Here are previews of three firms set to report results early on Tuesday.
BP
Shares of integrated oil supermajor BP PLC (NYSE: BP) have performed well over the past year but trail far behind Chevron and Exxon, which are up 43% and 27%, respectively. BP’s 12-month increase was about 11.5%.
While not the first fossil fuel company to declare itself a supporter of renewables, the company has spent significant cash to reach its stated goal of net-zero emissions from the products it sells. Now, The Wall Street Journal has reported, CEO Bernard Looney is walking back some of the company’s promises in an effort to raise returns for shareholders.
Of 23 brokerages covering the stock, 15 have a Buy or Strong Buy rating and the others rate it at Hold. At a recent price of around $35.60 per American depositary share (ADS), they trade above their price target of around $32.90. At the high price target of $40.38, the upside potential is about 14.3%. One ADS is equal to six common shares traded in London.
The consensus estimate for first-quarter revenue is $59.97 billion, which would be up 9.2% sequentially and 18.6% higher year over year. Adjusted EPS are forecast at $1.56, down 39.5% sequentially but up 23.8% year over year. For the 2022 fiscal year, analysts expect BP to report EPS of $8.64, up 126%, on sales of $225.15 billion, up 42.7%.
BP’s shares trade at about 4.1 times expected 2022 EPS, 5.6 times estimated 2023 earnings of $6.24 and 6.2 times estimated 2024 earnings of $5.70 per share. The stock’s 52-week trading range is $25.36 to $36.69. BP pays an annual dividend of $1.38 (yield of 3.8%). The total shareholder return for the past year was 14.7%.
Centene
Health care provider Centene Corp. (NYSE: CNC) provides services and programs to underinsured and uninsured people in the United States. It is the country’s sixth-largest health care plan operator and has a market cap of nearly $42 billion. Measured by net premiums, Centene and Elevance are tied for second in the world behind UnitedHealth Group. Centene’s Health Net subsidiary recently won a contract to manage the Medi-Cal (Medicaid) programs in Sacramento and Los Angeles counties.
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