US EARNINGS WRAP
AMD – tumbled more than 7% after the chipmaker reported better-than-expected quarterly results, but revenue and operating income fell in Q2 from a prior-year period, while current-quarter guidance missed Wall Street estimates.
Apple – The world’s biggest company, delivered fiscal third-quarter results that topped estimates as strength in its services business helped offset iPhone sales that fell short of estimates. Shares were down 1% in afterhours trading following the report. Apple reported EPS $1.26 on revenue of $81.80B, beating estimates for $1.19 and $81.73B, respectively. iPhone revenue, which makes up nearly half of total revenue, fell to $39.67B from $40.67B a year earlier, missing estimates of $39.91B. “We had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone,” Apple CEO Tim Cook said.
Amazon – Online retailer and cloud services provider, Amazon delivered second-quarter results that topped analysts’ estimates and delivered upbeat guidance for Q3 as growth in its cloud business topped estimates. Shares rose more than 8% in afterhours following the report. Net sales in North America rose 11% to $82.5B year-on-year in Q2. Amazon Web Services, its fast-growing cloud revenue segment, grew 12% to $22.1B, ahead of estimates of 10.2%. “Our AWS growth stabilized as customers started shifting from cost optimization to new workload deployment,” the company said. For the third quarter, the company expects revenue of $138B to $143B, beating Wall Street estimates of $138.28B. Operating income for Q3 was guided in a range of $5.5B to $8.5B.
Caterpillar – Heavy machinery manufacturer and, Caterpillar added 8.9% reporting a rise in second-quarter profit. The stock, often regarded as an “economic bellwether” did warn of a sequential fall in current-quarter sales and margins.
CVS – rose almost 4% after reporting a beat on both the top and bottom lines. Concerns about the retail pharmacy’s long-term profit growth emerged. However, chief financial officer Shawn Guertin said its EPS targets for 2024 and 2025 were no longer “reasonable.”
eBay – meanwhile, the online auction site slumped 10% after its earnings guidance for the current quarter missed analyst estimates and overshadowed better-than-expected second-quarterly results.
Ford – Ford Motors fell more than 3% after the automaker warned of a $4.5 billion in its electric vehicle business as take up of its EVs had been slower than expected. The dour EV commentary offset quarterly results that topped Wall Street estimates on both the top and bottom lines.
Intel – Intel led rally in chip stocks also pushed broader tech higher as the chipmaker reported upbeat guidance and second-quarter surprise profit following better-than-expected revenue. Intel’s ongoing improvement in margins is expected to continue into 4Q, Deutsche Bank says, as a “wide array of headwinds abating tailwinds emerging” including revenue scale, cost cuts, and the selling PRQ’s products, which refers to early product stock of upcoming launches.
Merck & Company – meanwhile, reported a narrower loss as second-quarter revenue topped analyst estimates, underpinned by the strength of its cancer drug Keytruda.
Meta – rallied more than 4% after the social media giant reported guidance and second-quarter results that topped Wall Street estimates, driven by strong advertising growth. UBS lifted its target on the stock to $400 from $335, on expectations that future earnings would likely be “supported by continued improvement in reels adoption and monetization, other new ad formats, solid engagement growth, a healthier macro environment.:”
Netflix experienced an over 8% drop following a reported second-quarter revenue miss. That said, the company did add more subscribers than expected for the quarter. A slow adoption of paid sharing – a feature prohibiting members from sharing subscriptions with individuals outside their household – took Wall Street by surprise.
Norwegian Cruise Lines – slumped 12% after the cruise company’s third-quarter guidance fell short of estimates and overshadowed its better-than-expected second-quarter earnings.
PayPal – reported better-than-expected quarterly results, but underwhelming guidance and doubts about how quickly management can improve margins weighed on the stock. It fell 12%.
Pfizer – Pfizer reported mixed quarterly results as earnings topped, but revenue fell short of estimates. The company also cut its full-year revenue guidance warning of “near-term revenue challenges.”
S&P Global – fell more than 7% failing to impress on the earnings stage as financial information and analytics firm reported quarterly earnings that missed analyst estimates.
Starbucks – Starbucks rose almost 1% after its Q2 earnings topped estimates, though weaker-than-expected revenue kept a lid on gains. The coffee giant’s same store sales growth in the U.S. of 7% missed Wall Street estimates.
Tesla exceeded Wall Street’s estimates for their second-quarter results. However, renewed concerns over shrinking margins arose when CEO Elon Musk indicated a willingness to reduce prices again, should economic conditions worsen.
Texas Instruments – Texas Instruments, a semiconductor bellwether, fell more than 5% on fears about weak chip demand after forecasting revenue for the September quarter below Wall Street estimates, in line with Taiwan’s TMSC and Korea’s Hynix, the 2 largest chip manufacturers in the world who have both delivered dour outlooks.
Uber – Ridesharing app, Uber, fell 5.7% after its third-quarter guidance overshadowed second-quarter results, missing analyst estimates on both the top and bottom lines. The company also reported its first quarter of free cash flow of over $1 billion and its first operating profit.
Wills Tower Watson – the Insurance company, cut its outlook on 2024 earnings after reporting second-quarter earnings that fell short of estimates, sending its shares more than 8% lower and pushing the broader financials in the red. The company said the outlook included an “expected decline in pension income of approximately $1.65 per share.”