We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Earnings season continues to chug along, with big tech stealing the spotlight this week. We’ve received many positive surprises throughout the period as companies navigate a unique macroeconomic situation.
In fact, four companies – PepsiCo (PEP - Free Report) , Johnson & Johnson (JNJ - Free Report) , General Electric (GE - Free Report) , and ASML Holding (ASML - Free Report) – have all delivered a beat-and-raise quarter. Let’s take a closer look at each’s quarterly results and guidance upgrades.
PepsiCo
Consumer staples titan PepsiCo exceeded the Zacks Consensus EPS estimate by a strong 7% and reported revenue more than 3% ahead of expectations thanks to strong consumer demand and continued business momentum. Earnings saw growth of 13%, whereas revenue climbed 10% from the year-ago quarter.
Image Source: Zacks Investment Research
For the company’s FY23, PEP expects to deliver 10% organic revenue growth (8% previously) and 12% core EPS growth (9% previously). PepsiCo has enjoyed positive earnings estimate revisions across several periods following the release, with the stock sporting a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Shares saw a nice move post-earnings, with PEP shares gaining roughly 2%.
Johnson & Johnson
Johnson & Johnson’s quarterly results came in nicely above expectations, with the company exceeding the Zacks Consensus EPS estimate by more than 7% and delivering a positive 3% revenue surprise. Quarterly revenue totaled $25.5 billion, seeing a 6% improvement from the year-ago period.
Like PEP, the company’s top line has remained steady.
Image Source: Zacks Investment Research
Following the better-than-expected results, JNJ raised its FY23 adjusted EPS guidance, expecting a profit of $10.70 – $10.80 per share ($10.60 – $10.70 previously). Positive earnings estimate revisions unsurprisingly followed, with the Zacks Consensus EPS FY23 estimate of $10.73 up nearly 1% since the end of June. The stock is now a Zacks Rank #2 (Buy).
The results impressed the market, with JNJ shares closing 6% higher post-earnings.
ASML Holding
ASML posted EPS of $5.37, 8% ahead of our consensus estimate and improving a solid 42% from the year-ago period. The semiconductor player posted 2023 Q2 revenues of $7.5 billion, 30% higher year-over-year. Despite posting solid year-over-year growth, ASML shares faced selling pressure post-earnings, perhaps reflecting profit-taking among investors.
Following the results, ASML forecasts FY23 net sales to grow roughly 30%, above the previously guided 25%. In addition, the company is mindful of macroeconomic uncertainties but believes that its strong backlog provides a buffer against headwinds.
The company has seen positive earnings estimate revisions across its current fiscal year and next, helping land the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
General Electric
General Electric delivered a highly favorable report, beating earnings expectations by a sizable 48% and reporting revenue of $16.7 billion. The company witnessed double-digit growth in orders, revenue, operating profit, and cash, topping off the robust results with a guidance upgrade.
GE expects organic revenue growth in the low-double-digit range, up from the previously guided high-single-digit expectation. In addition, the company expects FY23 adjusted EPS in a range of $2.10 – $2.30, up nicely from the previous $1.70 – $2.00 per share expected. And to top it off, General Electric forecasts FY23 free cash flow of $4.1 – $4.6 billion (previously $3.6 billion – $4.2 billion).
The market took the better-than-results in stride, with GE shares jumping following the announcement in pre-market trading. Positive revisions haven’t hit the tape yet, but we’ll likely see them in the coming days following the guidance upgrade.
Bottom Line
With earnings season in full swing, investors will likely face many positive surprises.
And so far, all four above – PepsiCo (PEP - Free Report) , Johnson & Johnson (JNJ - Free Report) , General Electric (GE - Free Report) , and ASML Holding (ASML - Free Report) – have done precisely that, delivering better-than-expected results and lifting their guidance.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Stocks to Buy Following Beat-and-Raise Quarters
Earnings season continues to chug along, with big tech stealing the spotlight this week. We’ve received many positive surprises throughout the period as companies navigate a unique macroeconomic situation.
In fact, four companies – PepsiCo (PEP - Free Report) , Johnson & Johnson (JNJ - Free Report) , General Electric (GE - Free Report) , and ASML Holding (ASML - Free Report) – have all delivered a beat-and-raise quarter. Let’s take a closer look at each’s quarterly results and guidance upgrades.
PepsiCo
Consumer staples titan PepsiCo exceeded the Zacks Consensus EPS estimate by a strong 7% and reported revenue more than 3% ahead of expectations thanks to strong consumer demand and continued business momentum. Earnings saw growth of 13%, whereas revenue climbed 10% from the year-ago quarter.
Image Source: Zacks Investment Research
For the company’s FY23, PEP expects to deliver 10% organic revenue growth (8% previously) and 12% core EPS growth (9% previously). PepsiCo has enjoyed positive earnings estimate revisions across several periods following the release, with the stock sporting a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Shares saw a nice move post-earnings, with PEP shares gaining roughly 2%.
Johnson & Johnson
Johnson & Johnson’s quarterly results came in nicely above expectations, with the company exceeding the Zacks Consensus EPS estimate by more than 7% and delivering a positive 3% revenue surprise. Quarterly revenue totaled $25.5 billion, seeing a 6% improvement from the year-ago period.
Like PEP, the company’s top line has remained steady.
Image Source: Zacks Investment Research
Following the better-than-expected results, JNJ raised its FY23 adjusted EPS guidance, expecting a profit of $10.70 – $10.80 per share ($10.60 – $10.70 previously). Positive earnings estimate revisions unsurprisingly followed, with the Zacks Consensus EPS FY23 estimate of $10.73 up nearly 1% since the end of June. The stock is now a Zacks Rank #2 (Buy).
The results impressed the market, with JNJ shares closing 6% higher post-earnings.
ASML Holding
ASML posted EPS of $5.37, 8% ahead of our consensus estimate and improving a solid 42% from the year-ago period. The semiconductor player posted 2023 Q2 revenues of $7.5 billion, 30% higher year-over-year. Despite posting solid year-over-year growth, ASML shares faced selling pressure post-earnings, perhaps reflecting profit-taking among investors.
Following the results, ASML forecasts FY23 net sales to grow roughly 30%, above the previously guided 25%. In addition, the company is mindful of macroeconomic uncertainties but believes that its strong backlog provides a buffer against headwinds.
The company has seen positive earnings estimate revisions across its current fiscal year and next, helping land the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
General Electric
General Electric delivered a highly favorable report, beating earnings expectations by a sizable 48% and reporting revenue of $16.7 billion. The company witnessed double-digit growth in orders, revenue, operating profit, and cash, topping off the robust results with a guidance upgrade.
GE expects organic revenue growth in the low-double-digit range, up from the previously guided high-single-digit expectation. In addition, the company expects FY23 adjusted EPS in a range of $2.10 – $2.30, up nicely from the previous $1.70 – $2.00 per share expected. And to top it off, General Electric forecasts FY23 free cash flow of $4.1 – $4.6 billion (previously $3.6 billion – $4.2 billion).
The market took the better-than-results in stride, with GE shares jumping following the announcement in pre-market trading. Positive revisions haven’t hit the tape yet, but we’ll likely see them in the coming days following the guidance upgrade.
Bottom Line
With earnings season in full swing, investors will likely face many positive surprises.
And so far, all four above – PepsiCo (PEP - Free Report) , Johnson & Johnson (JNJ - Free Report) , General Electric (GE - Free Report) , and ASML Holding (ASML - Free Report) – have done precisely that, delivering better-than-expected results and lifting their guidance.