Earnings Previews: Air Lease, Occidental, Home Depot, Macy’s, Palo Alto Networks

Nearly 150 U.S.-listed companies are expected to report quarterly results Monday. We’ve already looked at three expected to report before the opening bell.

Here we look at two companies scheduled to report after Monday’s close and three scheduled to report before Tuesday’s opening bell.

Air Lease

Air Lease Corp. (NYSE: AL) was a victim of last year’s massive drop in air travel, although not nearly to the level of major airlines or planemaker Boeing. Air Lease is one of the three largest aircraft leasing companies in the United States, trailing on AerCap and GE’s GECAS. At the end of 2019, Air Lease owned a fleet of 332 commercial jets, managed another 81, and had placed orders on Boeing and Airbus for an additional 361 new airplanes through 2026.

During the fourth quarter, the company raised $1.5 billion in new senior unsecured notes, half due in 2026 at a fixed rate of 2.875% and the other half due in 2030 at a fixed rate of 3.125%. The company has identified a new opportunity in providing financing for customers hardest hit by the COVID-19 pandemic.

Analysts have forecast earnings per share (EPS) of $0.77 for the fourth quarter and $4.25 for the 2020 fiscal year. That’s a quarterly decline of almost half and a year-over-year decline of around 17%. Revenue for the quarter is forecast to fall by 11% to $486.6 million and by less than 1% for the full year to $2.01 billion.

On Friday morning, shares traded at around $45.40, up more than 5% for the day, in a 52-week range of $8.41 to $46.04. The consensus price target on the stock is $50.25. At the current price, the potential upside on the stock is nearly 11%. The stock trades at about nine times expected 2020 and 2021 EPS. Air Lease pays an annual dividend of $0.64 per share (yield of 1.47%).

Occidental Petroleum

Occidental Petroleum Corp. (NYSE: OXY) also reports results Monday afternoon. The independent oil and gas producer saw its share price dive by nearly 57% in 2020. Since May of 2018, when Oxy agreed to acquire Anadarko for $38 billion in cash and stock, shares are down about 65%. Absent the pandemic, the stock would still be down more than 40%.

The company declared force majeure earlier this week due to freezing conditions in the Permian Basin that have disrupted transportation and deliveries to customers. Oxy was scheduled to report quarterly earnings this past Tuesday but delayed the announcement due to the freezing temperatures in Texas.

Analysts expect a fourth-quarter loss per share of $0.59, nearly double the loss in the same period in 2019. For the full year, the expected loss per share is $3.73 compared with 2019 EPS of $1.45. Revenue is expected to fall by nearly 35% in the quarter and by about 17% for the year.

The stock traded up less than 1% Friday at around $25.30, in a 52-week range of $8.52 to $42.57. The consensus price target on the stock is $21.26. The full-year estimate for the 2021 fiscal year calls for a loss of about $1.23 per share. Oxy pays an annual dividend of $0.04 (yield of 0.15%).

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