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3 Companies Breaking Quarterly Records: GOOGL, SKX, ARM
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Earnings season is always exciting for investors, with companies finally unveiling what’s transpired behind the scenes.
And concerning positivity throughout the current Q2 cycle, three companies – Alphabet (GOOGL - Free Report) , Arm Holdings (ARM - Free Report) , and Skechers (SKX - Free Report) – posted quarterly records. Let’s take a closer look at each quarterly print.
Alphabet Posts Record Cloud Results
Alphabet’s quarterly release was overall positive, but the post-earnings reaction certainly didn’t reflect the favorable results. The tech titan posted 31% earnings growth paired with a 14% sales increase, with Google Cloud revenues of $10.3 billion reflecting a quarterly record.
Importantly, operating income from Google Cloud saw a sizable jump, reported at $1.2 billion vs. $395 million in the year-ago period. The favorable cloud results reflected the company’s third consecutive beat on the metric, as shown below.
Image Source: Zacks Investment Research
Shares have faced pressure over the last month, down 13% and partly reflective of profit-taking after a monster run. Still, the valuation picture for the company has become considerably attractive, with the current 19.9X forward 12-month earnings multiple nowhere near the 22.3X five-year median.
The current PEG ratio works out to 1.1X, reflecting that investors are paying a fair price for the forecasted growth.
Image Source: Zacks Investment Research
In addition to profit-taking, commentary surrounding CapEx spooked some, with investors seemingly becoming impatient concerning tailwinds from its AI-related investments. Still, the company believes underinvesting is a much greater risk to its future.
The stock maintains a bright outlook, with the $7.62 Zacks Consensus EPS estimate up 13% over the last year and suggesting 30% Y/Y growth.
Image Source: Zacks Investment Research
Arm Holdings Breaks Records Again
Arm’s quarterly prints in its short history have reflected favorable underlying business trends, regularly breaking records set in prior releases. Though the recent results snapped a streak of post-earnings positivity, the stock is up 80% on a YTD basis.
Image Source: Zacks Investment Research
Its latest positive results were driven by record royalty revenue, with Armv9 (the company’s most advanced technology) penetration growing rapidly. In fact, revenue from chips based on Armv9 technology contributed around 25% of royalty revenue in the period, up from roughly 20% in the period before and 15% in the period prior to that.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Notably, increased adoption of Armv9 in the mobile market led to 50% year-over-year smartphone royalty revenue growth, with other markets also beginning to ramp up. The company’s compute platform remains the most power-efficient, explaining why many notable companies have inked deals with ARM.
Skechers Enjoys Record Sales
Skechers has made a quiet comeback over recent years, with brand momentum leading the charge. The apparel giant posted record quarterly sales in its latest release, with its earnings outlook remaining bright across the board following the print.
The stock presently sports a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
The CFO’s comments confirmed the brand momentum: 'Skechers continues to reach new milestones in expanding our global footprint. Achieving another sales record and exceptional earnings is a testament to the strength of our brand and our ability to meet consumers’ needs.’
Skechers topped off the favorable results with a guidance upgrade, also revealing a new $1 billion share repurchase program in a shareholder-friendly nature. It’s worth noting that the company’s margins continue to be highly favorable, with further margin expansion occurring throughout the period.
Please note that the chart below is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Bottom Line
The 2024 Q2 earnings cycle is slowly winding down, with several companies – Alphabet (GOOGL - Free Report) , Arm Holdings (ARM - Free Report) , and Skechers (SKX - Free Report) – posting quarterly records.
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3 Companies Breaking Quarterly Records: GOOGL, SKX, ARM
Earnings season is always exciting for investors, with companies finally unveiling what’s transpired behind the scenes.
And concerning positivity throughout the current Q2 cycle, three companies – Alphabet (GOOGL - Free Report) , Arm Holdings (ARM - Free Report) , and Skechers (SKX - Free Report) – posted quarterly records. Let’s take a closer look at each quarterly print.
Alphabet Posts Record Cloud Results
Alphabet’s quarterly release was overall positive, but the post-earnings reaction certainly didn’t reflect the favorable results. The tech titan posted 31% earnings growth paired with a 14% sales increase, with Google Cloud revenues of $10.3 billion reflecting a quarterly record.
Importantly, operating income from Google Cloud saw a sizable jump, reported at $1.2 billion vs. $395 million in the year-ago period. The favorable cloud results reflected the company’s third consecutive beat on the metric, as shown below.
Image Source: Zacks Investment Research
Shares have faced pressure over the last month, down 13% and partly reflective of profit-taking after a monster run. Still, the valuation picture for the company has become considerably attractive, with the current 19.9X forward 12-month earnings multiple nowhere near the 22.3X five-year median.
The current PEG ratio works out to 1.1X, reflecting that investors are paying a fair price for the forecasted growth.
Image Source: Zacks Investment Research
In addition to profit-taking, commentary surrounding CapEx spooked some, with investors seemingly becoming impatient concerning tailwinds from its AI-related investments. Still, the company believes underinvesting is a much greater risk to its future.
The stock maintains a bright outlook, with the $7.62 Zacks Consensus EPS estimate up 13% over the last year and suggesting 30% Y/Y growth.
Image Source: Zacks Investment Research
Arm Holdings Breaks Records Again
Arm’s quarterly prints in its short history have reflected favorable underlying business trends, regularly breaking records set in prior releases. Though the recent results snapped a streak of post-earnings positivity, the stock is up 80% on a YTD basis.
Image Source: Zacks Investment Research
Its latest positive results were driven by record royalty revenue, with Armv9 (the company’s most advanced technology) penetration growing rapidly. In fact, revenue from chips based on Armv9 technology contributed around 25% of royalty revenue in the period, up from roughly 20% in the period before and 15% in the period prior to that.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Notably, increased adoption of Armv9 in the mobile market led to 50% year-over-year smartphone royalty revenue growth, with other markets also beginning to ramp up. The company’s compute platform remains the most power-efficient, explaining why many notable companies have inked deals with ARM.
Skechers Enjoys Record Sales
Skechers has made a quiet comeback over recent years, with brand momentum leading the charge. The apparel giant posted record quarterly sales in its latest release, with its earnings outlook remaining bright across the board following the print.
The stock presently sports a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
The CFO’s comments confirmed the brand momentum: 'Skechers continues to reach new milestones in expanding our global footprint. Achieving another sales record and exceptional earnings is a testament to the strength of our brand and our ability to meet consumers’ needs.’
Skechers topped off the favorable results with a guidance upgrade, also revealing a new $1 billion share repurchase program in a shareholder-friendly nature. It’s worth noting that the company’s margins continue to be highly favorable, with further margin expansion occurring throughout the period.
Please note that the chart below is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Bottom Line
The 2024 Q2 earnings cycle is slowly winding down, with several companies – Alphabet (GOOGL - Free Report) , Arm Holdings (ARM - Free Report) , and Skechers (SKX - Free Report) – posting quarterly records.