After U.S. markets closed on Tuesday, AMD beat both earnings per share (EPS) and revenue estimates and issued third-quarter guidance in line with Wall Street estimates. The chipmaker also said it expects current quarter data center and client revenue to grow by double digits while gaming and embedded segments weaken. Shares traded down 0.2% shortly after Wednesday’s opening bell.

Devon Energy met EPS expectations and beat the consensus revenue estimate by almost 6%. However, revenue was down 38.6% year over year for the quarter, and shares traded down 5.9%.

Starbucks beat the consensus EPS estimate but missed on revenue, which rose by 12.5% year over year. The stock traded down 0.8%.

Virgin Galactic also beat the EPS estimate and missed on revenue. The company issued downside revenue guidance for the current and next quarters as well. The stock traded down 4.8%.

Before markets opened on Wednesday, Cameco reported a smaller loss per share than expected but missed the consensus revenue estimate. Revenue fell 13.6% year over year. Shares traded down 4.3%.

CVS Health beat estimates on both the top and bottom lines and reaffirmed fiscal 2023 EPS guidance. The stock traded up about 1% early Wednesday.

Kraft Heinz missed the consensus revenue estimate by about 1.1% and beat on EPS. Revenue rose 2.5% year over year. Shares traded essentially unchanged.

Albermarle, MGM Resorts, Occidental Petroleum, PayPal and Qualcomm will report quarterly results after markets close on Wednesday. The following morning, AB-InBev, ConocoPhillips and Warner Bros. Discovery are on deck to report quarterly earnings.

Here is a preview of what to expect from three companies reporting results after U.S. markets close on Thursday.

Airbnb

Over the past 12 months, shares of vacation rental provider Airbnb Inc. (NASDAQ: ABNB) have increased by nearly 34%. Since the beginning of the year, they are up more than 74%. The company has surpassed revenue estimates in two of the past three quarters, but total revenue has declined. EPS has beaten estimates in eight consecutive quarters. But the bar had been set lower in the past two quarters. Growth is expected to recover for the second quarter. If it does not, the stock could get hammered.

Of 44 brokerages covering the stock, 22 have a Hold rating and 17 have either a Buy or Strong Buy rating. At a recent price of around $149.00 a share, the stock has outrun the median price target of $136.00. At the high price target of $185.00, the upside potential is 24.2%.

Second-quarter revenue is forecast at $2.42 billion, which would be up 33.0% sequentially and by 15.2% year over year. Airbnb is expected to post EPS of $0.89, up more than 300% sequentially and 21.5% higher year over year. For the full 2023 fiscal year, analysts are looking for EPS of $3.81, up 31%, on revenue of $9.55 billion, up 13.7%.

Airbnb stock trades at 39.1 times expected 2023 EPS, 36.2 times estimated 2024 earnings of $4.65 and 31.3 times estimated 2025 earnings of $4.75 per share. Its 52-week trading range is $81.91 to $154.95. The company does not pay a dividend, and total shareholder return over the past year was 33.91%.

Amazon

Since falling to a new 52-week low in the first week of 2023, shares of Amazon.com Inc. (NASDAQ: AMZN) have added more than 55%. Over the past 12 months, however, shares remain down by about 3%.
The company’s e-commerce business has been losing money, and Amazon has been living off its AWS cloud computing service. Its experiment with automated stores (Amazon Fresh and Amazon Go) has not turned the tide in the grocery business, and more store staff was fired last week. Investors probably will be looking for more layoffs and wringing more money out of Prime subscribers to get the e-commerce business back on track.

Analysts remain strongly bullish on Amazon stock. Of 54 ratings, 49 have a Buy or Strong Buy rating, and four others have Hold ratings. At a price of around $132.00 a share, the upside potential based on a median price target of $148.00 is 9.1%. At the high price target of $220.00, the upside potential is nearly 67%.

Analysts are looking for second-quarter revenue of $131.34 billion, up 3.1% sequentially and 8.3% higher year over year. Adjusted EPS are expected to be $0.34, up from 10.6% sequentially and up from a loss per share of $0.20 in the year-ago quarter. For the full 2023 fiscal year, Amazon is expected to post EPS of $1.61, compared to last year’s loss of $0.27 per share, on sales of $561.41 billion, up 9.2%.

Amazon stock trades at 80.5 times expected 2023 EPS, 50.0 times estimated 2024 earnings of $2.59 and 34.9 times estimated 2025 earnings of $3.71 per share. The 52-week trading range is $81.43 to $146.57. Amazon does not pay a dividend. Total shareholder return over the past 12 months was negative 4.34%.

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Apple

Apple Inc. (NASDAQ: AAPL) remains the world’s most valuable company, with a market cap of about $3.09 trillion, more than $600 billion above second-place Microsoft. Over the past 12 months, Apple shares have added more than 21%, and since the beginning of the year, the stock has added more than 81%.

Sales dropped sharply in the March quarter and year-over-year sales totals have fallen in two consecutive quarters. That streak is expected to continue with this report. What is likely to matter most is the company’s outlook. A new iPhone and smartwatch are coming. But what else?

Of 46 analysts covering Apple, 31 have a Buy or Strong Buy rating, and another 12 rate the stock at Hold. At a share price of around $195.60, the stock trades just above its median price target of $195.00. At the high price target of $240.00, the upside potential is 22.7%.

Analysts anticipate that Apple’s quarterly revenue will come in at $81.86 billion, down 13.7% sequentially and 1.3% lower year over year. Adjusted EPS are expected to come in at $1.19, down 21.4% sequentially and down a penny year over year. For the 2023 fiscal year that ends in September, analysts expect the company to report EPS of $5.97, down 2.3%, on sales of $384.86 billion, down 2.4%.

Apple stock trades at 32.8 times expected 2023 EPS, 29.8 times estimated 2024 earnings of $6.57 and 26.9 times estimated 2025 earnings of $7.27 per share. The 52-week range is $124.17 to $198.23. Apple pays an annual dividend of $0.96 (yield of 0.49%). Total shareholder return for the past 12 months was 21.83%.

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