Earnings Previews: American Airlines, Freeport-McMoRan, Newmont, Taiwan Semiconductor

Before U.S. markets opened on Tuesday, Bank of America beat consensus estimates on both the top and bottom lines. Profit rose by 20% year over year, and revenue was up more than 11%. Shares were up about 4.2% shortly in mid-morning trading Tuesday.

Morgan Stanley also beat consensus estimates for quarterly revenue and earnings per share (EPS). Profits were lower year over year, but revenue rose by 2.3%. Shares traded up 6.6%.

Bank of New York Mellon also topped revenue and EPS estimates. Revenue reached a record high, but investors did not approve of the decline in net interest margin. Shares traded up 2.3% in Tuesday’s regular session.

Charles Schwab touted its $180 billion in new assets and 1 million new accounts during the quarter, but revenue was down 8.6% year over year even though it beat expectations. EPS was also above estimates. The stock traded up 12.3%.

Lockheed Martin also beat top-line and bottom-line estimates. The country’s largest defense contract raised fiscal year EPS and revenue guidance. Shares traded down 0.2%.

There are no notable earnings reports due after markets close on Tuesday. Early Wednesday, ASML, Baker Hughes, Goldman Sachs, Halliburton and U.S. Bancorp will report quarterly results. Look for IBM, Kinder Morgan, Netflix and Tesla to post their results later that day.

These three companies are on deck to report quarterly results before first thing Thursday morning.

American Airlines

Over the past 12 months, American Airlines Group Inc. (NASDAQ: AAL) has seen its share price increase by more than 25%. For the year to date, the stock is up almost 43%, including a drop of around 2% since rival Delta Air Lines reported second-quarter results last week.

That decline is still less than the drop of 3.4% in Delta’s stock, the 5.3% drop in United Airlines’ stock, or the 5.6% dip in Southwest Airlines’ stock since Delta’s reported a massive beat on earnings. United, which reports results late Wednesday, could turn sentiment around ahead of American’s report, but analysts do not appear to be expecting that. Worries about the global economy and continuing travel demand given higher ticket costs.

Analysts remain cautious on the stock. Of 21 brokerages covering it, 15 have a Hold rating and just four have Buy or Strong Buy ratings. At a recent share price of around $18.00, the implied upside based on a median price target of $19.00 is 5.6%. At the high target of $29.00, the upside potential is 61.1%.