After U.S. markets closed on Monday, Cadence Design beat consensus estimates on both the top and bottom lines. Fiscal year guidance was in line with expectations as well. Investors were clearly hoping for more, as the stock traded down 1.1% shortly before noon Tuesday.
Cleveland-Cliffs missed Wall Street’s earnings per share (EPS) estimate by a penny while beating the revenue forecast. Still, revenue was down about 5.6% year over year. Shares traded up 5.6%.
NXP Semiconductors beat top-line and bottom-line estimates. Guidance was in line with expectations, and the stock traded up about 4.5%.
Before markets opened on Tuesday, General Motors beat the consensus EPS and revenue estimates, with revenue up 25% year over year in the quarter. The automaker raised fiscal 2023 EPS guidance from a range of $6.45 to $7.35 to a new range of $7.15 to $8.15. The company also offered long-term guidance, including doubling annual revenue to a range of $275 billion to $315 billion by 2025 and targeting EV production of 1 million annually in North America by the same year. Shares traded down about 4.3%.
General Electric beat estimates on both the top and bottom lines and also issued upside guidance for the 2023 fiscal year. EPS guidance rose from a prior range of $1.70 to $2.00 to a new range of $2.10 to $2.30. Shares traded up 5.9%.
GE HealthCare topped EPS and revenue estimates and issued in-line guidance. The stock traded down about 2%.
Verizon beat the EPS consensus but missed on revenue. Broadband net additions topped 400,000 for the third consecutive quarter, and wireless revenue rose 3.8% year over year. Verizon also affirmed fiscal 2023 EPS guidance of $4.55 to $4.85. Shares traded up 0.4%.
After markets close on Tuesday, Alphabet, Microsoft and Visa are scheduled to release earnings reports. AT&T, Boeing and Coca-Cola are expected to share their results first thing Wednesday morning. Look for reports from Mattel, Meta Platforms and ServiceNow later on Wednesday.
Here is a look at three companies set to report quarterly results early Thursday morning.
AbbVie
Pharmaceuticals giant AbbVie Inc. (NYSE: ABBV) has had a tough year. Shares have dropped by around 12% since January due in large part to the company’s loss of patent protection on its Humira drug. CEO Richard Gonzalez told The Wall Street Journal that if AbbVie could find “something that’s of interest,” we could expect the company to “act on that.” Act, here, means write a big check to acquire a company or a drug to plug the Humira hole. And it’s a big one: $20 billion in 2021 revenue and nearly $19 billion in 2022.
Brokerage firms have warmed up somewhat, with 15 of 29 having Buy or Strong Buy ratings and another 13 rating the stock at Hold. At a recent price of around $143.00 a share, the implied upside based on a median price target of $162.00 is 13.3%. At the high price target of $201.00, the implied gain is 40.6%.
Estimates for the second quarter call for revenue of $13.53 billion, which would be up 10.6% sequentially but down 7.2% year over year, while adjusted EPS are pegged at $2.80, up 13.9% sequentially and 16.9% lower year over year. For the full 2023 fiscal year, analysts anticipate EPS of $10.91, a drop of 20.8% year over year, and sales of $52.74 billion, down 9.2%.
AbbVie stock trades at 13.1 times expected 2023 EPS, 12.9 times estimated 2024 earnings of $11.08 and 11.8 times estimated 2025 earnings of $12.11 per share. Its 52-week trading range is $130.96 to $168.11, and AbbVie pays an annual dividend of $5.92 (yield of 4.16%). Total shareholder return over the past year was negative 0.12%.
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