Earnings Previews: Albermarle, MGM Resorts, Occidental Petroleum, PayPal, Qualcomm

After U.S. markets closed on Monday, Diamondback Energy reported revenue that beat Wall Street estimates by 1.2% and fell more than 30% year over year. Earnings per share (EPS) came in 5.1% below consensus and 47.9% below year-ago EPS. The stock traded down 1.2% Tuesday morning.

Before markets opened on Tuesday, BP missed the consensus EPS and revenue estimates. A dividend increase and a new buyback program softened the bad news. The stock traded down 0.8%.

Caterpillar beat estimates on both the top and bottom lines. The shares appear headed for a new all-time high. Caterpillar’s stock traded up 7.5% in mid-morning action Tuesday.

Enterprise Products missed estimates on both the top and bottom lines. Shares traded down 1.1%.

Pfizer beat the consensus EPS estimate by 17.5%, but profits per share were lower by 67% year over year. Revenue also missed the consensus estimate and dropped by 54% year over year. Shares traded up 1.1%.

Uber posted a solid EPS beat and missed slightly on revenue. Shares traded down 5.5%.

After U.S. markets close on Tuesday, AMD, Devon Energy, Starbucks and Virgin Galactic will release earnings results. Then the following morning, look for reports from  Cameco, CVS Health and Kraft Heinz.

Here is a preview of what to expect from five companies reporting results after Wednesday’s closing bell.

ALSO READ: 7 Sizzling Old-School Dividend Tech Stocks Set to Soar for the Rest of 2023

Albemarle

Albemarle Corp. (NYSE: ALB) has regained some of its mojo after sinking to a 52-week low in April following the Chilean government’s announcement that it would assume a controlling interest in the country’s lithium mining operations. Albemarle’s stock remains down about 13% over the past 12 months, but most of that decline was absorbed in the last half of 2022. Lithium prices have bounced a little higher but remain 45% below their level of one year ago. So far, rising demand has not led to higher prices, likely due to high prices for electric vehicles.

Analysts are mostly bullish on Albemarle. Of 26 brokerages covering the stock, 19 have a Buy or Strong Buy rating, and five more have Hold ratings. At a recent price of around $212.00 a share, the implied gain based on a median price target of $275.00 is 29.7%. Based on the high price target of $360.00, the upside potential is about 69.8%.

Second-quarter revenue is forecast at $2.39 billion, which would be down 7.2% sequentially but up 61.4% year over year. Adjusted EPS are forecast at $4.52, down 56.2% sequentially and up 31.0% year over year. For the full 2023 fiscal year, analysts expect Albemarle to report EPS of $23.17, up 5.5%, on sales of $10.05 billion, up 37.2%. Albemarle posted nearly half of the fiscal year’s forecast EPS in the first quarter.

Albemarle stock trades at 9.2 times expected 2023 EPS, 9.5 times estimated 2024 earnings of $22.29 and 9.5 times estimated 2025 earnings of $22.28 per share. Its 52-week trading range is $171.82 to $334.55. Albemarle pays an annual dividend of $1.60 (yield of 0.77%). Total shareholder return over the past year was negative 12.54%.

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