The five largest U.S. traded companies report June-quarter earnings this week, beginning Monday evening with Tesla. We previewed expectations for GE, Raytheon, Tesla, 3M and UPS last Friday and will be covering the others, along with several more, over the next few days.
After markets close Tuesday, Apple, Starbucks and Visa report quarterly results. The estimates for all three include significant increases over the pandemic year. We also have previewed results due Tuesday afternoon from Alphabet, AMD and Microsoft.
Here are previews of four companies reporting earnings before markets open Wednesday.
The COVID-19 pandemic added to Boeing Co.’s (NYSE: BA) woes last year. The shares lost about a third of their value during the year but got a boost from the recertification of the 737 Max in November. Over the past 12 months, the stock is up about 28%, but virtually all of that gain came in November, helped along by a second, smaller spike anticipating a pickup in air travel and airline fleet orders.
Shipments of the 787 Dreamliner essentially have been suspended since October, and Boeing is sitting on a finished inventory of around 100 of the planes. There also is some concern that the company would book a forward loss on the 787 program, but such a move would be out of character for Boeing.
Sentiment on the stock is mixed. Of 25 analysts covering the shares that were surveyed, 13 rate the stock a Buy or Strong Buy and 10 rate the shares at Hold. At a recent price of around $223.20, the stock’s implied upside at a median price target of $267.50 is nearly 20%. At the high price target of $314, the upside potential is about 41%.
For the second quarter, analysts are forecasting revenue of $17.04 billion, a sequential increase of 12% and a year-over-year increase of 44%. Adjusted earnings per share (EPS) remain negative, with a loss per share of $0.20 expected, a significant improvement to the first-quarter loss of $0.92 and the year-ago loss of $4.20 per share. For the full year, Boeing is expected to post EPS of $0.55 on sales of $76.72 billion. In 2020, Boeing reported a loss per share of $23.25 on sales of $58.16 billion.
Boeing stock trades at 42.2 times estimated 2022 earnings and 31.0 times estimated 2023 earnings. The stock’s 52-week range is $141.58 to $278.57. The company has suspended its dividend.
Dow Jones industrial average component McDonald’s Corp. (NYSE: MCD) has posted a share price increase of nearly 26% over the past 12 months. For the year to date, the stock is up about 15%. The pandemic hit the Golden Arches hard, but the business has now recovered to pre-pandemic levels and the year-over-year comparison should be an easy one. Some analysts are looking for a revenue increase above 50% compared with the year-ago quarter.
Most analysts (25 of 35) rate the stock a Buy or Strong Buy and the rest have put a Hold rating on the shares. At a price of around $244.40, the implied upside based on a median price target of $260 is about 6.4%. At the high price target of $283, the upside potential is 15.8%.