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These 3 Quarterly Releases Positively Shocked Investors
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As the Q2 earnings season continues to fade, we can confidently state that the earnings ‘apocalypse’ many had feared failed to show again, with plenty of companies posting positive quarterly results and boosting sentiment.
And throughout the period, several companies, including Palo Alto Networks (PANW - Free Report) , Celsius Holdings (CELH - Free Report) , and General Electric (GE - Free Report) , stole the spotlight, with each posting strong results and enjoying buying pressure post-earnings.
But what was there to like in the results? Let’s take a closer look.
Palo Alto Networks
Many feared Palo Alto Networks’ results would come in lighter than expected due to a late Friday report. However, there wasn’t much to fear, as the cybersecurity titan exceeded earnings expectations by more than 12%, sending shares soaring post-earnings.
In fact, PANW shares have been regularly boosted by quarterly results in 2023, as we can see illustrated below.
Image Source: Zacks Investment Research
The company’s remaining performance obligation improved by an impressive 30% year-over-year to $10.6 billion, with quarterly billings also seeing a solid 18% improvement from the comparable period last year.
PANW shares aren’t cheap, with the current 48.6X forward earnings multiple (F1) undoubtedly on the higher end of the spectrum. Still, the company’s rapid growth makes the premium easier to understand.
Image Source: Zacks Investment Research
Celsius Holdings
Celsius has consistently posted robust results lately, exceeding the Zacks Consensus EPS Estimate by at least 80% across its last three quarters. CELH posted a 100% EPS surprise in its latest release and reported revenue 15% ahead of expectations.
There was much to like in the latest print, with CELH’s gross profit improving 168% year-over-year to $59 million thanks to lower raw material costs and freight efficiencies. In addition, the company exited the quarter with $681 million in cash and equivalents, well above the year-ago figure of $60 million.
Analysts have raised their earnings expectations in a big way across the board following the release.
Image Source: Zacks Investment Research
Impressively, Q2 revenue of $326 million reflected a quarterly record. And the growth is slated to continue, with expectations for its current year suggesting 170% earnings growth on nearly 90% higher revenues.
Image Source: Zacks Investment Research
General Electric
General Electric’s report impressed the market, exceeding the Zacks Consensus EPS Estimate by 48% and delivering a 5% revenue beat.
In addition, General Electric upped its guidance; GE expects FY23 adjusted EPS of $2.10 – $2.30, up from the previous $1.70 – $2.00 per share expected. Further, General Electric forecasted FY23 free cash flow in a bracket of $4.1 – $4.6 billion (previously $3.6 billion – $4.2 billion).
Analysts raised their expectations across multiple timeframes following the release.
Image Source: Zacks Investment Research
The company is expected to see a growth slowdown in its current year, with the Zacks Consensus EPS Estimate of $2.27 suggesting a 13% pullback in the bottom line. Still, earnings growth resumes in a big way for FY24, with expectations alluding to an 86% recovery.
Image Source: Zacks Investment Research
Bottom Line
We avoided the earnings ‘apocalypse’ that many had feared in the Q2 earnings cycle, with many companies coming out and unveiling results above expectations.
And all three companies above – Palo Alto Networks (PANW - Free Report) , Celsius Holdings (CELH - Free Report) , and General Electric (GE - Free Report) – delivered highly favorable quarterly results, with shares of each seeing buying pressure post-earnings.
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These 3 Quarterly Releases Positively Shocked Investors
As the Q2 earnings season continues to fade, we can confidently state that the earnings ‘apocalypse’ many had feared failed to show again, with plenty of companies posting positive quarterly results and boosting sentiment.
And throughout the period, several companies, including Palo Alto Networks (PANW - Free Report) , Celsius Holdings (CELH - Free Report) , and General Electric (GE - Free Report) , stole the spotlight, with each posting strong results and enjoying buying pressure post-earnings.
But what was there to like in the results? Let’s take a closer look.
Palo Alto Networks
Many feared Palo Alto Networks’ results would come in lighter than expected due to a late Friday report. However, there wasn’t much to fear, as the cybersecurity titan exceeded earnings expectations by more than 12%, sending shares soaring post-earnings.
In fact, PANW shares have been regularly boosted by quarterly results in 2023, as we can see illustrated below.
Image Source: Zacks Investment Research
The company’s remaining performance obligation improved by an impressive 30% year-over-year to $10.6 billion, with quarterly billings also seeing a solid 18% improvement from the comparable period last year.
PANW shares aren’t cheap, with the current 48.6X forward earnings multiple (F1) undoubtedly on the higher end of the spectrum. Still, the company’s rapid growth makes the premium easier to understand.
Image Source: Zacks Investment Research
Celsius Holdings
Celsius has consistently posted robust results lately, exceeding the Zacks Consensus EPS Estimate by at least 80% across its last three quarters. CELH posted a 100% EPS surprise in its latest release and reported revenue 15% ahead of expectations.
There was much to like in the latest print, with CELH’s gross profit improving 168% year-over-year to $59 million thanks to lower raw material costs and freight efficiencies. In addition, the company exited the quarter with $681 million in cash and equivalents, well above the year-ago figure of $60 million.
Analysts have raised their earnings expectations in a big way across the board following the release.
Image Source: Zacks Investment Research
Impressively, Q2 revenue of $326 million reflected a quarterly record. And the growth is slated to continue, with expectations for its current year suggesting 170% earnings growth on nearly 90% higher revenues.
Image Source: Zacks Investment Research
General Electric
General Electric’s report impressed the market, exceeding the Zacks Consensus EPS Estimate by 48% and delivering a 5% revenue beat.
In addition, General Electric upped its guidance; GE expects FY23 adjusted EPS of $2.10 – $2.30, up from the previous $1.70 – $2.00 per share expected. Further, General Electric forecasted FY23 free cash flow in a bracket of $4.1 – $4.6 billion (previously $3.6 billion – $4.2 billion).
Analysts raised their expectations across multiple timeframes following the release.
Image Source: Zacks Investment Research
The company is expected to see a growth slowdown in its current year, with the Zacks Consensus EPS Estimate of $2.27 suggesting a 13% pullback in the bottom line. Still, earnings growth resumes in a big way for FY24, with expectations alluding to an 86% recovery.
Image Source: Zacks Investment Research
Bottom Line
We avoided the earnings ‘apocalypse’ that many had feared in the Q2 earnings cycle, with many companies coming out and unveiling results above expectations.
And all three companies above – Palo Alto Networks (PANW - Free Report) , Celsius Holdings (CELH - Free Report) , and General Electric (GE - Free Report) – delivered highly favorable quarterly results, with shares of each seeing buying pressure post-earnings.