Investing

Earnings Previews: AMD, Caesars, Energy Transfer, Ford

In the first half-hour of trading Friday, the Dow Jones industrials were up 0.3%, the S&P 500 up 0.19% and the Nasdaq 0.03% higher.

Before U.S. markets opened on Monday, Norwegian Cruise Lines reported quarterly results that beat estimates on both the top and bottom lines. The cruise line operator also issued lower-than-expected second-quarter earnings per share (EPS) guidance and higher than forecast fiscal year EPS guidance. Shares traded up 3.9%.
[in-text-ad]
ON Semiconductor beat analysts’ estimates for both EPS and revenue. The chipmaker also reaffirmed earnings and revenue guidance for fiscal 2023. Shares were up about 6.6% in early trading.

SoFi Technologies also beat both top-line and bottom-line estimates Monday morning. The company issued better-than-expected revenue guidance for the current quarter and the full fiscal year and boosted both ends of fiscal year EBITDA guidance. The stock traded down about 7%.

After markets close on Monday, MGM Resorts, NXP Semiconductors and Transocean are expected to report quarterly results. Then, BP, Enterprise Products Partners, Pfizer and Uber are on deck to report results the following morning.

Here is what analysts expect to hear from these four companies when they report results after Tuesday’s closing bell.

AMD

In the past 12 months, shares of chipmaker Advanced Micro Devices Inc. (NASDAQ: AMD) have slipped by less than 1%, including a year-to-date gain of nearly 38%. Since reaching a 52-week low last October, the stock is up more than 50%. When rival Intel reported results last week, the company beat estimates on both the top and bottom lines despite a year-over-year drop of 36% in revenue. Investors were delighted. Analysts lowered the bar for annual revenue by 14% after October’s low, and have not raised it since, despite AMD’s share price increase.

Of 42 analysts covering AMD, 28 have a Buy or Strong Buy rating on it. The other 14 have Hold ratings. At a recent price of around $89.40 a share, the upside potential to a median price target of $98.00 is 9.6%. At the high price target of $200.00, the upside potential is 124%.


Consensus estimates call for first-quarter revenue of $5.31 billion, which would be down 5.2% sequentially and 11.5% lower year over year. Estimated adjusted EPS of $0.56 would be down 18.4% sequentially and by 50.0% year over year. For the full 2023 fiscal year, analysts’ consensus estimates call for EPS of $3.01, down 14%, on revenue of $23.57 billion, down 0.1%.

AMD stock trades at 29.7 times expected 2023 EPS, 20.7 times estimated 2024 earnings of $4.31 and 16.8 times estimated 2025 earnings of $5.32 per share. The stock’s 52-week trading range is $54.57 to $109.57. AMD does not pay a dividend, and total shareholder return over the past year is negative 0.3%.

Caesars

Resort and casino operator Caesars Entertainment Inc. (NASDAQ: CZR) has seen its share price drop by almost 33% over the past 12 months. From a 52-week low in early October, the share price has gained 32.6%. The company, which last year considered selling its legendary Flamingo property, has now launched a plan to revamp its Las Vegas properties by remodeling Bally’s and renaming it Horseshoe and renovating the entryway to Caesars Palace. While more than just cosmetic changes, the company’s planning may need to get bolder.
[in-text-ad]
Sentiment remains solidly bullish on the stock, with 12 of 15 analysts having a Buy or Strong Buy rating and two more rating the stock at Hold. At a share price of around $45.30, the upside potential based on a median price target of $70.00 is 54.5%. At the high price target of $111.00, the upside potential is 145%.

The consensus first-quarter revenue estimate is $2.76 billion, down 2.2% sequentially but up 20.5% year over year. Caesars is forecast to post EPS of $0.06, compared to a loss per share of $0.22 sequentially and a loss of $1.98 per share in the year-ago quarter. For the full year, analysts are expecting EPS of $1.02, much better than last year’s loss per share of $3.64, on sales of $11.527 billion, up 6.4%.

Caesars shares trade at 44.6 times estimated 2023 earnings, 18.5 times estimated 2024 earnings of $2.45 and 32.1 times estimated 2025 earnings of $1.41 per share. The stock’s 52-week range is $31.31 to $70.23. The company does not pay a dividend, and total shareholder return for the past year was negative 32.79%.

Energy Transfer

Natural gas pipeline and infrastructure company Energy Transfer LP (NYSE: ET) has added 13% to its share price over the past 12 months. For the year to date, the common units are up 8.5%.

Like many pipeline operators, Energy Transfer is a master limited partnership (MLP) that pays a generous distribution to unitholders and is mostly shielded from commodity price movements because the bulk of the company’s capacity is contracted. The company raised its quarterly dividend in January, returning the payout to its pre-pandemic level and pushing its dividend yield above 9%. In the December quarter, Energy Transfer distributed $944 million to unitholders, nearly double the prior year’s distribution.
Analysts are unanimously bullish on Energy Transfer, with all 16 brokerages having a Buy or Strong Buy rating. At a share price of around $13.00, the upside potential based on a median price target of $17.00 is 30.8%. At the high price target of $21.00, the upside potential is 61.5%.
[in-text-ad]
For the fourth quarter, analysts expect the company to post revenue of $21.49 billion, up 4.8% sequentially and by 4.9% year over year. Adjusted EPS are expected to come in at $0.31, down 9.8% sequentially and 34.0% lower year over year. For the full 2023 fiscal year, EPS are forecast at $1.38, down 8.8%, on sales of $87.85 billion, down 2.3%.

The common units trade at 9.3 times expected 2023 EPS, 9.0 times estimated 2024 earnings of $1.43 and 7.8 times estimated 2025 earnings of $1.65 per share. Energy Transfer’s 52-week range is $9.15 to $13.67. The company pays an annual distribution of $1.22 (yield of 9.55%). Total shareholder return for the past year was 22.74%.

Ford

Last week, Ford Motor Co. (NYSE: F) CEO Jim Farley warned Tesla CEO Elon Musk that continuing to cut prices on some Tesla models could commoditize the company’s cars, and then Tesla would lose its pricing premium. Considering that Ford’s electric Mustang sales plummeted in the first quarter, and Ford has already said it will lose $3 billion on its EV business this quarter, Farley is going to need to mind his own business, so to speak.

Ford stock is down more than 10% for the past 12 months, and even its generous dividend yield may not be enough to carry the company if it fails to execute better. Maybe that is what Farley should be thinking about.

Analysts remain mixed on the stock, with 11 of 23 brokerages having a Hold rating and just seven with a Buy or Strong Buy rating. At a share price of around $12.00, the implied gain based on a median price target of $13.00 is 8.3%. At the high price target of $21.00, the upside potential is 75%.


First-quarter revenue is forecast at $37.42 billion, down 10.4% sequentially but up 16.5% year over year. Adjusted EPS are forecast at $0.44, down 14.3% sequentially and up 15.8% year over year. For the full 2023 fiscal year, consensus estimates call for EPS of $1.63, down 13.2%, on sales of $157.1 billion, up 5.5%.

Ford stock trades at 7.3 times expected 2023 EPS, 6.8 times estimated 2024 earnings of $1.75 and 6.5 times estimated 2025 earnings of $1.83 per share. The stock’s 52-week range is $10.61 to $16.68. Ford pays an annual dividend of $0.60 (yield of 5.17%). Total shareholder return for the past year was negative 10.74%.

ALERT: Take This Retirement Quiz Now  (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.