In-depth Analysis

A breakdown of this week’s corporate earnings reports

Google misses on earnings and revenues

In comparison to the previous year’s growth rate of 41%, Alphabet recorded a total expansion of 6%. Since 2013, this performance marks the expansion era with the lowest level of growth (without taking into account the pandemic). The revenue generated from advertisements on YouTube decreased by approximately 2%, when industry analysts had anticipated a rise of almost 3%. The earnings per share (EPS) came in at $1.06, which was lower than the expected $1.25, while revenue came in at $69.09 billion, which was lower than the predicted $70.58 billion. The corporation has also made the decision to reduce the number of new hires it will make in 2023.

Share performance over the last 5 days: -5.07%

Share performance so far this year: -34.53%

 

Visa’s performance got a boost from leisure and travel-related spending after a hard pandemic period

The firm announced that it had achieved a non-GAAP net income of $4.1 billion, which is equivalent to $1.93 per share. This figure is higher than the $1.87 per share that analysts had predicted it would earn. Net revenues from Visa increased 23%, while purchase volumes were up 10% during the fourth fiscal quarter.  The board of directors of Visa decided to raise the quarterly cash dividend by 20%, bringing it up to $0.45 per share. They also decided to authorize a new share repurchase program with a total value of $12.0 billion. As a result, Visa will return $2.9 billion and $14.8 billion of capital to shareholders during the fiscal fourth quarter and full year respectively (with both share repurchase programs and dividends).

Share performance over the last 5 days: +9.06%

Share performance so far this year: -8.18%

 

Coca-Cola raises full-year outlook, while Heineken was hit by lower-than-expected demand

While both companies are expecting that their production cost will continue to rise because of  higher inflation and volatile commodity prices, Coca-Cola seems to have had a better quarter than Heineken, and might profit from a brighter future. Heineken, the world’s second-largest brewer, revealed beer sales that had fallen short of analysts’ forecasts due to lower demand (beer volumes of 8.8% vs. 11.8% expected), the iconic multinational beverage company revealed an organic revenue that climbed 16%, mostly thanks to higher prices across its portfolio. Coca-Cola’s EPS reached $0.69 adjusted vs. $0.64 expected, on revenues of $11.05 billion adjusted vs. $10.52 billion adjusted expected.

Share performance over the last 5 days (Coca-Cola) : +6.49%

Share performance so far this year (Coca-Cola): +0.75%

Share performance over the last 5 days (Heineken): -4.66%

Share performance so far this year (Heineken): -17.81%

 

After having lost around two-thirds of its value thus far this year, the price of Meta stock tumbled during extended trading on Wednesday

As a result of reductions in online advertising spending by a number of corporations and greater competition among other factors, Meta has reported a loss in quarterly revenue for the second consecutive quarter, and is projecting a further decline for the fourth quarter. The firm’s EPS came in at $1.64, which was lower than the $1.89 anticipated, but the company’s sales came in at $27.71 billion, which was higher than the $27.38 billion expected. The Average Revenue per User (ARPU) also came up short of expectations, at $9.41 vs. $9.38.

Share performance over the last 5 days: -2.39% (without taking into account the 19% fall during after-hours trading)

Share performance so far this year: -61.65% (without taking into account the 19% fall during after-hours trading)

 

Microsoft mostly did better than expected but expects a bumpy road ahead

While the company published higher-than-expected EPS ($2.35 per share vs. $2.30 per share) and revenues ($50.12 billion vs. $49.61 billion), it also shows softer revenues from its popular cloud section and provided weak guidance for the next quarters, as cyclical trends impact Microsoft’s consumer business.
Share performance over the last 5 days: -1.92%
Share performance so far this year: -30.90%

 

Stay tuned for big stocks to publish their earnings today and tomorrow, as they can trigger big price movements.

  • Apple

Consensus EPS forecast: $1.26
Last year’s EPS for the same quarter: $1.24

Share performance over the last 5 days: +4.51%

Share performance so far this year: -17.94%

  • Amazon

Consensus EPS forecast: $0.22
Last year’s EPS for the same quarter: $0.31

Share performance over the last 5 days: +1.83%

Share performance so far this year: -32.12%

  • Mastercard

Consensus EPS forecast: $2.57
Last year’s EPS for the same quarter: $2.37
Share performance over the last 5 days: +7.31%

Share performance so far this year: -13.87%

  • McDonald’s

Consensus EPS forecast: $2.57
Last year’s EPS for the same quarter: $2.76
Share performance over the last 5 days: +2.83%

Share performance so far this year: -4.46%

  • T-Mobile US

Consensus EPS forecast: $0.54
Last year’s EPS for the same quarter: $0.55
Share performance over the last 5 days: +3.71%

Share performance so far this year: +23.08%

  • Intel

Consensus EPS forecast: $0.34
Last year’s EPS for the same quarter: $1.71

Share performance over the last 5 days: +4.01%

Share performance so far this year: -48.84%

  • Caterpillar

Consensus EPS forecast: $3.19
Last year’s EPS for the same quarter: $2.66

Share performance over the last 5 days: +6.73%

Share performance so far this year: -4.85%

  • Exxon-Mobil

Consensus EPS forecast: $3.88
Last year’s EPS for the same quarter: $1.58

Share performance over the last 5 days: +2.77%

Share performance so far this year: +68.62%

  • Sanofi

Consensus EPS forecast: $1.31
Last year’s EPS for the same quarter: $1.29

Share performance over the last 5 days: +2.47%

Share performance so far this year: -6.19%

 

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