3M rains down on Microsoft’s parade. strong quarterly results from Microsoft pushed the S&P 500 to posted a slight gain and 3M stock’s losses pressured the Dow for most of the session and outweighed positive results from Microsoft on Thursday.
Microsoft Earnings Beat The Estimates:
Microsoft’s results were driven in part by strong sales from the company’s cloud business. Their earnings presented another reminder and the Revenue and earnings growth remains above the market and their own 5 year average with the attention to margin improvement consistently grow earnings per share faster than revenues. It is the 14th consecutive quarter which exceeded expectations and growth increased sequentially 14% in September 2019. lets come to the earnings $1.38 per share, excluding certain items, vs. $1.25 per share and Revenue $33.06 billion, vs. $32.23 billion as expected by analysts but revenue guidance was lower than expected. The company’s Azure revenue growth declined to 59% which is down from the 64% growth one quarter earlier. The Intelligent Cloud segment contributed $10.85 billion in revenue vs $10.42 billion by the FactSet estimate. It is no doubt where most of the companies are reducing the estimates via debt-financed stock repurchases to beat estimates, Microsoft stands out.
Intel Stock Shares Rose Postmarket 8% After Beat The Earnings:
Another earnings by the semiconduction maker Intel that beat analysts' expectations on Thursday and boosted its guidance for Q3. Intel reported earnings per share of $1.42 on revenue of $19.19 billion which beat the analyst forecast EPS of $1.23 on revenue of $18.02 billion and also guiding for a profit of $4.60 per share and revenue of $71 billion compared with expectations of $4.38 per share and $69.74 billion. The semiconduction maker also announced an increase in its share buyback program by $20 billion.
Visa Profit Beats Estimates :
Visa Inc's quarterly profit beat analysts' estimates on Thursday, helped by growth in overall customer spending, which boosted fees for the world's largest payment processor and earned $1.47 per share in the fourth quarter, while analysts on average had expected a profit of $1.43.
The number of transactions processed and total payments volume rose 47.82 billion and $2.27 trillion on a constant dollar basis rose respectively. The company's net income and Net revenue also rose $3.03 billion and $6.14 billion respectively.
Tesla Turns A Profit
Tesla is back in black and shoots higher after posting an unexpected profit in Q3. A strong third-quarter earnings report after the bell on Wednesday by Tesla shoot the share price 20% on the news of Tesla’s $143 million in quarterly net income, the first time the company has been in the black since the end of last year. Total GAAP gross margin for the quarter was 18.9% vs. 22.3% a year ago and 14.5% last quarter. Adjusted EBITDA came in at $876M vs. $646M consensus. Tesla says its EBITDA margin rose to 13.9% from 5.8% in Q2.The Model Y is on track to be released by summer 2020 and limited Tesla Semi trucks are expected to be produced next year.
light Holiday Sales Forecast For Amazon- Miss The Q3 Profit:
The E-commerce giant Amazon earnings fall for first time in more than two years in the third quarter which is fell short of street expectations. the company reported EPS $4.23 vs. $4.62 and Revenue $70 billion vs. $68.8 billion as per analyst expectation. Revenue grew 24% for the quarter, showing the heavy investment in free one-day shipping is leading to more purchases. Amazon’s cloud business falling slightly below analyst expectations of $9.1 billion. The stock was up 18% this year, slightly below the 20% gain for the S&P500.
Twitter Tumbles 16.3% After Q3 Results :
Twitter posted weaker-than-expected third-quarter revenue and profit growth on Thursday. For the third quarter, Twitter reported revenue of $824 million, which is up 9% year-over-year, which is below the consensus forecast from Wall Street analysts of $874 million. Non-GAAP profits were 5 cents a share, well below the Street consensus at 20 cents. Operating income was $44 million, also below the forecast range of $45 million to $80 million, reflecting lower-than-expected revenue. For Q4, the company sees revenue of $940 million to $1.01 billion which is also below the wall street expectation.
3M rains down on Microsoft’s parade:
MMM company reported better than expected Q3 earnings but missing revenue expectations by a wide mark and cutting its full-year earnings guidance. It reported Q3 revenues fell 2% Y/Y to $7.99B and industrial sales sliding 5.7% to $2.8B, below $3B consensus. 3M cuts its full-year adjusted EPS guidance to $8.99-$9.09 from its prior forecast of $9.25-$9.75. In Asia-Pacific, the sales of the company slumped 5%, while Europe, Middle East, and Africa fell 4.1%, and sales in the U.S. rose just 0.8%.
Overall U.S. stock benchmarks closed mixed on last trading session amid a flurry of corporate quarterly results rolling out on Wall Street.