After U.S. markets closed on Tuesday, Alphabet beat estimates on both the top and bottom lines. Shares traded up 6.6% shortly after the market opened on Wednesday.
Microsoft also beat both earnings per share (EPS) and revenue estimates. The company noted that the promise of AI will take time to become a reality. That was enough to slice 3% from the share price Wednesday morning.
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Visa made it a clean sweep, also beating EPS and revenue estimates. The stock traded down about 0.5%.
Before markets opened 0n Wednesday, AT&T beat the consensus EPS estimate but fell short on revenue. Even a forecast for $1 billion less in capital spending during the second half of the year was not enough to boost investors’ spirits. Shares traded down about 1.4%.
Boeing posted better than expected earnings and revenue. Revenue was up 18% year over year, and the loss per share was smaller than forecast. The company also said that the economic recovery is here to stay. Shares traded up 6.6%.
Coca-Cola also beat on both the top and bottom lines. Warren Buffett’s favorite soft drink company also issued inline guidance. Shares traded about flat.
Mattel, Meta Platforms and ServiceNow are scheduled to report quarterly earnings after U.S. markets close on Wednesday, while AbbVie, Comcast and Valero Energy are on deck to report results the following morning.
Here is a look at four companies scheduled to share their quarterly results later on Thursday.
Ford
Ford Motor Co. (NYSE: F) stock has added nearly 6% over the past 12 months, including a gain of nearly 17% so far in 2023. That’s pretty good, considering. And what investors have to consider is the company’s plans versus the dividend Ford now pays.
Last week, Ford said it planned to triple the production rate of its F-150 Lightning EV and sell it for around $40,000. There go the fat profits, and with them, investors believe, hopes for higher dividends. The scheme worked for Tesla, but can Jim Farley make it work for Ford? The day the company announced its plan, Ford’s market value dropped by $3.6 billion.
Analysts remain cool to the stock, with nine of 22 brokerages having a Hold rating and nine more a Buy or Strong Buy rating. At a recent price of around $13.60 a share, the implied gain based on a median price target of $14.00 is 2.9%. At the high price target of $22.00, the upside potential is 61.7%.
Ford’s Second-quarter revenue is forecast at $41.32 billion, which would be up 5.7% sequentially and by 9.0% year over year. Adjusted EPS are forecast at $0.54, down 14.9% sequentially and by 20.6% year over year. For the full 2023 fiscal year, consensus estimates call for EPS of $1.89, up 0.4%, on sales of $161.65 billion, up 8.5%.
Ford stock trades at 7.2 times expected 2023 EPS, 7.5 times estimated 2024 earnings of $1.82 and 6.8 times estimated 2025 earnings of $2.00 per share. Its 52-week trading range is $10.90 to $16.68. Ford pays an annual dividend of $0.60 (yield of 4.26%). Total shareholder return for the past year was 17.44%.
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Intel
Shares of Intel Corp. (NASDAQ: INTC) have added 29% so far in 2023 but remain down nearly 13% for the past 12 months. While Intel’s latest multiyear roadmap offered some upside, the company still has to deliver. That could be difficult given the rush of investment into AI-related graphics processors (GPUs) such as Nvidia’s. There is a good chance that server sales will suffer as Intel customers are forced to choose. And then there is more competition coming in the server market. The big question is whether Intel can be competitive in this environment.
Of 44 analysts covering the stock, just 10 have a Buy or Strong Buy rating. There are 27 Hold ratings, and the other seven analysts rate Intel at Sell or Strong Sell. At a share price of around $34.00, the stock has outrun its median price target of $32.00. At the high target of $45.00, the implied upside is about 32.4%.
First-quarter revenue is forecast at $12.14 billion, up 3.6% sequentially but down 20.8% year over year. Analysts are also looking for an adjusted loss per share of $0.03, a penny less than the previous quarter and down from EPS of $0.29 in the second quarter of 2022. For the 2023 fiscal year, Intel is expected to report EPS of $0.41, down 77.5%, on sales of $51.34 billion, down 18.6%.
Intel stock trades at 82.2 times expected 2023 EPS, 19.6 times estimated 2024 earnings of $1.74 and 14.2 times estimated 2025 earnings of $2.41 per share. The 52-week trading range is $24.59 to $40.42. Intel pays an annual dividend of $0.50 (yield of 1.45%). Total shareholder return over the past year is negative 9.4%.
24/7 Wall St.T-Mobile
T-Mobile US Inc. (NASDAQ: TMUS) posted its all-time high in early November. Since then, shares have slipped by about 6.5%. Yet the company has beaten EPS expectations for 16 consecutive quarters even as sales have stagnated.
T-Mobile has battled its larger rivals on price, and that has led to the company’s much higher total of net new subscribers compared to AT&T and Verizon. T-Mobile has said it expects to have 7 million to 8 million 5G fixed broadband subscribers by 2025, up from around 2.5 million at the end of last year. The company got a scare in June following reports that Amazon was thinking of entering the wireless market
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Analysts are solidly bullish on the stock, with 29 of 31 having a Buy or Strong Buy rating and the others have Hold ratings. At a share price of around $142.50, the implied gain based on a median price target of $175.50 is about 23.2%. At the high target of $225.00, the implied gain is 28.2%.
Second-quarter revenue is forecast at $19.38 billion, down 1% sequentially and by 1.6% year over year. Adjusted EPS are pegged at $1.74, down 7% sequentially and 10.3% lower year over year. For the full 2023 fiscal year, analysts have forecast EPS of $7.49, up 12.1%, on sales of $79.42 billion, down 0.2%.
T-Mobile stock trades at 19.0 times expected 2023 EPS, 14.1 times estimated 2024 earnings of $10.07 and 11.1 times estimated 2025 earnings of $12.84 per share. The 52-week range is $142.47 to $154.38 a share. The company does not pay a dividend, and total shareholder return for the past 12 months was 5.88%.
U.S. Steel
Over the past 12 months, shares of United States Steel Corp. (NYSE: X) have added more than 25%, including a decline of more than 11% over the past 6 months. Steel rebar prices have dropped by around 8.5% in the past year and by around 36% since mid-March. The company released second-quarter adjusted EPS guidance last month to a range of $1.81 to $1.86. When it reported first-quarter results in March, EPS guidance was $0.58 to $0.63. U.S. Steel said higher realized selling prices for flat-rolled steel and reduced costs contributed to the upside news.
Of 12 brokerages covering the shares, only two have a Buy or Strong Buy rating. Another eight rate the stock at Hold. At a share price of around $25.00, the stock trades right at its median price target. At the high target of $37.00, the upside potential is 48%.
Second-quarter revenue is expected to come in at $4.94 billion, up 10.5% sequentially but 21.5% lower year over year. Adjusted EPS are forecast at $1.77, up 130.4% sequentially and down 54.1% year over year. For the 2023 fiscal year, analysts expect U.S. Steel to post EPS of $4.13, down 58.5%, on sales of $18.18 billion, down 13.7%.
U.S. Steel stock trades at 6.1 times expected 2023 EPS, 11.9 times estimated 2024 earnings of $2.13 and 7.8 times estimated 2025 earnings of $3.26 per share. The 52-week trading range is $17.89 to $31.55, and the company pays an annual dividend of $0.20 (yield of 0.78%). Total shareholder return for the past 12 months was 26.45%.
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