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Earnings Previews: CVS Health, Fox, Uber

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In late morning trading Monday, the Dow Jones industrials was 0.21% lower, while the S&P 500 was down 0.45% and the Nasdaq down 0.59%. Equities bounced back from earlier lows but were still struggling to get to the break-even line.

Before U.S. markets opened on Monday, Tyson Foods reported fiscal first-quarter results that missed both earnings per share (EPS) and revenue estimates. Beef prices dropped 8.5% last year, and chicken prices are expected to continue falling as well. The company reaffirmed previous guidance, but shares traded down about 3.6% before noon.

ON Semiconductor beat analysts’ consensus estimates on both the top and bottom lines. The less-good news is that the chipmaker issued downside EPS and revenue guidance for the current quarter. An announced $3 billion share buyback program (over nearly three years) might have helped moderate the loss. Shares traded up  2.9% in the morning.

After markets close Monday, NOV, Pinterest and Simon Property Group are on deck to report quarterly results. BP, Centene and Linde are expected to report quarterly results the following morning. Later on Tuesday, look for reports from Enphase Energy, Fortinet and Lumen.

Here is a look at what analysts expect when the following three firms post their results first thing Wednesday morning.

CVS Health

The country’s third-largest provider of health care plans, CVS Health Corp. (NYSE: CVS) has seen its stock price rise dive by almost 21% in the past 12 months. Bloomberg reported last month that CVS is in discussions to acquire Oak Street Health’s brick-and-mortar centers for Medicare patients with low incomes and chronic health issues. New competition from Amazon for prescription drug sales may force CVS to protect its flank and put its diversification plans on hold. That competition is the primary reason for a drop of around 14% in CVS’s share price in just the past three months.

Analysts remain bullish on the stock, with 19 of 27 brokerages having a Buy or Strong Buy rating. The rest rate the shares at Hold. At a recent price of around $85.50 a share, the upside potential based on a median price target of $115.55 is about 35%. At the high price target of $130, the implied upside is 52%.


The consensus revenue estimate for the third quarter is $76.37 billion, which would be down 5.9% sequentially and by 0.3% year over year. Adjusted EPS are forecast at $1.93, down 10.1% sequentially and 2.5% lower year over year. For the full 2022 fiscal year, analysts are looking for EPS of $8.64, up 2.9%, and revenue of $314.7 billion, up about 7.7% year over year.

CVS stock trades at about 9.9 times expected 2022 EPS, 9.6 times estimated 2023 earnings of $8.86 and 8.9 times estimated 2024 earnings of $9.61 per share. The stock’s 52-week trading range is $84.82 to $111.25. CVS Health pays an annual dividend of $2.42 (yield of 2.82%). Total shareholder return for the past 12 months was negative 19.38%.

Fox

Media giant Fox Corp. (NASDAQ: FOXA) has seen its share price sink by more than 16% over the past 12 months. In late October the stock was down nearly 30% for the same period. Next Sunday’s Super Bowl will be broadcast on Fox, and that promises to give the company a solid boost. Thirty-second ads are estimated to cost $5.6 million, up 6% over last year, and the total advertising take for Fox should be right around $500 million. That figure represents about 11% of Fox’s revenue in the same quarter of last year.

Analysts are fairly bullish on the stock. Of 23 brokerages surveyed, 11 have a Buy or Strong Buy rating and 10 more rate the stock at Hold. At a share price of around $34.00, the upside potential based on a median price target of $37.50 is about 10.3%. At the high target of $45.00, the upside potential is 32.4%.

Fiscal second-quarter revenue is forecast at $4.58 billion, up 43.4% sequentially and by 3.2% year over year. Adjusted EPS are forecast at $0.48, down 60.5% sequentially but up nearly 270% year over year. For the 2023 fiscal year ending in June, analysts expect Fox to report EPS of $3.40, up 21.8%, on sales of $14.88 billion, up 6.5%.

Fox stock trades at 9.7 times expected 2023 earnings, 10.6 times estimated 2024 earnings of $3.09 per share and 8.8 times estimated 2025 earnings of $3.73 per share. The stock’s 52-week range is $28.02 to $44.95. Fox pays an annual dividend of $0.50 (yield of 1.47%). Total shareholder return for the past year was negative 15.6%.

Uber

Over the past year, shares of Uber Technologies Inc. (NYSE: UBER) have declined by nearly 11%. It could have been worse. Shares have added 33.6% so far in 2023, taking a cue from the rise in investor enthusiasm for tech stocks. Since coming public nearly four years ago, the stock is down by more than a quarter.

Gig economy stocks have not performed well as a group: competition is fierce, regulators have not been very friendly, insurance costs are exploding and drivers are increasingly difficult to find. The sector is consolidating, reducing the competitive factor, and there is room for established companies (Uber, Lyft, DoorDash) to grow.

Analysts remain solidly bullish on Uber. Of 45 brokerages covering the stock, 40 have a Buy or Strong Buy rating and five rate it at Hold. At a share price of around $32.00, the potential upside based on a median price target of $45.00 is 40.6%. At the high target of $75.00, the upside potential is nearly 166%.


The consensus revenue estimate for the fourth quarter is $8.5 billion, up 1.9% sequentially and 47.1% higher year over year. Uber is expected to post EPS of $0.02 in the quarter, compared with the prior quarter’s per-share loss of $0.21 and down 97% from last year’s fourth-quarter EPS of $064. For the full 2022 fiscal year, analysts expect a loss per share of $4.10 compared with last year’s EPS of $0.33 on revenue of $31.86 billion, up 82.5%.

Uber’s stock trades at 52.0 times estimated 2023 earnings of $0.64 and 25.5 times estimated 2024 earnings of $1.30 per share. The stock’s 52-week range is $19.89 to $42.56. Uber does not pay a dividend. Total shareholder return for the past 12 months is negative 10.18%.

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