IBM’s first-quarter revenue is expected to come in at $14.33 billion, which would be down 14.1% sequentially and by 0.9% year over year. Adjusted EPS are forecast at $1.24, down 65.6% sequentially and by 11.4% year over year. The current full-year estimates call for EPS of $9.45, up 3.5%, on sales of $62.66 billion, up 3.5%.
IBM stock trades at 13.5 times expected 2023 EPS, 12.8 times estimated 2024 earnings of $9.95 and 12.4 times estimated 2025 earnings of $10.30 per share. The stock’s 52-week trading range is $115.55 to $153.21. IBM pays an annual dividend of $6.60 (yield of 5.15%), and total shareholder return for the past 12 months is 6.03%.
Kinder Morgan
Energy infrastructure company Kinder Morgan Inc. (NYSE: KMI) has seen its share price drop by about 8.2% over the past 12 months. It is no big secret that the company’s luxuriant dividend is a major attraction for investors.
About 60% of its revenue is guaranteed by long-term contracts that require customers to pay for space on the pipelines no matter if they have a product to ship. Another quarter of Kinder Morgan’s revenue is fee-based and very stable. Investors are betting that capital spending to boost growth does not eat into those dividends. It has been a good bet since 2018, when the company began raising its dividend payments again.
Inflation and high interest rates contribute significantly to the lukewarm analyst outlook. Of 22 brokerages covering the company, 14 have Hold ratings and just six have a Buy or Strong Buy rating. At a share price of around $17.80, the potential upside to a median price target of $20.00 is 12.4%. At the high price target of $24.00, the implied upside is 34.8%.
Consensus estimates call for first-quarter revenue of $4.75 billion, up 3.8% sequentially and 10.7% higher year over year, and EPS of $0.29, down 6.2% sequentially and by 12.5% year over year. For the full 2023 fiscal year, analysts currently forecast EPS of $1.10, down 5.1%, on sales of $19.71 billion, up 2.7%.
Kinder Morgan stock trades at 16.2 times expected 2023 EPS, 15.2 times estimated 2024 earnings of $1.17 and 14.7 times estimated 2025 earnings of $1.21. The stock’s 52-week range is $15.78 to $20.20. Kinder Morgan pays an annual dividend of $1.11 (yield of 6.24%). Total shareholder return over the past 12 months was negative 2.45%.
Las Vegas Sands
Shares of Las Vegas Sands Corp. (NYSE: LVS) have jumped by about 57.4% over the past 12 months. The stock is up 63% in just the past six months. Since selling all its U.S. properties, the misnamed company operates five resorts in Macau and one in Singapore. Las Vegas Sands is angling for a shot at opening a casino in New York, but it will have to fight it out with the likes of MGM, Caesars and its other rivals for a seat at the table.
Right now, the company has put its upgrade to Singapore’s Mariana Bay Sands property on another hold. The project has been granted a delayed beginning until April of next year, with completion due by April 2028.
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