PLTR, FANG, COTY, KGC, GNK: Earnings Preview

By Kirsteen Mackay

Nov 07, 2022

This week’s company earnings include Palantir (PLTR), Diamondback Energy (FANG), Coty (COTY), Kinross Gold (KGC), and Genco Shipping & Trading (GNK).

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FANG stock

According to FactSet, strategists highlight outsized 2023 earnings estimate cuts, suggesting additional risk in trading earnings. However, some see this as the kind of capitulation needed for more credible bounce attempts ahead.

Will tech stocks recover?

Here are five stocks on our radar releasing earnings updates this week:

Palantir Technologies Inc (NYSE: PLTR)

Popular tech stock Palantir Technologies Inc (NYSE: PLTR) reports earnings on Monday, November 7. FactSet analyst estimates provide an EPS consensus of $0.02 and a sales consensus of $474.76m. The $16.3bn company missed earnings expectations in Q1 and Q2, so investors will look for signs of improvement. 

Palantir develops software to analyze information. The company offers solutions that support many kinds of data, including structured, unstructured, relational, temporal, and geospatial. Palantir Technologies serves customers worldwide, including government agencies.

Over the past year, PLTR stock has traded between $6.44 and $27.11. Today it trades closer to the lower end at around $7.93. Year-to-date, the Palantir stock price is down -57.2%, while the S&P 500 is down -21.39% over the same period.

FactSet analysts have a consensus Hold rating on PLTR stock with a target share price of $10.32.

PLTR stock has a forward price-to-earnings ratio (P/E) of 48.8, which suggests it may be expensive at its current price. Its price-to-book-value (P/BV) is 6.96.

Diamondback Energy Inc (NASDAQ: FANG)

Diamondback Energy Inc (NASDAQ: FANG) will report its Q3 quarterly earnings on November 7 after the market closes. FactSet analyst estimates provide an EPS consensus of $6.45 and a sales consensus of $2.37bn. Analysts have been revising their estimates upwards recently, giving investors hope for a Q3 earnings beat. In recent quarters, Diamondback Energy has surprised to the upside in both earnings and sales.

Diamondback Energy Inc operates as an independent oil and natural gas company focused on acquiring, developing, exploring, and exploiting unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.

Energy stocks are up this year as oil and gas prices remain elevated for various reasons, including the war in Ukraine. These stocks tend to fluctuate in line with the price of oil or gas, making them volatile investments. 

Over the past year, FANG stock has traded between $95.02 and $162.79. Today it trades close to its 52-week high at around $161.37. Year-to-date, the Diamondback Energy Inc stock price is up 44.29%.

FactSet analysts have a consensus Buy rating on FANG stock with a target share price of $175.17.

FANG stock has a P/E of 7.53, and its P/BV is 2.14. The $28.42bn stock comes with a dividend yield of 1.86%.

Coty Inc (NYSE: COTY)

Coty Inc (NYSE: COTY) reports quarterly earnings on November 8 before the market opens. FactSet analyst estimates provide an EPS consensus of $0.12 and sales consensus of $1.37bn. 

According to Bloomberg, Coty Inc. manufactures and distributes beauty products. The company offers fragrances, color cosmetics, hygiene, sun care, and skin treatment products. Coty supplies its products to department stores, specialty retailers, mass-market retailers, and duty-free shops in airports worldwide. 

Over the past year, COTY stock has traded between $5.90 and $11.12. Today it trades at around $6.93. Year-to-date, the Coty Inc stock price is down -35%.

FactSet analysts have a consensus Overweight rating on COTY stock with a target share price of $10.12.

COTY stock has a very high P/E of 104, but its forward P/E is 19.6. Meanwhile, its P/BV is 1.84. COTY stock does not come with a dividend.

Kinross Gold Corporation (NYSE: KGC)

Kinross Gold Corporation (NYSE: KGC) is due to report its Q3 earnings on Friday. In Q1 and Q2, KGC earnings and sales missed analyst expectations.

For Q3, FactSet analyst estimates provide an EPS consensus of $0.06 and a sales consensus of $997.86m. 

Kinross Gold Corporation is involved in the exploration, development, and production of gold in countries located around the world. The company currently operates in the United States, Brazil, Chile, Mauritania, Ghana and Russia.

Over the past year, KGC stock has traded between $3 and $7.13. Today it trades at around $3.86. Year-to-date, the Kinross Gold Corporation stock price is down -31.8%.

FactSet analysts have a consensus Overweight rating on KGC stock with a target share price of $5.66.

KGC stock has a forward P/E of 12.4, and its P/BV is 0.8. KGC stock comes with a dividend yield of 3.11%.

Genco Shipping & Trading Limited (NYSE: GNK)

Genco Shipping & Trading Ltd (NYSE: GNK) will report its Q3 earnings results on November 9. It has missed analyst expectations for earnings and sales in the past two quarters.

For Q3, FactSet analyst estimates provide an EPS consensus of $1.06 and a sales consensus of $94.86m. 

Genco Shipping & Trading is a US-based dry bulk ship-owning company focused on the seaborne transportation of commodities globally. It provides a full-service logistics solution, utilizing its in-house commercial operating platform to transport iron ore, grain, steel products, bauxite, cement, nickel ore and other commodities along worldwide shipping routes. Genco’s modern fleet of dry cargo vessels consists of the larger Capesize (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk), enabling it to carry a wide range of cargo.

Over the past year, GNK stock has traded between $11.92 and $27.15. Today it trades at around $14.81. This illustrates the volatility in GNK stock, which is standard across the dry-bulk marine shipping sector. Year-to-date, the Genco Shipping & Trading stock price is down nearly -10%.

Some analysts see upside ahead as demand for dry-bulk goods increases and supply slows. Dry-bulk vessels take around three years to build, and older vessels are being scrapped, reducing availability. However, Genco’s ships are an average of ten years old, so they’re not new.

Ten FactSet analysts have a consensus Buy rating on GNK stock with a target share price of $25.21.

GNK stock has a P/E of 2.7 and a forward P/E of 4, and its P/BV is 0.7. GNK stock comes with a whopping 13.5% dividend yield.

If you enjoyed our earnings preview, why not read our IPO coverage?

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.