Earnings Previews: Alphabet, AMD, GM, PayPal, Starbucks
U.S. equity markets opened mixed on Monday, with the Dow Jones industrials lagging and the tech-heavy Nasdaq adding about 1.5% in the early going. The blue-chippers were weighed down by Dow (the chemicals company), Visa, Caterpillar and Walgreens.
In earnings reports released Monday morning, defense contractor L3Harris beat on profits but missed on sales and issued downside guidance for the current fiscal year. Citrix reported a beat on both the top and bottom lines but has accepted an offer to be taken private for $13 billion, a price that some investors think is not enough.
After markets close Monday and before they open on Tuesday, these five firms are set to share quarterly results: Enterprise Products, Exxon Mobil, NXP Semiconductors, Sirius XM and UPS.
Here is a look at five firms scheduled to report results after markets close Tuesday afternoon.
Alphabet
The parent of Google, Alphabet Inc. (NASDAQ: GOOGL), like many other big-name tech stocks, is trying to recover from a slide that began in mid-November and picked up speed in late December. Over the past 12 months, the stock has posted a gain of more than 46%, including a drop of 15% between mid-November and last week. Perhaps the biggest challenge to Alphabet’s business remains proposed changes to European and U.S. regulations on how user data is collected and used.
Analysts, however, remain universally bullish on the stock. Of 47 ratings, 46 give the stock a Buy or Strong Buy rating and the other has a Hold rating on the shares. At a recent price of around $2,670.20 a share, the upside potential based on a median price target of $3,374 is 26.4%. At the high price target of $3,800, the upside potential is 42.3%.
Fourth-quarter revenue is forecast at $71.87 billion, which would be up 10.4% sequentially and 26.3% higher year over year. Adjusted earnings per share (EPS) are pegged at $27.19, down 2.9% sequentially but up 22% year over year. For the full 2021 fiscal year, current consensus estimates call for EPS of $103.38, up almost 85%, on revenue of $254.16, up 39.2%.
Alphabet stock trades at about 224.6 times expected 2021 EPS, 23.3 times estimated 2022 earnings of $114.30, and 20.0 times estimated 2023 earnings of $173.55. The stock’s 52-week range is $1,844.59 to $3,019.33. The company does not pay a dividend, and the total shareholder return for the past 12 months is 45.9%.
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