The three major U.S. equity indexes closed mixed on Thursday. The Dow Jones industrials lost 0.5%, the S&P 500 dropped 0.3% and the Nasdaq added 0.03%. Eight of 11 S&P sectors closed lower. Tech (up 0.9%) and consumer staples (up 0.1%) were the only sectors to close higher, while the utilities sector closed flat. All three indexes traded higher early Friday’s premarket, with the Dow up over 1%.
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The U.S. Census Bureau releases its monthly report on retail sales Friday morning, and economists are expecting an increase of 0.8%, compared to a decrease of 0.3% in May. Excluding automobiles, core sales are expected to rise 0.6% month over month, after rising 0.5% in May.

Before markets opened on Friday, UnitedHealth reported results that were better than expected and issued earnings guidance in line with expectations. Shares traded up more than 3% in early trading.

Citigroup also beat analysts’ expectations for earnings and revenue. The stock was up about 5%.

Bank of New York Mellon missed the consensus earnings estimate but reported revenue that was higher than expected. Shares traded up about 4%.

U.S. Bancorp also fell short of earnings expectations and beat revenue estimates. The stock traded up less than 2%.

Wells Fargo missed consensus estimates for both earnings and revenue. CEO Charlie Scharf said the bank expects to raise its quarterly dividend by 20% to $0.30 a share. Shares were up almost 4%.

Progressive missed both earnings and revenue estimates. Earnings were slammed by a $225 million writedown of goodwill on Progressive’s 2015 acquisition of ARX Holding. Shares traded up more than 2%.

We have previewed these four companies set to report quarterly results first thing Monday morning: Bank of America, Charles Schwab, Goldman Sachs and Synchrony Financial.

Here is a look at five firms on deck to report results late Monday or early Tuesday.

Halliburton

Oilfield services firm Halliburton Co. (NYSE: HAL) has seen its share price rise by about 25% over the past 12 months. The less-good news is that since the company posted a 52-week high on June 8, shares have plunged by more than 36%. Halliburton reports results before Tuesday’s opening bell.
Crude oil prices have fallen below $100 a barrel and well completions in the seven major U.S. oil basins have totaled around 2,200 in the last 12 months with the number dropping each month. Well completion and production were up by nearly 25% year over year in the first quarter. Estimates for second-quarter growth are even higher but may not materialize.
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Of 27 analysts covering the company, 21 have a Buy or Strong Buy rating and five more have Hold ratings. At a recent share price of around $27.30, the upside potential based on a median price target of $47 was 72.2%. At the high target of $53, the implied gain is about 94%.

Second-quarter revenue is forecast to come in at $4.71 billion, which would be up 9.8% sequentially and by nearly 27% year over year. Adjusted earnings per share (EPS) are forecast at $0.45, up 27.8% sequentially and 73.0% higher year over year. For the full 2022 fiscal year, analysts currently expect EPS of $1.90, up 75.5%, on sales of $19.18 billion, up 25.4%.

Halliburton stock trades at 14.4 times expected 2022 EPS, 10.1 times estimated 2023 earnings of $2.70 and 8.7 times estimated 2024 earnings of $3.14 per share. The stock’s 52-week range is $17.82 to $43.99, and the company pays an annual dividend of $0.26 (yield of 1.76%). Halliburton’s total shareholder return for the past year was 28.8%.

IBM

Shares of International Business Machines Corp. (NYSE: IBM) have added about 9% over the past 12 months, with all that gain coming since mid-April. For the year to date, the Dow component has added about 6.6% to its share price, while the tech-heavy Nasdaq 100 has dropped 20.5%. The company will announce quarterly results after markets close Monday.

The company’s Red Hat division named a new CEO on Tuesday, 16-year company veteran Matt Hicks. Since splashing out $34 billion to buy Red Hat in 2019, the acquisition has been a steady growth engine for Big Blue, averaging about 20% revenue growth every quarter.

Of 19 brokerages covering the firm, 12 have a Hold rating and six rate the stock at Buy or Strong Buy. At a share price of around $139.00, the implied upside based on a median price target of $142.50 is about 2.5%. At the high price target of $166.00, the implied upside is 19.4%.

Second-quarter revenue is expected to come in at $15.18 billion, up 6.9% sequentially but down 19.0% year over year. Adjusted EPS are forecast at $2.29, up 63.5% sequentially and 1.7% lower year over year. The current full-year estimates call for EPS of $9.76, up 23.1%, on sales of $60.93 billion, up about 6.3%.

IBM stock trades at 14.2 times expected 2022 EPS, 13.2 times estimated 2023 earnings of $10.55 and 12.4 times estimated 2024 earnings of $11.19 per share. The stock’s 52-week range is $114.56 to $146.00. IBM pays an annual dividend of $6.57 (yield of 4.75%), and total shareholder return for the past 12 months is 9.3%.

Over the past 12 months, pharmaceuticals giant and Dow component Johnson & Johnson (NYSE: JNJ) has added about 6.4% to its share price. When the company reported quarterly results this past April, it lowered EPS guidance, and the shares have dropped about 3.5% since then. The health care sector has performed better than the S&P 500 and the Dow since the beginning of the year and over the past 12 months. In the past month, health care shares have added nearly 5% and Johnson & Johnson stock has added about 3%. The company reports quarterly results before markets open Tuesday morning.
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Of 19 brokerages covering the company, eight have Buy or Strong Buy ratings and the rest rate the shares at Hold. At a share trading price of around $175.70, the upside potential based on a median price target of $186 is about 5.9%. At the high target of $215, the upside potential is 22.4%.

Second-quarter revenue is forecast at $23.86 billion, up 1.9% sequentially and 2.4% higher year over year. Adjusted EPS are expected to come in at $2.56, down 4.1% sequentially but up by 3.2% year over year. For full fiscal 2022, analysts expect EPS of $10.23, up 4.4%, on sales of $96.27 billion, up 2.7%.

The shares trade at 17.2 times expected 2022 EPS, 16.2 times estimated 2023 earnings of $10.87 and 15.5 times estimated 2024 earnings of $11.31 per share. The stock’s 52-week range is $155.72 to $186.69. The company pays an annual dividend of $4.24 (yield of 2.57%). Total shareholder return for the past year was 5.7%.

Lockheed Martin

Over the past 12 months, shares of Lockheed Martin Corp. (NYSE: LMT) have added about 9%, but the shares are down 13.6% since posting a 52-week high in early March and down 7.7% so far in July. Lockheed Martin will report results before markets open on Tuesday.

On Wednesday, the Pentagon announced successful tests of two Lockheed hypersonic missiles. In a recent credit review, Fitch Ratings noted that the company is expected to build 156 F-35 fighter jets per year “for the foreseeable future.” Late last month, the company’s Sikorsky division won a $2.3 billion five-year U.S. Army contract for 120 Black Hawk helicopters with an option for an additional 135.

Just five of 17 brokerages have a Buy or Strong Buy rating on the stock, compared to 12 that rate the shares at Hold. At a share price of around $400.30, the upside potential based on a median price target of $485.50 is 21.3%. At the high price target of $539.00, the upside potential is 34.6%.
Second-quarter revenue is forecast at $16.02 billion. That would be up 7.1% sequentially but down 5.9% year over year. Adjusted EPS are projected to come in at $4.67, down 27.4% sequentially and by 28.4% year over year. For the full 2022 fiscal year, Lockheed is expected to post EPS of $25.14, down 8.5%, on sales of $66 billion, down 1.6%.
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Lockheed stock trades at 15.9 times expected 2022 EPS, 14.2 times estimated 2023 earnings of $28.27 and 13.9 times estimated 2024 earnings of $28.85 per share. The stock’s 52-week range is $324.23 to $479.99, and Lockheed pays an annual dividend of $10.80 (yield of 2.8%). Total shareholder return over the past 12 months was 9.3%.

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Truist

With a market cap of more than $60 billion, Truist Financial Corp. (NYSE: TFC) is the country’s third-largest regional bank. Since posting a 52-week high in mid-January, the stock has dropped 31.5%, and over the past 12 months, its value has fallen by about 14.6%. Late last month, the company announced an 8% increase in its dividend, following completion of the Federal Reserve’s required stress test. Truist reports results before markets open Tuesday.

Sentiment on the stock is mixed, with 11 of 24 analysts having a Buy or Strong Buy rating and 11 rating the shares at Hold. At a share price of around $45.20, the upside potential based on a median price target of $56.25 is 24.4%. At the high price target of $72.00, the upside potential is 59.3%.

Analysts expect second-quarter revenue of $5.65 billion, up 6.1% sequentially and down about 0.5% year over year. Adjusted EPS are forecast at $1.15, down 6.5% sequentially and by 25.8% year over year. For full fiscal 2022, current estimates call for EPS of $4.96, down 10.3%, and revenue of $23 billion, up about 2.7%.

Truist stock trades at 9.1 times expected 2022 EPS, 8.2 times estimated 2023 earnings of $5.48 and 7.6 times estimated 2024 earnings of $5.96. The stock’s 52-week range is $44.68 to $68.95. The low was posted on Thursday. Truist pays an annual dividend of $1.92 (yield of 4.16%). Total shareholder return for the past 12 months was negative 14.2%.

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