Three of the five largest U.S. traded companies will report June quarter earnings after markets close Tuesday. Those would be Apple, Alphabet and Microsoft. We also previewed the companies reporting earnings before markets open on Wednesday: Boeing, McDonald’s, Pfizer and Tilray.
After markets close on Wednesday, we shall hear from another of the five largest U.S. companies and three more companies that get a lot of investor attention.
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Social media giant Facebook Inc. (NASDAQ: FB) has seen its stock price rise by about 59% over the past 12 months. For the year to date, shares are up about 34%, and the stock added 10% in just the final two days of last week. That gain came on the strength of two other ad-revenue-driven social media companies, Snap and Twitter. Investors and analysts have apparently put aside worries about a negative impact on ad-supported sites courtesy of Apple’s new permission-based ad-tracking feature.
Of 50 analysts covering Facebook who were surveyed, 42 rate the stock a Buy or Strong Buy and another six recommend holding shares. At a recent price of around $367, the implied upside on the stock at a median price target of $397.50 is 8%. At the high price target of $480, the upside potential jumps to nearly 31%.
For the company’s second quarter, analysts are forecasting revenue of $27.88 billion, an increase of 6.5% sequentially and 49% year over year. Adjusted earnings per share (EPS) are tabbed to come in at $3.03, down by about 8.2% sequentially but up by 68% year over year. For the full fiscal year, the current revenue estimate is $115.84 billion, up nearly 35%, and the EPS estimate is $13.11, up nearly 30%.
Facebook stock trades at 28.2 times expected 2021 EPS, 24.5 times estimated 2022 earnings and 20.8 times estimated 2023 earnings. The stock’s 52-week trading range is $229.00 to $375.33. Facebook does not pay a dividend.
Ford
Automaker Ford Motor Co. (NYSE: F) has doubled its stock price over the past 12 months. The stock dipped by nearly 4% during 2020, and its comeback since its nadir in late March of 2020 totaled 187% as of Monday’s close. The Mustang EV and the announced F-150 EV have played a role, as has the scarcity of chips, which has allowed Ford and other automakers to ratchet up prices and, consequently, revenue. What Ford has to say about its second-half prospects may determine how investors and analysts react to the report.
Half of the 20 brokerages covering Ford’s stock rate the stock a Buy or Strong Buy. Nine give the shares a Hold rating. At a price of around $13.80, the potential upside based on a median price target of $16 is nearly 16%. At the high price target of $18, the upside potential is 23%.
Analysts expect Ford to report $22.83 billion in second-quarter revenue, which would be down 32% sequentially but up by 37% year over year. Adjusted EPS are expected to plunge by 96% from $0.89 a year ago to $0.04. Unresolved supply chain issues will get the blame. For the full year, analysts expect Ford to report EPS of $1.36, an improvement of 231% year over year. Revenue is forecast to rise by about 12.2% compared with 2020 revenue.
Ford stock trades at 10.2 times expected 2021 EPS, 7.4 times estimated 2022 earnings and 6.4 times estimated 2023 earnings. The stock’s 52-week range is $6.41 to $16.45. Ford has suspended its dividend.
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PayPal
Electronic payments company PayPal Holdings Inc. (NASDAQ: PYPL) has seen its stock rise by about 72% over the past 12 months. In 2021, the shares had risen by about 30% as of mid-February, before giving it all back by early March. The share price had just recovered that 30% as of Monday’s close. While PayPal does face a horde of new fintech competitors, the company is a proven quantity, has more than 300 million active users and has a market cap near $350 billion. Now it just needs to pay a dividend.
A total of 46 brokerages cover Paypal stock, and the overwhelming majority (41) rate the stock a Buy or Strong Buy. Four have a Hold rating. At a price of around $296.50, the potential upside based on a median price target of $325 is 9.6%. At the high price target of $18, the upside potential is 26.5%.
Analysts expect Paypal to report $6.27 billion in second-quarter revenue, up by nearly 4% sequentially and an increase of 19.2% year over year. Adjusted EPS are expected to slip by 7.9% sequentially and increase by 4.6% year over year. For the full year, analysts expect PayPal to report EPS of $4.74, an improvement of 22% year over year. Revenue is forecast to rise by about 20% compared with 2020 revenue.
PayPal stock trades at 53.0 times expected 2021 EPS, 42.5 times estimated 2022 earnings and 34.4 times estimated 2023 earnings. The stock’s 52-week range is $171.63 to $310.16. PayPal does not pay a dividend.
24/7 Wall St.Qualcomm
Networking chipmaker Qualcomm Inc. (NASDAQ: QCOM) has added 60% to its share price over the past 12 months. For the year to date, however, the stock has dropped about 7.5%. In an upgrade from Sell to Neutral last week, Goldman Sachs analyst Rod Hall mentioned the launch of new iPhones and more market share growth thanks to the prohibitions against Chinese networking giant Huawei.
All but nine of the 29 analysts covering Qualcomm stock rate the stock a Buy or Strong Buy. The others have Hold ratings. At a price of around $139.40, the potential upside based on a median price target of $175 is 25.5%. At the high price target of $200, the upside potential is 43.4%.
Analysts expect Qualcomm to report $7.92 billion in second-quarter revenue, down by about 4.6% sequentially and 52% higher year over year. Adjusted EPS are expected to slip by 14.2% sequentially and increase by 116% year over year. For the full year, analysts expect Qualcomm to report EPS of $7.81, an improvement of nearly 87% year over year. Revenue is forecast to rise by about 49% compared with 2020 revenue.
Qualcomm stock trades at 18.5 times expected 2021 EPS, 16.7 times estimated 2022 earnings and 16.0 times estimated 2023 earnings. The stock’s 52-week range is $90.57 to $167.94. Qualcomm pays an annual dividend of $2.72 (yield of 1.88%).
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