Another week of June-quarter earnings results wraps up Friday morning, when we hear from American Express, Honeywell and Schlumberger. Again on Thursday morning, results generally exceeded prior estimates.

On Wednesday, we also previewed three companies that are announcing results after markets close Thursday: Intel, Snap and Twitter.
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No earnings reports are due out Friday afternoon, as usual, so now we shall turn our attention to next week. Most of the tech giants (Apple, Amazon, Facebook, Google) are on the calendar for next week, as are some other heavily traded companies, like Boeing, General Electric, PayPal, Tesla, Tilray and Visa.

Here’s a look at three companies due to report results before Monday’s opening bell.

Alliance Resource Partners

Shares of coal producer Alliance Resource Partners L.P. (NASDAQ: ARLP) have increased more than 125% in the past 12 months. For the year to date, the shares are up about 63%. Demand for coal is expected to rise by 92 million tons this year in the United States, after dropping by 102 million tons last year. The bulk of demand comes from electricity generating plants that are expected to consume 522 million tons in 2021, a year-over-year increase of 20%. Forecast demand drops by 32 million tons in 2022, however.

Alliance receives virtually no analyst coverage. The single analyst rating on the stock is a Buy, with a price target of $7. At a recent price of around $7.20, the stock has exceeded that target.

For the second quarter, Alliance is expected to post sales of $372.7 million, up nearly 17% sequentially and almost 118% year over year. Adjusted earnings per share (EPS) are forecast at $0.21, two cents higher sequentially, and up from a loss per share of $0.37 in the year-ago quarter. Full-year EPS is forecast at $0.78, an increase of more than 250% compared to 2020’s $0.22. Revenue for the year is estimated to rise by about 7.4% to $1.43 billion.

The stock trades a daily average of only about 500,000 shares, and its 52-week range is $2.63 to $7.92. Alliance pays an annual dividend of $0.10 (yield of 1.46%).

Lockheed Martin

Defense giant Lockheed Martin Corp. (NYSE: LMT) shares have traded up about 4.2% over the past 12 months, including a dip of 12% in January. For the year to date, the stock is up about 8.7%. Lockheed is the country’s largest defense contractor, hauling in $62.56 billion in 2020 revenue from its Pentagon contracts. That amounts to 96% of the company’s total revenue for last year. As we noted earlier Thursday morning, analysts at Baird expect Lockheed to beat second-quarter earnings expectations and raise full-year guidance.

Of 22 analysts covering Lockheed Martin stock, 12 rate the shares a Buy or Strong Buy and another 10 rate the stock a Hold. At a price of around $380, the upside potential based on a median price target of $420 is 9.5%. At the high target of $480, the potential upside is 26%.

Analysts expect the company to report second-quarter revenue of $16.93 billion, which would be up about 4.1% sequentially and 4.4% year over year. Adjusted EPS are forecast at $6.52, down four cents sequentially, but up 12.6% year over year. For the full year, the company is expected to report EPS of $26.64, 8.7% higher year over year, on a revenue increase of about 4.5% to $68.34 billion.
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Lockheed Martin stock trades at a multiple of 12.5 times to expected 2021 EPS, 12.0 times estimated 2022 earnings and 11.6 times estimated 2023 earnings. The stock’s 52-week range is $319.81 to $402.38. The company pays an annual dividend of $10.40 (yield of 2.73%).

Otis

Elevator and escalator manufacturer Otis Worldwide Corp. (NYSE: OTIS) was spun out of United Technologies in April of last year when UTC completed its merger with Raytheon. Shares in Otis have risen by about 95% since it began trading, and for the year to date, the shares are up about 29%. The company has begun making more capital investments and raised its organic revenue growth significantly.

Sentiment from the surveyed analysts leans toward the buy-side, with eight of 13 rating the shares a Buy or Strong Buy, along with four Hold ratings. At a share price of around $86.70, the upside potential based on a median price target of $89 is about 2.7%. At the high target of $95, upside potential rises to 8.3%.

For the second quarter, Otis is expected to report revenue of $3.46 billion and EPS of $0.72. The revenue estimate is about 1.4% above actual first-quarter revenue and 14.2% higher than in the year-ago quarter. EPS is flat sequentially and up nearly 29% year over year. For the full year, EPS are estimated to total $2.88, up more than 14% year over year, and revenue is tabbed at $13.89 billion, an increase of 8.9%.

Shares trade at a multiple of 29.9 times expected 2021 EPS, 27.5 times estimated 2022 earnings and 25.7 times estimated 2023 earnings. The stock’s 52-week range is $57.60 to $87.23, and the high was posted earlier in the morning. Otis pays an annual dividend of $0.96 per share (yield of 1.11%).

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