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A Plethora of Q1 Earnings Results: MMM, CAT, PEP & More
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Monday, April 28, 2020
A report on U.S. Advance Trade in Goods for March was released this morning, with results worse than expected: -$64.2 billion was beneath the -$56.5 billion expected and the -$59.9 billion reported for February. Wholesale inventories fell 1% while Retail rose +0.9%. These results, of course, reflect an economic reality on the cusp of where we are today; with a wider focus we will see how our current economy affects these trade balance numbers.
3M (MMM - Free Report) has outperformed expectations on both earnings and revenues in its Q1 report out this morning, with $2.16 per share representing a 14-cent beat and $8.08 billion in sales up 1% from the Zacks consensus, and higher than the $7.86 billion reported in the year-ago quarter. The conglomerate, which produces face masks, among other things, has withdrawn guidance for full-year 2020, though it did say it was prioritizing its dividend going forward. Shares are up 4.75% so far in today’s pre-market. For more on MMM’s earnings, click here.
Heavy equipment manufacturer Caterpillar (CAT - Free Report) , on the other hand, came up short for both top and bottom lines in its Q1 earnings report ahead of today’s opening bell. Earnings of $1.60 per share on $10.64 billion in revenues lagged expectations of $1.76 per share and $11.13 billion, respectively. Caterpillar also announced it will issue no further guidance for the rest of 2020. Shares had fallen 22% year to date, roughly double the S&P 500, but are up nearly 1% in early trading well into the green. For more on CAT’s earnings, click here.
PepsiCo (PEP - Free Report) posted a 5-cent beat on its Q1 earnings this morning, $1.07 per share versus $1.05 expected, on $13.55 billion in sales which was 5% higher than the Zacks consensus. This company is one of the true earnings-beat all-stars; PepsiCo has not missed a bottom-line estimate since Q4 2009! PEP has also withdrawn guidance for 2020, but said it intends to keep its share buyback and dividend programs intact. Shares in the pre-market have crossed into positive territory, year to date. For more on PEP’s earnings, click here.
Zacks Rank #4 (Sell)-rated Southwest Airlines (LUV - Free Report) posted a better-than-expected loss in its Q1 bottom line: -15 cents per share versus -48 cents analysts were looking for. Revenues of $4.23 billion was 3.7% lower than anticipated, however, and down from the $5.15 billion in the year-ago quarter. The company also announced it will keep its 737 MAX planes grounded through the end of October this year. Shares had tumbled 46% year to date, but are trading into the green in today’s early market. For more on LUV’s earnings, click here.
Merck & Co. (MRK - Free Report) has outpaced expectations this morning with $1.50 per share beating the $1.39 consensus in Q1 earnings, with $12.06 billion in quarterly sales 2% higher than predicted. These figures are also north of the $1.22 per share and $10.82 billion Merck reported in Q1 2019. Shares, however, are down 2.5% thus far in today’s pre-market, and had already been -7.7% year to date. For more on MRK’s earnings, click here.
Tonight after the closing bell, we get Q1 results from Alphabet (GOOGL - Free Report) , in what will be the first of the major tech names reporting this week and perhaps serve as a bellwether for earnings season on numerous levels. We expect $10.97 per share on $32.82 billion in revenues — much of which is advertising dollars. The search giant has surpassed earnings expectations in 3 of the last 4 quarters.
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A Plethora of Q1 Earnings Results: MMM, CAT, PEP & More
Monday, April 28, 2020
A report on U.S. Advance Trade in Goods for March was released this morning, with results worse than expected: -$64.2 billion was beneath the -$56.5 billion expected and the -$59.9 billion reported for February. Wholesale inventories fell 1% while Retail rose +0.9%. These results, of course, reflect an economic reality on the cusp of where we are today; with a wider focus we will see how our current economy affects these trade balance numbers.
3M (MMM - Free Report) has outperformed expectations on both earnings and revenues in its Q1 report out this morning, with $2.16 per share representing a 14-cent beat and $8.08 billion in sales up 1% from the Zacks consensus, and higher than the $7.86 billion reported in the year-ago quarter. The conglomerate, which produces face masks, among other things, has withdrawn guidance for full-year 2020, though it did say it was prioritizing its dividend going forward. Shares are up 4.75% so far in today’s pre-market. For more on MMM’s earnings, click here.
Heavy equipment manufacturer Caterpillar (CAT - Free Report) , on the other hand, came up short for both top and bottom lines in its Q1 earnings report ahead of today’s opening bell. Earnings of $1.60 per share on $10.64 billion in revenues lagged expectations of $1.76 per share and $11.13 billion, respectively. Caterpillar also announced it will issue no further guidance for the rest of 2020. Shares had fallen 22% year to date, roughly double the S&P 500, but are up nearly 1% in early trading well into the green. For more on CAT’s earnings, click here.
PepsiCo (PEP - Free Report) posted a 5-cent beat on its Q1 earnings this morning, $1.07 per share versus $1.05 expected, on $13.55 billion in sales which was 5% higher than the Zacks consensus. This company is one of the true earnings-beat all-stars; PepsiCo has not missed a bottom-line estimate since Q4 2009! PEP has also withdrawn guidance for 2020, but said it intends to keep its share buyback and dividend programs intact. Shares in the pre-market have crossed into positive territory, year to date. For more on PEP’s earnings, click here.
Zacks Rank #4 (Sell)-rated Southwest Airlines (LUV - Free Report) posted a better-than-expected loss in its Q1 bottom line: -15 cents per share versus -48 cents analysts were looking for. Revenues of $4.23 billion was 3.7% lower than anticipated, however, and down from the $5.15 billion in the year-ago quarter. The company also announced it will keep its 737 MAX planes grounded through the end of October this year. Shares had tumbled 46% year to date, but are trading into the green in today’s early market. For more on LUV’s earnings, click here.
Merck & Co. (MRK - Free Report) has outpaced expectations this morning with $1.50 per share beating the $1.39 consensus in Q1 earnings, with $12.06 billion in quarterly sales 2% higher than predicted. These figures are also north of the $1.22 per share and $10.82 billion Merck reported in Q1 2019. Shares, however, are down 2.5% thus far in today’s pre-market, and had already been -7.7% year to date. For more on MRK’s earnings, click here.
Tonight after the closing bell, we get Q1 results from Alphabet (GOOGL - Free Report) , in what will be the first of the major tech names reporting this week and perhaps serve as a bellwether for earnings season on numerous levels. We expect $10.97 per share on $32.82 billion in revenues — much of which is advertising dollars. The search giant has surpassed earnings expectations in 3 of the last 4 quarters.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
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In this 300-page hardcover, Zacks' Executive VP Kevin Matras reveals almost every stock-picking secret he’s learned from the system that since 1988 has more than doubled the average yearly gain of the S&P 500.
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