In the first half-hour of Tuesday’s regular trading session, the Dow Jones industrials were down 0.49%, the S&P 500 down 0.37% and the Nasdaq 0.1% lower.

After U.S. markets closed on Monday, MGM Resorts beat estimates on both the top and bottom lines, due largely to a recovery of its Macau business. Gross gambling revenue (GGR) came in at 76% of the 2019 first quarter, above the industry average of 45%. Daily mass market GGR doubled. Shares traded down about 2.9%.

NXP Semiconductors also beat consensus estimates for earnings per share (EPS) and revenue. The Netherlands-based company issued upside second-quarter EPS and revenue guidance. The stock traded up 5.1%.

Transocean reported a wider loss per share than expected but a year-over-year increase of nearly 11% in revenue. Shares traded up 0.6%.

Before markets opened on Tuesday, BP beat the consensus EPS estimate but missed on revenue, despite a 14% year-over-year increase. In its second-quarter guidance, the British supermajor forecast lower production. The good news is that BP still expects annual share repurchases of about $4 billion and dividend increases of around 4%. The stock traded down 7.8%.

Enterprise Products Partners also beat the EPS estimate (by a penny) and missed on revenue. The dividend yield of nearly 7.5% likely encouraged some investors to buy the dip. Shares traded down 1.4%.

Pfizer beat estimates on both the top and bottom lines and affirmed prior fiscal 2023 EPS and revenue guidance. Shares traded up 0.9% early Tuesday.

Uber posted a loss per share of $0.08, compared with a consensus estimate for EPS of $0.15. The company said that consumer spending is strong, trip growth accelerated in the first quarter, and the company expects to post a GAAP profit sometime this year. Shares traded up 5.8%.

After U.S. markets close on Tuesday, AMD, Caesars, Energy Transfer and Ford are expected report quarterly earnings. Then look for results from Barrick Gold, CVS Health and Kraft Heinz the following morning.

Here is a look at two companies set to report results after markets close on Wednesday.

Albemarle

Even before Chile announced its plans to nationalize the country’s lithium production, North Carolina-based producer Albemarle Corp. (NYSE: ALB) had dropped more than 10% of its value since the beginning of the year. The Chilean government’s announcement has sent the stock to a year-to-date loss of more than 18%.

While the effect on Albemarle’s share price has been sharp, the actual damage to its operations is likely to be modest. The government’s proposal applies only to new projects, not existing leases. Albemarle’s contract does not expire until 2043. Discussion of a transition plan already has begun, but there does not appear to be an imminent threat to Albemarle’s business.
Analysts are mostly bullish on Albemarle. Of 25 brokerages covering the stock, 13 have a Buy or Strong Buy rating and nine have Hold ratings. At a recent price of around $178.00 a share, the implied gain based on a median price target of $281.35 is 58.1%. Based on the high price target of $498.00, the upside potential is about 180%.

First-quarter revenue is forecast at $2.74 billion, which would be up 4.5% sequentially and by 142.5% year over year. Adjusted EPS are forecast at $7.06, down 18.1% sequentially but up almost 200% year over year. For the full 2023 fiscal year, analysts expect Albemarle to report EPS of $26.84, up 22.2%, on sales of $10.88 billion, up 48.6%.

Albemarle stock trades at 6.6 times expected 2023 EPS, 6.4 times estimated 2024 earnings of $27.71 and 7.5 times estimated 2025 earnings of $23.70 per share. The stock’s 52-week trading range is $171.82 to $334.55. Albemarle pays an annual dividend of $1.60 (yield of 0.86%). Total shareholder return over the past year was negative 7.49%.

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Qualcomm

Networking chip and equipment maker Qualcomm Inc. (NASDAQ: QCOM) has seen its share price drop about 17% over the past 12 months. Since the beginning of 2023, shares are up about 5.4%, including a 17% decline between early February and mid-March. The company is expected to announce a layoff of 5% of its employees (approximately 2,500) when it reports results Wednesday.

The company’s latest version of its Snapdragon processor for smartphones is rumored to be a challenger to Apple’s latest iPhone Bionic chip.

Of 31 analysts covering the company, 21 have a Buy or Strong Buy rating and another nine rate the stock at Hold. At a share price of around $116.00, the upside potential based on a median price target of $150.00 is 29.3%. At the high target of $180.00, the upside potential is 55.2%.

Second-quarter fiscal 2023 revenue is forecast to come in at $9.12 billion, down 3.6% sequentially and 18.7% lower year over year. Adjusted EPS are forecast at $2.16, down 9.0% sequentially and by 32.7% year over year. For the full fiscal year ending in September, analysts expect the company to post EPS of $9.41, down 24.9%, on sales of $37.78 billion, down 14.2%.

Qualcomm stock trades at 12.3 times expected 2023 EPS, 10.2 times estimated 2024 earnings of $11.40 and 10.6 times estimated 2025 earnings of $10.95 per share. The stock’s 52-week range is $101.93 to $156.66. Qualcomm pays an annual dividend of $3.20 (yield of 2.81%). Total shareholder return over the past 12 months was negative 15.12%.

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