK.A) and (NYSE: BRK.B), Lordstown Motors Corp (NASDAQ: RIDE), Big 5 Sporting Goods Corporation (NASDAQ: BGFV), Party City Holdco Inc (NYSE: PRTY), and Arbutus Biopharma Corp (NASDAQ: ABUS) as some of the interesting company earnings reports to look out for over the next five days.

Berkshire Hathaway Inc. (NYSE: BRK.A, NYSE: BRK.B)

Warren Buffett owned Berkshire Hathaway Inc. issues two share classes, Class A (NYSE: BRK.A) and Class B (NYSE: BRK.B). Class A shares cost around $479,345 a share, which is only affordable by very high net worth individuals and institutional investors. Class B shares are more affordable by the everyday investor at $319 a share.

Berkshire Hathaway reported stellar Q4 earnings on 28 February. The company reported an 11% rise in net earnings and a 45% jump in operating earnings. But the company continues to sit on a growing cash pile ($146.7bn) as Buffett and Charlie Munger struggle to find suitable acquisition targets.

Global economic conditions, the recent US bull market, and low-interest rates have left companies overvalued. So, the company has focused on adding shareholder value by buying back shares. Berkshire Hathaway spent $27.1bn on share repurchases in 2021, followed by a further $1.2bn so far this year.

Lordstown Motors Corp (NASDAQ: RIDE)

Lordstown Motors Corp (NASDAQ: RIDE) designs and manufactures light-duty electric trucks targeted for sale to fleet customers. The company has come under fire for dubious tactics and misrepresentation since going public in 2020. Lordstown is due to report earnings today before the market opens.

Lordstown Motors stock is down 13.7% year-to-date. On Friday, Lordstown Motors' stock closed at $3.21, -84.4% off its 52-week high vs. the subsector average change of -29.1%.

Nevertheless, the RIDE share price is up 5.6% in pre-market trading.

According to FactSet analysts, the consensus EPS for Q4 2021 is -$0.77. Meanwhile, consensus EPS for the full-year 2021 is -$2.59, which is below May 2021 guidance of -$2.14 to -$2.05.

On 13 January, analyst Joseph Spak of RBC Capital Markets downgraded his share price target on RIDE stock to $2.50, with a 'Sell' rating.

Big 5 Sporting Goods Corporation (NASDAQ: BGFV)

Big 5 Sporting Goods Corporation (NASDAQ: BGFV) is a retailer of athletic shoes, apparel and accessories, and outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation and roller sports. The company also sells guns.

BGFV stock is down more than 18% year-to-date. On Friday, it closed at $16.29, -63.2% off its 52-week high vs. the subsector average change of -31.4%.

On 13 January, analyst Mark Smith of Lake Street Capital Markets reiterated his 'Buy' rating on BGFV stock with a $31 share price target.

The company's preliminary Q4 results are encouraging.

  • Q4 same-store sales increased 0.2% versus 2020 and 10.6% vs. 2019

  • Q4 EPS is expected in the range of $0.84 to $0.86, exceeding the high end of the prior guidance range

  • Record Fiscal 2021 Full Year EPS expected in the range of $4.50 to $4.52

Steven G. Miller, BGFV Chairman, President and CEO, said:

“We expect to deliver fourth quarter results solidly above the high end of our earnings guidance, driven in part by a strong margin performance that was considerably ahead of our plan… While issues surrounding the pandemic are ongoing, we believe the business is in a great position heading into 2022 and are confident that our merchandise offering and convenient store experience will continue to resonate with our customers.”

Investor sentiment is rising as we approach earnings, and with geopolitical conflict on everyone's mind, BGFV stock is gaining interest. Nevertheless, it may face inflationary pressures and ongoing supply chain issues.

Party City Holdco Inc (NYSE: PRTY)

Party City Holdco Inc (NYSE: PRTY) is the leading party goods and Halloween specialty retailer by revenue in North America. Here it operates 830 company-owned and franchise stores along with several global locations.

In Q4 2021, Party City reported the following:

  • Total net sales increased 7.7% to $698.3m in Q4 and 17.3% to $2.1bn in 2021 versus the prior year

  • Q4 comparable sales increased 17.8% versus last year, driven by strength in core categories

  • Q4 GAAP net loss of $19.5m; adjusted net income of $46.7m

  • Q4 adjusted EBITDA increased 36.1% to $105.2m

Brad Weston, Party City CEO, commented:

“2021 was an important year of transformation for the Company… In 2022, we will build on our progress with a focus on customer engagement enhancements, and investments in IT, supply chain and infrastructure. While we expect inflation and supply chain headwinds to persist in 2022, we remain committed to delivering an improved customer experience as well as appropriately exercising our pricing power.” 

Party City stock is down 27% year-to-date and is down further in pre-market trading.

Arbutus Biopharma Corp (NASDAQ: ABUS)

As Arbutus Biopharma Corp (NASDAQ: ABUS) prepares to file its earnings report on Thursday, it announces it has filed a lawsuit against Moderna (NYSE: MRNA) seeking damages for patent infringement related to its COVID-19 vaccine.

Meanwhile, the company is developing a cure for hepatitis B infection, for which it has a drug in phase 2 trials.

ABUS stock is up 10% in pre-market trading while it's down 18% year-to-date. Biotech stocks are volatile and particularly risky investments.

According to FactSet analysts, the consensus EPS for Q4 2021 is -$0.19. Meanwhile, the consensus EPS for the full-year 2021 is -$0.86. 

On 1 February, equity associate Dennis Ding of Jefferies upgraded his share price target on ABUS stock to $5.00, with a Buy rating. FactSet analyst consensus also has a Buy rating on the stock with a target share price of $6.50.

Share:

In this article:

Topics:
Quarterly Earnings
Annual Earnings
Industries:
Consumer Discretionary
Financials
Healthcare
Companies:
Party City Holdco
Arbutus Biopharma
Big 5 Sporting Goods
Lordstown Motors

Author: Kirsteen Mackay

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Kirsteen Mackay does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Kirsteen Mackay has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

Sign up for VTM Updates

Form submitted successfully!

Top Picks for Q2 2022

View More

Crypto Corner

Learn your NFTs from your BTCs