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Alphabet, Visa, Reddit Up on Strong Earnings Numbers
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Tuesday, October 29, 2024
Market indexes started off slowly this morning, but managed to climb into positive territory before noon. For the Nasdaq — which notched its first all-time closing high since July — and the S&P 500, they were able to stay in the green, while the Dow and small-cap Russell 2000 finished mildly in the red.
The Dow dropped -154 points today, -0.36%, while the S&P came close to giving back its gains in the final minutes of trading, +0.16%. The Nasdaq closed up +145 points, +0.78%, to 18,712 for the first time, and the Russell came down -0.27% for the session.
Q3 earnings season really heats up today. We’ll spot-check a few key companies reporting after the closing bell:
Alphabet Spells Big Q3 Beats
Google and YouTube parent Alphabet (GOOGL - Free Report) reported earnings of $2.12 per share, nicely ahead of the $1.83 in the Zacks consensus, and well beyond the $1.55 per share reported in the year-ago quarter. Revenues, minus Traffic Acquisition Costs (TAC), came in at $74.45 billion in the quarter, improving on the $72.85 billion anticipated (Alphabet had reported headline revenues at $88.27 billion).
Most segments were modestly or notably above consensus expectations in Q3. Search Revenue reached +$49.4 billion ($49 billion had been expected), YouTube brought in $8.92 billion (versus $8.89 estimated) and Cloud fetched $11.4 billion versus $10.9 billion. Shares are up nearly +5% on the news, adding to its +22% year to date.
AMD Trading Down on Modest Earnings Beat
Advanced Micro Devices (AMD - Free Report) outpaced bottom-line earnings by a penny to 92 cents per share, with a stronger top-line outperformance: $6.82 billion versus $6.71 billion in the quarter. But with Gaming revenue missing expectations, and a slightly lower guide on next-quarter sales, AMD shares are down -6% in today’s after-market, cutting into the stock’s +20% gain year to date.
Chipotle Posts Mixed Results, Shares Lower
Chipotle (CMG - Free Report) posted a two-cent beat on its bottom line this afternoon, to 27 cents per share, but the fast casual giant brought its first top-line miss since July of last year. Same-store sales came in at +6%, a tad lower than the +6.3% estimate. The company listed higher avocado and dairy prices for the quarter, which were cited as the reason for the miss. Shares are down -2.5% in late trading, rolling back some of the +34% year-to-date gains.
Visa, Which Never Misses on Earnings, Beats Again
In its fiscal Q4 reported today, Visa (V - Free Report) typically surpassed estimates on its bottom line to $2.71 per share (from $2.58 in the Zacks consensus) on $9.62 billion in quarterly sales, nicely ahead of the $9.51 billion analysts had been expecting. Payments volume rose +8% in the quarter, while the company has a host of other issues, including 1400 pending job cuts and an antitrust lawsuit filed against Visa by the Department of Justice a month or so ago. Shares are up +1.5% in late trading, adding to the sub-S&P +9% year to date.
Reddit Swings to Surprise Earnings, Shares +18%
It’s only the third reported quarter for Reddit (RDDT - Free Report) since its IPO, but the digital communities provider swung to a big positive on its bottom line — from an expected -7 cents per share to positive +16 cents for its Q3. Revenues of $348 million stormed past the $313 million in the Zacks consensus, +68% year over year. Next-quarter revenue guidance is screaming ahead to a range of $389-400 million from the earlier expected $360 million. Shares are up +17% on the news.
Image: Bigstock
Alphabet, Visa, Reddit Up on Strong Earnings Numbers
Tuesday, October 29, 2024
Market indexes started off slowly this morning, but managed to climb into positive territory before noon. For the Nasdaq — which notched its first all-time closing high since July — and the S&P 500, they were able to stay in the green, while the Dow and small-cap Russell 2000 finished mildly in the red.
The Dow dropped -154 points today, -0.36%, while the S&P came close to giving back its gains in the final minutes of trading, +0.16%. The Nasdaq closed up +145 points, +0.78%, to 18,712 for the first time, and the Russell came down -0.27% for the session.
Q3 earnings season really heats up today. We’ll spot-check a few key companies reporting after the closing bell:
Alphabet Spells Big Q3 Beats
Google and YouTube parent Alphabet (GOOGL - Free Report) reported earnings of $2.12 per share, nicely ahead of the $1.83 in the Zacks consensus, and well beyond the $1.55 per share reported in the year-ago quarter. Revenues, minus Traffic Acquisition Costs (TAC), came in at $74.45 billion in the quarter, improving on the $72.85 billion anticipated (Alphabet had reported headline revenues at $88.27 billion).
Most segments were modestly or notably above consensus expectations in Q3. Search Revenue reached +$49.4 billion ($49 billion had been expected), YouTube brought in $8.92 billion (versus $8.89 estimated) and Cloud fetched $11.4 billion versus $10.9 billion. Shares are up nearly +5% on the news, adding to its +22% year to date.
AMD Trading Down on Modest Earnings Beat
Advanced Micro Devices (AMD - Free Report) outpaced bottom-line earnings by a penny to 92 cents per share, with a stronger top-line outperformance: $6.82 billion versus $6.71 billion in the quarter. But with Gaming revenue missing expectations, and a slightly lower guide on next-quarter sales, AMD shares are down -6% in today’s after-market, cutting into the stock’s +20% gain year to date.
Chipotle Posts Mixed Results, Shares Lower
Chipotle (CMG - Free Report) posted a two-cent beat on its bottom line this afternoon, to 27 cents per share, but the fast casual giant brought its first top-line miss since July of last year. Same-store sales came in at +6%, a tad lower than the +6.3% estimate. The company listed higher avocado and dairy prices for the quarter, which were cited as the reason for the miss. Shares are down -2.5% in late trading, rolling back some of the +34% year-to-date gains.
Visa, Which Never Misses on Earnings, Beats Again
In its fiscal Q4 reported today, Visa (V - Free Report) typically surpassed estimates on its bottom line to $2.71 per share (from $2.58 in the Zacks consensus) on $9.62 billion in quarterly sales, nicely ahead of the $9.51 billion analysts had been expecting. Payments volume rose +8% in the quarter, while the company has a host of other issues, including 1400 pending job cuts and an antitrust lawsuit filed against Visa by the Department of Justice a month or so ago. Shares are up +1.5% in late trading, adding to the sub-S&P +9% year to date.
Reddit Swings to Surprise Earnings, Shares +18%
It’s only the third reported quarter for Reddit (RDDT - Free Report) since its IPO, but the digital communities provider swung to a big positive on its bottom line — from an expected -7 cents per share to positive +16 cents for its Q3. Revenues of $348 million stormed past the $313 million in the Zacks consensus, +68% year over year. Next-quarter revenue guidance is screaming ahead to a range of $389-400 million from the earlier expected $360 million. Shares are up +17% on the news.
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