In mid-morning trading on Tuesday, the Dow Jones industrials were down 1.34%, the S&P 500 down 1.37% and the Nasdaq 1.16% 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 2.3%.

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 2.3%.

Transocean reported a wider loss per share than expected but a year-over-year increase of nearly 11% in revenue. Shares traded down 7.3%.

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 8.8%.

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 1.7%.

Pfizer beat estimates on both the top and bottom lines and affirmed prior fiscal 2023 EPS and revenue guidance. Shares traded down 0.2% 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 7.6% Tuesday morning.

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. Later on Wednesday, Albemarle and Qualcomm will take their turns in the earnings spotlight.

Here is a look at three companies set to report results before U.S. markets open on Thursday.

Over the past 12 months, shares of ConocoPhillips (NYSE: COP) have added 4.4% to their value. That gain includes a share price drop of about 22% over the past 6 months. About 83% of Conoco’s float is held by institutional investors, and while returns for oil exploration and production companies have declined sharply, the companies still provide solid returns.

The outlook is not much brighter, either. Since April 12, crude prices have dropped by about $10 a barrel, a decline of more than 10%. One thing to keep an eye on is the federal government’s plan to replenish the Strategic Petroleum Reserve if crude prices fall below about $72 a barrel. Crude traded at around $73.60 Tuesday morning.

There are 28 brokerages covering the company, and 19 have Buy or Strong Buy ratings. Eight rate the stock at Hold. At a recent price of around $99.30 a share, the upside potential based on a median price target of $132.50 is about 33.4%. At the high price target of $167.00, the upside potential is about 68.2%.

For the first quarter of 2023, analysts expect revenue of $16.06 billion, which would be down 16.6% sequentially and by 16.7% year over year. Adjusted EPS are expected to come in at $2.07, down 23.7% sequentially and 36.7% lower year over year. For the full fiscal year, Conoco is expected to report EPS of $9.84, down 27.2%, on sales of $67.52 billion, down 17.8%.

Conoco stock trades at 10.1 times expected 2023 EPS, 9.2 times estimated 2024 earnings of $10.78 and 10.6 times estimated 2025 earnings of $9.37 per share. Its 52-week trading range is $78.30 to $138.49. The company pays an annual dividend of $2.32 (yield of 2.25%). Total shareholder return for the past 12 months was 9.36%.

Constellation Energy

Retail power generation company Constellation Energy Corp. (NASDAQ: CEG) has seen its share price increase by more than 30% over the past 12 months, including a decline of more than 19% in the past six months. Since its spin-off from Exelon in January 2022, shares are up about 85% but down from a November peak of nearly $98 a share. Constellation generates about 90% of its electricity from carbon-free fuels (nuclear, solar, wind and hydro) and supplies about 10% of all U.S. carbon-free generation.
Analysts remain bullish on Constellation Energy. Of 12 firms covering it, nine rate the shares at Buy or Strong Buy. The other three have Hold ratings. At a share price of around $77.00, the upside potential is 24.7% at the consensus price target of $96.00 and around 49.4% at the high target of $115.00.

For the first quarter, Exelon is expected to report revenue of $5.73 billion, down 21.9% sequentially but up 2.5% year over year. Adjusted EPS are forecast at $0.95, up about 450% sequentially and down 47.5% year over year. For the 2023 fiscal year, consensus estimates call for EPS of $3.90, down 7.2%, on sales of $23.27 billion, down 4.8%.

Constellation Energy stock trades at 19.7 times expected 2023 EPS, 15.7 times estimated 2024 earnings of $4.90 and 13.9 times estimated 2025 earnings of $5.53 per share. Its 52-week range is $52.64 to $97.89. The company pays an annual dividend of $1.13 (yield of 1.46%). Total shareholder return for the past 12 months was 31%.

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Paramount Global

Media giant Paramount Global (NASDAQ: PARA) has lost almost 22% from its share price over the past 12 months, including a year-to-date increase of almost 35%. The company, formerly known as ViacomCBS, owns CBS, Showtime, Comedy Central and other networks. The company’s Paramount+ streaming service counted 56 million subscribers at the end of December, well below rivals like Netflix (231 million) or Disney’s 235 million across Disney+, ESPN+ and Hulu. Subscriber numbers need to show growth, and ad revenue needs to improve faster.

Of 28 brokerages covering the company, only seven have Buy or Strong Buy ratings, the same number as in the previous quarter. The number of Sell or Strong Sell ratings has risen from 12 to 13 in that time. At a share price of around $22.80, the shares trade above the median price target of $19.00. At the high target of $40.00, the upside potential is 75.4%.

Paramount is expected to post first-quarter revenue of $7.42 billion, down 8.7% sequentially but up 1.2% year over year. Adjusted EPS are forecast at $0.18, up nearly 125% sequentially and down 70% year over year. For the full 2023 fiscal year, analysts are looking for EPS of $0.80, down 53.5% year over year, on revenue of $30.84 billion, up 2.3%.

The stock trades at 28.9 times expected 2023 EPS, 14.1 times estimated 2024 earnings of $1.63 and 10.8 times estimated 2025 earnings of $2.13 per share. Paramount’s 52-week range is $15.29 to $34.50. The company pays an annual dividend of $0.96 (yield of 4.1%). Total shareholder return for the past 12 months was negative 18.02%.

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