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Big Numbers for Home Prices, Q2 Earnings: GE, UPS, KO, MCD
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Tuesday, July 26, 2022
Starting out a new trading day, there are plenty of things to take fresh account of: the Federal Open Market Committee (FOMC) commences today, with tomorrow bringing forth a new direction in monetary policy (widely expected to be a 75 basis-point [bps] interest rate hike); the 2-year and 10-year bond yield curve remains inverted by 20 bps or so; and a slew of household names have put Q2 earnings results in the books.
We also see the latest Case-Shiller Home Price Index this morning, which has put out its May report. A headline read of +20.5% is the second-highest level of the year, behind the upwardly revised +21.2% for April. Top gainers again included Tampa and Miami, with Dallas surpassing Phoenix. Lowest gainers — there were no declines for the month — were the usual suspects: Minneapolis, Chicago and Washington DC. These results are from two months ago, however, when the 30-year fixed mortgage rate was +5.54%; it’s gone up since then.
General Electric (GE - Free Report) was the big winner ahead of today’s opening bell, beating bottom-line expectations by more than 100% to 78 cents per share in the quarter, on $18.65 billion in quarterly sales which outpaced the Zacks consensus by +3.6%. GE has been undertaking a years-long turnaround after a prolonged period of perceived mismanagement; perhaps the conglomerate has finally gotten some traction. Shares are up +5% in the pre-market, but still down -29% year to date. For more on GE’s earnings, click here.
United Parcel Service (UPS - Free Report) also took out consensus expectations this morning, albeit by less garish margins: earnings of $3.29 per share surpassed estimates by nearly +5% in its Q2 and above the $3.06 per share posted in the year-ago quarter, with revenues eking out a beat of +0.14% to $24.77 billion in the quarter. But delivery volume levels have come down further than expected, and UPS shares are -2.6% in the pre-market. For more on UPS’ earnings, click here.
We saw a good ol’ fashioned beat-and-raise from Coca-Cola (KO - Free Report) this morning, outperforming on the bottom line by 3 cents to 70 cents per share on $11.33 in quarterly sales, +5.26% from the Zacks consensus. The company has also raised its organic revenue growth to double-digits from around 8% previously. Shares are up +1% on the news, +4.9% thus far year to date — far outpacing results of the S&P 500 as a whole. For more on KO’s earnings, click here.
McDonald’s (MCD - Free Report) posted a mixed Q2 earnings report this morning, with earnings of $2.55 per share beating expectations by a solid dime while revenues of $5.72 billion came up short by -2.4%. While the fast-food giant has outperformed on its bottom line in 5 of 6 quarters, it’s now missed on the top line in 2 of the last 4 quarters. Yet even with exiting Russia, global sales grew +10%, and the stock is up in today’s pre-market. For more on MCD’s earnings, click here.
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Big Numbers for Home Prices, Q2 Earnings: GE, UPS, KO, MCD
Tuesday, July 26, 2022
Starting out a new trading day, there are plenty of things to take fresh account of: the Federal Open Market Committee (FOMC) commences today, with tomorrow bringing forth a new direction in monetary policy (widely expected to be a 75 basis-point [bps] interest rate hike); the 2-year and 10-year bond yield curve remains inverted by 20 bps or so; and a slew of household names have put Q2 earnings results in the books.
We also see the latest Case-Shiller Home Price Index this morning, which has put out its May report. A headline read of +20.5% is the second-highest level of the year, behind the upwardly revised +21.2% for April. Top gainers again included Tampa and Miami, with Dallas surpassing Phoenix. Lowest gainers — there were no declines for the month — were the usual suspects: Minneapolis, Chicago and Washington DC. These results are from two months ago, however, when the 30-year fixed mortgage rate was +5.54%; it’s gone up since then.
General Electric (GE - Free Report) was the big winner ahead of today’s opening bell, beating bottom-line expectations by more than 100% to 78 cents per share in the quarter, on $18.65 billion in quarterly sales which outpaced the Zacks consensus by +3.6%. GE has been undertaking a years-long turnaround after a prolonged period of perceived mismanagement; perhaps the conglomerate has finally gotten some traction. Shares are up +5% in the pre-market, but still down -29% year to date. For more on GE’s earnings, click here.
United Parcel Service (UPS - Free Report) also took out consensus expectations this morning, albeit by less garish margins: earnings of $3.29 per share surpassed estimates by nearly +5% in its Q2 and above the $3.06 per share posted in the year-ago quarter, with revenues eking out a beat of +0.14% to $24.77 billion in the quarter. But delivery volume levels have come down further than expected, and UPS shares are -2.6% in the pre-market. For more on UPS’ earnings, click here.
We saw a good ol’ fashioned beat-and-raise from Coca-Cola (KO - Free Report) this morning, outperforming on the bottom line by 3 cents to 70 cents per share on $11.33 in quarterly sales, +5.26% from the Zacks consensus. The company has also raised its organic revenue growth to double-digits from around 8% previously. Shares are up +1% on the news, +4.9% thus far year to date — far outpacing results of the S&P 500 as a whole. For more on KO’s earnings, click here.
McDonald’s (MCD - Free Report) posted a mixed Q2 earnings report this morning, with earnings of $2.55 per share beating expectations by a solid dime while revenues of $5.72 billion came up short by -2.4%. While the fast-food giant has outperformed on its bottom line in 5 of 6 quarters, it’s now missed on the top line in 2 of the last 4 quarters. Yet even with exiting Russia, global sales grew +10%, and the stock is up in today’s pre-market. For more on MCD’s earnings, click here.
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