Earnings Previews: Lockheed Martin, Otis Worldwide and More

Another week of June-quarter earnings results wraps up Friday morning, when we hear from American Express, Honeywell and Schlumberger. Again on Thursday morning, results generally exceeded prior estimates.

On Wednesday, we also previewed three companies that are announcing results after markets close Thursday: Intel, Snap and Twitter.

No earnings reports are due out Friday afternoon, as usual, so now we shall turn our attention to next week. Most of the tech giants (Apple, Amazon, Facebook, Google) are on the calendar for next week, as are some other heavily traded companies, like Boeing, General Electric, PayPal, Tesla, Tilray and Visa.

Here’s a look at three companies due to report results before Monday’s opening bell.

Alliance Resource Partners

Shares of coal producer Alliance Resource Partners L.P. (NASDAQ: ARLP) have increased more than 125% in the past 12 months. For the year to date, the shares are up about 63%. Demand for coal is expected to rise by 92 million tons this year in the United States, after dropping by 102 million tons last year. The bulk of demand comes from electricity generating plants that are expected to consume 522 million tons in 2021, a year-over-year increase of 20%. Forecast demand drops by 32 million tons in 2022, however.

Alliance receives virtually no analyst coverage. The single analyst rating on the stock is a Buy, with a price target of $7. At a recent price of around $7.20, the stock has exceeded that target.

For the second quarter, Alliance is expected to post sales of $372.7 million, up nearly 17% sequentially and almost 118% year over year. Adjusted earnings per share (EPS) are forecast at $0.21, two cents higher sequentially, and up from a loss per share of $0.37 in the year-ago quarter. Full-year EPS is forecast at $0.78, an increase of more than 250% compared to 2020’s $0.22. Revenue for the year is estimated to rise by about 7.4% to $1.43 billion.

The stock trades a daily average of only about 500,000 shares, and its 52-week range is $2.63 to $7.92. Alliance pays an annual dividend of $0.10 (yield of 1.46%).

Lockheed Martin

Defense giant Lockheed Martin Corp. (NYSE: LMT) shares have traded up about 4.2% over the past 12 months, including a dip of 12% in January. For the year to date, the stock is up about 8.7%. Lockheed is the country’s largest defense contractor, hauling in $62.56 billion in 2020 revenue from its Pentagon contracts. That amounts to 96% of the company’s total revenue for last year. As we noted earlier Thursday morning, analysts at Baird expect Lockheed to beat second-quarter earnings expectations and raise full-year guidance.

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