In the first half-hour of trading on Tuesday, the Dow Jones industrials were down 0.88%, the S&P 500 down 0.87% and the Nasdaq down 1.01%.
Before U.S. markets opened on Tuesday, Home Depot reported earnings per share (EPS) that beat the consensus estimate by a penny. The miss on revenue and lower-than-expected guidance for 2024 fiscal year EPS and revenue sank the stock. Shares traded down 4.8% in early trading.
Walmart beat estimates on both the top and bottom lines, but first-quarter and full-year earnings guidance came in below consensus estimates. Shares traded down 0.9%
Teck Resources missed on both EPS and revenue but reaffirmed its production guidance for copper and zinc. The company also announced its plan to spin off its metallurgical coal business into a new public company named Elk Valley Resources with a market cap of around $11.5 billion. Shares traded up 3.4%.
Coinbase, Palo Alto Networks and Transocean are expected to report results after U.S. markets close on Tuesday, and then Baidu, Stellantis and TJX Companies the following morning.
Here is a look at what to expect when the following four companies report results after Wednesday’s close.
Coterra
Shares of natural gas producer Coterra Energy Inc. (NYSE: CTRA) have added just 2.7% to their value over the past 12 months. Since posting a 52-week high in early June, the stock is down by about 30%. Coterra is primarily a natural gas producer focused on the Marcellus shale play in western Pennsylvania. Natural gas prices have dropped 77% since mid-August and, thanks to a mild winter, European stockpiles remain topped up. Coterra’s appeal is its superior dividend payment.
Of 28 brokerages covering the stock, 18 rate it at Hold and just eight have a Buy or Strong Buy rating. At a recent price of around $23.40 a share, the upside potential based on a median price target of $28.00 is 19.7%. At the high price target of $40.00, the upside potential is almost 71%.
Fourth-quarter revenue is forecast at $2.05 billion, which would be down 18.6% sequentially and by 8.1% year over year. (Revenue in the first three quarters of the year was about five times higher than in the prior year.) Adjusted EPS are pegged at $1.10, down 22.9% sequentially but up 32.5% year over year. For the full 2022 fiscal year, analysts expect Coterra to report EPS of $4.87, up 116.4%, on revenue of $8.82 billion, up 155.8%.
The stock trades at about 4.8 times expected 2022 EPS, 7.8 times estimated 2023 earnings of $3.02 and 8.1 times estimated 2024 earnings of $2.90 per share. The stock’s 52-week trading range is $21.22 to $36.55. Coterra has paid an annual (variable) dividend of $2.49 (yield of 10.64%) for the past year. Total shareholder return for the past year is 12.3%.
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