Earnings Previews: American Airlines, AT&T, Freeport-McMoRan, NextEra Energy

Before markets opened on Tuesday, oilfield services giant Halliburton beat expectations on both the top and bottom lines, and the CEO made some upbeat statements about the future, though the company offered no specific guidance (as usual). Shares traded down about 2% in premarket trading.

Johnson & Johnson posted better-than-expected earnings but missed on revenues. The company also cut earnings guidance. Shares traded down about 0.4% (that is the power of dividends in an inflationary period). Truist also beat the earnings estimate and missed on revenue. The stock was down about 0.7% in premarket trading Tuesday.

Lockheed Martin was another company that beat the earnings estimate but missed on revenue. The defense contractor reaffirmed fiscal year guidance, but the stock traded down by about 2% in Tuesday’s premarket.

We already have previewed three tech companies that report results late Tuesday or early Wednesday (ASML, IBM and Netflix) and three more also reporting March-quarter results before markets open Wednesday (Abbott Labs, Baker Hughes and Procter & Gamble). Plus, five notable earnings reports will be released after markets close Wednesday (Alcoa, CSX, Kinder Morgan, Tesla, United Airlines).

Here is what to expect from four companies expected to report results first thing Thursday morning.

American Airlines

Over the past 12 months, American Airlines Group Inc. (NASDAQ: AAL) has seen its share price decline by more than 13%. Since its yearly high in early June of last year, the stock has dropped by 26%. The sharp increase in fuel costs since mid-February has been offset, however, by increased demand for tickets.

More than 35 million shares of American stock trade hands every day, as investors try to determine when sales will finally overcome rising costs. Add to that the labor shortage for flight crews and it is still anyone’s guess when American and other U.S. airlines will return to profitability.

Analysts are extremely cautious on American. Of 22 brokerages covering the stock, 14 have a Hold rating on the shares and just three have Buy ratings. At a recent price of around $19.10 a share, the stock price had outrun its median price target of $18.00. At the high target of $28, the upside potential is 46.6%.

First-quarter revenue is forecast at $8.82 billion, which would be down 6.5% sequentially but 120% higher year over year. American is expected to post a loss per share of $2.41, worse than the $1.42 loss per share in the prior quarter and much improved over last year’s third-quarter loss of $4.32 per share. For the full 2022 fiscal year, the company is currently expected to post a loss of $3.10, compared to the year-ago loss of $8.38, on revenue of $43.36 billion, up 45%.

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