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Big Afternoon for Earnings Reports: LULU, ORCL, COST & More
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Market indexes were mixed this Thursday, continuing a slower-paced week where bullish sentiment looks to be on the wane a bit. This, considering Covid-19 vaccines have at last begun to be administered, and there is light at the end of this pandemic tunnel. The Dow and S&P 500, down 0.24% and 0.13%, respectively, are on pace for their first down week in the past three. The Nasdaq, which rose 0.54% on the day, is still on trajectory for its first down week in the last four.
AirBNB (ABNB) made it a second-straight day with a highly successful IPO, following DoorDash (DASH) and its 86% first trading day-rise (it came down 2% in regular Thursday trading). The vacation rental company did one better, gaining 112.8% on its first day of trading, to a closing price of $144.71. Its initial price of $68 per share was already far ahead of the company’s original valuation when it initially brought forth its intentions to go public. The challenge for these two companies now is how to maintain a high level of interest in the shares after such a sharp run-up.
Reporting fiscal Q3 earnings after Thursday’s closing bell is lululemon (LULU - Free Report) , which easily beat expectations on both top and bottom lines: $1.16 per share was a big beat over the 87 cents in the Zacks consensus, while $1.12 billion in quarterly revenues surpassed the $1.01 billion expected. Its Direct-to-Consumer business really took off in the quarter, +94% year over year, and now consisting of 43% of total company sales. North America grew 19% for the Vancouver, Canada-based company, while International rose 45%. The company gave no guidance in the press release. For more on LULU’s earnings, click here.
Oracle (ORCL - Free Report) also reported fiscal Q2 numbers this afternoon, beating its earnings consensus by 6 cents to $1.06 per share on revenues of $9.80 billion, a smidge above our $9.79 billion estimate. Non-GAAP operating margins rose 5% to 47% in the quarter, but no guidance was provided in the earnings release. Oracle has not missed on earnings since we changed how we dealt with stock-based compensation, in calendar Q2 of 2017. Oracle trades at a discount to more high-profile software vendors, but still dropped 1% on the report. For more on ORCL’s earnings, click here.
Costco (COST - Free Report) well-outpaced earnings late Thursday as well, posting $2.62 per share from a $2.04 Zacks consensus. Revenues also came in stronger than expected, though not by the same margin: $43.21 billion versus $43.16 billion estimated. The company reported a $212 million pre-tax hit on Covid-related premium wages in the quarter, accounting for 35 cents per share. Net sales rose 17%, while comps reached 15.4% year over year. For more on COST’s earnings, click here.
Broadcom (AVGO - Free Report) also posted earnings results on a busy Thursday afternoon in between earnings seasons, reporting $6.35 per share on $6.47 billion in revenues, topping the estimated $6.26 per share and $6.42 billion, respectively. Guidance for next-quarter sales was upped to $6.6 billion — higher than the Zacks consensus $6.51 billion. The company also hiked its dividend 11% and announced some shifting chairs in its front office. Shares sold the news, after having risen 160% from its March lows.
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Big Afternoon for Earnings Reports: LULU, ORCL, COST & More
Market indexes were mixed this Thursday, continuing a slower-paced week where bullish sentiment looks to be on the wane a bit. This, considering Covid-19 vaccines have at last begun to be administered, and there is light at the end of this pandemic tunnel. The Dow and S&P 500, down 0.24% and 0.13%, respectively, are on pace for their first down week in the past three. The Nasdaq, which rose 0.54% on the day, is still on trajectory for its first down week in the last four.
AirBNB (ABNB) made it a second-straight day with a highly successful IPO, following DoorDash (DASH) and its 86% first trading day-rise (it came down 2% in regular Thursday trading). The vacation rental company did one better, gaining 112.8% on its first day of trading, to a closing price of $144.71. Its initial price of $68 per share was already far ahead of the company’s original valuation when it initially brought forth its intentions to go public. The challenge for these two companies now is how to maintain a high level of interest in the shares after such a sharp run-up.
Reporting fiscal Q3 earnings after Thursday’s closing bell is lululemon (LULU - Free Report) , which easily beat expectations on both top and bottom lines: $1.16 per share was a big beat over the 87 cents in the Zacks consensus, while $1.12 billion in quarterly revenues surpassed the $1.01 billion expected. Its Direct-to-Consumer business really took off in the quarter, +94% year over year, and now consisting of 43% of total company sales. North America grew 19% for the Vancouver, Canada-based company, while International rose 45%. The company gave no guidance in the press release. For more on LULU’s earnings, click here.
Oracle (ORCL - Free Report) also reported fiscal Q2 numbers this afternoon, beating its earnings consensus by 6 cents to $1.06 per share on revenues of $9.80 billion, a smidge above our $9.79 billion estimate. Non-GAAP operating margins rose 5% to 47% in the quarter, but no guidance was provided in the earnings release. Oracle has not missed on earnings since we changed how we dealt with stock-based compensation, in calendar Q2 of 2017. Oracle trades at a discount to more high-profile software vendors, but still dropped 1% on the report. For more on ORCL’s earnings, click here.
Costco (COST - Free Report) well-outpaced earnings late Thursday as well, posting $2.62 per share from a $2.04 Zacks consensus. Revenues also came in stronger than expected, though not by the same margin: $43.21 billion versus $43.16 billion estimated. The company reported a $212 million pre-tax hit on Covid-related premium wages in the quarter, accounting for 35 cents per share. Net sales rose 17%, while comps reached 15.4% year over year. For more on COST’s earnings, click here.
Broadcom (AVGO - Free Report) also posted earnings results on a busy Thursday afternoon in between earnings seasons, reporting $6.35 per share on $6.47 billion in revenues, topping the estimated $6.26 per share and $6.42 billion, respectively. Guidance for next-quarter sales was upped to $6.6 billion — higher than the Zacks consensus $6.51 billion. The company also hiked its dividend 11% and announced some shifting chairs in its front office. Shares sold the news, after having risen 160% from its March lows.
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Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
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