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Indices Fight Back; PLTR Meets, SWKS and PARA Beat
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Markets fought back nicely today — even the Russell 2000, which had been mired in the red earlier this morning, managed to squeak into the green. The Dow climbed back +408 points on the day, +1.16%, while the Nasdaq gained +84 points, +0.61%, and the S&P 500 +40, +0.90%. The small-cap Russell finished up +0.08%.
U.S. intel software firm Palantir Technologies (PLTR - Free Report) are seeing shares fall -5% in the after market, following a meet on its Q2 bottom line to earnings of $0.05 per share (well ahead of the -$0.01 reported in the year-ago quarter) for its third straight earnings beat and positive earnings trend. Revenues of $533 million were also precisely in-line with expectations. The company is still up +164% year-to-date, but this latest slide adds to the stock’s downside over the past week.
Palantir stands in an intriguing niche of the software industry, especially within the A.I. segment, and the company took a Zacks Rank #2 (Buy) into this afternoon’s report. However, at current market valuations, just meeting estimates is begging for something of a drawdown. Its U.S. business gained +20% year over year, and International was +30%. The company also declared a $1 billion share buyback program. At an 85 P/E, it’s still not cheap, but a further pullback will bring some eyeballs.
Skyworks Solutions (SWKS - Free Report) outpaced estimates on its bottom line for fiscal Q3 this afternoon — earnings of $1.73 per share beat by 6 cents — while quarterly sales were also neatly aligned with estimates, at $1.07 billion. Guidance for Q4 was in-line, though the company did announce a +10% dividend increase. Shares nearly a week ago came decidedly down from their near-term highs, but are inching down another -1.5% in late trading.
Paramount Global (PARA - Free Report) class-B shares are up +4% on the news of its Q2 results after today’s closing bell on a big earnings beat: $0.10 cents per share versus -$0.01 expected, and revenues for the quarter stormed ahead of the Zacks consensus, as well: $7.62 billion versus $7.43 billion anticipated. Paramount+ subscriber levels came down again, though not nearly as severely as a quarter ago, which led to a big selloff the company has not yet begun to re-scale. That said, its sale of Simon & Schuster publishing to KKR for $1.6 billion will likely give the company more financial flexibility.
The big winner this afternoon is education platform provider Chegg (CHGG - Free Report) , which zoomed up +27% on its in-line Q2 earnings of 28 cents per share and top-line beat of $182.9 million versus the expected $176.2 million. Next quarter sales guidance remains in range of existing consensus, and subscription revenue dropped -5% in the quarter. So why the big up-bid? Chegg shares had been more than -60% year to date. The company trades well off its more than $110 per share highs back in early 2021. It’s also the ninth-straight positive surprise quarter.
Tomorrow’s festival of earnings continues when we hear from UPS (UPS - Free Report) , Eli Lilly (LLY - Free Report) , Take-Two Interactive (TTWO - Free Report) and Under Armour (UAA - Free Report) , among many others. We’ll also hear from a couple Fed presidents (Philadelphia’s Harker and Richmond’s Barkin) and see a new trade balance ands wholesale inventories, both for June. We’ll be rather quiet on this front until Thursday’s Consumer Price Index (CPI) for July.
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Indices Fight Back; PLTR Meets, SWKS and PARA Beat
Markets fought back nicely today — even the Russell 2000, which had been mired in the red earlier this morning, managed to squeak into the green. The Dow climbed back +408 points on the day, +1.16%, while the Nasdaq gained +84 points, +0.61%, and the S&P 500 +40, +0.90%. The small-cap Russell finished up +0.08%.
U.S. intel software firm Palantir Technologies (PLTR - Free Report) are seeing shares fall -5% in the after market, following a meet on its Q2 bottom line to earnings of $0.05 per share (well ahead of the -$0.01 reported in the year-ago quarter) for its third straight earnings beat and positive earnings trend. Revenues of $533 million were also precisely in-line with expectations. The company is still up +164% year-to-date, but this latest slide adds to the stock’s downside over the past week.
Palantir stands in an intriguing niche of the software industry, especially within the A.I. segment, and the company took a Zacks Rank #2 (Buy) into this afternoon’s report. However, at current market valuations, just meeting estimates is begging for something of a drawdown. Its U.S. business gained +20% year over year, and International was +30%. The company also declared a $1 billion share buyback program. At an 85 P/E, it’s still not cheap, but a further pullback will bring some eyeballs.
Skyworks Solutions (SWKS - Free Report) outpaced estimates on its bottom line for fiscal Q3 this afternoon — earnings of $1.73 per share beat by 6 cents — while quarterly sales were also neatly aligned with estimates, at $1.07 billion. Guidance for Q4 was in-line, though the company did announce a +10% dividend increase. Shares nearly a week ago came decidedly down from their near-term highs, but are inching down another -1.5% in late trading.
Paramount Global (PARA - Free Report) class-B shares are up +4% on the news of its Q2 results after today’s closing bell on a big earnings beat: $0.10 cents per share versus -$0.01 expected, and revenues for the quarter stormed ahead of the Zacks consensus, as well: $7.62 billion versus $7.43 billion anticipated. Paramount+ subscriber levels came down again, though not nearly as severely as a quarter ago, which led to a big selloff the company has not yet begun to re-scale. That said, its sale of Simon & Schuster publishing to KKR for $1.6 billion will likely give the company more financial flexibility.
The big winner this afternoon is education platform provider Chegg (CHGG - Free Report) , which zoomed up +27% on its in-line Q2 earnings of 28 cents per share and top-line beat of $182.9 million versus the expected $176.2 million. Next quarter sales guidance remains in range of existing consensus, and subscription revenue dropped -5% in the quarter. So why the big up-bid? Chegg shares had been more than -60% year to date. The company trades well off its more than $110 per share highs back in early 2021. It’s also the ninth-straight positive surprise quarter.
Tomorrow’s festival of earnings continues when we hear from UPS (UPS - Free Report) , Eli Lilly (LLY - Free Report) , Take-Two Interactive (TTWO - Free Report) and Under Armour (UAA - Free Report) , among many others. We’ll also hear from a couple Fed presidents (Philadelphia’s Harker and Richmond’s Barkin) and see a new trade balance ands wholesale inventories, both for June. We’ll be rather quiet on this front until Thursday’s Consumer Price Index (CPI) for July.
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