About 90 minutes after Friday’s opening bell, the Dow Jones industrials traded 0.09% higher, while the S&P 500 was down 0.1% and the Nasdaq down 0.66%. China’s top-tier e-commerce companies were dragging the Nasdaq lower.
After markets closed Thursday, Cloudflare beat earnings per share (EPS) and revenue estimates. The cybersecurity company also issued first-quarter and full-year guidance in line with expectations. Shares traded up about 3% Friday morning.
Lyft posted a net loss of $0.76 per share, while analysts had projected EPS of $0.13. Even worse, the company said it expects EBITDA of between $5 million and $15 million in the current quarter. Analysts had forecast $83.6 million. The stock was down about 35.6%.
PayPal beat the consensus EPS estimate but missed on revenue by about $10 million, or about 0.013%. The payment provider also raised fiscal year EPS guidance and expects current-quarter revenue to close above the average analyst estimate. Shares traded up 2.8%.
Before markets opened on Friday, Enbridge missed the consensus EPS estimate. The Canada-based firm also raised its annual dividend to CAD$3.55 and reaffirmed previous 2023 guidance. Shares traded up 1.5%.
After U.S. markets close on Monday, Palantir Technologies and Vornado Realty Trust will report their quarterly results.
Here is a look at what to expect from three firms reporting earnings first thing Tuesday morning.
Cleveland-Cliffs
Shares of iron ore miner and steelmaker Cleveland-Cliffs Inc. (NYSE: CLF) have dropped by about 7% since posting a 52-week high last April. That is a 40% jump since putting up a 52-week low in early November. Iron ore prices have risen by around 56%, and steel prices are up almost 16% since posting annual lows at the same time.
Earlier this week, the company raised prices for certain steel products by a minimum of $50 a ton after raising prices on hot-rolled steel a few weeks ago by $850 a ton. Cliffs has set a 2023 price of $1,400 a ton for a mix of hot-rolled, cold-rolled and coated steel products for automakers, a price jump of $1,300 per ton compared to the 2022 price.
Of 12 brokerages covering the stock, five have a Buy or Strong Buy rating and six rate the shares at Hold. At a recent price of around $19.50 a share, the implied gain based on a median price target of $21.75 is 11.5%. At the high price target of $27.00, the upside potential is 38.5%.
Analysts forecast second-quarter revenue of $5.22 billion, which would be down 7.7% sequentially and by 2.4% year over year. Analysts are forecasting an adjusted loss per share of $0.28, down from EPS of $0.29 sequentially and from $1.76 in the year-ago quarter. For the full 2022 fiscal year, analysts expect Cliffs to report EPS of $2.90, down nearly 50%, on sales of $23.1 billion, up nearly 13%.
The stock trades at about 6.7 times expected 2022 EPS, 10.2 times estimated 2023 earnings of $1.90 and 8.2 times estimated 2024 earnings of $2.36 per share. The stock’s 52-week trading range is $11.82 to $34.04, and the company does not pay an annual dividend. Total shareholder return over the past year was negative 7.2%.
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