Investing

Earnings Previews: Boeing, Coca-Cola, GM, McDonald's

Only 14 companies in our watch list reported earnings before markets opened Monday. But the week ahead promises to be a busy one, with more than 900 firms reporting results.

This week gets off to a big start with these reports due after markets close Monday or before they open Tuesday morning: Facebook, GE, Lockheed Martin, Raytheon and UPS.

After markets close, Alphabet, AMD and Microsoft, along with Robinhood, Twitter and Visa, are scheduled to report quarterly results.

Here is a look at four companies scheduled to post results before markets open on Wednesday.

Boeing

Since February of last year when its 737 MAX was grounded, shares of Boeing Co. (NYSE: BA) are down about 38%. Not a bad recovery considering the stock fell by about $250 per share in just over one month. Over the past 12 months, shares have gained about 27%, but Boeing, a Dow Jones industrial average component, is not out of the woods yet.

The company’s 777X continues to have problems, and the new twin-aisle plane is not due to enter into service until late 2023. But the pandemic has cut demand sharply for long-haul flights, and many customers are talking about deferring or cutting orders for the plane. The 787 Dreamliner continues to experience some quality issues, while new orders for the 737 MAX continue to rise. Boeing delivered 26 of the 737 MAX jets last month, as it slowly rebuilds its production and clears its inventory.

There are 23 analysts covering the stock, and 13 have a Buy or Strong Buy rating on the stock while nine rate the shares at Hold. At a recent price of around $212.30, the implied upside based on a median price target of $272 is 28%. At the high target of $314, the implied upside is about 48%.

Consensus estimates call for third-quarter revenue of $16.27 billion, which would be down 4.3% sequentially but up 15% year over year. Analysts are forecasting a quarterly loss per share of $0.14, compared to a profit of $0.40 per share in the prior quarter and a loss per share of $1.39 last year. For the full fiscal year, Boeing is expected to post a per-share loss of $0.88, compared to last year’s loss per share of $23.25. Revenue is expected to increase by nearly 23% to $71.33 billion.

Boeing stock trades at 36.7 times expected 2022 earnings and 26.4 times estimated 2023 earnings. The stock’s 52-week range is $141.58 to $278.57. Boeing has suspended its dividend.

Coca-Cola

Long-time Warren Buffett favorite, and another Dow stock, Coca-Cola Co. (NYSE: KO) has posted a share price gain of about 10.5% over the past 12 months. Shares traded up by nearly 16.5% in mid-August but have since given back a big slice of that gain. More than most soft-drink makers, Coke depends on sales to restaurants, and the company’s revenue took a beating during the pandemic. Coke bounced back in the prior quarter, and analysts will be looking for more evidence that the company’s recovery is continuing.