The June-quarter earnings reporting started with a bang Friday, but there is a pause until Tuesday morning, when we shall hear results from Bank of America, BNY Mellon, Charles Schwab, Lockheed Martin and Morgan Stanley.

Before U.S. markets open on Wednesday, these five companies are on tap to report quarterly results.
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ASML

Semiconductor manufacturing equipment maker ASML N.V. (NASDAQ: ASML) stock has added 65% to its share price over the past 12 months, including a year-to-date gain of more than 38%.

The Netherlands-based company is the sole manufacturer of a chipmaking technology known as immersion deep ultraviolet lithography. While the company is prohibited from selling the machines in China, new chipmaking plants in the United States and Europe are expected to more than make up for the lost Chinese revenue. At least, that seems to be the current betting line.

Of 33 analysts following the stock, 26 have a Buy or Strong Buy rating, and another six have Hold ratings. At a recent price of around $754.00 a share, the implied upside based on a median price target of about $842.00 is 11.4%. At the high price target of $1,067.00, the upside potential reaches 41.5%.

Analysts expect the company to report revenue of $7.52 billion for the June quarter, which would be up by about 2.8% sequentially and by 32.2% year over year. Adjusted earnings per share (EPS) are forecast at $5.16, down 3.8% sequentially but up 39.1% year over year. For the full 2023 fiscal year, analysts anticipate EPS of $21.11, up 39.5% year over year, on revenue of $29.78 billion, up 31.4%.

ASML stock trades at around 36.4 times expected 2023 EPS, 29.9 times estimated 2024 EPS of $25.73 and 23.6 times estimated 2025 earnings of $32.56 per share. Its 52-week trading range is $363.15 to $771.98. The high was posted last Friday. The company pays an annual dividend of $9.96 per share (yield of 1.32%). Total shareholder return for the past 12 months was 66.5%.

Baker Hughes

Oilfield services firm Baker Hughes Co. (NASDAQ: BKR) has seen a share-price gain of more than 30% over the past year, with more than half that gain coming since the firm reported first-quarter results.

That report in April noted that orders for oilfield services and equipment rose by more than 25% in the first quarter, more than offsetting a decline of 1% in industrial and energy technology orders. CEO Lorenzo Simonelli noted at the time a shift toward development of natural gas and liquefied natural gas. Investors are expecting good news on that front.
Analysts remain mostly bullish Baker Hughes, with 22 of 28 having a Buy or Strong Buy rating. Five more rated the stock at Hold. At a share price of around $34.40, the upside potential based on a median price target of $38.00 is about 9.5%. At the high price target of $43.00, the implied upside is 25%.
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The consensus second-quarter revenue estimate is $6.26 billion, up 9.6% sequentially and by almost 24% year over year. Adjusted EPS are forecast to rise sequentially by 19.3% and from $0.11 in the year-ago quarter to $0.33. For the full 2023 fiscal year, analysts forecast EPS up 69.8% to $1.53 on sales of $25.33 billion, up 19.7%.

Baker Hughes stock trades at 22.5 times expected 2023 EPS, 16.9 times estimated 2024 earnings of $2.03 and 14.1 times estimated 2025 earnings of $2.43. Its 52-week range is $20.41 to $34.92. Baker Hughes pays an annual dividend of $0.76 (yield of 2.19%). Total shareholder return for the past year was 34%.

Goldman Sachs

Goldman Sachs Group Inc. (NYSE: GS) is not expected to have much good news to reveal in its second-quarter earnings report. The sharp drop in mergers and acquisitions hits Goldman’s investment banking business especially hard, and trading revenue likely will be lower than in the first quarter as well. Add to that writedowns for acquisitions and real estate loan losses, and the forecast weakens even more.

About the best the bank will be able to do is manufacture a bitter pill that includes all the bad news and declare that it is all in the rearview mirror and the future is so bright you gotta wear shares.

Of the 25 analysts covering the stock, 16 have a rating of Buy or Strong Buy and eight more have Hold ratings. At a share price of around $326.00, the upside potential based on a median price target of $380.00 is 16.6%. At the high price target of $450.00, the implied upside is 38%.

Second-quarter revenue is forecast to come in at $110.73 billion, down 12.2% sequentially and a drop of 9.5% year over year. Adjusted EPS are forecast at $4.04, down 54.2% sequentially and 47.7% lower year over year. Estimates for the 2023 fiscal year call for revenue of $46.14 billion, down 2.6%, and EPS of $27.48, down 8.6%.

The stock trades at 11.9 times expected 2023 EPS, 8.9 times estimated 2024 earnings of $36.51 and 8.0 times estimated 2025 earnings of $40.93 per share. The 52-week trading range is $285.15 to $389.58. Goldman Sachs pays an annual dividend of $10.00 (yield of 3.07%). Total shareholder return for the past 12 months was 19.22%.

Halliburton

Oilfield services firm Halliburton Co. (NYSE: HAL) has seen its share price rise by nearly 35% over the past 12 months, including a year-to-date decline of about 6.3%. Over the past six months, shares are down 13.5%.
Since late April, nine analysts have either maintained or raised their ratings on Halliburton stock to the equivalent of Buy or Strong Buy. As is the case with Baker Hughes, drilling activity has picked up, and the company’s order book for well completions rose by 40% in the first quarter.
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Of 28 analysts covering the company, 27 have a Buy or Strong Buy rating, and the other one rates the shares a Hold. At a price of around $37.00 a share, the upside potential based on a median price target of $46.50 is about 25.7%. At the high target of $58.00, the implied gain is about 56.8%.

Second-quarter revenue is forecast to come in at $5.86 billion.  That would be up about 3.2% sequentially and by 15.6% year over year. Adjusted EPS are forecast at $0.75, up 3.7% sequentially and 53.1% higher year over year. For the full 2023 fiscal year, analysts expect EPS of $3.07, up 42.6%, on sales of $23.67 billion, up 16.6%.

Halliburton stock trades at 12.0 times expected 2023 EPS, 10.4 times estimated 2024 earnings of $3.54 and 9.5 times estimated 2025 earnings of $3.89 per share. The stock’s 52-week range is $23.30 to $43.42, and the company pays an annual dividend of $0.64 (yield of 1.73%). Halliburton’s total shareholder return for the past year was 37.21%.

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U.S. Bancorp

U.S. Bancorp (NYSE: USB) is the country’s largest regional bank (and the fifth largest of all banks) and operates more than 2,200 locations in the West and Midwest. The bank’s share price has dropped by more than 20% in the past 12 months, including a 25% drop over the past six months.

That drop was due, of course, to the collapse of three other regional banks and the fallout from Berkshire Hathaway’s dumping all its shares in the bank. U.S. Bancorp expects to complete the integration of recently acquired Union Bank by the end of the year. That is forecast to add 8% to the company’s earnings.

Analysts are being cautious and have adopted a wait-and-see attitude on the stock, with 12 of 26 having a Hold rating and 13 with Buy or Strong Buy ratings. At a share price of around $35.00, the upside potential based on a median price target of $42.00 is 20%. At the high target of $70.00, the upside potential is 100%.

The consensus second-quarter revenue estimate is $7.18 billion, up 0.5% sequentially and by 20,0% year over year. Adjusted EPS are estimated to come in at $1.10, up 5.6% sequentially and 9.0% higher year over year. Analysts are looking for full-year revenue of $28.74 billion, up 18.9%, and EPS of $4.48, up 21.6%.

The stock trades at 7.9 times expected 2023 EPS, 7.7 times estimated 2024 earnings of $4.60 and 7.7 times estimated 2025 earnings of $4.59 per share. The 52-week range is $27.27 to $59.95. U.S. Bancorp pays an annual dividend of $1.92 (yield of 5.43%). Total return for the past year was negative 15.97%.

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