The consensus revenue estimate for the first quarter is $7.51 billion, down 7% sequentially and by 14.9% year over year. Adjusted EPS are forecast at $1.60, a sequential decline of 30% and a year-over-year decline of 39.6%. For the full 2023 fiscal year, analysts are looking for EPS to tumble by 14.8% to $8.61 on a revenue decline of 6.8% to $31.91 billion.
3M stock trades at 12.2 times expected 2023 EPS, 11.1 times estimated 2024 earnings of $9.44 and 10.5 times estimated 2025 earnings of $10.00 per share. The stock’s 52-week trading range is $100.16 to $154.66, and 3M pays an annual dividend of $6.00 (yield of 5.66%). Total shareholder return for the past 12 months was negative 27.25%.
Verizon
The third Dow stock reporting results Tuesday morning is telecom giant Verizon Communications Inc. (NYSE: VZ). Over the past 12 months, the stock has dropped by 31.7%, including a year-to-date decline of 5.6%. Shares fell by 3.7% on Thursday, the largest drop among the Dow stocks, following the weak report on subscriber growth from AT&T.
Verizon stock has performed far worse in the past year than either of its rivals, and both AT&T and Verizon continue losing subscribers to T-Mobile. Analysts have modest expectations for the company’s first quarter, so a miss on EPS or revenue could really hammer the shares.
Analysts remain wary. Of 28 analysts, only eight have Buy or Strong Buy ratings, while 19 have Hold ratings. At a share price of around $37.20, the implied gain based on a median price target of $44.00 is 18.3%. At the high price target of $64.00, the potential upside is 72%.
First-quarter revenue is forecast to come in at $33.64 billion, down 4.6% sequentially but 0.3% higher year over year. Adjusted EPS are forecast at $1.19, up 0.3% sequentially and down 11.9% year over year. For the full 2023 fiscal year, analysts expect Verizon to post EPS of $4.69, down 9.6%, on sales of $137.3 billion, up 0.3%.
Verizon stock trades at 7.9 times expected 2023 EPS, 7.8 times estimated 2024 earnings of $4.75 and 7.7 times estimated 2025 earnings of $4.83 per share. The stock’s 52-week range is $34.55 to $55.51. Verizon pays an annual dividend of $2.61 (yield of 7.02%). Total shareholder return over the past 12 months was negative 27.34%. Verizon was the top dog among 2023’s Dogs of the Dow.
Originally published at 24/7 Wall St.
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