Earnings Previews: CSX, IBM, Lam Research, Tesla

In early trading Tuesday, the Dow Jones industrials traded down 0.32%, the S&P 500 was down 0.3% and the Nasdaq traded down 0.11%. No one is taking any big chances with the first estimate of fourth-quarter gross domestic product due out Thursday.

Before U.S. markets opened on Tuesday, General Electric beat the consensus profit estimate but missed on revenue. The company issued downside guidance for 2023, but the spin-off of the health care business and strong demand for aircraft engines sent shares up by about 0.3% in early trading.

3M missed the consensus earnings per share (EPS) estimate but beat on revenue. The Dow component issued downside revenue guidance for the 2023 fiscal year. Shares traded down about 3.7%.

D.R. Horton beat expectations on both the top and bottom lines. The company said it would release guidance on its conference call later in the morning. The stock traded up about 1.7%.

Halliburton beat the consensus EPS estimate but missed on revenue and announced a 33% quarterly per-share dividend increase to $0.16. Shares traded up about 0.2% Tuesday morning.

Johnson & Johnson also topped the consensus profit estimate but fell short on revenue. Demand for Tylenol was very strong in the fourth quarter, according to Chief Financial Officer Joseph Wolk. We are not surprised. The shares traded down by less than 0.1%.

Lockheed Martin hammered estimates on both the top and bottom lines and issued guidance for fiscal 2023 that was in line with analysts’ consensus estimates. Shares traded up about 0.8% early Tuesday.

Raytheon missed the consensus revenue estimate and barely surpassed the profit estimate. The defense contractor said it would realign its business into three segments (Collins Aerospace, Pratt & Whitney and Raytheon) and reorganize in the second half of this year. Investors are expecting cost-cutting, obviously, and pushed the stock up by about 0.5% in early trading.

Verizon met the consensus EPS estimate and beat on revenue. Unfortunately, the telecom giant issued downside guidance, and investors were not amused. Shares traded down 0.9% Tuesday morning.

Look for quarterly results from  ASML, Microsoft and Texas Instruments late Tuesday or early Wednesday. AT&T, Boeing, Freeport-McMoRan and NextEra Energy are also expected to report earnings before markets open on Wednesday.

After Wednesday’s closing bell, these four companies are scheduled to report results.

CSX

Shares of railroad operator CSX Corp. (NYSE: CSX) added nearly 3.5% over the past 12 months. U.S. rail traffic fell by 2.8% year over year in 2022 and is down 3.5% compared to the first two weeks of last year. Petroleum shipments are up 12.6% year over year, and motor vehicle shipments have increased by nearly 13.5% year over year. Intermodal (shipping containers) shipments are down 9.2% compared to the first two weeks of last year.

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