Earnings Previews: AB-InBev, ConocoPhillips, Warner Bros Discovery

After U.S. markets closed on Monday, Diamondback Energy reported revenue that beat Wall Street estimates by 1.2% and fell more than 30% year over year. Earnings per share (EPS) came in 5.1% below consensus and 47.9% below year-ago EPS. The stock traded down 0.5% at noon.

Before markets opened on Tuesday, BP missed the consensus EPS and revenue estimates. A dividend increase and a new buyback program softened the bad news. The stock traded down 1.1%.

Caterpillar beat estimates on both the top and bottom lines. The shares appear headed for a new all-time high. The stock traded up about 8.2% in the noon hour on Tuesday.

Enterprise Products missed estimates on both the top and bottom lines. Shares traded down about 1.1%.

Pfizer beat the consensus EPS estimate by 17.5%, but profits per share were lower by 67% year over year. Revenue also missed the consensus estimate and dropped by 54% year over year. Shares traded down 0.4% in the noon hour.

Uber posted a solid EPS beat and missed slightly on revenue. Shares traded down 5.5%.

After U.S. markets close on Tuesday, AMD, Devon Energy, Starbucks and Virgin Galactic will release earnings results. Then the following morning, look for reports from  Cameco, CVS Health and Kraft Heinz. Taking their turns on the earnings stage later on Wednesday are Albemarle, MGM Resorts, Occidental Petroleum, PayPal and Qualcomm.

Here is a preview of what to expect from three companies reporting results first thing Thursday morning.

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In 2022, Anheuser-Busch InBev S.A./N.V. (NYSE: BUD) was the largest beer company in the world, with nearly $58 billion in revenue. Its most popular brand, Bud Light, was the best-selling beer in America. Then Bud Light ran a TV ad featuring transgender influencer Dylan Mulvaney, and Bud Light lost its top ranking. For the four-week period ending July 1, Modelo Especial (also brewed in the United States by AB-InBev) took over as number 1 with a market share of 8.7% to Bud Light’s 7.0%. What will the company have to say about all that?

Of 27 analysts covering the company, 18 have a Buy or Strong Buy rating and six more have a Hold rating. At a recent price of around $56.60 a share, the upside potential based on a median price target of about $69.00 is 21.9%. At the high price target of $90.00, the upside potential rises to 59%.

Analysts expect the company to report second-quarter revenue of $15.38 billion, which would be up 8.2% sequentially and by 4.0% year over year. Adjusted EPS are pegged at $0.70, up 7.2% sequentially but down 6.7% year over year. For the full 2023 fiscal year, estimates call for EPS of $3.04, down 3.4%, and revenue of $61.66 billion, up 6.7%.

AB-InBev stock trades at 18.6 times expected 2023 EPS, 15.7 times estimated 2025 earnings of $3.60,and 13.8 times estimated 2025 earnings of $4.09 per share. Its 52-week trading range is $44.51 to $67.09. The company pays an annual dividend of $0.82 (yield of 1.40%). Total shareholder return for the past 12 months was 8.21%.

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