Here is a look at four companies set to report quarterly results before markets open on Tuesday.
Shares of integrated oil giant BP PLC (NYSE: BP) have performed well over the past year but trail far behind Chevron and Exxon, which are up 62% and 61%, respectively. BP’s 12-month increase was just below 20%. A massive $24 billion charge against first-quarter results for shedding the company’s 19.75% stake in Russian oil giant Rosneft squashed any gains the stock may have made. Since February 18, Chevron stock is up more than 20%, while BP shares are down about 7.6%. High crude oil prices and an expected boost in the stock buyback program could limit the damage.
Of 22 brokerages covering the fossil-fuel giant, 16 have a Buy or Strong Buy rating and the others rate the shares at Hold. At a recent price of around $29.50 a share, the implied upside to a median price target of $36.50 is 23.7%. At the high price target of $49, the upside potential is 66.1%.
The consensus estimate for first-quarter revenue is $53.2 billion, which would be up 5.4% sequentially and 54.0% higher year over year. Adjusted EPS are forecast at $1.37, up 11.3% sequentially and up a stupendous 954% year over year. For the 2022 fiscal year, analysts expect BP to report EPS of $5.627, up 46.3%, on sales of $208.35 million, up 32.1%.
BP stock trades at 0.9 times expected 2022 EPS, 0.9 times estimated 2023 of $5.31 and 1.0 times estimated 2024 EPS of $4.89. The stock’s 52-week trading range is $22.64 to $34.16. BP pays an annual dividend of $1.30 (yield of 4.42%). Total shareholder return for the past year was 19.7%.
Oil refiner and marketer Marathon Petroleum Corp. (NYSE: MPC) posted an all-time high share price last week and has had a stock price gain of nearly 68% over the past year. That is a far larger increase than rival Phillips 66’s 17% gain. Even with high input (crude oil) prices, demand for refined products is strong, and the big refiners can make a profit where they were once stymied by crude prices. The question now is who will remain standing once the music stops.
Of 17 brokerages covering Marathon, 15 have a Buy or Strong Buy rating and the rest rate the stock at Hold. At a share trading price of around $89.25, the stock’s upside potential based on a median price target of $96 is about 7.6%. At the high target of $115, the upside potential is 28.9%.
First-quarter revenue is forecast at $32.46 billion, down 8.8% sequentially but up about 41.9% year over year. Analysts are estimating EPS of $1.28, compared to a loss of $0.20 in the year-ago quarter. For the full 2022 fiscal year, the consensus estimates call for EPS of $7.37, up 200%, on revenue of 139.12 billion, up 15%.
Marathon Petroleum’s stock trades at 12.1 times expected 2022 EPS, 14.2 times estimated 2023 earnings of $6.27 and 13.6 times estimated 2024 earnings of $6.55 per share. The stock’s 52-week range is $50.19 to $93.168. Marathon pays an annual dividend of $2.32 (yield of 2.59%). Total shareholder return for the past 12 months was 64.6%.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.