Earnings Previews: American Express, CSX, Intuitive Surgical, Schlumberger (Plus a Carvana Surprise)

Analysts remain lukewarm on American Express stock. Of 26 brokerages covering it, 13 have a Hold rating and another 10 have Buy or Strong Buy ratings. At a recent price of around $178.00 a share, the implied gain based on a median price target of $185.00 is about 3.9%. At the high price target of $206.00, the upside potential rises to 15.7%.

Second-quarter revenue is forecast to increase sequentially by about 7.6% to $15.36 billion. That would be a jump of about 14.7% year over year. Adjusted EPS are pegged at $2.82, up 17.3% sequentially and by about 10% year over year. For the full 2023 fiscal year, analysts are looking for EPS of $11.04, up 12%, on revenue of $61.23 billion, up 15.8%.

The stock trades at 16.1 times expected 2023 EPS, 14.4 times estimated 2024 earnings of $12.34 and 12.9 times estimated 2025 earnings of $13.82 per share. Its 52-week trading range is $130.65 to $182.15, and American Express pays an annual dividend of $2.40 (yield of 1.38%). Total shareholder return for the past 12 months was 26.9%.

CSX

Shares of railroad operator CSX Corp. (NYSE: CSX) have risen by about 17% over the past 12 months, including a gain of nearly 9% so far in 2023. Since posting a recent low shortly after reporting first-quarter results, CSX stock has gained about 6.5%. The company has completed 10 union sick-leave agreements with its workers, up from four at the end of the March quarter. Nearly all the railroad’s employees are now entitled to paid sick-leave benefits. CSX reports earnings after Thursday’s closing bell.

Analysts are mostly bullish on the stock, with 20 of 29 having a Buy or Strong Buy rating and nine more rating it at Hold. At a trading price of around $34.00, the upside potential to a median price target of $37.00 is about 8.8%. At a high price target of $40.00, the upside potential rises to 17.6%.

For the second quarter, analysts have forecast revenue at $3.73 billion, up 0.7% sequentially but down 2.1% year over year. Adjusted EPS are forecast at $0.49, up 2.8% sequentially and 3.9% lower year over year. For the full fiscal year, analysts are looking for EPS of $1.93, up 2%, on revenue of $14.8 billion, down 0.4%.

CSX stock trades at 17.5 times expected 2023 EPS, 16.2 times estimated 2024 EPS of $2.08 and 14 times estimated 2025 earnings of $2.41 per share. Its 52-week range is $25.80 to $34.71. The company pays an annual dividend of $0.44 (yield of 1.3%). Total shareholder return over the past year was 18.64%.

Intuitive Surgical

Shares of Intuitive Surgical Inc. (NASDAQ: ISRG) have risen by 72% over the past 12 months, with nearly half the gain coming since the beginning of the year. Look for its quarterly report late on Thursday.

The company makes medical equipment that performs complex surgical procedures with minimal physical invasiveness. Its da Vinci surgical system has performed more than 10 million surgical procedures since its introduction in 1999. The company’s fortunes slid during the COVID-19 pandemic, but a resurgence in demand for elective surgery has boosted the company’s top and bottom lines.

Analysts remain upbeat, if not exactly bullish, on the stock, with 17 of 28 brokerages having a Buy or Strong Buy rating and another 10 rating it at Hold. At a share price of around $355.00, the stock has outrun its median price target of $321.50. At the high price target of $400.00, the upside potential is 11.3%.