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It’s a cavalcade of tech earnings out after today’s closing bell, fighting off levels slightly in the red during today’s pre-market. But a less-bad Case-Shiller home price index for May and better-than-expected Consumer Confidence numbers for July helped bulls regain some momentum. We closed pointing back down, but the Dow closed +42 points, +0.12% (its 12th straight trading day higher), while the S&P 500 was +0.28%. The Nasdaq outpaced the other major indices, +88 points, +0.63%, while the Russell 2000 was flat, +0.02%.
Microsoft (MSFT - Free Report) managed its fourth-straight earnings beat this afternoon, with fiscal Q4 earnings of $2.69 per share easily surpassing the $2.54 expected. Revenues came in at $56.19 billion, safely above the $55.36 billion in the Zacks consensus. Its Azure cloud business grew +26% year over year — better than the +25% expected, but still off the high growth levels of a year ago, which were north of +40%.
The company, as per usual, only will provide future-quarter and full-year guidance on the forthcoming conference call, although the breakdown in different businesses looks favorable at a glance. For instance, LinkedIn grew +5% in the quarter, slightly offset by lower-than-expected numbers in Windows OEM. Shares were initially -2% on the news, but have since buoyed back toward breakeven ahead of the call. Microsoft shares are +6.8% over the past month.
Google parent Alphabet (GOOGL - Free Report) shares are up +6% following its Q2 beat also reported after today’s close. Earnings of $1.44 per share provided a clean improvement over the expected $1.32, and up from the $1.21 reported in the year-ago quarter. Revenues minus traffic acquisition costs (TAC, which the company does not subtract in its earnings release; the company said revenues reached $74.60 billion) were also a beat: $62.07 billion neatly surpassed the $60.24 billion analysts were expecting.
Long-time Google CFO Ruth Porat will be given a new job title and responsibility: President and Chief Investment Officer (CIO) for the company. This news may have stoked GOOGL shares, although its YouTube business also grew to $7.67 billion while cloud was up $8.03 billion, both above expectations. Shares are +6% higher in late trading, adding to the +37% gains Alphabet has made year to date.
Texas Instruments (TXN - Free Report) also reported Q2 earnings after the afternoon bell, with big beats on both top and bottom lines: earnings of $1.87 per share swept past the $1.76 expected, but still down notably from the same quarter a year ago. Revenues of $4.53 billion took out the Zacks consensus of $4.36 billion, +3% sequentially but still -13% year over year. Next quarter earnings guidance shows its high range near where the consensus estimate had been going into the print, and shares are selling off -4% in the after-market.
Snap Inc. (SNAP - Free Report) is having an even tougher time of it following its Q2 earnings report out this afternoon, down -18% on the news following better -than-expected numbers on both top and bottom lines: negative earnings of -$0.02 per share on $1.07 billion in sales compare to the -$0.04 per share and $1.05 billion in revenues expected. Revenue guidance was slightly disappointing, however, as was reported adjusted EBITDA in the quarter. Snap is losing share in the ad space, and is currently being punished by market participants.
One company with a perfect record going back to the beginning of our earnings charts is Visa (V - Free Report) , which outperformed on earnings by 5 cents to $2.16 per share in its fiscal Q3 report today. Revenues of $8.12 billion were also an improvement on the $8.06 billion expected. Both payments and transaction volume gained in the quarter, though shares are trading down marginally on the news. Visa had been +15% year to date — still underperforming the S&P — and shares are down -0.7% at this hour.
Image: Bigstock
Cavalcade of Earnings: MSFT, GOOGL, SNAP & More
It’s a cavalcade of tech earnings out after today’s closing bell, fighting off levels slightly in the red during today’s pre-market. But a less-bad Case-Shiller home price index for May and better-than-expected Consumer Confidence numbers for July helped bulls regain some momentum. We closed pointing back down, but the Dow closed +42 points, +0.12% (its 12th straight trading day higher), while the S&P 500 was +0.28%. The Nasdaq outpaced the other major indices, +88 points, +0.63%, while the Russell 2000 was flat, +0.02%.
Microsoft (MSFT - Free Report) managed its fourth-straight earnings beat this afternoon, with fiscal Q4 earnings of $2.69 per share easily surpassing the $2.54 expected. Revenues came in at $56.19 billion, safely above the $55.36 billion in the Zacks consensus. Its Azure cloud business grew +26% year over year — better than the +25% expected, but still off the high growth levels of a year ago, which were north of +40%.
The company, as per usual, only will provide future-quarter and full-year guidance on the forthcoming conference call, although the breakdown in different businesses looks favorable at a glance. For instance, LinkedIn grew +5% in the quarter, slightly offset by lower-than-expected numbers in Windows OEM. Shares were initially -2% on the news, but have since buoyed back toward breakeven ahead of the call. Microsoft shares are +6.8% over the past month.
Google parent Alphabet (GOOGL - Free Report) shares are up +6% following its Q2 beat also reported after today’s close. Earnings of $1.44 per share provided a clean improvement over the expected $1.32, and up from the $1.21 reported in the year-ago quarter. Revenues minus traffic acquisition costs (TAC, which the company does not subtract in its earnings release; the company said revenues reached $74.60 billion) were also a beat: $62.07 billion neatly surpassed the $60.24 billion analysts were expecting.
Long-time Google CFO Ruth Porat will be given a new job title and responsibility: President and Chief Investment Officer (CIO) for the company. This news may have stoked GOOGL shares, although its YouTube business also grew to $7.67 billion while cloud was up $8.03 billion, both above expectations. Shares are +6% higher in late trading, adding to the +37% gains Alphabet has made year to date.
Texas Instruments (TXN - Free Report) also reported Q2 earnings after the afternoon bell, with big beats on both top and bottom lines: earnings of $1.87 per share swept past the $1.76 expected, but still down notably from the same quarter a year ago. Revenues of $4.53 billion took out the Zacks consensus of $4.36 billion, +3% sequentially but still -13% year over year. Next quarter earnings guidance shows its high range near where the consensus estimate had been going into the print, and shares are selling off -4% in the after-market.
Snap Inc. (SNAP - Free Report) is having an even tougher time of it following its Q2 earnings report out this afternoon, down -18% on the news following better -than-expected numbers on both top and bottom lines: negative earnings of -$0.02 per share on $1.07 billion in sales compare to the -$0.04 per share and $1.05 billion in revenues expected. Revenue guidance was slightly disappointing, however, as was reported adjusted EBITDA in the quarter. Snap is losing share in the ad space, and is currently being punished by market participants.
One company with a perfect record going back to the beginning of our earnings charts is Visa (V - Free Report) , which outperformed on earnings by 5 cents to $2.16 per share in its fiscal Q3 report today. Revenues of $8.12 billion were also an improvement on the $8.06 billion expected. Both payments and transaction volume gained in the quarter, though shares are trading down marginally on the news. Visa had been +15% year to date — still underperforming the S&P — and shares are down -0.7% at this hour.
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