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Markets Pull Back (Mostly); Seagate, Alphabet Impress on Earnings
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Tuesday, July 23rd, 2024
Markets Tuesday behaved reminiscent to a week ago or so. While three of the four major indices hung pretty close to zero-balance and dipped into the red shortly before the closing bell, the small-cap Russell 2000 swooped past the field shortly after the open and remained above it all session. The Dow lost -57 points, -0.14%, while the Nasdaq was -10 points, -0.06%, and the S&P 500 -0.16%. The Russell gained +1.23% and is +10% over the past month of trading.
As Q2 earnings begins to elbow out other new events, we take one exception here. This morning, Existing Home Sales for June made the case for the housing industry, but didn’t particularly make it well. A total of 3.89 million seasonally adjusted, annualized units for the month was below the estimated 3.95 million and the unrevised 4.11 million for May. This is the fourth-straight month of lower existing home sales and the lowest of the year as the median price rose to a record-high $426,900. Tomorrow we’ll see New Home Sales, which are expected to be up month over month, taking up a higher percentage of housing demand.
Tesla (TSLA - Free Report) disappointed on Q2 earnings this afternoon. Coming out at 52 cents per share was a dime lower than the consensus estimate, while revenues slightly outperformed expectations: $25.50 billion from $25.13 billion. In the press release, the company warned full-year deliveries may be “notably lower,” with more color expected on the conference call an hour from now. A lower-priced Tesla model and the Robotaxi status are two elements Tesla shareholders will also expect to hear more about. At this hour, TSLA shares are -2.5%.
Google parent Alphabet (GOOGL - Free Report) , on the other hand, beat on both top and bottom lines after the close. Earnings of $1.89 per share notched a four-cent beat (and notably ahead of the $1.44 per share reported in the year-ago quarter) on revenues — minus TAC costs, which the company doesn’t discount on headline — of $71.36 billion, ahead of the $70.60 billion in the Zacks consensus. YouTube brought in $8.66 billion, which was light of estimates, but its cloud business came in at $10.35 billion, surpassing expectations — and improving its status among the very biggest cloud-computing companies. Shares were sluggish to start after-hours trading, but are up +1.5% at this hour.
Seagate Technologies (STX - Free Report) had perhaps the most impressive quarter post-closing bell. Its fiscal Q4 earnings came in at $1.05 per share — 20 cents higher than the Zacks consensus and a whopping +680% over the -$0.18 per share posted a year ago for the Zacks Rank #1 (Strong Buy)-rated cloud and AI tech firm. Revenues of $1.89 billion outpaced the $1.86 billion expected, and marks the third-straight earnings beat for the company, which is up +6.4% in late trading, adding to the +27% gains year to date.
Texas Instruments (TXN - Free Report) also outperformed in the quarter, but not as substantially. Earnings of $1.22 per share amounted to a six-cent beat — consistent with its near-perfect record of (slight) improvements over estimates in the past five years. Revenues came in at $3.82 billion, modestly beyond the $3.80 billion analysts had been looking for. The analog-chip giant kept its next-quarter guidance in-line with recent estimates, and shares are up +5% on the news.
Visa (V - Free Report) posted a one-penny beat in its fiscal Q3 this afternoon. Earnings of $2.42 per share was notably ahead of the $2.16 per share reported a year ago. But revenues were a smidge below expectations to $8.9 billion for the quarter, on Payments Volume which grew +7% in the quarter. Shares are down -2% in the late session, virtually giving up the credit card giant’s entire year-to-date gains.
Image: Bigstock
Markets Pull Back (Mostly); Seagate, Alphabet Impress on Earnings
Tuesday, July 23rd, 2024
Markets Tuesday behaved reminiscent to a week ago or so. While three of the four major indices hung pretty close to zero-balance and dipped into the red shortly before the closing bell, the small-cap Russell 2000 swooped past the field shortly after the open and remained above it all session. The Dow lost -57 points, -0.14%, while the Nasdaq was -10 points, -0.06%, and the S&P 500 -0.16%. The Russell gained +1.23% and is +10% over the past month of trading.
As Q2 earnings begins to elbow out other new events, we take one exception here. This morning, Existing Home Sales for June made the case for the housing industry, but didn’t particularly make it well. A total of 3.89 million seasonally adjusted, annualized units for the month was below the estimated 3.95 million and the unrevised 4.11 million for May. This is the fourth-straight month of lower existing home sales and the lowest of the year as the median price rose to a record-high $426,900. Tomorrow we’ll see New Home Sales, which are expected to be up month over month, taking up a higher percentage of housing demand.
Tesla (TSLA - Free Report) disappointed on Q2 earnings this afternoon. Coming out at 52 cents per share was a dime lower than the consensus estimate, while revenues slightly outperformed expectations: $25.50 billion from $25.13 billion. In the press release, the company warned full-year deliveries may be “notably lower,” with more color expected on the conference call an hour from now. A lower-priced Tesla model and the Robotaxi status are two elements Tesla shareholders will also expect to hear more about. At this hour, TSLA shares are -2.5%.
Google parent Alphabet (GOOGL - Free Report) , on the other hand, beat on both top and bottom lines after the close. Earnings of $1.89 per share notched a four-cent beat (and notably ahead of the $1.44 per share reported in the year-ago quarter) on revenues — minus TAC costs, which the company doesn’t discount on headline — of $71.36 billion, ahead of the $70.60 billion in the Zacks consensus. YouTube brought in $8.66 billion, which was light of estimates, but its cloud business came in at $10.35 billion, surpassing expectations — and improving its status among the very biggest cloud-computing companies. Shares were sluggish to start after-hours trading, but are up +1.5% at this hour.
Seagate Technologies (STX - Free Report) had perhaps the most impressive quarter post-closing bell. Its fiscal Q4 earnings came in at $1.05 per share — 20 cents higher than the Zacks consensus and a whopping +680% over the -$0.18 per share posted a year ago for the Zacks Rank #1 (Strong Buy)-rated cloud and AI tech firm. Revenues of $1.89 billion outpaced the $1.86 billion expected, and marks the third-straight earnings beat for the company, which is up +6.4% in late trading, adding to the +27% gains year to date.
Texas Instruments (TXN - Free Report) also outperformed in the quarter, but not as substantially. Earnings of $1.22 per share amounted to a six-cent beat — consistent with its near-perfect record of (slight) improvements over estimates in the past five years. Revenues came in at $3.82 billion, modestly beyond the $3.80 billion analysts had been looking for. The analog-chip giant kept its next-quarter guidance in-line with recent estimates, and shares are up +5% on the news.
Visa (V - Free Report) posted a one-penny beat in its fiscal Q3 this afternoon. Earnings of $2.42 per share was notably ahead of the $2.16 per share reported a year ago. But revenues were a smidge below expectations to $8.9 billion for the quarter, on Payments Volume which grew +7% in the quarter. Shares are down -2% in the late session, virtually giving up the credit card giant’s entire year-to-date gains.
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