Earnings Previews:\u00a0IBM, Kinder Morgan, Las Vegas Sands, Tesla
In early trading on Tuesday, the Dow Jones industrials were down 0.14% while the S&P 500 was up 0.31% and the Nasdaq 0.46% higher.
Before markets opened on Tuesday, Bank of America reported better-than-expected earnings per share (EPS) and revenue. Net interest income rose 25% year over year, while deposits declined by just 1%. Shares traded flat early Tuesday.
Goldman Sachs beat analysts’ consensus EPS estimate but missed on revenue. The bank’s global banking and markets segment posted lower revenue that was only partially offset by higher revenue in the asset and wealth management and platform solutions segments. Shares traded down 2.6% shortly after the opening bell.
BNY Mellon beat the consensus EPS estimate by a penny and missed the revenue estimate. Shares traded down 0.5%.
Ericsson missed the consensus EPS estimate but did beat revenue expectations. Sales in developed markets declined but were stronger in developing economies like India. The stock traded down about 6.4%.
Johnson & Johnson beat estimates on both the top and bottom lines. The company also raised fiscal 2023 EPS and revenue guidance. Shares traded down 2.6%.
Lockheed Martin beat both top-line and bottom-line estimates and reaffirmed full-year EPS and revenue guidance. The stock traded up 3.2% Tuesday morning.
After U.S. markets close Tuesday, Netflix, United Airlines and Western Alliance Bancorp are on deck to post quarterly results. Look for reports from Abbott Labs, ASML, Baker Hughes and Morgan Stanley the following morning.
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Here are previews of four companies expected to share their results late on Wednesday.
Shares of International Business Machines Corp. (NYSE: IBM) have added 1% over the past 12 months. The stock has fallen more than 9% so far in 2023, however. Revenue expectations popped when Big Blue reported fourth-quarter earnings in January but EPS estimates declined. How the company navigated the economic headwind and how it views the rest of the year will be critical for investors’ reaction to first-quarter results.
Of 17 brokerages covering IBM, nine have a Hold rating and six rate the stock at Buy or Strong Buy. At a recent price of around $127.80 a share, the implied upside based on a median price target of $145.00 is about 13.5%. At the high price target of $162.00, the implied upside is 26.8%.
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