Investing

Earnings Previews: Activision Blizzard, Coca-Cola, Otis Worldwide

After markets closed on Wednesday, Alcoa reported earnings that beat the consensus estimate but missed the revenue estimate. A no-growth outlook due to withdrawing from its Russian business hurt the stock, which traded down by about 9% early Thursday. Railroad operator CSX beat on both the top and bottom lines and shares traded higher by 5% in the morning. Pipeline and terminal operator Kinder Morgan also beat top-line and bottom-line estimates, and it increased its dividend payment to $1.11 annually. The current dividend yield is around 5.5%. Shares traded up by more than 1%.

Tesla hammered estimates, beating both by substantial margins. The stock traded up about 11% Thursday morning. United Airlines traded up more than 11% even though it missed on analysts’ estimates. The big news was the announcement that the airline expects to post a profit in fiscal 2022, its first since 2019.

Before markets opened Thursday, American Airlines followed United’s example and beat on both the top and bottom lines. Total revenue in March marked the first time monthly sales surpassed pre-pandemic totals. Shares were trading up more than 9%. AT&T missed on both the top and bottom lines, but shares traded higher by more than 3%. The divestment of Warner Media confused things, but investors liked what they heard about the company’s telecom business.

Copper and gold miner Freeport-McMoRan beat both top-line and bottom-line estimates Thursday morning. The company’s capital expenditures outlook is more than double 2021 spending and exceeds by more than $1 billion growth in operating cash flow. That may be why the stock traded down by more than 6% early Thursday.

NextEra Energy posted a GAAP loss of $0.23 per share in the first quarter but managed to beat the adjusted earnings per share (EPS) estimate of $0.72. High natural gas prices drove up operating costs. The stock traded down over 2% Thursday morning.

We have had a look at three companies set to report earnings after markets close Thursday or before they open on Friday: FirstEnergy, Regions Financial, and Snap. Another five firms are set to report quarterly results before Friday’s opening bell: American Express, Cleveland-Cliffs, Newmont, Schlumberger, and Verizon.

Here is a look at three firms set to report March-quarter results before Monday’s opening bell.

Activision Blizzard

Shortly before Activision Blizzard Inc. (NASDAQ: ATVI) reported fourth-quarter results in January, Microsoft announced an all-cash offer of nearly $70 billion ($95 a share) to acquire the company. Since the deal was announced, Activision’s stock price has gone from around $65 a share to about $79. That’s not how share prices are supposed to behave when a cash-rich buyer offers a 45% premium.

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