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Earnings Previews: ConocoPhillips, Moderna, Uber

After markets closed Monday, Devon Energy reported quarterly results that beat on both the top and bottom lines. The oil and gas producer did not indicate that it planned to increase production or capital spending. Shares traded up 6% in mid-morning action Tuesday. Diamondback Energy also beat top-line and bottom-line consensus estimates. Shares were up about 3.2% Tuesday.

Fertilizer maker Mosaic missed both profit and revenue estimates. The company said it expects second-quarter pricing for its phosphate products to be $140 to $160 per metric ton higher than in the first quarter and potash prices to be $40 to $60. Shares traded up almost 3% Tuesday morning.

Pipeline operator Williams beat estimates on both the top and bottom lines. The company said it expects to increase its dividend this year from $1.64 per share (yield of 4.9%) to $1.70. Shares traded up 0.6%.

Before markets opened on Tuesday, BP reported better-than-expected earnings but a miss on revenue. The oil giant also said it would buy back $2.5 billion in stock before it announced second-quarter results. Shares traded up 6.3% on Tuesday.

Marathon Petroleum beat top-line and bottom-line estimates, and shares traded up 2.7%. The refiner did not raise its buyback spending or its dividend.

Paramount Global beat the consensus earnings estimate but missed on revenue. Shares traded down about 5.0%.

Pfizer beat estimates on the top and bottom lines but issued downside guidance for earnings and revenue for the full 2022 fiscal year. Shares traded up about 2.0%.

After markets close Tuesday, Airbnb, AMD and Livent will report quarterly results. We also have previewed expectations for Albemarle, APA, Barrick Gold and Cameco.


Here is a look at four more companies set to report results Wednesday or Thursday.

ConocoPhillips

Over the past 12 months, shares of ConocoPhillips (NYSE: COP) have added about 94% to their value. As with both Chevron and Exxon Mobil, the rise in the share price of the country’s largest independent oil and gas producer is closely tied to the rising price of oil. The company reports results before markets open on Thursday.

Since late September, crude oil prices have risen by nearly 65%. Because Conoco is not saddled with refining or marketing divisions, the price of crude pushes its share price up even faster than either Exxon’s (up 59.3% over the past year) or Chevron’s (up 62.5%).

Of the 27 brokerages covering the stock, 23 have ratings of Buy or Strong Buy. Three more rate the shares at Hold. At a recent price of around $96.90 a share, the upside potential based on a median price target of $124.50 is about 28.5%. At the high price target of $160, the upside potential is 65.1%.

For the first quarter, analysts are expecting revenue of $18.36 billion, which would be up 15% sequentially and nearly 74% higher year over year. Adjusted earnings per share (EPS) are expected to come in at $3.22, up 41.7% sequentially and 367% higher year over year. For the full 2022 fiscal year, Conoco is expected to report EPS of $13.00, up 116.3%, on sales of $69.22 billion, up 43.2%.

Conoco stock trades at 7.4 times expected 2022 EPS, 8.6 times estimated 2023 earnings of $11.23 and 10.3 times estimated 2024 earnings of $9.38 per share. The stock’s 52-week range is $51.41 to $107.52. The company pays an annual dividend of $1.42 (yield of 1.49%). Total shareholder return for the past 12 months was 95.7%. Investors are going to want to hear about bigger returns, preferably from a dividend increase, but a heftier buyback would do as well.

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