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Earnings Previews: Enterprise Products, Exxon Mobil, NXP Semiconductors, Sirius XM, UPS

Sirius XM

Shares of satellite radio provider streaming service Sirius XM Holdings Inc. (NASDAQ: SIRI) have dropped about 10% over the past 12 months. The company on Thursday announced a deal with Neil Young, who was dropped by Spotify at the singer/songwriter’s request. Young told Spotify that either Joe Rogan goes or Young would. Young’s deal with the company covers a seven-day run on satellite radio and a month-long run on the Sirius XM app. That’s hardly enough to turn the company around, however. Sirius XM reports results early on Tuesday.

Of 15 brokerages covering the stock, eight have a rating of Buy or Strong Buy and another three rate the shares at Hold. At a price of around $6.10 per share, the potential upside based on a median price target of $7.50 is about 23%. At the high price target of $10, the upside potential is 39%. (The share price and the price targets are unchanged since the company reported third-quarter results in October.)

The consensus estimate calls for fourth-quarter revenue of $2.24 billion, up 2.0% sequentially and 2.3% year over year. Adjusted EPS are pegged at $0.07, down nearly 7% (one penny) sequentially and flat year over year. For the full fiscal year, Sirius XM is expected to report EPS of $0.30, up 21.3%, on revenue of $8.66 billion, up 7.7%.

Sirius XM’s stock trades at about 20.1 times expected 2021 EPS, 17.7 times estimated 2022 earnings of $0.34 and 15.5 times estimated 2023 earnings $0.39. The stock’s 52-week range is $5.67 to $7.29, and the current annual dividend is about $0.09 (yield of 1.47%). Total shareholder return for the past 12 months was negative 3.5%.

UPS

Shares of United Parcel Service Inc. (NYSE: UPS) have added about 27% over the past 12 months, including a drop of nearly 11% since posting a recent high on January 7. The stock’s 52-week low was posted last week.

The company (like its competitors FedEx and the U.S. Postal Service) avoided the holiday season foul-ups of 2020 and reported on-time delivery rates exceeding 90%. But that costs money, both for higher labor costs and more demand for expensive fuel. Both freight carriers could see a boost to their air freight revenue as supply chain kinks are not close to getting straightened out yet. UPS reports results before Tuesday’s opening bell.

Analysts remain bullish on the stock, with 17 of 30 giving the shares a Buy or Strong Buy rating and 11 others rating them at Hold. At a share price of around $195.80, the upside potential based on a median price target of $235.30 is 20.2%. At the high price target of $267, the upside potential is 36.4%.

Analysts expect UPS to report fourth-quarter revenue of $27.07 billion, up 16.7% sequentially and about 8.7% higher year over year. Adjusted EPS are pegged at $3.10, up 14.6% sequentially and 16.5% year over year. For the full fiscal year, analysts are looking for EPS of $11.63, up more than 41%, on sales of $96.56 billion, up 14.1%.

UPS stock trades at about 16.8 times expected 2021 EPS, 16.2 times estimated 2022 earnings of $12.09 and 15.1 times estimated 2023 earnings of $12.92 per share. The stock’s 52-week range is $154.76 to $220.24. UPS pays an annual dividend of $4.08 (yield of 2.05%). Total shareholder return for the past 12 months was 27%.

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