In this article, we discuss 5 most anticipated quarterly earnings releases to watch. If you want to read about some more anticipated earnings releases, see 10 Most Anticipated Quarterly Earnings Releases to Watch.
5. Joby Aviation, Inc. (NYSE:JOBY)
Number of Hedge Fund Holders: 23
Joby Aviation, Inc. (NYSE:JOBY) is an air mobility firm. In March, the firm guided free cash flow guidance for 2022 to around $360 million, surprising analysts. It has also made progress in relation to the certification and manufacturing process of aircrafts, boosting confidence in the stock further. On March 18, the firm announced the completion of the first systems review by the Federal Aviation Administration. The firm said the approvals granted by the FAA had given it confidence in the preliminary production design and defined path towards certification.
On April 28, JPMorgan analyst Bill Peterson initiated coverage of Joby Aviation, Inc. (NYSE:JOBY) with a Neutral rating and a price target of $7, noting the firm was a first mover in the emerging electric vertical takeoff and landing industry with leadership priced into the stock.
At the end of the fourth quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $134 million in Joby Aviation, Inc. (NYSE:JOBY), compared to 21 in the preceding quarter worth $231 million.
4. Toast, Inc. (NYSE:TOST)
Number of Hedge Fund Holders: 34
Toast, Inc. (NYSE:TOST) provides tech services for the restaurant industry. In earnings results for the fourth quarter of 2021, the company beat market expectations on earnings per share and revenue by $0.36 and $24 million respectively. Some of the growth catalysts for the stock, per an analysis by Baird, include “above-GDP growth vertical, increasing software modules per restaurant, the secular shift to payments, inflation benefits and the potential for international expansion”.
On April 4, Wells Fargo analyst Jeff Cantwell initiated coverage of Toast, Inc. (NYSE:TOST) stock with an Overweight rating and a price target of $29, underlining that the firm had a “unique software and payments platform” and forecast sustained share gains in the restaurant sector.
At the end of the fourth quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Aurora Cannabis Inc. (NASDAQ: ACB), compared to 38 the preceding quarter worth $567 million.
In its Q3 2021 investor letter, Baron Funds highlighted a few stocks and Toast, Inc. (NYSE:TOST) was one of them. Here is what the fund said:
“Toast, Inc. (NYSE:TOST) is a cloud-based end-to-end technology platform purpose-built for the restaurant industry. Its platform provides a comprehensive suite of cloud software products and financial technology solutions to its customers to connect front-of-house with back-of-house operations across all customer channels. Toast’s core module is its point-of-sale software solution and requires all customers to use Toast, Inc. (NYSE:TOST) as their payment processor. Customers then have the option to bundle or add-on additional modules across operations, digital ordering and delivery, marketing and loyalty, team management, and back office. Toast today powers 48,000 restaurants within the 860,000 U.S. restaurant industry, largely focusing on small- and medium-sized (“SMB”) restaurant customers (generally fewer than 10 locations but up to 50), with some larger enterprise customers as well. Toast is the clear market leader in SMB restaurant technology with the best product offering and only full, end-to-end platform. We believe that as restaurants continue to invest in technology at an accelerated pace emerging from COVID, Toast will be a big beneficiary given its leading market position and best-in-class product. At less than 6% penetration of U.S. restaurants and 3% penetration of its $15 billion recurring-revenue TAM, Toast has a long runway for growth by signing on additional locations to the platform and increasing the attach rate of its value-add modules. Only 54% of customers today use 4 or more of Toast’s 10-plus modules, each of which provide significant value to the customer and would drive Toast’s recurring revenue stream higher.”
3. Affirm Holdings, Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holders: 41
Affirm Holdings, Inc. (NASDAQ:AFRM) owns and runs an ecommerce platform. The stock has gained in recent weeks on the back of a massive investment from GIC, a sovereign wealth fund based in Singapore. The investment came despite a more than 60% drop in the share price of the company over the past year as a result of investor concerns around growth stocks. There has also been takeover speculation around the firm with investment bank Goldman Sachs at the top of a potential list of buyers.
On April 6, Piper Sandler analyst Kevin Barker maintained a Neutral rating on Affirm Holdings, Inc. (NASDAQ:AFRM) and lowered the price target on the stock to $58 from $65. The new target still implied a 42% upside potential in the shares.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Melvin Capital Management is a leading shareholder in Affirm Holdings, Inc. (NASDAQ:AFRM), with 3.2 million shares worth more than $321 million.
In its Q3 2021 investor letter, Bireme Capital highlighted a few stocks and Affirm Holdings, Inc. (NASDAQ:AFRM) was one of them. Here is what the fund said:
“We opened a more idiosyncratic short position in a company called Affirm (AFRM) in Q4.
Affirm Holdings, Inc. (NASDAQ:AFRM) is a “Buy Now, Pay Later” (BNPL) company founded by former PayPal CTO and cofounder Max Levchin. They provide installment loans to consumers, partnering with retail companies looking to drive higher sales. They have two primary products: a zero-fee installment loan for consumers with the best credit scores, and a more traditional product with 20%+ interest rates for subprime borrowers. Their stated plan is to disrupt the credit industry with more transparent, lower-fee loans.
At a roughly $28b market cap at the start of 2022, Affirm Holdings, Inc. (NASDAQ:AFRM) stock was priced at more than 20x trailing sales, a steep price for a money-losing lender. While their early lead in online BNPL transactions and partnerships with fast-growing retailers like Peloton has fueled significant historical growth, a wave of competition has arrived.”
2. Six Flags Entertainment Corporation (NYSE:SIX)
Number of Hedge Fund Holders: 46
Six Flags Entertainment Corporation (NYSE:SIX) owns and runs entertainment parks. The stock has made a steady comeback over the past few months as vacation demand surges despite oil and war fears globally. In late April, data from Delta Airlines indicated record bookings growth ahead of the summer travel season. The company has still not returned to pre-pandemic levels of profit, which gives it plenty of room for growth in the holiday season. Analysts expect the firm to grow earnings by 19% in 2023.
On April 25, Rosenblatt analyst Barton Crockett initiated coverage of Six Flags Entertainment Corporation (NYSE:SIX) stock with a Buy rating and a price target of $56, saying there was “merit” in the growth approach of the new CEO of the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm H Partners Management is a leading shareholder in Six Flags Entertainment Corporation (NYSE:SIX), with 8.9 million shares worth more than $380 million.
1. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 48
Tapestry, Inc. (NYSE:TPR) markets luxury accessories and branded lifestyle products. The three key brands through which the firm operates include Coach, Kate Spade, and Stuart Weitzman. The Coach brand is steadily making gains across North America and even in China, and the Kate Spade brand is growing at a rapid pace with revenues expected to double in the coming years. The management of the company expects Kate Spade to reach $2 billion in revenue within the next few years.
On April 19, Barclays analyst Adrienne Yih kept an Overweight rating on Tapestry, Inc. (NYSE:TPR) stock and raised the price target to $53 from $51, noting that demand was still outstripping the supply for the firm.
At the end of the fourth quarter of 2021, 48 hedge funds in the database of Insider Monkey held stakes worth $827 million in Tapestry, Inc. (NYSE:TPR), compared to 41 in the preceding quarter worth $887 million.
In its Q3 2021 investor letter, Ariel Investments highlighted a few stocks and Tapestry, Inc. (NYSE:TPR) was one of them. Here is what the fund said:
“Luxury accessory and lifestyle brand, Tapestry, Inc. (NYSE:TPR) was the top contributor to performance over the trailing one-year period. Revenue improvement across all three brands with a notable increase in consumer demand, particularly for the Coach business, triple-digit growth in e-commerce, and better than expected pricing, drove margins higher. Looking ahead, we expect Tapestry’s supply chain and SKU rationalization initiatives to continue to deliver margin expansion. Together, with early signs of improved receptivity for the Kate Spade brand, we believe a significant value creation opportunity lies ahead.”
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