Of the dozens of March quarter earnings reports released Wednesday morning, most showed better earnings than analysts were looking for. Two exceptions were Sweden’s Ericsson and U.S. homebuilder NVR.
After markets close Wednesday, we’ll hear from, among others, Lam Research, Kinder Morgan and Chipotle. Before markets open Thursday, Alaska Airlines, American Airlines, AT&T, Freeport-McMoRan, Cleveland-Cliffs and Valero Energy are all on tap to report results.
Here are two companies set to report results after markets close Thursday and two more on the schedule to report earnings before markets open Friday morning.
Intel
Chipmaker Intel Corp. (NASDAQ: INTC) saw its shares sink nearly 15% in 2020. So far in 2021, the stock is up about 27.5%. Rising demand for semiconductors against a limited supply does not necessarily yield more revenue and higher profits. This quarter’s report will be the first under new CEO Pat Gelsinger, and his comments on the conference call may be more important than Intel’s quarterly performance. The Dow 30 component reports first-quarter results after markets close Thursday.
Of 41 brokerages covering Intel, the stock is rated as a Buy or Strong Buy by 23 and at Hold by 13 others. The consensus price target on the stock is $66.26 and, at a recent price of $63.20, upside potential is 4.8%. At the high target of $800, the upside potential is about 52%.
Earnings per share (EPS) for the quarter is forecast at $1.15, down by nearly 21% year over year, and revenue is forecast to fall by 9.9%% to $17.86 billion. The outlook for the fiscal year calls for EPS of $4.57, down by nearly 14% year over with revenue more than 7% lower to $73.32 billion.
Shares trade at around 13.7 times expected 2021 EPS, 13.4 times estimated 2022 earnings and 12.2 times estimated 2023 earnings. The stock’s 52-week range is $43.61 to $68.49, and Intel pays an annual dividend of $1.39 (yield of 2.22%).
Snap
Snap Inc. (NYSE: SNAP) also reports first-quarter results after Thursday’s closing bell. The stock has soared by some 355% over the past 12 months. With its revenue based primarily on advertising on the company’s popular Snapchat social media app, ad revenues are the key metric for analysts and investors. Revenue rose 62% year over year in the prior quarter, and analysts expect that to be around that level again.
What the company has to say about its outlook for the rest of this year now that life appears to be regaining some semblance of normality may have a big impact on how the stock moves after the report is in.
Of 36 firms covering Snap, 20 rate the shares a Hold, while nine put an Underperform rating on the stock and one has the stock rated as a Sell. Only seven rate the shares a Buy or Strong Buy. The consensus price target on the stock is $74.79, and at a recent price of around $58.60, upside potential is 27.6%. At the high target of $100, the upside potential is nearly 71%.
Analysts are forecasting a loss per share for the quarter of $0.05, three cents better than last year’s loss in the same period. Revenue is forecast to soar by nearly 61% to $742.94 million. The outlook for the fiscal year calls for EPS of $0.16, up from a loss of $0.06 last year, with revenue 53% higher to $3.83 billion.
Shares traded Wednesday at around 99.9 times expected 2022 EPS and 48.2 times estimated 2023 earnings. The stock’s 52-week range is $14.85 to $73.59, and Snap does not pay a dividend.
American Express
Before markets open Friday morning, American Express Co. (NYSE: AXP) is expected to report first-quarter results. The Dow Jones industrial’s share price dipped by a bit more than 1% last year but has increased by more than 22% over the past 12 months. The COVID-19 pandemic plundered revenue from travelers both across international borders and domestically. Add to that fewer restaurant charges on the card, and Amex may not be out of the woods until the second half of this year.
Only 10 of 28 brokerages covering the firm give the stock a Buy or Strong Buy rating, while 16 rate the shares at Hold. At its current trading price of around $146.80, the stock has outrun the consensus price target of $144.75. At the high target of $175, upside potential is more than 19%.
Analysts are looking for EPS of $1.61 (up nearly 300% compared with the same quarter a year ago) on revenue of $9.7 billion, a drop of 11% year over year. For the full year, the consensus forecast calls for EPS of $6.69, a jump of 77% year over year, on revenue of $39.47 billion, an increase of 9.4% compared to 2020.
Shares were trading Wednesday at around $147.00, in a 52-week range of $76.00 to $151.46. American Express pays an annual dividend of $1.72 (yield of 1.19%).
Honeywell
Dow component Honeywell International Inc. (NYSE: HON) also reports first-quarter results first thing on Friday. The stock added almost 23% in 2020, following a trough that took shares down more than 40% in late March. Over the past 12 months, the stock is up 73%.
Honeywell’s aerospace segment produced about 40% of the company’s 2020 revenue and that should improve in 2021. The big gainer, though, was the safety and productivity solutions business that could put up a double-digit percentage revenue increase this year on sales of sensors, scanners, and mobile devices.
Sixteen of 20 brokerages covering the stock rate Honeywell a Buy or Strong Buy and the rest put a Hold rating on the shares. A recent trading price of $229.45 is practically identical to the consensus price target of $229.65. At the high target of $262, upside potential reaches nearly 15%.
Analysts are looking for EPS of $1.80, down by about 18% year over year, on revenue of $8.09 billion, a drop of 4.4% year over year. For the full year, the consensus forecast calls for EPS of $7.90, an increase of more than 11% year over year, on revenue of $34.33 billion, an increase of 5.2% compared to 2020.
Shares traded Wednesday at around $229.750, in a 52-week range of $117.11 to $232.35. Honeywell pays an annual dividend of $3.72 (yield of 1.61%).
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