Two companies we previewed reported earnings Monday morning, and both beat consensus estimates on both the top and bottom lines. But that’s pretty ho-hum these days. Less than 10% of S&P 500 companies have already reported September earnings, but about 80% of those have posted a positive earnings surprise. That’s above the five-year average of 76%.
About 325 companies are scheduled to report quarterly results this week, including several airlines, a couple of FAANG stocks, some big defense contractors and even a couple of meme stocks. We already have previewed five firms reporting results after markets close Monday or before Tuesday’s opening bell: Halliburton, Johnson & Johnson, Philip Morris, Procter & Gamble and Steel Dynamics.
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Here are five more reporting after Tuesday’s closing bell or before markets open on Wednesday.
Baker Hughes
Over the past 12 months, oilfield services firm Baker Hughes Co. (NYSE: BKR) has seen its share price more than double. However, that increase included two troughs that saw the stock drop by almost 50%. Since mid-July, however, the stock is up nearly 40% on the oil and gas price hikes and the expectation that more drilling is coming soon in the energy patch. Baker Hughes reports quarterly results before markets open Wednesday.
The company’s weekly report last Friday on the number of working drilling rigs was up for the sixth straight week to 543, including 445 rigs drilling for oil and 98 drilling for natural gas. That’s still below the rig count in April of this year.
Analysts are solidly bullish on the stock, with 23 of 29 putting a Buy or Strong Buy rating on the shares. The rest rated the stock at Hold. At a recent price of around $26.80, the upside potential based on a median price target of $29 is 8.2%. At the high price target of $38, the implied upside is nearly 33%.
The consensus third-quarter revenue estimate is $5.33 billion, which would be up 3.6% sequentially and 5.5% higher year over year. Adjusted earnings per share (EPS) are forecast to rise sequentially by 113.5% to $0.21. That’s a year-over-year increase of 425%. For full fiscal 2021, analysts are forecasting EPS to rise 2,500% to $0.78 on sales of $21 billion, or up 1.4%.
Baker Hughes stock trades at 34.6 times expected 2021 EPS, 21.3 times estimated 2022 earnings and 15.9 times estimated 2023 earnings. The stock’s 52-week range is $13.08 to $27.66, and the high was posted Friday. Baker Hughes pays an annual dividend of $0.72 (yield of 2.68%).
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