In this article, we will take a look at the 10 most anticipated earnings to watch on Wednesday.
The second-quarter earnings season began last week, with financial stocks being the first to post their results. Moving forward, investors are eagerly waiting for some of the most anticipated earnings reports.
Electric vehicle giant Tesla, Inc. (NASDAQ:TSLA), health care giant Abbott Laboratories (NYSE:ABT) and biotechnology firm Biogen Inc. (NASDAQ:BIIB), are among the notable stocks reporting earnings this week. In addition, investors are also eyeing Crown Castle International Corp. (NYSE:CCI) and Alcoa Corporation (NYSE:AA), as they prepare to post their second-quarter results.
Now, let’s review what industry experts and analysts expect from these companies.
10. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders: 31
United Airlines Holdings, Inc. (NASDAQ:UAL) is set to release its financial results for the second quarter after the closing bell on Wednesday, July 20, 2022. It will be the second major airline to post Q2 results after Delta Air Lines.
Delta announced mixed financial results for the second quarter last week. Its adjusted earnings fell short of estimates. However, its sales exceeded analysts’ average estimates. Some industry experts expect similar performance from United Airlines Holdings, Inc. (NASDAQ:UAL).
In its previous quarterly report, United Airlines Holdings, Inc. (NASDAQ:UAL) expressed optimism about turning a profit in the second quarter. Meanwhile, analysts expect United Airlines Holdings, Inc. (NASDAQ:UAL) to report earnings of $1.83 per share on revenue of $12.1 billion for Q2.
9. Las Vegas Sands Corp. (NYSE:LVS)
Number of Hedge Fund Holders: 39
Las Vegas Sands Corp. (NYSE:LVS) will post its second-quarter results after the market closes on Wednesday, July 20, 2022. The company reported a wider-than-expected loss for the first quarter of 2022.
However, Las Vegas Sands Corp. (NYSE:LVS) is expected to reduce its losses in the second quarter due to an ease in pandemic-related restrictions. Analysts expect the casino and resort company to report a loss of 26 cents per share, narrower than 40 cents per share in the prior quarter.
Moreover, asset management firm Baron Funds also expressed optimism over the growth prospects of Las Vegas Sands Corp. (NYSE:LVS) in its first-quarter 2022 investor letter published earlier this year. Here’s what the firm said:
“Following a 50%-plus decline in the share price of Las Vegas Sands Corporation from its 2021 peak share price of $67 to $34, we began acquiring shares of this global leader in the development and operation of luxury casino resorts in the fourth quarter of 2021 and continued to acquire shares in the most recent quarter. We believe Las Vegas Sands’ market-leading resorts in Macau and Singapore position the company for strong growth when travel and tourism spending rebounds. Las Vegas Sands maintains a liquid and investment grade balance sheet and is currently valued at a significant discount to our assessment of replacement cost.”
8. Baker Hughes Company (NASDAQ:BKR)
Number of Hedge Fund Holders: 39
Baker Hughes Company (NASDAQ:BKR), one of the leading oil field services companies, will discuss its second-quarter results on Wednesday, July 20, 2022. Analysts expect Baker Hughes Company (NASDAQ:BKR) to post earnings of 22 cents per share on revenue of $5.34 billion.
The outlook compares with the adjusted earnings of 10 cents per share and revenue of $5.1 billion Baker Hughes Company (NASDAQ:BKR) reported for the comparable period of 2021.
Last month, investment management firm Carillon Tower Advisers discussed Baker Hughes Company (NASDAQ:BKR) in its first-quarter 2022 investor letter. The firm thinks that Baker Hughes will capitalize on the higher capital expenditures in the oil industry and the development of liquefied natural gas (LNG) infrastructure across Europe.
7. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 40
Kinder Morgan, Inc. (NYSE:KMI) is one of the biggest energy infrastructure companies in the U.S. It owns and operates pipelines and terminals used for transporting crude oil and natural gas, among other products.
The Texas-based energy company is scheduled to post its second-quarter result after the closing bell on Wednesday, July 20, 2022. Kinder Morgan, Inc. (NYSE:KMI) is expected to report earnings of 27 cents per share on revenue of $4.33 billion. This compares to adjusted earnings of 23 cents per share and revenue of $3.15 billion reported by the company for the second quarter of 2021.
Like Kinder Morgan, Inc. (NYSE:KMI), investors are also closely watching Tesla, Inc. (NASDAQ:TSLA), Abbott Laboratories (NYSE:ABT) and Biogen Inc. (NASDAQ:BIIB), as they prepare to report their earnings reports this week.
6. Lithia Motors, Inc. (NYSE:LAD)
Number of Hedge Fund Holders: 46
Lithia Motors, Inc. (NYSE:LAD) plans to release its second-quarter results before the opening bell on Wednesday, July 20, 2022. Analysts expect the Oregon-based automotive dealership group to earn $12.06 per share on sales of $7.29 billion.
Some industry experts expect the inflationary pressure to weigh on the second-quarter results of Lithia Motors, Inc. (NYSE:LAD). For instance, JPMorgan analyst Rajat Gupta thinks that the company’s Q2 performance will mirror lower new vehicle sales.
Gupta also cut his price target for Lithia Motors, Inc. (NYSE:LAD) from $380 per share to $325 per share on Friday, July 15, 2022. Shares of Lithia Motors, Inc. (NYSE:LAD) are currently trading around $283. The company’s share price has slipped about 5 percent so far in 2022.
5. Crown Castle International Corp. (NYSE:CCI)
Number of Hedge Fund Holders: 50
Crown Castle International Corp. (NYSE:CCI) is set to post its financial results for the second quarter after the closing bell on Wednesday, July 20, 2022. The shared communications infrastructure provider is expected to report earnings of 96 cents per share on revenue of $1.71 billion.
For the first quarter, Crown Castle International Corp. (NYSE:CCI) surpassed profit and sales expectations. It reported earnings of 97 cents per share on revenue of $1.74 billion, while analysts were looking for earnings of 94 cents per share on revenue of $1.69 billion.
Separately, investment management firm ClearBridge Investments talked about Crown Castle International Corp. (NYSE:CCI) in its Q1 2022 investor letter, stating:
“U.S. communications company Crown Castle International (NYSE:CCI) was the largest detractor from quarterly performance. Crown Castle is the leading independent owner and operator of wireless communications infrastructure in the U.S. with a portfolio of approximately 40,000 towers. The stock underperformed as, driven by rising interest rates, investors rotated away from defensive into more value-oriented sectors. Communications infrastructure remains attractive, however, as companies continue to deploy greater capital spend to support the strong tailwinds from 5G.”
4. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 50
Alcoa Corporation (NYSE:AA) is scheduled to announce its second-quarter results after the market close on Wednesday, July 20, 2022. Analysts expect Alcoa Corporation (NYSE:AA) to post earnings of $2.44 per share on revenue of $3.16 billion.
Industry experts expect Alcoa Corporation (NYSE:AA) to meet financial expectations for Q2, as the company is likely to have benefitted from higher prices and shipment volume of aluminum during the quarter.
3. Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holders: 61
Biogen Inc. (NASDAQ:BIIB) is a biotechnology firm primarily engaged in the development of therapies for neurological diseases. The Cambridge-based firm plans to announce its second-quarter results before the opening bell on Wednesday, July 20, 2022.
Analysts expect Biogen Inc. (NASDAQ:BIIB) to report earnings of $4.10 per share on revenue of $2.48 billion. The company had posted adjusted earnings of $5.68 per share on revenue of $2.77 billion for the comparable period of 2021.
Biogen Inc. (NASDAQ:BIIB) also received a price-target hike from Oppenheimer on Monday, July 18, 2022, just a couple of days before its earnings report. Oppenheimer analyst Jay Olson lifted his price target for Biogen Inc. (NASDAQ:BIIB) from $225 per share to $230 per share, citing the company’s increased efforts to grow its sales from therapies other than Aduhelm.
2. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 68
Abbott Laboratories (NYSE:ABT) is one of the largest medical devices and health care companies in the U.S. The company is set to post its second-quarter results before the market opens on Wednesday, July 20, 2022.
Analysts are calling for earnings of $1.12 per share and revenue of $10.31 billion. Abbott Laboratories (NYSE:ABT) is expected to beat the consensus for earnings as its medical devices segment is likely to have benefitted from a spike in the number of procedures carried out during the quarter. However, the company faced production hurdles at one if its facilities that could hurt some of its sales growth.
Earlier this year, investment management firm Diamond Hill Capital also discussed Abbott Laboratories (NYSE:ABT) in its first-quarter 2022 investor letter. Here’s what the firm said:
“Abbott Labs announced a recall of its infant formula brand Similac® in the US. Though the recall will impact near-term revenues, we are not concerned about any long-term impacts. We remain optimistic about the company’s prospects over the long run because, in our view, it is one of the highest quality names in health care with a talented management team that makes smart capital allocation decisions. Abbott also has leading health care and consumer franchises with a particularly strong competitive position in the medical device business. Abbott continues to launch innovative products in key strategic areas (such as diabetes, structural heart and diagnostics), which should help drive not only revenue growth but margin expansion.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 80
All eyes are on Tesla, Inc. (NASDAQ:TSLA) as the electric vehicle (EV) giant gears up to announce its second-quarter results on Wednesday, July 20, 2022. Analysts are expecting Tesla, Inc. (NASDAQ:TSLA) to post earnings of $2.30 per share on revenue of $17.39 billion.
Tesla, Inc. (NASDAQ:TSLA) has already announced its vehicle deliveries for the June quarter. The company delivered 254,695 vehicles for the quarter, missing the consensus estimate of 295,078. The numbers were also lower than the 310,048 vehicles delivered by Tesla, Inc. (NASDAQ:TSLA) in the first quarter of 2022.
The drop was mainly attributed to the pandemic-related shutdowns in China. While the demand for the company’s vehicles is strong, Tesla, Inc. (NASDAQ:TSLA) continues to face supply-chain disruptions.
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Disclosure: None. 10 Most Anticipated Earnings to Watch on Wednesday is originally published on Insider Monkey.
