Investing

Earnings Previews: Abbott Labs, AT&T, Boeing, Freeport-McMoRan

Boeing

Since reaching a 12-month high in mid-March of last year, shares of Boeing Co. (NYSE: BA) are down nearly 28%. Not a bad recovery, considering the stock fell by about $250 per share in just over one month in 2020. Less than two weeks ago, Boeing stock traded up nearly 10% over the 12-month period.

The company delivered 340 commercial jets in 2021, up from 99 deliveries in 2020. The company’s best-selling 737 family accounted for 263 (77%) of those deliveries. Regulatory holds on shipments of new 787 Dreamliners remain to be resolved before revenue picks up and the company’s newest twin-aisle jet, the 777X, likely will not receive regulatory approval to fly until the middle of next year.

Of the 22 analysts covering the stock, 15 have a Buy or Strong Buy rating, while five rate the shares at Hold. At a share price of around $195.100, the implied upside based on a median price target of $270 is 38.4%. At the high target of $306, the implied upside is about 56.8%.

Consensus estimates call for fourth-quarter revenue of $16.64 billion, up 8.9% sequentially and about 8.8% year over year. Analysts forecast a quarterly loss per share of $0.19, compared to a loss of $0.60 per share in the prior quarter and a loss per share of $15.25 last year. For fiscal 2021 year, the Dow Jones industrial average component is projected to post a per-share loss of $1.90, compared to last year’s loss per share of $23.25. Revenue is expected to increase by nearly 11% to $64.36 billion.

Boeing stock trades at about 42.0 times expected 2022 earnings of $4.64 and 24.2 times estimated 2023 earnings of $8.04 per share. The stock’s 52-week range is $185.26 to $278.57. Boeing has suspended its dividend, and total shareholder return for the past year was negative 5.7%.

Freeport-McMoRan

Over the past 12 months, shares of copper and gold miner Freeport-McMoRan Inc. (NYSE: FCX) had added about 36% as of last Friday’s closing bell. With the stock down more than 7% Monday morning, the 12-month gain has been pared to about 25.6%. Gold prices are down about 1.3% over the same period, while copper prices are up about 21.5%, well below the 35% gain achieved in October. While copper prices are a bit lower, they are no longer falling and may even be improving somewhat.

Of 20 analysts covering the stock, 12 have a Buy or Strong Buy rating on the shares and another five have a Hold rating. At a share price of around $37.80, the upside potential based on a median price target of $47 is 24.3%. At the high price target of $50, the upside potential reaches 33.3%.

Fourth-quarter revenue is forecast at $6.47 billion, up more than 6% sequentially and around 44% year over year. Adjusted EPS are forecast at $0.91, up 2.1% sequentially and 133% higher year over year. For the full 2021 fiscal year, analysts are expecting EPS of $3.08, up 470%, on sales of $23.11 billion, up nearly 63%.

Freeport stock trades at about 12.2 times expected 2021 EPS, 10.7 times estimated 2022 earnings of $3.52 and 11.8 times estimated 2023 earnings of $3.20. The stock’s 52-week range is $24.71 to $46.20. The company pays an annual dividend of $0.30 (yield of 0.73%). Total shareholder return for the past 12 months was 25.1%.

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