After U.S. markets closed on Thursday, Ford beat estimates on both the top and bottom lines, posting a 12% year-over-year increase in revenue and a 5.9% increase in earnings per share (EPS). And even though the company raised its fiscal year adjusted EBIT and adjusted free cash flow estimates, the projected slower pace of EV adoption has weighed on investors’ sentiments. Shares slipped 3.3% in the first half hour of Friday’s regular trading session.

Intel also posted better-than-expected EPS and revenue for the quarter. The big surprise was EPS of $0.13, much higher than the consensus estimate for a loss per share of $0.04. Server sales remain an issue, but the company said the outlook for PC sales remains positive in the long term and that demand for AI products and services is expanding. The stock traded up about 3.9%.

T-Mobile beat the consensus EPS estimate by 10% but missed on revenue. The company added 299,000 net new accounts and 1.6 million net new customers. For the full 2023 fiscal year, T-Mobile raised its guidance for net customer additions from a range of 5.3 million to 5.7 million to a new range of 5.6 million to 5.9 million. The shares traded up less than 1%.

U.S. Steel also fell short of the consensus revenue estimate but beat the EPS estimate by 7.3%. Revenue was down by more than 20% year over year. The stock traded down by about 1.7%.

Before markets opened on Friday, Chevron reported lower-than-expected EPS, while beating the revenue estimate by around 2%. Revenue was down 28.9% year over year. Chevron released these numbers earlier in the week. The stock traded down 0.9%.

Exxon Mobil reported a miss on EPS but beat the consensus revenue estimate by about 1.3%. Like Chevron, revenue was down more than 28% year over year. The stock traded down by 2.1% early Friday.

Procter & Gamble beat estimates on both the top and bottom lines and issued in-line guidance for its 2024 fiscal year. Shares of the Dow stock traded up by about 3.1%.

No notable earnings reports are due out Friday afternoon. Before markets open on Monday , ON Semiconductor and SoFi Technologies will be reporting earnings.

Here is a preview of what to expect from five companies reporting results either late Monday or early Tuesday.

BP

Shares of integrated oil supermajor BP PLC (NYSE: BP) have added 22% over the past 12 months, including a decline of more than 8% during the past three months. The share price dropped by 6% after BP reported first-quarter results. Lower crude prices led the company to reduce its guidance, causing investors to wonder if dividends and buybacks would also decline. Estimates for second-quarter revenue and EPS have fallen sharply since then, so if BP misses either estimate on Tuesday morning, the stock is likely to take another serious hit.

Of 19 brokerages covering BP, 12 have a Buy or Strong Buy rating and the others rate the stock at Hold. At a recent price of around $37.00 per American depositary share (ADS), they trade above their median price target of around $34.60. At the high price target of about $59.00, the upside potential is about 37.3%. One ADS is equal to six common shares traded in London.
The consensus estimate for second-quarter revenue is $54.79 billion, which would be down 2.5% sequentially and by 19.3% year over year. Adjusted earnings per ADS are forecast at $1.21, down 25.8% sequentially and by 53.6% year over year. For the 2023 fiscal year, analysts expect BP to report EPS of $5.69, down 34.1%, on sales of $217.84 billion, down 9.8%.

BP stock trades at 6.3 times expected 2023 EPS, 6.4 times estimated 2024 earnings of $5.76 and 6.5 times estimated 2025 earnings of $5.64 per ADS. Its 52-week trading range is $27.21 to $41.38. BP pays an annual dividend of $1.51 (yield of 4.08%). The total shareholder return for the past year was 33.01%.

Caterpillar

Shares of heavy equipment maker Caterpillar Inc. (NYSE: CAT) posted a 52-week high in late January, but the price has dropped by about 1.3% since then. The company’s 12-month return on capital employed is 21% and its free cash flow of $6.4 billion are both positives for investors. The negative is that the stock is expensive. Caterpillar reports results first thing Tuesday morning.

Of 29 brokerages covering the shares, 14 have a Hold rating, while another 12 have a Buy or Strong Buy rating. At a price of around $258.00 apiece, the shares have outrun their median price target of $255.00. At the high target of $351.00, the upside potential is 37.2%.

Caterpillar is expected to report second-quarter revenue of $16.53 billion, up 4.2% sequentially and 13.0% higher year over year. Adjusted EPS are forecast at $4.58, down 6.8% sequentially but up 44.0% year over year. For the full 2023 fiscal year, analysts are expecting EPS of $17.98, up 30%, on revenue of $65.42 billion, up 10.1%.

Caterpillar stock trades at 14.4 times expected 2023 EPS, 14.0 times estimated 2024 earnings of $18.45 and 12.7 times estimated 2025 earnings of $20.32. The 52-week trading range is $160.60 to $266.04. Caterpillar pays an annual dividend of $4.80 (yield of 2.01%). Total shareholder return for the past 12 months was 42.50%.

Enterprise Products Partners

Energy pipeline operator Enterprise Products Partners L.P. (NYSE: EPD) has posted a share price gain of about 1.6% over the past 12 months, including an 11.7% gain for the year to date. The company reports results Tuesday morning.

It is the largest oil and gas midstream (pipeline and infrastructure) company in the country, with a market cap of about $58.6 billion. The company’s payout ratio is nearly 75%, thanks in large part to its master limited partnership (MLP) structure. Enterprise’s guaranteed cash flows from long-term contracts are mostly insulated from commodity price swings, making Enterprise and its peers even more popular when times are bad.

Of the 21 brokerages covering the stock, 17 have a Buy or Strong Buy rating and the others have Hold ratings. At a share price of around $27.00, the implied upside based on a median price target of $32.00 is 18.5%. At the high target of $35.00, the upside potential on Enterprise stock is 19.6%.

Revenue for the first quarter is forecast at $12.32 billion, down about 1% sequentially and down 23.3% year over year. Adjusted EPS are forecast at $0.58, down 9.1% sequentially and byn9.4% year over year. For the full 2023 fiscal year, analysts expect to see $2.55 in EPS, up 1.3% year over year, on sales of $52.51 billion, a decrease of 9.8%.

Enterprise stock trades at 10.6 times expected 2023 EPS, 10.0 times estimated 2024 earnings of $2.68 and 9.7 times estimated 2025 earnings of $2.78. The 52-week trading range is $22.90 to $27.36, and the company pays an annual distribution of $2.00 (yield of 7.43%). Total shareholder return for the past 12 months was 11.50%.

Independent oil and gas producer Diamondback Energy Inc. (NASDAQ: FANG) has seen its share price rise by more than 17% in the past 12 months, including a gain of around 5.5% for the year to date. Diamondback reports second-quarter results after markets close on Monday.

The stock jumped in April when reports that Exxon might buy Pioneer Natural Resources led to speculation about Diamonback’s own potential as an acquisition target. Falling crude prices have cooled M&A prospects for now, but Diamondback, which holds a solid position in the Permian Basin, is a reasonable target for some of the big guys if crude prices rebound to north of $90 or so.

Analysts are strongly bullish on Diamondback, with 24 of 29 brokerages covering the stock having a Buy or Strong Buy rating. The other five rate it at Hold. At a share price of around $144.00, the upside potential based on a median price target of $165.00 is 14.6%. At the high price target of $207.00, the upside potential is 43.8%.

Second-quarter revenue is forecast at $1.89 billion, down 1.7% sequentially and down 31.8% year over year. Adjusted EPS are expected to come in at $3.89, down 5.2% sequentially and by 45.0% year over year. For the full 2023 fiscal year, analysts expect Diamondback to post EPS of $19.71, down 28.8%, on revenue of $7.93 billion, down 17.8%.

Diamondback stock trades at 8.5 times expected 2023 EPS, 7.4 times estimated 2024 earnings of $19.71 and 7.5 times estimated 2025 earnings of $29.45 per share. The 52-week trading range is $110.97 to $168.95. Diamondback pays an annual dividend of $9.09 (yield of 6.22%).

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Pfizer

Drugmaker Pfizer Inc. (NYSE: PFE) has posted a share price drop of 30% over the past 12 months, essentially all of it coming in 2023. Pfizer reports earnings before Tuesday’s opening bell.

Last week a tornado caused serious damage to the company’s drug manufacturing plant in North Carolina. The Federal Trade Commission also asked for more information related to Pfizer’s announced $43 billion acquisition of Seagen. The company’s revenue and profits have been distorted by the pandemic years when sales of its COVID-19 vaccine caused both revenue and profits to soar.

Of 26 analysts, 15 rate the Dow stock a Hold, while 11 have a Buy or Strong Buy rating. At a share price of around $36.00, the upside potential based on a median price target of $44.00 is 22.2%. At the high target of $75, the upside potential is 108.3%.

Second-quarter revenue is forecast at $13.46 billion, down 26.4% sequentially and 51.5% lower year over year. Adjusted EPS are pegged at $0.59, down 52.4% sequentially and by 71.1% year over year. For the full 2023 fiscal year, analysts expect Pfizer to report EPS of $3.30, down 49.8%, on sales of $67.35 billion, down 33.9%.

Pfizer stock trades at 11.0 times expected 2023 EPS, 10.3 times estimated 2024 earnings of $3.53 and 10.0 times estimated 2025 earnings of $3.62 per share. The 52-week range is $35.35 to $54.93. Pfizer pays an annual dividend of $1.64 (yield of 4.46%). Total shareholder return for the past 12 months was negative 26.75%.

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