Hundreds of earnings reports will be released this week. Among the most anticipated are reports from Tesla and Netflix. We will have coverage of these reports as they get closer. In this report, we look at a semiconductor equipment maker, a health care giant, one of the nation’s largest banks and the nation’s largest consumer products company.

Before U.S. markets opened on Monday, Charles Schwab reported earnings per share (EPS) that beat the consensus estimate. Revenue came in short, down 16.3% year over year. Shares traded up by about 1% shortly after Monday’s opening bell.

Albertsons, Bank of America, Goldman Sachs, Johnson & Johnson and Lockheed Martin will report quarterly earnings before U.S. markets open on Tuesday. Later on Tuesday, J.B. Hunt, Omnicom and United Airlines are expected to report results.

Here is a look at four notable reports on the earnings calendar for Wednesday morning.

ASML

Semiconductor manufacturing equipment maker ASML N.V. (NASDAQ: ASML) stock has added around 48% to its share price over the past 12 months. The share price has swung wildly in the past year, posting a 52-week high in July that was nearly $400.00 above its 52-week low posted last October 14.

The company’s extreme ultraviolet chipmaking machines are the world’s most advanced. That is a good thing, but it could be even better if sales of the machines to China will not be severely restricted beginning in January.

Of 38 analysts following the stock, 25 have a Buy or Strong Buy rating and another 11 have Hold ratings. At a recent price of around $601.00 a share, the implied upside based on a median price target of about $761.00 is 26.6%. At the high price target of $1,001.00, the upside potential reaches 66.6%.

Analysts expect the company to report revenue of $7.05 billion for the June quarter, which would be down by 6.4% sequentially and up 24.6% year over year. Adjusted EPS are forecast at $4.86, down 9.7% sequentially and up 15.7% year over year. For the full 2023 fiscal year, analysts anticipate EPS of $20.41, up 34.9% year over year, on revenue of $28.56 billion, up 26%.

ASML stock trades at around 29.6 times expected 2023 EPS, 26.5 times estimated 2024 EPS of $22.78 and 20.4 times estimated 2025 earnings of $29.57 per share. The 52-week trading range is $378.60 to $771.98. The company pays an annual dividend of $7.69 per share (yield of 1.28%). Total shareholder return for the past 12 months was 49.33%.

Elevance Health

Health benefits provider Elevance Health Inc. (NYSE: ELV) offers health insurance coverage and other services to companies and individuals. With a market cap of about $109 billion, it is among the 20 largest health care companies in the country. Since reporting second-quarter results in mid-July, Elevance shares have see-sawed in a narrow range and currently trade down about 3%. Profits and revenue have been growing at a steady, if moderate, pace.

Until June of 2022, Elevance was known as Anthem. The company continues to use the Anthem brand for its Blue Cross/Blue Shield plans.

Among 21 analysts covering the stock, 19 have a Buy or Strong Buy rating and two more rate it at Hold. The median price target is $566.50.00, and with shares trading near $461.00, the upside potential is 22.9%. At the high target of $629.00, the upside potential increases to 36.4%.

Third-quarter revenue is forecast to drop sequentially by 1.5% to $42.72 billion and to increase 7.8% year over year. Adjusted EPS are forecast at $8.46, down ‌6.4% sequentially and up 12.4% year over year. For the full 2023 fiscal year, analysts are looking for adjusted EPS of $32.92, up 13.3%, on revenue of $170.16 billion, up 9.3%.

Elevance stock trades at 13.9 times expected 2023 EPS, 12.4 times estimated 2024 earnings of $37.03 and 10.9 times estimated 2025 earnings of $42.12 per share. The 52-week trading range is $412.00 to $549.52, and the company pays an annual dividend of $5.92 (yield of 1.3%). Total shareholder return for the past 12 months was negative 2.24%.

Morgan Stanley

Morgan Stanley (NYSE: MS) has seen its share price decrease by about 1% over the past 12 months. Shares have lost around 7.66% so far in 2023. At best, analysts expect the bank to meet consensus estimates. The big bank’s shift to a focus on wealth management rather than trading has helped. Competition, however, remains fierce, and growing revenue in that environment will be difficult. Boosting profits will no get easier, either.

Sentiment remains bullish on the stock, with 15 of 26 brokerages assigning a Buy or Strong Buy rating. Another 10 have Hold ratings. At a share price of around $79.00, the upside potential based on a median price target of $95.00 is about 16.8%. At the high target of $112.00, the upside potential is 41.8%.

The consensus estimate for third-quarter revenue is $13.22 billion, down 1.7% sequentially and up 1.8% year over year. The adjusted EPS forecast of $1.31 would be down 8.6% sequentially and 15.0% lower year over year. For the full 2023 fiscal year, analysts are looking for revenue of $54.47 billion, up 1.5%, and EPS of $5.58, down 12.3%.

Morgan Stanley stock trades at 14.1 times expected 2023 EPS, 11.6 times estimated 2024 earnings of $6.78 and 10.1 times estimated 2025 earnings of $7.75 per share. The 52-week trading range is $74.83 to $100.99, and the bank pays an annual dividend of $3.40 (yield of 4.37%). Total shareholder return over the past year was 8.16%.

Procter & Gamble

Dow Jones industrial average stock Procter & Gamble Inc. (NYSE: PG) has posted a share price increase of 16.3% over the past 12 months. The shares have been somewhat volatile since the beginning of the year, dropping by 10% before rising by 15%. For the year to date, shares are trading down by about 1.3%. Like many other consumer staples companies, P&G has been able to raise its prices to help offset its rising costs. Those days may be ending, however.

Of 25 analysts covering the stock, 15 have a Buy or Strong Buy rating. Nine more have Hold ratings. At a share price of around $147.00, the upside potential based on a median price target of $166.00 is 12.9%. At the high price target of $179.00, the implied gain is 21.8%.

Analysts expect P&G to report fiscal 2024 first-quarter revenue of $21.59 billion, up 5.1% sequentially and 4.8% higher year over year. Adjusted EPS are pegged at $1.72, up 25.7% sequentially and by 9.6% year over year. For the full fiscal year ending in June, estimates call for EPS of $6.39, up 8.3%, on sales of $85 billion, up 3.7%.

P&G stock trades at 23.0 times expected 2024 EPS, 21.3 times estimated 2025 earnings of $6.88 and 19.8 times estimated 2026 earnings of $7.42 per share. The 52-week range is $124.77 to $158.38. P&G pays an annual dividend of $3.76 (yield of 2.6%). Total shareholder return for the past year was 20.42%.

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