Shortly after the opening bell Monday, the Dow Jones industrials traded down 0.13%, while the S&P 500 was down 0.53% and the Nasdaq down 1.01%. A cautious beginning to a week full of major economic reports.
Before markets opened on Monday, GE Healthcare reported better-than-expected earnings per share (EPS) and revenue for its fourth quarter. The newly public company also issued upside fiscal 2023 EPS guidance, ranging from $3.60 to $3.75, well above the current consensus of $3.28. Shares traded down about 0.5% Monday morning.
Alliance Resource Partners easily beat consensus estimates for both revenue and EPS. The coal producer also raised its quarterly distribution to shareholders by 40% to $0.70 per common unit. Shares were up more than 8%.
Li-Cycle missed estimates on both the top and bottom lines. In its press release, the lithium battery recycler did say that it had “progressed significantly towards meaningful debt financing” and expects to release further details during the current quarter. Shares traded down about 1% Monday morning.
SoFi Technologies posted a smaller-than-expected per-share loss and higher-than-expected revenue. SoFi also issued downside revenue guidance for the first quarter and in-line guidance for the full fiscal year. The stock traded up nearly 8%.
After markets close on Monday, NXP Semiconductors is set to report quarterly results. The following morning, look for reports from Caterpillar, Exxon Mobil, McDonald’s, Pfizer and UPS.
Here are previews of what to expect from two firms reporting quarterly results after Tuesday’s closing bell.
24/7 Wall St.AMD
In the past 12 months, shares of chipmaker Advanced Micro Devices Inc. (NASDAQ: AMD) have slipped by about 26.5%, including a year-to-date gain of more than 16%. Since reaching a 52-week low in mid-October, the stock is up nearly 28%. Last week’s poor report from Intel gave AMD’s shares a small boost, but the company’s fate is its own. AMD’s PC business, like Intel’s, is faltering. AMD’s server business, unlike Intel’s, is strong. Guidance could be the difference between a rising or a falling stock price.
There are 41 analysts covering AMD, and 30 have a Buy or Strong Buy rating. The other 11 rate the stock at Hold. At a recent price of around $75.40 a share, the upside potential to a median price target of $85.00 is 12.7%. At the high price target of $200.00, the upside potential is 165%.
Consensus estimates call for third-quarter revenue of $5.52 billion, which would be down 0.9% sequentially and up 14.3% year over year. Estimated adjusted EPS of $0.67 would be flat sequentially and down 27.2% year over year. For the full 2022 fiscal year, analysts’ consensus estimates call for EPS of $3.50, up 25.5%, on revenue of $23.52 billion, up 43.1%.
AMD stock trades at about 21.5 times expected 2022 EPS, 20.8 times estimated 2023 earnings of $3.62 and 16.0 times estimated 2024 earnings of $4.71 per share. The stock’s 52-week trading range is $54.57 to $132.96. AMD does not pay a dividend, and total shareholder return over the past year is negative 26.5%.
Snap
Like most tech stocks, shares of Snap Inc. (NYSE: SNAP) have gotten a boost since the beginning of the year. The stock is up nearly 22% so far in January. Over the past 12 months, however, shares are down more than 61%. The company faces stiff competitive challenges from TikTok, YouTube Shorts and Meta Reels in the short-form video space, and no one expects Snap to emerge on top. Toss in Netflix’s ad-supported tier, which reported big numbers earlier this month, and Snap could be in deep trouble.
Snap stock is covered by 42 brokerages. Analysts are cautious, with 31 having a Hold rating and eight with a Buy or Strong Buy rating. At a share price of around $11.00, the stock trades above its median price target of $10.00 is 62%. At the high price target of $27.00, the upside potential is 145%.
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