Earnings Previews: BP, Caterpillar, Enterprise Products, Diamondback Energy, Pfizer
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.
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.
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