Earnings Digest - Week of May 15th
An overview of last week's earnings and things to watch for next week's announcements, powered by chatGPT.
Last Week in a Nutshell
Summary by Company
To Watch Next Week
Dictionary
Last Week In a Nutshell
PLTR 0.00%↑ Palantir Technologies
Palantir reported strong Q1 2023 results, with revenue growth, profitability, and the launch of its new Artificial Intelligence Platform (AIP), driving a significant stock price increase.
PYPL 0.00%↑ PayPal Holdings Inc
Despite reporting solid earnings and revenue growth, PayPal's stock price fell due to lower-than-expected guidance for the second quarter and increased competition in the payment industry.
FOXA 0.00%↑ Fox Corporation
Fox's first-quarter earnings showed growth in its cable and other businesses, although earnings were slightly below expectations, leading to a small decline in the stock price.
EA 0.00%↑ Electronic Arts Inc
EA's strong financial performance, including growth in net revenue and net income, along with the announcement of new game releases, resulted in a stock price increase and positive reactions from analysts and media.
ABNB 0.00%↑ Airbnb Inc
Airbnb's Q1 2023 results were impressive, with revenue growth, profitability, and the launch of a new premium offering, leading to a significant stock price increase and positive reactions from analysts.
RBLX 0.00%↑ Roblox Corp
Roblox reported strong growth in bookings and user engagement, although it had a net loss for the quarter, leading to a moderate stock price increase and positive overall sentiment from analysts and media.
DIS 0.00%↑ Walt Disney Co
Disney's revenue and subscriber growth for its streaming service were well-received, resulting in a stock price increase, but concerns were raised about losses in the company's direct-to-consumer business.
Summary by Company
PLTR 0.00%↑ Palantir Technologies
Palantir reported revenue of $525 million in Q1 2023, up 18% year-over-year. Adjusted earnings per share (EPS) of $0.05, beating analysts' expectations of $0.04.
Net income this quarter is $17 million, the company's second consecutive quarter of GAAP profitability and free cash flow is $189 million.
Palantir also announced the launch of its new Artificial Intelligence Platform (AIP), which is designed to help organisations make better decisions faster.
Palantir's stock price rose as much as 28% in extended trading after the earnings release.
Analysts and media were generally positive about the results, with many noting the company's continued growth and profitability. Some analysts highlighted the strength of Palantir's commercial business, which grew 39% sequentially in Q1. The company's increasing focus on artificial intelligence is seen as a key growth driver in the years to come.
PYPL 0.00%↑ PayPal Holdings Inc
PayPal reported adjusted earnings of $1.17 per share on revenue of $7.04 billion for the first quarter of 2023 - This represents a 33% increase in earnings per share and a 9% increase in revenue compared to the same quarter of 2022.
PayPal's active accounts grew by 11% in the first quarter, which is down from 15% growth in the fourth quarter of 2022.
Total payment volume (TPV) grew by 24% in the first quarter, which is down from 29% growth in the fourth quarter of 2022.
PayPal's stock price fell by 6% in after-hours trading following the earnings release for many reasons: guidance for the second quarter was below expectations, the company's growth is slowing, and the company is facing increased competition.
PayPal expects revenue to grow between 6.5% and 7% in the second quarter, which is below the 10% growth that analysts were expecting.
PayPal is facing increased competition from other payment providers, such as Square, Stripe, and Amazon Pay. These companies are offering new and innovative payment solutions that are appealing to merchants and consumers.
FOXA 0.00%↑ Fox Corporation
Fox Corporation reported first-quarter fiscal 2023 earnings of $613 million on revenue of $3.19 billion. This compares to earnings of $708 million on revenue of $3.05 billion in the prior-year quarter.
The company's top line was up 5% year over year, driven by growth in its cable and other businesses.
Cable and other revenues increased 9% in the quarter, primarily due to higher FOX Nation subscription revenues. EBITDA at its cable segment was $742 million compared to $774 million reported in the prior year periods, and included the impact of elevated breaking news cost and the timing of digital investments at FOX News Media.
Fox's earnings were slightly below analysts' expectations of $615 million per share on revenue of $3.2 billion. However, the company's revenue beat expectations.
The stock was down 2% in after-hours trading. Analysts and media were generally positive about the earnings, noting that Fox's top line growth was driven by its cable and other businesses.
However, some analysts expressed concern about the company's margins, which were down year over year.
EA 0.00%↑ Electronic Arts Inc
The company's net revenue for the quarter was $1.77 billion, up 10% year-over-year. EA's net income was $271 million, up 17% year-over-year.
EA announced that it would be releasing a new Need for Speed game and a new Madden NFL game in 2023.
EA's stock price rose by 5% in after-hours trading following the release of the earnings report.
Analysts and media praised EA's strong financial performance, particularly its growth in net revenue and net income.
Some analysts also noted that EA's strong earnings were a sign that the video game industry is continuing to grow.
ABNB 0.00%↑ Airbnb Inc
Airbnb reported revenue of $1.82 billion in Q1 2023, up 20.5% year-over-year. Adjusted earnings per share (EPS) of $0.18, beating analysts' expectations of $0.10.
Net income of $117 million, making this their first profitable Q1 on a GAAP basis. Free cash flow of $1.6 billion.
Airbnb also announced the launch of its new product, Airbnb Luxe, which is designed to offer a more premium experience for guests.
Airbnb's stock price rose as much as 10% in extended trading after the earnings release.
Reactions were generally positive about the results, with many noting the company's continued growth and profitability, highlighting the strength of Airbnb's business in the United States, which grew 23% year-over-year in Q1.
RBLX 0.00%↑ Roblox Corp
Roblox reported a net loss of $268 million for the quarter, or a loss of 44 cents per share. Adjusted revenue, or bookings, grew 23% year over year to $773.8 million.
Daily active users (DAUs) increased 22% year over year to 66 million. Average hours per DAU increased 23% year over year to 14.5 billion.
Roblox shares rose around 6% on Wednesday morning after the company reported its earnings.
Analysts and media were generally positive about the results, noting that Roblox's growth is still strong despite the broader economic slowdown.
Some analysts noted that Roblox's net loss was wider than expected, but they attributed this to increased investment in the company's growth initiatives and noted that DAUs and average hours per DAU were both at all-time highs.
DIS 0.00%↑ Walt Disney Co
Disney's revenue for the quarter increased 8% to $23.51 billion. Direct-to-Consumer and International (DTCI) revenue was $5.3 billion, up 13% year-over-year. Earnings per share were $0.70, up 11% year-over-year.
Disney+ subscribers increased to 161.8 million, up 11.8 million from the previous quarter, and the company announced that it would be raising prices for its Disney+ streaming service in the United States and Canada.
Disney also announced that it would be launching a new streaming service called Star+ in Latin America.
Shares of the company were up 5% after the bell fuelled by the growth in revenue and subscribers. Analysts however expressed concern about the continued losses at Disney's direct-to-consumer business.
To Watch Next Week
HD 0.00%↑ Home Depot
Home Depot is expected to report strong earnings growth in the first quarter of 2023. Analysts are expecting sales growth of 3.5%, same-store sales growth of 3.5%, gross margin of 34.3%, operating margin of 15.2%, and earnings per share of $3.05.
Investors will also be interested in Home Depot's commentary on the overall economic environment and its outlook for the future.
Home Depot is a bellwether for the housing market, and its earnings report will provide investors with insights into the health of the housing market and the overall economy.
BIDU 0.00%↑ Baidu
Baidu's revenue growth has slowed in recent quarters, and its earnings per share have fallen.
Investors will be looking for signs that Baidu's business is improving in the first quarter of 2023.
They will also be looking for updates on Baidu's investments in new businesses, such as artificial intelligence and autonomous driving.
Finally, investors will be looking for Baidu to provide a clear and confident outlook for the future.
TGT 0.00%↑ Target
Investors will be looking for signs that Target is starting to turn things around in its next earnings report. The company has been facing a number of challenges, including rising inflation, supply chain disruptions, and inventory issues.
However, Target has also been taking steps to address these challenges, such as investing in its e-commerce business and closing underperforming stores.
If Target can show that it is making progress on these challenges, then investors could be more optimistic about the company's future.
CSCO 0.00%↑ Cisco
Investors will be watching for Cisco to report another strong quarter of earnings, despite facing some challenges such as rising costs.
Cisco is expected to report revenue growth of 6%, earnings per share growth of 9%, and margins of 60.5% in the current quarter. Cisco is also expected to provide guidance for the next quarter and full year of revenue growth of 5% and 6%, respectively.
Investors will also be looking for more details on how Cisco is addressing its challenges and any signs that it is losing market share to rivals such as Hewlett Packard Enterprise (HPE) and Juniper Networks.
WMT 0.00%↑ Walmart
Wal-Mart's same-store sales growth is expected to slow in the first quarter of 2023, as the company faces increasing competition from Amazon and other online retailers.
However, e-commerce sales growth is expected to be strong, as Wal-Mart has been investing heavily in its online business.
Profit margins are expected to decline, as the company has been forced to lower prices to compete with Amazon.
Overall, investors will be looking for signs that Wal-Mart is successfully navigating the challenges of the retail industry and that its e-commerce business is gaining traction.
BABA 0.00%↑ Alibaba
The company is facing a number of challenges, including the ongoing regulatory crackdown in China and the global economic slowdown.
However, Alibaba also has a number of growth opportunities, such as its expansion into new markets and product categories.
Investors will be looking for signs that Alibaba is overcoming its challenges and continuing to grow its business.
Specifically, investors will be looking at the company's revenue growth, margin, free cash flow, M&A activity, and China's regulatory environment.
Dictionary
Revenue: The total amount of money generated by a company from its business activities.
Adjusted earnings per share (EPS): A measure of a company's profitability that indicates the portion of the company's profit allocated to each outstanding share of common stock, adjusted for certain one-time or non-recurring expenses.
GAAP profitability: Refers to profitability calculated based on Generally Accepted Accounting Principles (GAAP), which are a set of standardised accounting principles and procedures used to prepare financial statements.
Free cash flow: The cash generated by a company's operations that is available for distribution to investors, creditors, or for reinvestment in the business.
Guidance: Refers to the forecasts or estimates provided by a company's management regarding its expected financial performance in future periods.
EBITDA: Stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It is a measure of a company's operating performance, excluding the effects of interest, taxes, and non-cash items.
Margins: Refers to the profitability of a company, typically measured by the ratio of its net income to its revenue.
Net revenue: The revenue generated by a company after deducting returns, allowances, and discounts.
Net income: The profit generated by a company after deducting all expenses, including taxes and interest.