Investing

Earnings Previews: BP, Pfizer, Under Armour

More than 300 companies reported earnings after markets closed Thursday and before they opened again on Friday. Of those, Apple and Amazon, both of which missed revenue estimates, are getting the most notice. One firm making a better noise is U.S. Steel, trading up about 12% after also reporting its results.

No earnings reports are scheduled for release after markets close Friday. First thing Monday morning, there are two reports we already have previewed: ON Semiconductor and PG&E.

We also have previewed two companies on the calendar to report results after markets close Monday and one more that has not announced a report date yet, but often chooses this week to report prior quarter results: AMC, Diamondback Energy and NXP Semiconductors.

Here’s a look at three companies scheduled to report results before markets open on Tuesday.

BP

U.K.-based BP PLC (NYSE: BP) has seen its share price double over the past 12 months, even including a month-long dip in June and July that saw the price drop by nearly 20%. Since then, the stock has gained 28%.

BP wants to transform itself into a clean energy company. Then-new CEO Bernard Looney announced last September that BP would cut crude oil output by 40% (1 million barrels a day) and increase its renewable generation capacity by 50 gigawatts. To achieve those goals, Looney wants to sell off some $25 billion assets.

Analysts are not entirely behind BP’s strategy. Of 15 brokerages covering the fossil-fuel giant, eight rate the stock a Buy or Strong Buy, and another six rate the shares a Hold. At a recent price of around $28.80, the upside potential based on a median price target of $34 is 18%. At the high price target of $45, the upside potential is 56%.

The consensus estimate for third-quarter revenue is $32.04 billion, which would be down 12% sequentially and 27.6% year over year. Adjusted earnings per share (EPS) are forecast at $0.92, up 10% sequentially and up from a break-even finish last year. For all of 2021, analysts currently expect BP to report EPS of $3.48, well above last year’s loss per share of $1.69, on sales of $170.67 million, down about 5.4%.

Lower oil production can’t make up for a 40% cut in production. What might help, however, is a reported windfall profit of $500 million from the company’s natural gas trading business.

BP stock trades at 1.4 times expected 2021 EPS, 1.2 times estimated 2022 and 2023 EPS. The stock’s 52-week range is $15.24 to $30.29. BP pays an annual dividend of $1.31 (yield of 4.48%).