In the first half-hour of trading Tuesday, the Dow Jones industrials were down 0.07%, the S&P 500 down 0.4% and the Nasdaq 0.51% lower.
After U.S. markets closed on Monday, First Republic Bank reported first-quarter results that wiped out a gain of more than 12% in the day’s regular trading session. Deposits dropped from $176.4 billion at the end of December to $104.5 billion at the end of March. Profits fell 33% year over year, and revenue fell by 13%. Shares traded down 28.2% Tuesday morning.
Cleveland-Cliffs beat estimates for both earnings per share (EPS) and revenue. The company said that its sales to automakers increased by 36% in the quarter, but revenue ended the period down 11.1% year over year. Even though the company expects “significant” EBITDA growth in the second quarter, investors were unconvinced. Shares traded down 2.9% early Tuesday.
Range Resources also beat estimates on both the top and bottom lines. Shares traded up 1%.
Before markets opened on Tuesday, General Electric beat both top-line and bottom-line consensus estimates. Revenue increased by 14.3% year over year, and the company issued in-line guidance for the full fiscal year. GE also raised the low end of its free cash flow estimate to $3.6 billion. Shares retreated 1.0 Tuesday morning.
UPS missed consensus EPS and revenue estimates and issued downside guidance for fiscal 2023. The package delivery giant cut its revenue estimate from a range of $97.0 billion to $99.4 billion to $97.0 billion, well short of the consensus estimate of $98.25 billion. UPS said it expects to spend $3 billion on share buybacks this year. Shares traded down 0.1%.
GE HealthCare also beat top-line and bottom-line estimates and reaffirmed previous guidance. Shares traded down 8.4%.
General Motors beat expectations on the top and bottom lines and raised fiscal-year EPS guidance to a new range of $6.35 to $7.35. The automaker also said it expects 2025 revenue to rise to $225 billion, a compound annual growth rate of about 12%, while electric vehicle production will reach 1 million units in North America by 2025. Shares traded down 1.8%.
Raytheon beat top-line and bottom-line estimates and issued in-line EPS guidance for the full fiscal year. Shares traded down 0.4%.
After U.S. markets close on Tuesday, Alphabet, Enphase Energy, Microsoft, PacWest Bancorp, and Visa are set to report quarterly earnings. Look for reports from Boeing, Norfolk Southern and Teck Resources the following morning.
Here are previews of three companies set to report results late Wednesday.
Antero Resources
Independent oil and gas producer Antero Resources Corp. (NYSE: AR) is a major producer of natural gas liquids and natural gas in the Appalachian Basin. Over the past 12 months, the company’s share price has plunged by 30%. More than 93% of the stock’s float is held by institutional investors who may be growing impatient with the company’s profit decline. Propane prices have fallen 37% in the past year, and revenue fell by 8.5% year over year in the fourth quarter. The use of recycled plastics is also weighing on demand for feedstocks for plastics production.
Analysts are becoming cautious on Antero stock. Of 16 brokerages covering the company, seven have a Buy or Strong Buy rating and eight more rate the shares at Hold. At a recent price of around $23.00 a share, the upside potential based on a median price target of $34.00 is 39.1%. At the high price target of $45.00, the upside potential is 95.6%.
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