More than 80% of SP500 companies that have reported so far have beaten profit expectations but the returns are setting this up to be one of the worst earnings seasons over the last 11 years
Source: Bloomberg
Walmart on Thursday raised its full-year forecast, as the discounter leaned on its low-price reputation to draw grocery customers and drive online spending
The big-box retailer beat Wall Street’s expectations for sales and profits. E-commerce sales for Walmart U.S. also jumped 24%. Walmart said it now expects full fiscal-year consolidated net sales to increase by about 4% to 4.5%. It said adjusted earnings per share for the year will range between $6.36 and $6.46. That compares with its prior guidance for consolidated net sales gains of 3.5% and an adjusted earnings per share range of between $6.10 and $6.20. Source: App Economy Insights, CNBC
Another big week of earnings coming up!
• Monday: $MNDY. • Tuesday: $HD, $NU, $SE. • Wednesday: $CSCO, $JD, $STNE, $TCEHY. • Thursday: $BILL, $WMT. Source: Earnings Whisper, App Economy Insight
During Ferrari Group ($RACE)'s recent earnings call, the CEO gave an intriguing response to the question of how many cars Ferrari plans to produce:
"I understand there is a lot of curiosity on these numbers. What I can tell you is that we will always sell one car less than the market demand." Source: Quartr
Berkshire Hathaway on Saturday reported a solid increase in second-quarter operating earnings, while the cash hoard at Warren Buffett’s conglomerate swelled to nearly $150 billion.
The Omaha-based giant’s operating earnings — which encompass profits made from the myriad of businesses owned by the company, like insurance, railroads and utilities — totaled $10.043 billion last quarter, 6.6% higher than the figure from the same quarter a year ago. Net income totaled $35.91 billion, compared with a $43.62 billion loss during the second quarter last year. The strong results were bolstered by a jump in Berkshire’s insurance underwriting and investment income. Berkshire reported a near $26 billion unrealized gain from its investments as its gigantic stake in #Apple led the market rally in the second quarter. The tech giant soared nearly 18% during the quarter and Berkshire’s bet has ballooned to $177.6 billion. The “Oracle of Omaha” trimmed his Chevron stake by $1.4 billion to $19.4 billion at the end of June. Berkshire’s massive cash pile grew to $147.377 billion at the end of June, near a record and much higher than the $130.616 billion in the first quarter. Share repurchase activity slowed down as the conglomerate’s stock climbed back to a record high. The company spent just about $1.4 billion in buybacks during the quarter, bringing the year-to-date total to $5.8 billion. Link to CNBC article: $BRK Berkshire Hathaway Q2 FY23: • Segment margin 12% (-1pp Y/Y). • $AAPL Apple stake now worth $178B. • Stock repurchase $1.4B ($4.4B in Q1). • Cash and short-term securities $147B. Source: App Economic Insights, CNBC
Another big week ahead for us earnings
$PLTR $DIS $BABA $RIVN $AMC $UPST $SMCI $UPS $LCID $LLY $TWLO $PLUG $MARA $TTD $NVO $DDOG $RBLX $NVTA $CELH $SOUN $IONQ $TSN $GOLD $SWKS $WYNN $LAZR $MGNI $APPS $CHGG $ARRY $SONY $DNA $BRK.B $MPW $TOST $PARA $LYFT $BROS $LI $SWAV $FIVN $CYBR $CPA $CGC $VTRS $PENN $RNG $NVEI $CLOV $OKE Source: Earnings Whispers
Last week was a painful one for multi-assets portfolios: it was the worst week in four for Treasuries, the worst for commodities since June and the worst for stocks since March
Over the week, the 2s10s curve steepened by 19 bps, a 2.3 standard deviation move. As a consequence, the sectors that slid the most were those that are most exposed to bond yields, ie the long-duration stocks (Communications & Tech despite earnings beats by Apple and Amazon but also Utilities). Energy gained as Saudi Arabia said it would extend production cuts to prop up prices. Source: Bloomberg, J-C Gand.
Amazon reported second-quarter earnings on Thursday that sailed past analysts’ estimates and issued guidance that points to accelerating revenue growth
The stock rose more than 10% in extended trading. AMZN Amazon Q2 FY23: • Revenue +11% Y/Y to $134.3B ($3B beat). • Operating margin 6% (+3pp Y/Y). • FCF $7.9B TTM. • EPS $0.65. AWS: • Revenue +12% Y/Y to $22.1B. • Operating margin 24% (-4pp Y/Y). Q3 FY23 Guidance: • Revenue ~$140B ($2B beat). Source: App Economy Insights, CNBC
