In this article, we will take a look at the 10 latest earnings to watch.
U.S. stock futures tied to S&P 500 and Dow Jones Industrial Average rose in the mid-day trading session on Wednesday. However, tech-heavy Nasdaq Composite turned red after disappointing quarterly results from Alphabet Inc. (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT).
Alphabet Inc. (NASDAQ:GOOG) shares tumbled after the search engine company failed to meet financial expectations for Q3, primarily due to weak ad sales. On the other hand, Microsoft Corporation (NASDAQ:MSFT) shares also slid after issuing a soft sales outlook for the current quarter.
On the bright side, investors cheered the latest financial results of digital payments giant Visa Inc. (NYSE:V) and energy behemoth Halliburton Company (NYSE:HAL). Check out the complete article to see some other much-awaited earnings reports.
Photo by Kai Wenzel on Unsplash
10. Automatic Data Processing, Inc. (NASDAQ:ADP)
Number of Hedge Fund Holders: 39
Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) rose over four percent this morning after the business outsourcing solutions provider beat profit and sales expectations for its fiscal first quarter.
Automatic Data Processing, Inc. (NASDAQ:ADP) reported adjusted earnings of $1.86 per share, topping expectations of $1.80 per share. Revenue for the quarter rose 10 percent versus last year to $4.21 billion, ahead of the consensus of $4.16 billion
For its fiscal year 2023, Automatic Data Processing, Inc. (NASDAQ:ADP) guided for adjusted earnings growth in the range of 15 – 17 percent and sales growth between 8 – 9 percent on a year-over-year basis.
9. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 41
Shares of The Kraft Heinz Company (NASDAQ:KHC) rose to a nearly two-month high before the opening bell on Wednesday following the company’s better-than-expected results for the third quarter.
The Kraft Heinz Company (NASDAQ:KHC) primarily benefitted from price hikes that reduced the impact of rising costs on its business. The food and beverage company reported earnings of 63 cents per share, down from 65 cents per share in the year-ago period but above the consensus of 56 cents.
In addition, The Kraft Heinz Company (NASDAQ:KHC) generated revenue of $6.51 billion, up 2.9 percent over the corresponding period of 2021. The numbers came above the expectations of $6.27 billion.
U.S. packaged food makers, including The Kraft Heinz Company (NASDAQ:KHC), have gradually increased product prices over the last year to minimize the impact of elevated costs. Many expect additional price hikes from the company in the coming months.
8. Halliburton Company (NYSE:HAL)
Number of Hedge Fund Holders: 43
Halliburton Company (NYSE:HAL) recently caught investors’ attention after delivering impressive results for the third quarter. The oil field service company’s latest performance was primarily driven by a sharp surge in drilling activity during the quarter.
For the September quarter, Halliburton Company (NYSE:HAL) reported earnings of 60 cents per share, significantly higher than 28 cents per share in the year-ago period. Revenue for the quarter also climbed 39 percent versus last year to $5.4 billion. The results exceeded the consensus of 56 cents per share for earnings and $5.3 billion for revenue.
Halliburton Company (NYSE:HAL) also released its region-wise sales results. Revenue from North America jumped 9 percent on a sequential basis to $2.6 billion, while international revenue rose 3 percent to $2.7 billion in the quarter.
Looking forward, analysts expect Halliburton Company (NYSE:HAL) to benefit from increased drilling activity around the world. Halliburton stock has already advanced nearly 50 percent on a year-to-date basis.
7. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 51
The Boeing Company (NYSE:BA) released its financial results for the third quarter before the opening bell on Wednesday. The aerospace giant disappointed investors by posting an adjusted loss of $6.18 per share, contrary to the consensus forecast calling for 7 cents per share earnings.
The quarterly revenue of $15.96 billion also missed analysts’ average estimate of $17.76 billion. On the bright side, The Boeing Company (NYSE:BA) generated a free cash flow of about $2.9 billion in the quarter, smashing the expectations of $1 billion.
Discussing the results, CEO of The Boeing Company (NYSE:BA), Dave Calhoun, said in a statement:
“We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022. At the same time, revenue and earnings were significantly impacted by losses on our fixed-price defense development programs. We’re squarely focused on maturing these programs, mitigating risks and delivering for our customers and their important missions.”
Like The Boeing Company (NYSE:BA), Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) and Visa Inc. (NYSE:V) are also on the list of 10 latest earnings to watch.
6. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 55
Texas Instruments Incorporated (NASDAQ:TXN) beat financial expectations for the third quarter. However, it issued a weak outlook for the fourth quarter, sending its shares down more than four percent on Wednesday morning.
The semiconductor company reported earnings of $2.47 per share on revenue of $5.24 billion. This compares to earnings of $2.07 per share and revenue of $4.64 billion posted by Texas Instruments Incorporated (NASDAQ:TXN) for the corresponding period of 2021. Meanwhile, analysts expected the company to earn $2.39 per share on sales of $5.14 billion.
Nevertheless, the better-than-expected performance for Q3 was overshadowed by a disappointing sales outlook for Q4. Texas Instruments Incorporated (NASDAQ:TXN) guided for revenue in the range of $4.4 – $4.8 billion for the current quarter, below the consensus of $4.94 billion. The company blamed softening demand across every sector for the weakness.
5. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders: 56
Boston Scientific Corporation (NYSE:BSX) delivered mixed financial results for the third quarter and lowered its profit outlook for the full year. The medical technology company reported adjusted earnings of 43 cents per share, marginally above 41 cents per share in the same period of 2021.
Revenue came in at $3.17 billion, representing a surge of 8.1 percent over the year-ago period. Analysts expected Boston Scientific Corporation (NYSE:BSX) to earn 44 cents per share on revenue of $3.15 billion.
For the full year, Boston Scientific Corporation (NYSE:BSX) lowered its adjusted earnings outlook to a range of $1.71 – $1.74 per share, from its previous guidance between $1.74 – $1.77 per share. The updated outlook is below the consensus of $1.76 per share.
4. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 93
Thermo Fisher Scientific Inc. (NYSE:TMO) came into the limelight on Wednesday morning after releasing its financial results for the third quarter. The lab equipment and services provider earned $5.08 per share on an adjusted basis, down from $5.77 per share in the year-ago period.
In addition, Thermo Fisher Scientific Inc. (NYSE:TMO) posted revenue of $10.68 billion, up 14 percent on a year-over-year basis. The results easily surpassed analysts’ average estimate of $4.82 per share for earnings and $9.92 billion for revenue.
Separately, investment management firm Baron Funds briefly discussed Thermo Fisher Scientific Inc. (NYSE:TMO) in its third-quarter 2022 investor letter, stating:
“Thermo Fisher Scientific Inc. (NYSE:TMO) is the world’s largest life sciences tools company. Shares fell due to the rotation out of life sciences tools stocks, driven by concerns about a possible global recession, foreign currency exposure, COVID-related lockdowns in China, and reduced levels of biotechnology funding. We continue to believe Thermo Fisher has a strong long-term growth outlook given a large and growing addressable market coupled with its industry-leading scale, commercial infrastructure, e-commerce platform, supply-chain capabilities, and R&D investment.”
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Shares of Alphabet Inc. (NASDAQ:GOOG) turned red on Wednesday morning after the search engine giant posted weak financial results for the third quarter. The company primarily took a hit from decelerating ad sales.
Alphabet Inc. (NASDAQ:GOOG) reported earnings of $1.06 per share, down from $1.40 per share in the year-ago period and below the consensus of $1.27 per share. The quarterly revenue of $69.09 billion also missed the expectations of $71 billion.
In addition, Alphabet Inc. (NASDAQ:GOOG) released its segment-wise sales results. Google advertising revenue inched up just 2.5 percent versus last year to $54.48 billion, missing the consensus of $56.9 billion with a big margin. YouTube ad revenue came in at $7.07 billion, against the expectations of $7.5 billion. On the bright side, Google Cloud Platform revenue increased to $6.87 billion, beating estimates of about $6.7 billion.
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 166
Shares of Visa Inc. (NYSE:V) rose nearly six percent in mid-day trading Wednesday after delivering strong financial results for its fiscal fourth quarter. The payments technology company attributed the results to cross-border travel recovery and strength in consumer spending.
Visa Inc. (NYSE:V) reported adjusted earnings of $1.93 per share, compared to $1.62 per share in the corresponding period of 2021. Revenue also jumped 19 percent versus last year to $7.79 billion. Analysts were looking for earnings of $1.87 per share on revenue of $7.57 billion.
Among other updates, Visa Inc. (NYSE:V) reported that total processed transactions increased 12 percent on a year-over-year basis to 50.9 billion in the quarter.
Speaking on the results, CEO Alfred F. Kelly, Jr. said:
“In Visa’s fiscal fourth quarter, we saw a continuation of many of the spending trends present throughout 2022: strength in consumer payments, resilience in eCommerce and ongoing recovery in cross-border travel.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Tech giant Microsoft Corporation (NASDAQ:MSFT) managed to meet financial expectations for its fiscal first quarter. However, its sales outlook for the current quarter missed estimates, sending its shares down nearly seven percent in mid-day trading Wednesday.
Microsoft Corporation (NASDAQ:MSFT) earned $2.35 per share during the September quarter, beating the consensus of $2.30 per share. Revenue for the quarter rose 11 percent versus last year to $50.12 billion, against the consensus of $49.61 billion.
Looking forward, Microsoft Corporation (NASDAQ:MSFT) expects revenue in the range of $52.35 – $53.35 billion for its fiscal second quarter, below analysts’ average estimate of $56.05 billion.
You can also take a peek at 12 Best Food Stocks To Buy Now and 13 Best Cybersecurity Stocks To Buy.
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Disclosure: None. 10 Latest Earnings to Watch is originally published on Insider Monkey.
