US Earnings season UPDATE
Q4 GAAP EPS +16% higher than a year ago after 46% of S&P 500 companies have reported. Note that Beats are rewarded like never before. We have seen sharp moves for positive surprises led by large cap constituents. Source. Factset, TME
The performance differential between Nasdaq 100 (Tech) and Russell 2000 (us small-caps) is extreme.
Yet the earnings gap between Mega Cap Tech Stocks and Small Caps has widened to all an all-time high. Source: Barchart
Mentions of Job Cuts in Earnings Calls Hits Pandemic Peak
Layoffs are being mentioned on US earnings calls at the HIGHEST rate since the pandemic, according to Bloomberg. Source: Bloomberg, Genevieve Roch-Decter, CFA
In 1997, Apple lost $1 billion. Today? $1 billion in profit every 3 days.
Source: Jon Erlichman
Amazon on Thursday reported fourth-quarter results that sailed past analysts’ estimates, and gave strong guidance for the current quarter.
The stock climbed more than 8% in extended trading. $AMZN Amazon Q4 FY23: • Revenue +14% Y/Y to $170B ($3.7B beat). • Operating margin 8% (+2pp Y/Y). • FCF $37B TTM. AWS: • Revenue +13% Y/Y to $24.2B. • Operating margin 30% (+5pp Y/Y). Q1 FY24 Guidance: • Revenue ~$138-$143B ($142B expected).
BREAKING: Meta stock, $META, soars 13% after beating earnings expectations and announcing a quarterly dividend with a $50 billion stock buyback.
The stock has added $130 billion in market cap in just 15 minutes. For the first time in history, $META now has a market cap of $1.1 trillion. It is officially the 7th largest public company in the world. Source: Barchart, The Kobeissi Letter
Apple reported fiscal first-quarter earnings on Thursday that beat estimates for revenue and earnings, but Apple showed a 13% decline in sales in China, one of its most important markets.
Apple shares fell over 1% in extended trading. Here’s how Apple did $AAPL Apple Q1 FY24 in a nutshell: • Revenue +2% Y/Y to $119.6B ($1.3B beat). Services +11% Y/Y to $23.1B. Products +0% Y/Y to $96.5B. • Operating margin 34% (+3pp Y/Y). • EPS $2.18 ($0.07 beat). • $20.1B in buybacks and $3.8B in dividends. Source: App Economic Insights
The week is THE week of BIG TECH earnings and it is time for a reality check: NVDA is the only Magnificent 7 stock seeing an increase in earnings revisions.
The company is almost the sole beneficiary of the recent AI advancements, contrasting sharply with others that have only experienced hype without any fundamental improvement. Is the Mag7 acronym already blowing out? Source: Bloomberg, Tavi Costa
