Markets were closed Monday in observance of President’s Day. Even so, a couple of intrepid energy companies chose to report results when no one was around to hear them. Go figure.
Oil and gas producer APA (formerly Apache) reported adjusted earnings that missed expectations by 11.6% and revenue estimates by nearly 35%. The company also doubled its dividend to $0.125 per quarter and committed to a 60% capital return plan for investors. APA’s stock traded up 4.4% in Tuesday’s premarket. Pipeline operator Williams reported beats on both the top and bottom lines and guided 2022 dividends to $1.70 annually, up from $1.64 in 2021. Shares traded up by about 2% in the premarket session Tuesday.
Before markets open Tuesday, these three companies will report quarterly results: Home Depot, Macy’s and Medtronic.
After markets close, we shall hear from the following four companies, along with dozens of others.
Palo Alto Networks
Palo Alto Networks Inc. (NYSE: PANW) supplies cybersecurity platforms, including both hardware and software, along with subscription and other professional services. Over the past 12 months. Since a mid-August low, shares have added about 35% after posting a gain of more than 55% the four-month period to late December.
Analysts are strongly bullish on the stock, with 35 of 38 brokerages giving the shares a Buy or Strong Buy rating. At a recent price of around $482.20 a share, the stock’s upside potential based on a median price target of $610 is 26.5%. At the high price target of $840, the upside potential is 74.2%.
For its second quarter of fiscal 2022, Palo Alto Networks is expected to report revenue of $1.28 billion, which would be up 2.7% sequentially and 25.5% year over year. Adjusted earnings per share (EPS) are forecast at $1.65, up 0.5% sequentially and about 6.5% higher year over year. For the full fiscal year ending in July, analysts are looking for EPS of $7.24, up 17.8%, and revenue of $5.39 billion, up 26.6%.
Palo Alto Networks stock trades at 66.6 times expected 2022 EPS, 54.0 times estimated 2023 earnings of $8.92 and 43.4 times estimated 2024 earnings of $11.10 per share. The stock’s 52-week range is $311.56 to $572.67, and Palo Alto Networks does not pay a dividend. Total shareholder return for the past 12 months was 25.5%.
Independent oil and gas producer Range Resources Corp. (NYSE: RRC) has posted a 12-month share price increase of around 78%. No secrets here: the company has ridden the crude price hikes that began in late September of last year. In May of last year, a barrel of crude was fetching barely $20 a barrel, compared with a current price of around $90.
Analysts are cautious on the stock, with just nine of 27 brokerages giving the shares a Buy or Strong Buy rating. At a share price of around $20.40, the stock’s upside potential based on a median price target of $25 is 22.5%. At the high price target of $36, the upside potential is 76.5%.
For its fourth quarter of 20212, Range Resources is expected to report revenue of $879.34 million, up nearly 191% sequentially and 46.8% year over year. Adjusted EPS are forecast at $0.99, or 90.5% higher sequentially and up from just $0.02 year over year. For the full fiscal year, analysts are looking for EPS of $2.03, up from a per-share loss of $0.09 in 2020, and revenue of $2.4 billion, up almost 22%.
Range Resources stock trades at 10.0 times expected 2021 EPS, 5.8 times estimated 2022 earnings of $3.51 and 6.4 times estimated 2024 earnings of $3.17 per share. The stock’s 52-week range is $8.47 to $26.48, and the company does not pay a dividend. Total shareholder return for the past 12 months was almost 97%.
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