Earnings Previews: GE, Raytheon, Tesla, 3M, UPS
This week of June-quarter earnings results ends with Friday morning’s reports from, among others, American Express, Honeywell and Schlumberger. A relatively small number of reports continued the trend of most companies beating estimates.
One of the stars of Thursday afternoon’s earnings reports was Snap. The company reported revenue up 91% year over year and 16% better than analysts’ estimate. Here are more comments on ratings and price target changes.
No earnings reports are due out Friday afternoon, as usual, and we already have previewed three companies reporting results Monday morning: Alliance Resource Partners, Lockheed Martin and Otis Worldwide.
Here’s a look at one company that will be reporting results after markets close on Monday and four more due to report results before Tuesday’s opening bell.
Shares of electric vehicle maker Tesla Inc. (NASDAQ: TSLA) have doubled in value over the past 12 months, even though the shares trade down almost 10% for the year to date. The stock reached an all-time high above $900 in late January, right in step with the first burst of giant gains for meme stocks like AMC and GameStop.
The company already has released delivery data for the second quarter, but investors are going to want to hear about how chip shortages will affect deliveries in the second half of the year and how Tesla expects to perform in the increasingly competitive EV market. The company reports second-quarter results after markets close Monday.
There are 31 surveyed analysts covering the stock, and their ratings are definitely mixed. An equal number (12) rate the shares a Buy or Strong Buy and at Hold. At a recent price of around $639.20, the upside potential based on a median price target of $701.50 is 9.7%. At the high target of $1,200, the potential upside is nearly 88%.
Analysts expect Tesla to report second-quarter revenue of $11.4 billion, up about 8.8% sequentially and 89% higher year over year. Adjusted earnings per share (EPS) are forecast at $0.98, up about 5.4% sequentially and 122.7% year over year. For the full year, the company is expected to report EPS of $4.54, up 103% year over year, on a revenue increase of about 58% to $49.11 billion.
Tesla trades at a multiple of 144.4 times to expected 2021 EPS, 99.4 times estimated 2022 earnings and 81 times estimated 2023 earnings. The stock’s 52-week range is $273.00 to $900.40. The company does not pay a dividend.
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