Friday, July 20, 2018
Q2 results continue to heat up at the end of this first full week of earnings season, coming off yesterday afternoon’s fiscal Q4 results from Microsoft (MSFT - Free Report) beating on both top and bottom lines. The software giant’s $1.13 per share topped the Zacks consensus by 6 cents, and up 6.6% from the previous year’s quarter. Sales of $30.1 billion outperformed the $29.2 billion expected. Results were bolstered by strength in its Cloud business, up 53% year over year. Shares are looking to open at new highs this morning. For more on MSFT’s earnings, click here.
American iconic brand and Zacks Rank #4 (Sell)-rated General Electric (GE - Free Report) posted its second straight earnings beat when it posted Q2 results before today’s opening bell. Earnings of 19 cents per share beat by a penny on revenues of $30.1 billion that also narrowly outpaced expectations and the $29.56 billion posted in the year-ago quarter. Yet the big news for GE will be how CEO John Flannery decides to reconfigure the corporate giant’s many businesses as time goes on, as he has done during his so-far brief tenure as the head of the company. For more on GE’s earnings, click here.
Oilfield services leader Schlumberger (SLB - Free Report) also posted a one-cent beat on its bottom line this morning, with earnings per share of 43 cents. However, the company felt the drag on oil prices in its $8.30 billion in quarterly revenues, beneath the $8.34 billion in the Zacks consensus. Reservoir business rose 17% in the quarter, offset slightly by Drilling, down 4%. For more on SLB’s earnings, click here.
Financial services bank State Street Corp. (STT - Free Report) posted a 4-cent beat of $2.05 per share ahead of today’s opening bell, though revenues came in short of expectations — $3.03 billion versus the $3.07 billion analysts were looking for, though up 7.7% year over year. The company also announced it will be paying $2.6 billion to buy out Charles River Development, which the company expects to be accretive to earnings by 2020. For more on STT’s earnings, click here.
We see a big beat on both top and bottom lines for Zacks Rank #2 (Buy)-rated V.F. Corp. (VFC - Free Report) , a North Carolina-based branded apparel retailer reporting fiscal Q1 2019 results this morning. Earnings of 43 cents per share surpassed the 32 cents expected, up 62% from Q1 2018, while sales of $2.79 billion in the quarter far outpaced the $2.66 billion consensus estimate, up 21% year over year. For full-year 2019, the company expects earnings in the range of $13.60-13.70 per share, up 10-11%. For more on VFC’s earnings, click here.
Finally, industrial mainstay Honeywell (HON - Free Report) , another Zacks Rank #2 stock, beat estimates by a solid dime to $2.12 per share on $10.92 billion in revenues, which eked out expectations and bettered the $10.08 billion top-line actual from the year-ago quarter. Year to date, Honeywell shares are down 3.8%, although early trading shows the stock up nearly 2.9% this morning. For more on HON’s earnings, click here.
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