Monday, April 28, 2020A 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 The conglomerate, which produces face masks, among other things, has withdrawn guidance for full-year 2020, though it did say it was prioritizing its dividend going forward.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 PEP has also withdrawn guidance for 2020, but said it intends to keep its share buyback and dividend programs intact.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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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
Free Book: Finding #1 Stocks
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.
Learn more now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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