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Case-Shiller Shrinking but Q1 Earnings Better: MCD, PEP, GE, etc.
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Tuesday, April 25th, 2023
The Case-Shiller Home Price Index is out this morning, for the month of February. On both the 10-city and 20-city report, we’re seeing smaller growth levels to the previous month: +0.4% on both the 20-city and 10-city prints, down from +2.6% and +2.5%, respectively. All 20 cities’ home prices in aggregate are down year over year, led by usual suspects Miami +10.8%, Tampa +7.7% and Atlanta +6.6%. Being from February, these figures are well in the rearview, but they do punctuate the sentence for the housing market as of this time.
McDonald’s (MCD - Free Report) posted its fifth-straight earnings beat, when the QSR giant reported earnings of $2.63 per share, ahead of the $2.31 estimate and the $2.28 per share from the year-ago quarter. Revenues of $5.9 billion outpaced the $5.77 billion in the Zacks consensus. Higher menu prices without taking a hit to foot traffic led to higher same-store sales. Global comps came in +12.6% versus +8.7% expected. For more on MCD’s earnings, click here.
Zacks Rank #2 (Buy)-rated PepsiCo (PEP - Free Report) also beat estimates fairly easily in its Q1 report out this morning: earnings of $1.50 per share on $17.85 billion in quarterly sales surpassed our consensus estimates by +9.5% and +3.76%, respectively. PepsiCo is a publicly traded firm that simply does not miss on earnings; its trailing 4-quarter average beat is +5%. Shares are up +1.4% in today’s pre-market. For more on PEP’s earnings, click here.
UPS (UPS - Free Report) brought mixed results to its Q1 report ahead of the bell, although we’ll call it basically in-line with estimates on both top and bottom lines: earnings of $2.20 per share outperformed estimates by a solid penny, while revenues in the quarter of $22.93 billion missed the Zacks consensus by a smidge: -0.05%. The delivery and logistics major currently rides a streak of 12 straight positive earnings surprises. For more on UPS’ earnings, click here.
General Motors (GM - Free Report) , also a Zacks Rank #2 company, showed no problem outpacing expectations in its Q1 report: earnings of $2.21 per share took out the $1.64 per share expected to the tune of a +34.8% earnings beat. Revenues of $39.99 billion in the quarter bettered the consensus estimate by +3.38% in the quarter. For more on GM’s earnings, click here.
Zacks Rank #1 (Strong Buy)-rated General Electric (GE - Free Report) also profoundly outperformed Zacks consensus estimates on both top and bottom lines this morning: earnings of 27 cents per share more than doubled the 13 cents expected, while revenues of $14.5 billion beat on the top line by more than a billion dollars than expected, though still down -15% year over year.
After the closing bell today, we see many more earnings reports due for release: Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Chipotle (CMG - Free Report) , among others. The overhang from yesterday afternoon’s sluggish report from First Republic , and market participants continue to gauge expectations for next week’s Fed meeting. Pre-market futures are slightly in the red ahead of the open.
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Case-Shiller Shrinking but Q1 Earnings Better: MCD, PEP, GE, etc.
Tuesday, April 25th, 2023
The Case-Shiller Home Price Index is out this morning, for the month of February. On both the 10-city and 20-city report, we’re seeing smaller growth levels to the previous month: +0.4% on both the 20-city and 10-city prints, down from +2.6% and +2.5%, respectively. All 20 cities’ home prices in aggregate are down year over year, led by usual suspects Miami +10.8%, Tampa +7.7% and Atlanta +6.6%. Being from February, these figures are well in the rearview, but they do punctuate the sentence for the housing market as of this time.
McDonald’s (MCD - Free Report) posted its fifth-straight earnings beat, when the QSR giant reported earnings of $2.63 per share, ahead of the $2.31 estimate and the $2.28 per share from the year-ago quarter. Revenues of $5.9 billion outpaced the $5.77 billion in the Zacks consensus. Higher menu prices without taking a hit to foot traffic led to higher same-store sales. Global comps came in +12.6% versus +8.7% expected. For more on MCD’s earnings, click here.
Zacks Rank #2 (Buy)-rated PepsiCo (PEP - Free Report) also beat estimates fairly easily in its Q1 report out this morning: earnings of $1.50 per share on $17.85 billion in quarterly sales surpassed our consensus estimates by +9.5% and +3.76%, respectively. PepsiCo is a publicly traded firm that simply does not miss on earnings; its trailing 4-quarter average beat is +5%. Shares are up +1.4% in today’s pre-market. For more on PEP’s earnings, click here.
UPS (UPS - Free Report) brought mixed results to its Q1 report ahead of the bell, although we’ll call it basically in-line with estimates on both top and bottom lines: earnings of $2.20 per share outperformed estimates by a solid penny, while revenues in the quarter of $22.93 billion missed the Zacks consensus by a smidge: -0.05%. The delivery and logistics major currently rides a streak of 12 straight positive earnings surprises. For more on UPS’ earnings, click here.
General Motors (GM - Free Report) , also a Zacks Rank #2 company, showed no problem outpacing expectations in its Q1 report: earnings of $2.21 per share took out the $1.64 per share expected to the tune of a +34.8% earnings beat. Revenues of $39.99 billion in the quarter bettered the consensus estimate by +3.38% in the quarter. For more on GM’s earnings, click here.
Zacks Rank #1 (Strong Buy)-rated General Electric (GE - Free Report) also profoundly outperformed Zacks consensus estimates on both top and bottom lines this morning: earnings of 27 cents per share more than doubled the 13 cents expected, while revenues of $14.5 billion beat on the top line by more than a billion dollars than expected, though still down -15% year over year.
After the closing bell today, we see many more earnings reports due for release: Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Chipotle (CMG - Free Report) , among others. The overhang from yesterday afternoon’s sluggish report from First Republic , and market participants continue to gauge expectations for next week’s Fed meeting. Pre-market futures are slightly in the red ahead of the open.
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