Just before noon Tuesday, the Dow Jones industrials were down 0.12%, the S&P 500 down 0.37% and the Nasdaq 0.54% lower.

After U.S. markets closed on Monday, Devon Energy beat consensus estimates on both the top and bottom lines. Devon also boosted its share buyback program by 50% to $3 billion and declared a fixed-plus-variable dividend of $0.72, down from $0.89 in the prior quarter. Shares traded down 3.5%.

Lucid posted a wider-than-expected loss and fell short of the consensus revenue estimate by about 30%. At a cash burn rate of around $1 billion per quarter, the company has enough liquidity to last through the second quarter of 2024. Shares traded down 8.0%.

Palantir reported better-than-expected earnings per share (EPS) and revenue. The company added 52 new U.S. customers in the past year, up 50%. Palantir issued downside guidance for second-quarter revenue and in-line guidance for the 2023 fiscal year. Shares traded up 21.1%.

Before U.S. markets opened on Tuesday, Duke Energy missed the consensus EPS estimate but surpassed analysts’ expectations for revenue. The company said it expects a 25% sequential increase in revenue in the second quarter thanks to its acquisition of FlexSteel. Shares traded down 1%. Duke’s 4.05% dividend yield makes a difference here.

Fox beat top-line and bottom-line estimates despite a massive settlement in the Dominion lawsuit and the firing of top-rated program host Tucker Carlson. Fox also authorized a $7 billion share buyback program. Shares traded down 0.6%.

Fisker, another EV maker, reported a bigger loss than analysts expected and just $200,000 in revenue, compared to an estimate of $2.52 million. Shares traded down 7.2%.

Nikola reported a net loss of $0.26 per share, exactly on target, on sales that fell short of expectations. The company also announced more focus on fuel-cell trucks, hydrogen refueling stations and autonomous-driving technologies in the North American market. With just $154 million in cash and equivalents, the company’s burn rate of $232 million in the first quarter is an ominous sign. Shares traded down 11.1%.

After U.S. markets close on Tuesday, Affirm, Airbnb, Luminar, Occidental Petroleum and Rivian are set to report earnings. Hecla Mining, Li Auto and Roblox will report results first thing Wednesday morning. later on Wednesday, look for reports from Robinhood and Unity Software, as well as from Walt Disney.

Here are previews of two companies on deck to report quarterly results early Thursday.

Algonquin Power

Algonquin Power & Utilities Corp. (NYSE: AQN) is a Canada-based company that offers regulated and non-regulated utility services in North America, including electricity generated from renewables. Shares have added more than 36% for the year to date, mainly after ditching a plan to acquire Kentucky Power and attracting some friendly interest from activist investors Starboard Value and Ancora. Both support a company plan to divest some $1 billion in assets.
Of 16 analysts covering the stock, four have a Buy or Strong Buy rating and 11 rate it at Hold. At a recent price of around $8.90 a share, the implied gain based on a median price target of $9.00 is 1.1%. Based on the high price target of $17.00, the upside potential for the stock is about 47.6%.

Analysts expect the company to report fourth-quarter revenue of $733.7 million, which would be down 1.9% sequentially and essentially flat year over year. Adjusted EPS are expected to come in at $0.16, down 25.4% sequentially and by 23.8% year over year. For the full 2023 fiscal year, Algonquin is expected to post EPS of $0.59, down 14.2%, on revenue of $2.88 billion, up 4.1%.

The stock trades at 15.0 times expected 2023 earnings, 14.5 times estimated 2024 earnings of $0.61 per share and 14.1 times estimated 2025 earnings of $0.63 per share. The stock’s 52-week trading range is $6.41 to $14.85. Algonquin pays an annual dividend of $0.43 (yield of 7.92%). The dividend and yield reflect a $0.49 cut announced in January. Total shareholder return for the past year was negative 29.72%.

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JD.com

Beijing-based JD.com Inc. (NASDAQ: JD) is China’s second-largest e-commerce company. Shares have dropped by nearly 37% over the past 12 months, including a decline of 37.5% so far in 2023. The company’s stock had been rising following an announcement by Alibaba that it would carve itself into pieces to unlock value for investors, who clearly hoped JD.com would follow suit.

Then Pinduoduo was reported to have been spreading malware that was able to snatch data from customers’ cell phones. That is the sort of thing that gives investors agita, especially when relations between the United States and China are strained.

Of 41 analysts covering the stock, 36 have a Buy or Strong Buy rating. At a share price of around $35.00, the stock’s implied upside based on a median price target of $61.15 is nearly 75%. At the high price target of $91.69, the upside potential is 165%.

Analysts expect JD.com to report first-quarter revenue of $34.85 billion, down 18.7% sequentially and 7.8% lower year over year. Adjusted EPS are expected to come in at $0.51, down 27.4% sequentially but 27.5% higher year over year. For the full 2023 fiscal year, EPS are forecast at $2.78, up 8.3%, on sales of $160.03 billion, up 5.5% year over year.

JD.com stock trades at 12.6 times expected 2023 EPS, 10.2 times estimated 2024 earnings of $3.43 and 8.8 times estimated 2025 earnings of $4.00 per share. The stock’s 52-week range is $33.17 to $68.29, and the company pays a dividend of $0.62 (yield of 1.73%). Total shareholder return over the past year is negative 28.46%.

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