Tag: Breaking News: Earnings

Pinterest shares plunge as much as 12% on fourth-quarter revenue miss and weak forecast
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Pinterest shares sank as much as 12% after the company reported revenue that missed analyst expectations and issued a light forecast for the first quarter.

Here’s how the company did.

Revenue: $877 million vs. $886.3 million expected, according to Refinitiv.

Earnings: 29 cents per share vs. 27 cents expected, according to Refinitiv.

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Pinterest said it expects sales in the first quarter to increase in the “low single digits” from a year earlier. Analysts were expecting growth of 6.9% to $614.8 million.

The company said that its chief financial officer and head of business operations Todd Morgenfeld will leave the company on July 1, 2023.

Sales in Pinterest’s fourth quarter grew 4% year over year to $877 million while overall sales for 2022 jumped 9% year-over-year to $2.8 billion.

A banner for the online image board Pinterest Inc. hangs from the New York Stock Exchange on the morning that Pinterest makes its initial public offering on April 18, 2019.

Spencer Platt | Getty Images

Pinterest recorded net income of $17 million in the fourth quarter, but logged a net loss of $96 million for 2022.

The company said that its global monthly active users increased by 4% year-over-year to 450 million. Its average revenue per user, or ARPU, for the U.S. and Canada region rose 6% in the fourth quarter to $7.60 from a year ago.

“While the industry as a whole is facing headwinds, we are adapting quickly to a changing macro environment and are committed to creating a more positive online experience for our users and advertisers,” Pinterest CEO Bill Ready said in a statement.

The company also said that its chief marketing and communications officer Andréa Mallard and its chief revenue officer Bill Watkins will now report directly to Ready.

Pinterest’s fourth-quarter earnings come after many ad-supported companies reported tepid results.

Meta said last week that its fourth-quarter sales dropped 4% year-over-year to $32.17 billion while Alphabet said its Google advertising unit logged $59.04 billion in fourth quarter sales, a 3.6% drop from the same quarter last year. Additionally, revenue in Alphabet’s YouTube unit sank 8% year-over-year to $7.96 billion in the fourth quarter.

Snap said its sales in the fourth quarter was slightly up year-over-year to $1.30 billion, which missed analyst expectations of $1.31 billion.

Amazon’s digital advertising unit represented a bright spot during the fourth quarter, with sales in that unit jumping 19% year-over-year to $11.6 billion.

Pinterest reportedly laid off around 150 employees last week, joining the growing list of technology companies like Meta, Alphabet and Salesforce that have fired workers in recent months.

In August, Elliott Management confirmed that it was Pinterest’s top investor and voiced support for the company’s new CEO Bill Ready, who formerly led Google’s commerce business.

Ready joined Pinterest in June 2022, replacing the longtime CEO Ben Silbermann, who co-founded the company in 2010.

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February 6, 2023
Amazon beats on fourth-quarter revenue but provides light guidance
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Amazon on Thursday issued first-quarter guidance that came in light of estimates, overshadowing better-than-expected revenue for the fourth quarter. The stock slid after hours, erasing most its rally from the regular trading day. Here are the key numbers:

Earnings: 3 cents per share

Revenue: $149.2 billion vs $145.42 billion expected, according to Refinitiv estimates

Here’s how other key Amazon segments did during the quarter:

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Amazon Web Services: $21.4 billion vs $21.87 billion expected, according to StreetAccount

Advertising: $11.56 billion vs $11.38 billion expected, according to StreetAccount

It’s not immediately clear if the reported earnings are comparable to the Refinitiv analyst estimate of 18 cents per share.

Amazon closed out its slowest year of growth in its quarter century as a public company. Revenue for the year increased 9% as inflationary pressures and rising rates put a damper on consumer spending. The stock price lost almost half its value in 2022.

The e-retailer said it expects to post first-quarter revenue between $121 billion and $126 billion, representing year-over-year growth of 4% to 8%. Analysts were expecting sales to come in at $125.1 billion, according to Refinitiv.

Amazon’s report, along with earnings from Apple and Alphabet, wrap up a mixed earnings season for the mega-cap tech companies.

Apple reported its first revenue decline since 2016 on Thursday, and Alphabet missed on earnings and revenue. On Wednesday, Facebook parent Meta topped estimates and gave an optimistic outlook on its expenses.

Sales in Amazon’s online stores segment contracted 2% year over year. The company has been contending with slowing sales as rising gas and food prices forced consumers to pull back discretionary spending. The pandemic-fueled e-commerce boom has also fizzled out since shoppers have increasingly returned to brick and mortar retailers.

CEO Andy Jassy, who succeeded founder Jeff Bezos at the helm in July 2021, has spent the past year working to reel in costs. In January, Amazon said it’s eliminating 18,000 jobs among its corporate workforce, after cutting a number of employees last November. The company has also instituted a hiring freeze in its corporate ranks, cut some projects and paused warehouse expansion in an effort to tame rising expenses.

Jassy made a surprise appearance on the company’s earnings call, telling analysts that he wanted to offer his thoughts after wrapping up his first full year at the helm. His predecessor, Jeff Bezos, stopped participating in earnings calls in 2009, according to The Wall Street Journal.

“We’re working really hard to streamline our costs and trying to do so at the same time that we don’t give up on the long-term strategic investments that we believe can meaningfully change broad customer experiences and change Amazon over the long term,” Jassy said on the call.

Jassy said in a statement that the company is “encouraged by the continued progress” it’s making in lowering retail costs.

“In the short term, we face an uncertain economy, but we remain quite optimistic about the long-term opportunities for Amazon,” Jassy said.

Amazon’s cloud business — Amazon Web Services — missed estimates for the fourth quarter, reflecting a slowdown in business spending. AWS grew just 20% in the period, down from 27.5% in the third quarter.

Advertising revenue jumped 19% from a year earlier (23% excluding changes in foreign exchange rates), again outpacing online ad companies like Google, Facebook and Snap. Amazon has emerged recently as one of the leaders in digital advertising by giving brands and sellers more ways to pay to promote their goods across the company’s website, apps and media properties.

Operating income in the quarter came in at $2.7 billion, down from $3.5 billion a year ago. The fourth-quarter figure includes about $2.7 billion of charges, of which $640 million came from severance costs related to the layoffs, the company said.

Correction: A prior version of this story had the wrong figure for EPS.

WATCH: RBC’s Brad Erickson breaks down Big Tech
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February 2, 2023
GM smashes expectations and guides toward a strong 2023, despite margin squeeze
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Mary Barra, CEO, GM at the NYSE, November 17, 2022.

Source: NYSE

DETROIT — General Motors handily beat Wall Street’s top- and bottom-line expectations for the fourth quarter, while forecasting another solid year of results in 2023.

The strong report suggests GM is hanging onto record, or near-record, results even as the U.S. automotive industry begins to normalize after several years of record-low inventories and resilient consumer demand.

Shares of GM were up roughly 5% in premarket trading Tuesday.

Here’s how GM performed to close out last year, compared with analysts’ estimates as compiled by Refinitiv:

Adjusted earnings per share: $2.12 vs. $1.69 expected

Revenue: $43.11 billion vs. $40.65 billion expected

The fourth-quarter results easily topped a year earlier, when the automaker reported an adjusted EPS of $1.35 and revenue of $33.58 billion for the final three months of 2021.

GM’s full-year 2022 revenue came in at $156.7 billion, with net income attributable to stockholders of $9.9 billion and adjusted earnings before interest and tax at a record $14.5 billion. Those results marked the high-end of the company’s previously revised guidance.

Still, the automaker is showing signs of a margin squeeze. GM’s net income slipped last year, down by less than 1% from full-year 2021 to $9.9 billion, with a profit margin that was off 1.6 percentage points to 6.3%. Its adjusted profit margin was 9.2%, down 2.1 percentage points compared with the previous year.

GM said it incurred special charges in the fourth quarter of $511 million related to a buyout program for its Buick dealers and $657 million related to shuttering its limited operation in Russia.

2023 guidance

For 2023, GM expects net income attributable to stockholders of between $8.7 billion and $10.1 billion. It expects adjusted earnings before interest and taxes of $10.5 billion to $12.5 billion and adjusted earnings per share of between $6 and $7.

Those results would be below 2022 earnings, but above average analyst forecasts compiled by Refinitv that called for EPS of $5.73 this year.

A five-day performance of GM’s stock.

GM forecast 2023 net automotive cash from operating activities to come in between $16 billion and $20 billion and sees automotive free cash flow of $5 billion to $7 billion.

Wall Street has been bracing for a “demand destruction” scenario for the last several quarters, with some analysts suggesting automakers may need to execute cost-cutting measures to offset recessionary spending shifts.

Demand and pricing for GM’s vehicles “remain strong,” CFO Paul Jacobson told reporters Tuesday morning. He said GM is being “appropriately cautious” but vehicle inventories remain constrained amid strong demand.

“We think the underlying business is going to be pretty consistent with what we saw last year, and I think that’s a slightly more bullish statement than where most of the market is,” he said.

GM will execute a $2 billion cost-cutting plan through the next two years, according to Jacobson. Up to half of those savings are expected this year, he said. GM expects some head count reduction due to attrition but the company is “not planning layoffs,” Jacobson said.

EVs

GM CEO Mary Barra, in a letter to shareholders, described 2023 as a “breakout year” for the company’s electric vehicle business, highlighting the introduction of more mainstream products like the Chevrolet Equinox EV as well as increases in production of its current models.

Barra confirmed GM’s revised plans to produce 400,000 EVs in North America between 2022 and the first half of next year.

GM also announced Tuesday an equity investment of $650 million in Lithium Americas Corp. to develop a lithium mine in Nevada known as Thacker Pass. GM is to receive exclusive access to phase one of production, the automaker announced.

Shares of Lithium Americas were up roughly 8% in premarket trading Tuesday.

GM said Monday it launched production of the GMC Hummer SUV EV at a plant in Detroit. That vehicle is expected to be followed by an electric Chevrolet Silverado work truck by midyear and electric versions of the Chevrolet Blazer and Equinox during the second half of 2023.
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January 31, 2023
IBM tops revenue estimates, says it will cut 3,900 jobs
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IBM CEO Arvind Krishna speaks at a panel session at the World Economic Forum in Davos, Switzerland, on Jan. 17, 2023.

Stefan Wermuth | Bloomberg | Getty Images

IBM reported quarterly revenue on Wednesday that topped analysts’ estimates, driven by higher-than-expected growth in the company’s software and infrastructure segments.

Here’s how the company did:

Earnings: $3.60 per share, adjusted, vs. $3.60 per share as expected by analysts, according to Refinitiv.

Revenue: $16.69 billion, vs. $16.4 billion as expected by analysts, according to Refinitiv.

Analysts had expected IBM’s total revenue to decline for the first time in two years, but it ended up being flat, according to a statement. Net income rose 16% to $2.71 billion.

The company plans to cut around 3,900 jobs, resulting in $300 million in costs, Bloomberg reported, citing comments from Jim Kavanaugh, IBM’s finance chief. IBM didn’t mentioned the cuts in its earnings release but said in its presentation that there will be a $300 million charge in the first quarter.

IBM’s software segment posted $7.29 billion, which works out to nearly 3% growth and above the $7.12 billion consensus among analysts polled by StreetAccount.

The company picked up $4.77 billion in revenue from consulting, up 0.5% and slightly lower than the $4.8 billion consensus from StreetAccount.

IBM’s infrastructure segment generated $4.48 billion, up almost 2% and more than the $4.18 billion StreetAccount consensus. Revenue from IBM’s Z Systems line of mainframe computers jumped 16% after the Z16 model became generally available last May.

With respect to guidance, IBM called for 2023 revenue growth in constant currency and around $10.5 billion in free cash flow. In 2021, IBM announced a goal of delivering $35 billion in free cash flow between 2022 and 2024, and in 2022 free cash flow totaled $9.29 billion.

During the quarter, IBM revealed a plan to invest $20 billion in New York’s Hudson Valley area over the course of a decade. The company also announced a next-generation quantum computer featuring 433-qubits and the acquisition of Octo, one of a handful of consulting companies IBM has absorbed since spinning out its managed infrastructure services division as Kyndryl in 2021.

IBM outperformed its tech peers in 2022, the worst year for the Nasdaq since 2008. IBM rose 11% last year and was one of only two U.S. tech companies valued at $50 billion or more to notch gains. The other was VMware, which agreed in May to be acquired by Broadcom for $61 billion.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

WATCH: Morgan Stanley downgrades IBM from buy to hold
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January 25, 2023
Boeing posts quarterly loss as labor and supply strains overshadow increase in jet demand
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A Boeing 747-8F operated by AirBridgeCargo takes off from Leipzig/Halle Airport.

Jan Woitas | Picture Alliance | Getty Images

Boeing posted a $663 million loss for the fourth quarter as supply chain issues weighed on results despite a rebound in aircraft sales and deliveries that drove up revenue.

Airlines and aircraft manufacturers have benefited from a sharp recovery in air travel, one of the most affected industries from the Covid pandemic. But Boeing’s leaders have been hesitant to ramp up aircraft production until the supply chain has stabilized.

The company is producing 31 of its 737 jets a month and plans to increase that to about 50 per month in 2025 or 2026. It said it would raise what has been low production rate of the 787 Dreamliners to five each month toward the end of the year and to 10 per month in 2025 or 2026. Deliveries of those wide-body planes had been paused for around two years until this summer due to production flaws.

For the full year, Boeing had a loss of $5 billion despite a 7% increase in revenue to $66.6 billion.

Here’s how the company performed in the fourth quarter compared with analysts’ estimates complied by Refinitiv:

Adjusted loss per share: $1.75 vs. expected earnings per share of 26 cents.

Revenue: $19.98 billion vs. $20.38 billion expected.

Boeing generated $3.1 billion in cash flow in the fourth quarter, higher than analyst forecasts, and $2.3 billion for the year, the most since 2018, before the second of two fatal 737 Max crashes that sparked a yearslong crisis for the company.

Its commercial aircraft unit generated $9.2 billion in sales in the fourth quarter, up 94% from a year earlier as deliveries jumped, but it still produced a loss due to abnormal costs and other expenses such as research and development, the company said.

Boeing reiterated its expectation to generate between $3 billion and $5 billion in free cash flow this year.

“We’re proud of how we closed out 2022, and despite the hurdles in front of us, we’re confident in our path ahead,” CEO Dave Calhoun said Wednesday in a memo to employees. “We have a robust pipeline of development programs, we’re innovating for the future and we’re increasing investments to prepare for our next generation of products.”
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January 25, 2023
Goldman Sachs is set to report fourth-quarter earnings — here’s what the Street expects
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David Solomon, chief executive officer of Goldman Sachs Group Inc., during a Bloomberg Television at the Goldman Sachs Financial Services Conference in New York, US, on Tuesday, Dec. 6, 2022.

Michael Nagle | Bloomberg | Getty Images

Goldman Sachs is scheduled to report fourth-quarter earnings before the opening bell Tuesday.

Here’s what Wall Street expects:

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Earnings: $5.48 per share, 49% lower than a year earlier, according to Refinitiv

Revenue: $10.83 billion, 14% lower than a year earlier.

Trading Revenue: Fixed Income $2.31 billion, Equities $2.14 billion

Investing Banking: $1.75 billion

How long will the investment banking drought last?

That’s one of the top questions analysts will have for Goldman CEO David Solomon.

While the fourth quarter was an ugly one for bankers — Wall Street rivals JPMorgan Chase and Citigroup each posted declines in investment banking revenue of nearly 60% last week — analysts question the odds of a rebound sometime later this year.

They’ll also want to hear Solomon’s views on headcount and expenses after the bank laid off up to 3,200 employees last week, as well as details about Goldman’s consumer operations as it scales back ambitions there.

Goldman shares have climbed 8.9% this year going into Tuesday’s trading, compared with a 6.7% advance for the KBW Bank Index.

Last week, JPMorgan Chase and Bank of America topped profit expectations on surging net interest income, while Wells Fargo and Citigroup posted mixed results. Morgan Stanley is also scheduled to release results Tuesday.

This story is developing. Please check back for updates.
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January 16, 2023
Bank of America tops expectations as higher rates help offset declines in investment banking
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Brian Moynihan, CEO, Bank of America

Scott Mlyn | CNBC

Bank of America reported fourth-quarter results on Friday that showed higher interest rates helped the Wall Street giant make up for a sharp slowdown in investment banking.

Here are the key metrics compared with what Wall Street expected:

Earnings: 85 cents per share versus 77 cents a share, according to Refinitiv

Revenue: $24.66 billion versus $24.33 billion, according to Refinitiv

The results were boosted by sizeable gains in interest income thanks to higher rates and loan growth in the fourth quarter. The bank reported $14.7 billion of net interest income, up 29% year over year but slightly below Wall Street expectations of $14.8 billion, according to StreetAccount.

That gain helped offset a decline in investment banking fees, which fell more than 50% to $1.1 billion. That result was largely in line with expectations, according to StreetAccount.

However, the bank did guide for net interest income to decline sequentially in the first quarter of 2023.

Shares of Bank of America rose 2.2% on Friday.

“The themes in the quarter have been consistent all year as organic growth and rates helped deliver the value of our deposit franchise. That coupled with expense management helped drive operating leverage for the sixth consecutive quarter,” CEO Brian Moynihan said in a statement.

Bank of America was supposed to be one of the main beneficiaries of the Federal Reserve’s rate-boosting campaign. But bank stocks got hammered last year amid concerns a recession was on the way.

The bank implemented a $1.1 billion provision for credit losses, up $1.6 billion compared with the same quarter in 2021, but said net charge-offs remain below pre-pandemic levels.

Notably, that was below the $2.3 billion provision for credit losses from rival JPMorgan Chase, but Moynihan said Bank of America is similarly expecting a mild recession.

“Our baseline scenario contemplates a mild recession. … But we also add to that a downside scenario, and what this results in is 95% of our reserve methodology is weighted toward a recessionary environment in 2023,” Moynihan said on a call with investors.

On the consumer banking front, Bank of America reported that balances were roughly flat, while credit card and debit spending rose 5% year over year. Average outstanding balance on credit cards climbed by 14%.

Average loans and leases for the whole bank rose 10% year over year, while the same metric for consumer banking rose 6%.

The global wealth and investment management business saw total revenue increase marginally even as average deposits declined. Net income for the segment was down 2% year over year.

Revenue from fixed income, currency and commodity trading was another bright spot, rising 37% year over year.

Prior to the report, Bank of America’s stock was up 4% in the first few days of 2023.
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January 13, 2023
JPMorgan Chase is set to report fourth-quarter earnings — here’s what the Street expects
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Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing, and Urban Affairs Committee hearing titled Annual Oversight of the Nations Largest Banks, in Hart Building on Thursday, September 22, 2022.

Tom Williams | CQ-Roll Call, Inc. | Getty Images

JPMorgan Chase is scheduled to report fourth-quarter earnings before the opening bell Friday.

Here’s what Wall Street expects:

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Earnings: $3.07 per share, 7.9% lower than a year earlier, according to Refinitiv.

Revenue: $34.3 billion, 13% higher than a year earlier.

Provision for credit losses $1.96 billion, according to StreetAccount

Trading revenue: fixed income $3.76 billion, equities $1.92 billion

Investment banking revenue: $1.57 billion

JPMorgan, the biggest U.S. bank by assets, will be closely watched for clues on how the industry is navigating an economy at a crossroads.

Analysts are expecting a mixed bag of conflicting trends from banks. Higher rates will help lenders earn more interest income, but some of that boost will be offset by larger provisions for expected loan losses as the economy slows.

Wall Street won’t likely come to the rescue. Investment banking revenue is expected to plunge 50% in the wake of frozen IPO markets and subdued deals, Barclays analyst Jason Goldberg said in a Jan. 11 note.

That will be partly offset by a 10% rise in trading revenue, thanks to a boost from fixed income operations, he wrote.

Of greater interest, perhaps, is what JPMorgan CEO Jamie Dimon says about the economy. The veteran CEO rattled markets last year when he said an economic “hurricane” caused by the Federal Reserve was headed for the U.S.

Shares of JPMorgan have climbed 4% this year, compared with the 6% rise of the KBW Bank Index.

The other large retail banks, including Bank of America, Wells Fargo and Citigroup, are also scheduled to release results Friday, while Goldman Sachs and Morgan Stanley report Tuesday.

This story is developing. Please check back for updates.
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January 12, 2023
Nike stock surges after earnings and revenue top expectations
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People walk past a store of the sporting goods retailer Nike Inc. at a shopping complex in Beijing, China March 25, 2021.

Florence Lo | Reuters

Nike on Tuesday reported quarterly results that easily topped Wall Street’s expectations, even as higher costs squeezed the company’s margins.

Shares of Nike rose more than 12% after hours Tuesday.

Here’s how Nike did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Earnings per share: 85 cents vs. 64 cents expected

Revenue: $13.32 billion vs. $12.57 billion expected

The company reported net income for the three-month period ended November 30 of $1.33 billion, or 85 cents per share, compared with $1.34 billion, or 83 cents per share, a year earlier.

Nike reported revenue of $13.32 billion, up 17% from $11.36 billion a year earlier.

Over the past three quarters, Nike has beaten Wall Street’s expectations, but like other retailers, has struggled with inflated inventory levels that arose from supply chain disruptions, rising consumer demand and unpredictable in-transit shipping times.

Inventories were up 43% to $9.3 billion in the quarter, compared to last year. The merchandise glut led to aggressive markdowns, which helped reduce Nike’s gross margin to 42.9% from 45.9% a year ago. However, inventories declined from $9.7 billion in the previous quarter.

The company also saw a 10% year-over-year uptick in selling and administrative expenses to $4.1 billion, mostly led by advertising and marketing costs and investment in Nike Direct as the company continues to move away from wholesalers.

While the focus on Nike Direct was largely to blame for the increased administrative expenses, the investment has paid off. Nike Direct sales were up 16% for the quarter at $5.4 billion and digital sales were up 25%. For the last several quarters, wholesale revenue has been effectively flat but was up 19% for the quarter.

Nike’s sales in China, its third biggest market by revenue, dropped by 3% compared to last year, continuing a trend the retailer has been contending with as the country deals with lingering Covid lockdowns and a slowdown in retail spending. Overall retail sales in the country fell by 5.9% in November compared to a year ago and clothes and shoe sales plunged by 15.6%, according to the National Bureau of Statistics of China.

After earnings from Nike’s fiscal first quarter were released in September, executives said the company’s inventory had grown 65% over the last year in North America alone and as a result, the company enacted an aggressive promotional strategy to liquidate the merchandise and make way for new products.

The plan was a key part of Nike’s strategy to shift its sales directly to consumers and away from wholesalers by improving the in-store experience and enticing customers to shop directly from the company online.

On Friday, Nike announced its new “Jordan World of Flight Milan” store located on Via Torino, a famed shopping district in the Italian locale well known for its designer shoe stores.

The initiative reflects the steps Nike is taking to grow the company as a direct-to-consumer brand.

The store, called a “first-of-its-kind retail experience” by the company in a news release, has a built-in members lounge and will include interactive shopping experiences tailored to fans of the renowned sneaker brand.

Read the company’s earnings release here.
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December 20, 2022
Lululemon shares fall after company offers weak fourth quarter guidance
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People line up to enter a store during Black Friday shopping at Fashion Outlets of Chicago in Rosemont of Greater Chicago Area, Illinois, the United States, on Nov. 26, 2021.

Joel Lerner | Xinhua News Agency | Getty Images

Lululemon on Thursday reported sales and profit that topped estimates, but the company offered softer guidance than expected for the fourth quarter.

Shares of the company fell more than 8% after hours.

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Here’s what the company reported for the three-month period compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: $2, adjusted, vs. $1.97 expected

Revenue: $1.86 billion vs. $1.81 billion expected

The athletic apparel retailer is a popular mall destination that’s known for its trendy — and pricey — workout apparel and loungewear. Even as inflation hits Americans’ wallets and people dress up again, investors have bet that the brand can keep drawing shoppers and getting them to spend.

Lululemon’s third-quarter net income rose to $255.5 million, or $2 per share, from $187.8 million, or $1.44 per share a year ago.

The company’s guidance for the holiday quarter came in weaker than analysts had projected. Lululemon sees fourth quarter per-share earnings of $4.20 to $4.30, compared to estimates of $4.30. It expects revenue of between $2.605 billion to $2.655 billion, versus a projected $2.649 billion.

The retailer raised its forecast in September, saying it expects 2022 revenue of between $7.865 billion and $7.940 billion, up from the range of $7.610 billion to $7.710 billion it stated last quarter. It also raised its adjusted earnings per share outlook to a range of $9.75 to $9.90, from last quarter’s guidance of $9.35 to $9.50 adjusted.

Shares of the company are down more than 4% so far this year. The stock has outperformed the S&P 500 Index, which is down about 17% during the same period. It closed Thursday at $374.51, bringing the market cap to $47.75 billion.
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December 8, 2022
Beyond Meat reports wider-than-expected loss, falling revenue
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Beyond Meat “Beyond Burger” patties made from plant-based substitutes for meat products sit on a shelf for sale in New York City.

Angela Weiss | AFP | Getty Images

Beyond Meat on Wednesday reported a wider-than-expected loss for its third quarter as demand for its meat substitutes tumbled.

Shares of the company bounced around in after-hours trading. The stock closed down 9% on Wednesday.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Loss per share: $1.60 vs. $1.14 expected

Revenue: $82.5 million vs. $98.1 million expected

Beyond reported a third-quarter net loss of $101.7 million, or $1.60 per share, wider than its net loss of $54.8 million, or 87 cents per share, a year earlier.

Net sales dropped 22.5% to $82.5 million.
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November 9, 2022
Disney misses on profit and key revenue segments, warns streaming growth could taper
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Bob Chapek, Disney CEO at the Boston College Chief Executives Club, November 15, 2021.

Charles Krupa | AP

Disney fell short of expectations for profit and key revenue segments during the fiscal fourth quarter Tuesday and warned strong streaming growth for its Disney+ platform may taper going forward.

Shares of the company fell roughly 8% in after-hours trading.

The company’s quarterly results missed Wall Street expectations on the top and bottom lines, as both its parks and media divisions underperformed estimates. And Chief Financial Officer Christine McCarthy tempered investor expectations for the new fiscal year, forecasting 2023 revenue growth of less than 10%. The company reported fiscal 2022 revenue growth of 22%.

Revenue in Disney’s media and entertainment division fell 3% year over year to $12.7 billion during the fiscal fourth quarter, as the company’s direct-to-consumer and theatrical businesses struggled. Analysts had expected segment revenue of $13.9 billion, according to StreetAccount estimates.

The company also posted lower content sales because it had fewer theatrical films on the calendar and therefore, fewer films to place into the home entertainment market.

Here’s how the company performed in the period from July to September:

Earnings per share: 30 cents per share adj. vs. 55 cents expected, according to a Refinitiv survey of analysts

Revenue: $20.15 billion vs. $21.24 billion expected, according to Refinitiv

Disney+ total subscriptions: 164.2 million vs. 160.45 million expected, according to StreetAccount

Disney+ added 12.1 million subscriptions during the period, bringing the platform’s total subscriber base to 164.2 million, higher than the 160.45 million analysts had forecast, according to StreetAccount estimates.

However, growth is expected to slow in the fiscal first quarter, Disney executives warned on Tuesday’s conference call.

At the end of the fiscal fourth quarter, Hulu had 47.2 million subscribers and ESPN+ had 24.3 million. Combined, Hulu, ESPN+ and Disney+ have over 235 million streaming subscribers. Netflix, long the leader in the streaming space, had 223 million subscribers, according to the most recent tally.

Disney CEO Bob Chapek said in the company’s earnings release that Disney+ will achieve profitability in fiscal 2024. The direct-to-consumer division lost $1.47 billion during the most recent quarter. It also reported a 10% drop in domestic average revenue per user (ARPU) to $6.10.

The company is set to hike prices for the service in December and is planning an ad-supported tier, which is expected to boost revenue.

Chapek has been on a mission to better link the company’s divisions as one single organization and accelerate its direct-to-consumer strategy.

The company reported record results in its parks, experiences and products segment, Chapek said. The division, which includes the company’s theme parks, resorts, cruise line and merchandise business, saw revenue increase more than 34% to $7.4 billion during the quarter.

Still, Wall Street had slightly higher hopes for the division: Analysts were expecting revenue of $7.5 billion, according to StreetAccount.

Operating income for the division rose more than 66% to $1.5 billion as spending increased at its domestic and international parks and consumers booked voyages on its new cruise ship, the Disney Wish. The parks unit, specifically, brought in $815 million in operating income, well shy of the $919 million expected by StreetAccount.

Disney cited higher costs and said they were only partially offset by higher ticket revenue, driven by the introduction of the Genie+ and Lightning Lane guest offerings.

CFO McCarthy said Tuesday Disney is looking for “meaningful efficiencies” and actively examining the company’s cost base.

— CNBC’s Alex Sherman contributed to this report.
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November 8, 2022
AMD misses but still ekes out 29% revenue growth
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AMD shares rose as much as 6% in extended trading on Tuesday after the chipmaker indicated its server chip business will grow in the quarters ahead, even as earnings and quarterly guidance failed to meet Wall Street’s expectations.

Here’s how the company did:
- Earnings: 67 cents per share, adjusted, vs. 68 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $5.57 billion, vs. $5.62 billion as expected by analysts, according to Refinitiv.
Overall, AMD’s revenue grew by 29% year over year in the fiscal third quarter, which ended Sept. 24, according to a statement. Net income fell 93% to $66 million, mainly because of AMD’s $49 billion acquisition in February of Xilinx, a maker of chips called field-programmable gate arrays.

On Oct. 6, AMD issued preliminary results for the fiscal third quarter that lagged guidance it provided in August, because of fewer chip shipments in a weaker PC market than expected. The stock fell almost 14%, its largest decline since March 2020. AMD has been preparing for the PC market to be lackluster in the fiscal fourth quarter, CEO Lisa Su said on a conference call with analysts.

For the full year, AMD said it sees $23.5 billion in revenue, down from the $26.3 billion forecast the company gave in August. Analysts polled by Refinitiv had expected $23.88 billion. The company contracted its adjusted gross margin outlook to 52% from 54% in August.

AMD said its Data Center segment generated $1.61 billion in revenue in the fiscal third quarter, up 45% and slightly below the StreetAccount consensus of $1.64 billion. The unit includes contributions from Xilinx and distributed computing startup Pensando, which AMD bought for $1.9 billion.

The chipmaker has seen healthy demand for shipments of its server chips that carry the code name Genoa. AMD plans to launch Epyc data center chips on Nov. 10.

“We’ve had very good progress at the North American cloud vendors and we continue to believe that although there may be some near-term, let’s call it optimization, of, let’s call it individual footprints and efficiencies at individual cloud vendors, over the medium term,” Su said. “As we go into 2023, we expect growth in that market, particularly customers moving more workloads to AMD, just given the strength of our product portfolio and overall general coming forward.”

Su said cloud revenue more than doubled and increased sequentially, while revenue from server makers targeting big companies was down sequentially. She said AMD has seen enterprise customers taking longer to make decisions and being slightly more conservative on capital expenditures.

The data center business “at least for now, looks decent, and quite a bit better than what’s going on with Intel,” said Stacy Rasgon, senior semiconductor analyst at Bernstein, in an interview on CNBC’s “Closing Bell: Overtime” after AMD announced its results. “There’s a lot of uncertainty about what they were going to say about data center, particularly in the wake of Intel’s report where Intel had called for the market to decline in Q4. This is probably why the stock is up now. The guide itself is quite weak, but it seems likely that it’s isolated to PCs.”

The Gaming segment produced $1.63 billion in revenue. That was up about 14% and in line with the $1.63 billion consensus among analysts surveyed by StreetAccount. The company touted healthy demand for console chips for Microsoft and Sony as the holidays approach.

The Embedded segment that includes some Xilinx sales delivered $1.3 billion, up from $79 million in the year-ago quarter and in line with the $1.3 billion StreetAccount consensus.

AMD’s Client unit, which the chipmaker had warned about in October, generated $1.02 billion in revenue. That was down nearly 40% but in excess of the $1.17 billion StreetAccount consensus. Four days after AMD gave preliminary results, technology industry researcher Gartner said third-quarter PC shipments fell 19.5%, the steepest decline the company has seen since it started following the market in the mid-1990s. During the quarter AMD announced Ryzen 7000 desktop PC chips, and the company pointed to positive reviews of the products.

AMD “worked closely with our customers to reduce downstream inventory,” Su said.

All four of the segments delivered slightly more revenue than AMD had said to expect in its October warning.

“We will continue to invest in our strategic priorities around the data center, embedded and commercial markets, while tightening expenses across the rest of the business,” Su said. The company will control operating expenses and headcount growth, said Devinder Kumar, AMD’s finance chief.

Notwithstanding the after-hours fluctuation, AMD stock has plummeted 58% so far this year, while the S&P 500 is down 19% over the same period.

WATCH: Bernstein’s Stacy Rasgon weighs in on AMD earnings
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November 1, 2022
Ford reveals third-quarter net loss, weighed down by supply chain problems and Argo A.I. investment
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2023 Ford F-150 Raptor R

Ford

DETROIT – Ford Motor recorded a net loss of $827 million during the third quarter, weighed down by supply chain problems and costs related to disbanding its autonomous vehicle unit Argo AI.

Still, the automaker was able to narrowly beat Wall Street’s subdued expectations for the period and guided to the lowest end of its previously forecast earnings for the year.

Shares of the company were down roughly 1.5% in extended trading following the report.

Here’s how Ford performed during the third quarter, compared with analysts estimates as compiled by Refinitiv:

Adjusted earnings per share: 30 cents vs. 27 cents estimated

Automotive revenue: $37.2 billion vs. $36.25 billion estimated

The auto industry’s earnings and forecasts are being closely watched by investors for any signs that consumer demand could be weakening amid rising interest rates and looming recession fears. However, both Ford and crosstown rival General Motors continue to say demand for their products remains strong despite outside economic concerns and rising interest rates.

Ford reported adjusted earnings of $1.8 billion for the quarter, down 40% from a year earlier but slightly above its own previously announced expectations, set last month.

Ford in September partially pre-released its results, including projected adjusted earnings before interest and taxes in the range of $1.4 billion to $1.7 billion — some analysts had been expecting a quarterly profit closer to $3 billion — but affirmed full-year guidance of adjusted earnings before interest and taxes of between $11.5 billion to $12.5 billion.

On Wednesday Ford updated its guidance to forecast full-year adjusted earnings before interest and taxes of about $11.5 billion. It raised its full-year adjusted free cash flow forecast, however, to between $9.5 billion and $10 billion – up from $5.5 billion to $6.5 billion – on strength in the company’s automotive operations.

Argo A.I.

Ford recorded a $2.7 billion non-cash, pretax charge on its investment in Argo AI, which the company initially invested in starting in 2017. It later split its ownership of Argo AI with German automaker Volkswagen in 2019.

Ford CFO John Lawler said the company is winding down the operations to focus on advanced driver-assist systems such as its BlueCruise hands-free highway driving system and other operations that aren’t considered “fully autonomous.”

“It’s become very clear that profitable, fully autonomous vehicles at scale are still a long way off,” he told reporters. “We’ve also concluded that we don’t necessarily have to create that technology ourselves.”

Some of the roughly 2,000 employees for Argo AI are expected to be offered positions at Ford or Volkswagen, officials said. Volkswagen said in a statement that it will no longer invest in Argo AI.

Ford’s Q3

In pre-releasing some results last month, Ford attributed the lower-than-expected earnings to parts shortages affecting 40,000 to 50,000 vehicles as well as an extra $1 billion in unexpected supplier costs during the quarter.

Lawler on Wednesday said the company still expects to finish those vehicles and have them shipped to dealers by the end of the year.

The vehicles, largely high-margin pickups and SUVs, dragged down Ford’s North American profits. The company’s adjusted profit margin for the region was just 5%, down from 10.1% a year earlier.

Ford’s North American operations recorded adjusted earnings of $1.3 billion during the third quarter, down 46% from a year earlier. The automaker recorded earnings gains in Europe and South America, while its operations in China lost $193 million.

Ford’s overall revenue during the quarter, which includes its financial arm, was $39.4 billion, a 10% increase from a year earlier. Through the third quarter, the company’s year-to-date revenue was $114.1 billion, a 16% increase compared to that same time period in 2022.

Ford’s earnings come a day after crosstown rival General Motors significantly outperformed Wall Street’s earnings expectations but slightly missed on revenue. GM’s adjusted profit margin for the quarter narrowed to 10.2% compared with 10.7% during the third quarter of 2021, including 10% in North America.

– CNBC’s John Rosevear contributed to this report.
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October 27, 2022
Microsoft earnings are out – Here are the numbers
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Microsoft CEO Satya Nadella gestures during a session at the World Economic Forum annual meeting in Davos on May 24, 2022.

Fabrice Coffrini | AFP | Getty Images

Microsoft reported earnings after the bell. Here are the results.

Earnings per share (EPS): $2.35 vs $2.30 expected, according to Refinitiv

Revenue: $50.12 billion, vs. $49.61 billion expected, according to Refinitiv

Analysts have lowered their estimates in recent weeks because of a decline in PC unit shipments and the stronger U.S. dollar. They expect 9.5% revenue growth year over year, which would be the slowest growth since 2017. In July, Microsoft’s finance chief, Amy Hood, had told analysts to expect revenue growth to be 2% lower than it otherwise would be because of currency fluctuations.

Technology industry researcher Gartner said earlier this month that PC shipments in the quarter fell 19.5% year over year, and chipmaker AMD earlier this month issued lower-than-expected preliminary quarterly results tied to a “weaker than expected PC market and significant inventory correction actions across the PC supply chain.” A slowing PC market could cause weakness in Microsoft’s revenue from the Windows operating system.

Analysts expect Microsoft’s Azure cloud revenue to grow 36.4% on an annualized basis, compared with 40% growth in the previous quarter, according to a survey of 14 analysts conducted by CNBC. Analysts polled by StreetAccount expect 36.9% Azure growth.

During the quarter, Microsoft started rolling out the first annual update to its Windows 11 operating system since releasing the original version last year, and the company announced plans to slow down its pace of hiring said it was cutting less than 1% of employees. Microsoft also introduced Viva Engage, a portal in the Teams communication app where co-workers can share video stories.

The quarterly results will include small adjustments in the way that Microsoft reports revenue. Revenue from HoloLens augmented-reality devices will appear in the More Personal Computing segment instead of the Intelligent Cloud segment. Microsoft adjusted its forecast for the segments by about $100 million in connection with the change.

Microsoft shares have fallen about 26% so far this year, while the S&P 500 stock index is down almost 20% over the same period.

Executives will discuss the results and issue guidance on a conference call starting at 5:30 p.m. ET.

This is breaking news. Please check back for updates.

WATCH: Microsoft could rally hard with market, says NorthmanTrader’s Henrich
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October 25, 2022
Bank of America tops estimates on better-than-expected bond trading, higher interest rates
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Bank Of America CEO Brian Moynihan is interviewed by Jack Otter during “Barron’s Roundtable” at Fox Business Network Studios on January 09, 2020 in New York City.

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Bank of America said Monday that quarterly profit and revenue topped expectations on better-than-expected fixed income trading and gains in interest income, thanks to choppy markets and rising rates

Here’s what the company reported compared with what analysts were expecting, based on Refinitiv data:

Earnings per share: 81 cents vs. 77 cents expected

Revenue: $24.61 billion adjusted vs. $23.57 billion expected

Bank of America said in a release that third-quarter profit fell 8% to $7.1 billion, or 81 cents a share, as the company booked a $898 million provision for credit losses in the quarter. Revenue net of interest expense jumped to $24.61 billion, on a non-GAAP basis.

Shares of the bank rose 6.1%.

Bank of America, led by CEO Brian Moynihan, was supposed to be one of the main beneficiaries of the Federal Reserve’s rate-boosting campaign. That is playing out, as lenders including Bank of America, JPMorgan Chase and Wells Fargo are producing more revenue as rates rise, allowing them to generate more profit from their core activities of taking in deposits and making loans.

“Our U.S. consumer clients remained resilient with strong, although slower growing, spending levels and still maintained elevated deposit amounts,” Moynihan said in the release. “Across the bank, we grew loans by 12% over the last year as we delivered the financial resources to support our clients.”

Net interest income at the bank jumped 24% to $13.87 billion in the quarter, topping the $13.6 billion StreetAccount estimate, thanks to higher rates in the quarter and an expanding book of loans.

Net interest margin, a key profitability metric for bank investors, widened to 2.06% from 1.86% in the second quarter of this year, edging out analysts’ estimate of 2.00%.

Fixed income trading revenue surged 27% from a year earlier to $2.6 billion, handily exceeding the $2.24 billion estimate. That more than offset equities revenue that dropped 4% to $1.5 billion, below the $1.61 billion estimate.

Like its Wall Street rivals, investment banking revenue posted a steep decline, falling about 46% to $1.2 billion, slightly exceeding the $1.13 billion estimate.

Of note, the bank’s evolving provision for credit losses showed the company was beginning to factor in a more harsh economic outlook.

While Bank of America released $1.1 billion in reserves in the year-earlier period, in the third quarter the firm had to build reserves by $378 million. That, in addition to a 12% increase in net charge-offs for bad loans to $520 million in the quarter, accounted for the $898 million provision.

Analysts have said that they want to see bank executives factor in the possibility of an impending recession before investors return to the beaten-down sector. Bank of America shares hit a new 52-week low last week and have fallen 29% this year through Friday, worse than the 26% decline of the KBW Bank Index.

Last week, JPMorgan and Wells Fargo topped expectations for third-quarter profit and revenue by generating better-than-expected interest income. Citigroup also beat analysts’ estimates, and Morgan Stanley missed as choppy markets took a toll on its investment management business.
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October 17, 2022