Earnings Previews: Robinhood, Twitter, Visa

Only 14 companies in our watch list reported earnings before markets opened Monday. But the week ahead promises to be a busy one, with more than 900 firms reporting results.

This week gets off to a big start with these reports due after markets close Monday or before they open Tuesday morning: Facebook, GE, Lockheed Martin, Raytheon and UPS.

Tuesday and Wednesday are loaded, too. Here is a look at three companies scheduled to report results after markets close Tuesday, but results from Alphabet, AMD and Microsoft are due at that time too.

Robinhood

After coming public in late July, shares of Robinhood Markets Inc. (NASDAQ: HOOD) spiked to a gain of more than 100% in its first week of trading. Since then, investors have sliced out all but about 13% of the post-IPO gain. Those investors will be looking for two things after the results are published: user growth and how the company sees its regulatory regime shaping up under new SEC Chair Gary Gensler, who has made comments indicating a willingness to ban Robinhood’s primary source of revenue, payment for order flow (PFO) from market makers like Citadel.

Relatively few analysts cover the stock. Of 13 who do, seven have a Buy or Strong Buy rating on the shares, and another five rate the stock a Hold. At a recent price of around $38.80, the upside potential to the median price target of $55 is nearly 42%. At the high price target of $68, the upside potential is 75%.

For the fiscal third quarter, its first as a public company, revenue is forecast at $431.3 million. Analysts are looking for an adjusted loss per share of $1.36. For the full year, current consensus estimates call for an adjusted loss per share of $5.85 on revenue of $2.02 billion.

Robinhood is not expected to post a profit in 2021, 2022 or 2023. The current price-to-sales ratio is 19.76, and the enterprise value-to-EBITDA ratio is 103.45. The stock’s post-IPO range is $33.25 to $85.00. The company does not pay a dividend.

Twitter

Social media giant Twitter Inc. (NYSE: TWTR) saw its share price rise by 55% over the past 12 months. The less-good news is that happened in early March and about half that gain has been given back since then.

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