Before markets opened on Monday, SoFi Technologies beat the consensus estimate for its second-quarter per-share loss by a penny and beat the consensus revenue estimate by about 3.2%. Revenue was up more than 37% year over year, and the company raised guidance for fiscal 2023 revenue and adjusted EBITDA. Shares traded up about 17% early in Monday’s regular session.
ON Semiconductor beat estimates for both earnings per share (EPS) and revenue. The stock traded up 4.4% early Monday.
BP, Caterpillar, Enterprise Products, Diamondback Energy and Pfizer are expected to report quarterly results after markets close Monday or before they open on Tuesday.
Here is a preview of what to expect from five companies reporting results after Tuesday’s closing bell.
AMD
Since the beginning of the year, shares of chipmaker Advanced Micro Devices Inc. (NASDAQ: AMD) have jumped by almost 75%. Over the past 12 months, the shares have added 23%, indicating just how far the chipmaker’s stock had tumbled in 2022.
AMD’s share price increase reflects its position as a challenger to Nvidia in the AI market. In the data center market, AMD has continued to boost revenue, while the market for personal computers has been a drag. The positive impact of the Xilinx acquisition is also expected to boost AMD’s second-quarter results. Overall, though, analysts have lowered the bar for AMD, so anything short of a solid beat on EPS and revenue is likely to get punished.
Of 45 analysts covering AMD, 29 have rated the stock a Buy or Strong Buy. The other 16 have Hold ratings. At a recent price of around $113.00 a share, the upside potential to a median price target of $137.50 is 21.7%. At the high price target of $200.00, the upside potential is 77%.
Consensus estimates call for second-quarter revenue of $5.32 billion, which would be down 0.5% sequentially and by 18.8% year over year. Estimated adjusted EPS of $0.57 would be 4.3% lower sequentially and by 45.7% year over year. For the full 2023 fiscal year, analysts’ consensus estimates call for EPS of $2.87, down 18.1%, on revenue of $23.02 billion, down 2.5%.
AMD stock trades at 39.4 times expected 2023 EPS, 26.4 times estimated 2024 earnings of $4.27 and 21.1 times estimated 2025 earnings of $5.34 per share. Its 52-week trading range is $54.57 to $132.83. AMD does not pay a dividend, and total shareholder return over the past year is 23.22%.
Devon Energy
Devon Energy Inc. (NYSE: DVN) is among the country’s 10 largest independent producers of oil and natural gas. It has seen its share price drop by 12.2% over the past 12 months, including a decline of almost 18% in the past six months. Falling commodity prices have certainly hurt, but a bigger threat is a possible lowering of Devon’s massive dividend yield.
Analysts remain bullish on Devon Energy stock, with 16 of 30 having a Buy or Strong Buy rating. Another 13 have Hold ratings. At a share price of around $53.00, the upside potential based on a median price target of $58.00 is 5.7%. At the high target of $77.00, the upside potential is 45.3%.
Consensus estimates call for second-quarter revenue of $3.54 billion, down 7.4% sequentially and 59.0% lower year over year. Adjusted EPS are forecast at $1.20, down 17.9% sequentially and by 53.7% year over year. For the full 2023 fiscal year, Devon is expected to post EPS of $5.59, down 32.8%, on revenue of $115 billion, down 21.8%.
Devon’s stock trades at 9.5 times expected 2023 EPS, 8.6 times estimated 2024 earnings of $6.19 and 8.8 times estimated 2025 earnings of $6.01 per share. The 52-week trading range is $44.03 to $78.82. Devon pays an annualized variable dividend of $4.51 (yield of 8.51%). Total shareholder return for the past year was negative 5.22%.
Starbucks
Starbucks Corp. (NASDAQ: SBUX) posted a 52-week high in early May. Since then, the shares have dropped by about 13%. For the past 12 months, shares are up 19.6%. Unlike other chain restaurants, Starbucks has not had to lower its prices to keep customers returning to the company’s stores. On top of that, customers have been spending more on their purchases. After a record-setting first-quarter revenue total, analysts have pushed the bar even higher.
Analyst sentiment is turning cautious on the stock though, with 20 of 32 having a Hold rating and 12 assigning a Buy or Strong Buy rating. At a share price of around $101.00, the upside potential based on a median price target of $112.00 is 10.9%. At the high price target of $150.00, the upside potential is 48.5%.
For the company’s third quarter of fiscal 2023, analysts anticipate revenue of $9.28 billion, up 6.5% sequentially and by 13.9% year over year. Adjusted EPS are pegged at $0.95, up 28.6% sequentially and 13.1% higher year over year. For the fiscal year, estimates call for EPS of $3.42, up 15.5%, on sales of $36.05 billion, up 11.8%.
Starbucks stock trades at 29.6 times expected 2023 EPS, 24.7 times estimated 2024 earnings of $4.09 and 21.1 times estimated 2025 earnings of $4.80 per share. The 52-week range is $81.67 to $115.48. Starbucks pays an annual dividend of $2.12 (yield of 2.09%). Total shareholder return for the past year was 22.17%.
Uber
Over the past year, shares of Uber Technologies Inc. (NYSE: UBER) have more than doubled, with most of that growth coming in 2023. Since the darkest days of the pandemic, Uber’s revenue has increased by about 125%, and it has reported a profit in all but two quarters since the first quarter of 2020. Two weeks ago, the California Supreme Court ruled against the company in a class-action lawsuit brought by an Uber Eats driver. The suit raises the question (again) of whether Uber drivers are contractors or employees.
Analysts remain solidly bullish on Uber. Of 46 brokerages covering the stock, 42 have a Buy or Strong Buy rating, and the other four rate it at Hold. At a share price of around $481.00, the potential upside based on a median price target of $52.00 is 8.3%. At the high target of $75.00, the upside potential is 56.3%.
The consensus revenue estimate for the second quarter is $9.34 billion, up 5.8% sequentially and by 15.7% year over year. Uber is expected to post EPS of $0.23 in the quarter, down 29% sequentially but up from a loss of $0.21 per share in the year-ago quarter. For the full 2023 fiscal year, analysts expect EPS of $1.09, compared with last year’s per-share loss of $3.32, on revenue of $37.57 billion, up 17.9%.
Uber stock trades at 44.2 times estimated 2023 earnings, 28.3 times estimated 2024 earnings of $1.70 and 20.6 times estimated 2025 earnings of $2.34 per share. The 52-week range is $22.39 to $48.43. Uber does not pay a dividend. Total shareholder return for the past 12 months is 106.52%.
Virgin Galactic
For the past 12 months, shares of Virgin Galactic Holdings Inc. (NYSE: SPCE) have tumbled by about 46.8%. The stock’s 52-week high was posted last August, and the stock was on a steady downhill run until about mid-May. The stock has bounced twice this year but has been unable to hold onto its gains. Virgin Galactic’s first commercial flight in more than a year occurred earlier in July, and the company expects to begin monthly flights in August. Everything would be great if Virgin had not issued $300 million in new stock in an at-the-market offering in late June.
Analysts are mixed on the stock. Of 11 brokerages covering the shares, just two have a Buy rating, five more have Hold ratings and the other four have a Sell or Strong Sell rating on the shares. At around $4.00 per share, the stock trades above its median price target of $3.75. At the high price target of $8.00, the implied upside is 100%.
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