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Tag: Earnings Report

Categories
Stocks

Eli Lilly Q1 Earnings: Strong EPS Beat and Raised 2024 Guidance Amid Soaring Demand for Obesity Drugs

Eli Lilly (LLY) $790 Pre-Market – Up 6% – We’ve had a Buy on it and will continue to add on declines.

Lilly posted great results, but more importantly raised 2024 guidance by $2Bn (5-6%), leading to the pre-market jump! Obesity drugs have a huge demand, which they’re struggling to fill.

Eli Lilly press release (NYSE: LLY): Q1 Non-GAAP EPS of $2.58 beats by $0.09.

Revenue of $8.77B (+26.0% Y/Y) misses by $160M.

Revenue in Q1 2024 increased by 26%, driven by Mounjaro, Zepbound, Verzenio and Jardiance.

2024 full-year revenue guidance raised by $2.0 billion; reported EPS guidance raised $1.25 to be in the range of $13.05 to $13.55 and non-GAAP EPS guidance raised $1.30 to be in the range of $13.50 to $14.00 vs $12.46 Consensus.

Categories
Stocks

PayPal Q1 Earnings: Revenue Beat and Optimistic Outlook Despite Market Challenges

Paypal (PYPL) $70 Pre-Market up 7%.

Maintaining Buy, at this price there’s little downside and Paypal seems to be walking the talk with steady increases in revenue in an overcrowded market. Paypal is a mature company and getting 12-15% a year is pretty good.

Q1 revenue of $7.70B, topping the $7.52B consensus, fell from $8.03B in Q4 2023 and grew from $7.04B in Q1 2023.

Q1 Non-GAAP EPS of $1.40 beats by $0.18.

Guidance

Non-GAAP earnings per diluted share are expected to increase by a mid-to-high single-digit percentage compared to $3.83 (based on the new non-GAAP methodology) in the prior year.2024 is a transition year, righting a ship that had screwed up quite badly for the past three years and I think they should be able to do a decent job. 

Categories
Cloud Service Providers

Amazon Q1 Earnings: Solid Revenue and AWS Growth, But Lower Guidance for Q2

Source:Seeking Alpha

Source:Seeking Alpha

  • Amazon press release (NASDAQ: AMZN): Q1 EPS of $0.98 may not be comparable to consensus of $0.83.
  • Revenue of $143.3B (+12.5% Y/Y) beats by $750M – Positive.
  • AWS segment sales increased 17% year-over-year to $25.0 billion – That’s a good sized growth compared to Google Cloud and Azure since it’s so much bigger.
  • Second Quarter 2024 Guidance
  • Lower guidance – Net sales are expected to be between $144.0 billion and $149.0 billion vs. $150.09B consensus, or to grow between 7% and 11% compared with the second quarter of 2023. This guidance anticipates an unfavorable impact of approximately 60 basis points from foreign exchange rates. In the first quarter of 2024, the impact from Leap Year added approximately 120 basis points to the year-over-year net sales growth rate.
  • Operating income is expected to be between $10.0 billion and $14.0 billion, compared with $7.7 billion in the second quarter of 2023.

The stock is up about 3% to $180, but that’s not even recovered the 4% that it lost in the day.

Categories
Semiconductors

Super Micro Q3 Earnings: Strong EPS Beat, But Revenue Misses; Upgraded Guidance Boosts Outlook

source:supermarco

Super Micro Earnings Release. Source: Seeking Alpha

  • Super Micro Computer press release (NASDAQ: SMCI): Q3 Non-GAAP EPS of $6.65 beats by $1.08.
  • Revenue of $3.85B (+200.8% Y/Y) misses by $50M.
  • Guidance is better: 
  • For the fourth quarter of the fiscal year 2024 ending June 30, 2024, the Company expects net sales of $5.1 billion to $5.5 billion vs $4.86B consensus, GAAP net income per diluted share of $7.20 to $8.05 and non-GAAP net income per diluted share of $7.62 to $8.42 vs $6.96 Consensus.
  • For the fiscal year 2024 ending June 30, 2024, the Company is raising its guidance for revenues from a range of $14.3 billion to $14.7 billion to a range of $14.7 billion to $15.1 billion vs $14.59B consensus and establishing guidance for GAAP net income per diluted share of $21.61 to $22.46 and non-GAAP net income per diluted share of $23.29 to $24.09.

The stock is down 1.5% to $846 after losing 3.5% during market hours.

Categories
Stocks

AMD Q1 Results: Strong Data Center Growth Amid Challenges in Gaming and Embedded Segments

AMD Quarterly Result

The Datacenter and client segments did well.

AMD’s struggles outside the Datacenter continue with gaming and embedded segments still dealing with inventory digestion, but they did come in within estimates and kept guidance in line with the previous one. 

Source: Seeking Alpha

  • Advanced Micro Devices press release (NASDAQ: AMD): Q1 Non-GAAP EPS of $0.62 beats by $0.01.
  • Revenue of $5.47B (+2.2% Y/Y) beats by $20M.
  • Record Data Center segment revenue of $2.3 billion was up 80% year-over-year driven by growth in both AMD Instinct™ GPUs and 4th Gen AMD EPYC™ CPUs. Revenue increased 2% sequentially driven by the first full quarter of AMD Instinct GPU sales, partially offset by a seasonal decline in server CPU sales.
  • Client segment revenue was $1.4 billion, up 85% year-over-year driven primarily by AMD Ryzen™ 8000 Series processor sales. Revenue decreased 6% sequentially.
  • Gaming segment revenue was $922 million, down 48% year-over-year and 33% sequentially due to a decrease in semi-custom revenue and lower AMD Radeon™ GPU sales.
  • Embedded segment revenue was $846 million, down 46% year-over-year and 20% sequentially as customers continued to manage their inventory levels.
  • For the second quarter of 2024, AMD expects revenue to be approximately $5.7 billion, plus or minus $300 million vs. $5.69B consensus. At the mid-point of the revenue range, this represents year-over-year growth of approximately 6% and sequential growth of approximately 4%. Non-GAAP gross margin is expected to be approximately 53%.

The stock is down 3% to $153, after dropping 1% to $158 during market hours.

Categories
Cloud Service Providers

Microsoft Q3 Earnings: Strong Revenue Growth Across Key Segments, Stock Rises 5%

  • Microsoft press release (NASDAQ: MSFT): Q3 GAAP EPS of $2.94 beats by $0.11.
  • Revenue of $61.9B (+17.1% Y/Y) beats by $1.01B.
  • Shares +5%.
  • Revenue in Productivity and Business Processes was $19.6 billion and increased 12% (up 11% in constant currency)
  • Revenue in Intelligent Cloud was $26.7 billion and increased 21%
  • Revenue in More Personal Computing was $15.6 billion and increased 17%
  • Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.
Categories
Semiconductors

Intel Q1 Earnings: Solid Results Overshadowed by Weak Q2 Guidance, Stock Drops 6%

Intel’s misery continues…

Intel’s (NASDAQ: INTC) significantly weaker-than-expected guidance for the coming quarter overshadowed better-than-expected first-quarter results.

For the coming second quarter, the Pat Gelsinger-led firm expects revenue to be between $12.5B and $13.5B, well below the $13.61B analysts were anticipating.

It also anticipates earning an adjusted $0.10 per share with adjusted gross margins of 403.5% and a tax rate of 13%. Analysts were anticipating adjusted earnings of $0.25 per share.

Shares fell more than 6% in extended-hours trading.

For the period ending March 30, Intel earned an adjusted $0.18 per share on $12.7B in revenue. The quarter is Intel’s first period in changing its reporting structure to focus more on its foundry business. Intel products, which now include client computing, data center, and network and edge, came in at $11.9B, including a 31% year-over-year rise in Client Computing revenue to $7.5B.

Datacenter and AI revenue came in at $3B, while revenue attributed to Mobileye (MBLY) was $239M, down 48% year-over-year. The Network and edge segment generated $1.4B, while the company’s foundry segment saw revenue decline 10% year-over-year to $4.4B.

Analysts expected a year-over-year increase in both the top and bottom lines, with the Pat Gelsinger-led firm expected to earn $0.14 per share on $12.78B in sales.

A consensus of analysts expected Intel to earn an adjusted $0.14 per share on $12.78B in revenue.

Categories
Media

Meta Platforms Earnings: A 20% Drop After Hitting the High Bar

Source:Meta

Meta Platforms (META)

The bar was too high for Meta to clear.

Post earnings the markets punished it 20% for a marginally weaker guidance and higher than expected CAPEX. Pre-earnings the stock had been up 130% for the past year, so this 20% drop was perhaps, overdue.

Rev beat of 36.46Bn v 36.12Bn 27% YoY – but too little a beat.

Rev guidance 36.5Bn to 39Bn or a midpoint of 37.75 V 38.24,  still 18.5% YoY growth but too much of a miss.

Capex is higher at 37.5Bn midpoint now V 33.5Bn – bad for Meta but good for Nvidia/AI  most of the Capex is for AI.

META has a GAAP operating profit margin of 49% in the family of apps business – that’s a phenomenal margin, but it drops substantially because of losses in the Reality Labs business. Still, its company-wide margin was 38% – a 52% increase YoY.

Will parse through the earnings call/analysts’ upgrades tomorrow morning, the selloff may be overdone.

Categories
Technology

Samsara (IOT) Stock Review: A Hold for Now at $35.86

source:samsara

Samsara $35.86 (IOT)

Hold for now, 15x sales 26% growth, no adjusted operating profits, but the promise of expansion of fleets and other business benefiting from AI/LLM’s more computing power should help the best IoT in the business. Pure play should be a moat.

Copy from the earnings report about the future growth prospects.

Investing in Dell: A Strategic Buy for Long-Term Growth

source:

Dell (DELL) $110-$115 Buy 3 Years Annual Return 11-13%+dividends, spread the buying out the stock jumped after hours, but there is still upside left long term.

This is from my October 23 article recommending SMCI – “Super Micro competes with behemoths like Cisco (CSCO), Dell Technologies (DELL), and Lenovo”. However, I didn’t buy Dell subsequently, their infrastructure solutions group  is about 40% of their revenue and servers half of that – I wanted to see more evidence that they would be getting meaningful revenue from the datacenter boom. 

This quarter they did as Dell’s Infrastructure Solutions Group produced $9.3B in revenue up 10% from the prior quarter. Servers and networking revenue hit $4.9B, driven primarily by AI-optimized servers. Projected growth in unstructured data from AI should benefit Dell’s storage business as enterprise and large corporate customers are in the early stages of AI adoption. AI-optimized server orders increased by nearly 40% sequentially, $800 million of AI-optimized servers, and backlog nearly doubled sequentially, exiting the fiscal year at $2.9 billion. 

From their earnings call “Demand continued to outpace GPU supply, though we are seeing H100 lead times improving. We are also seeing strong interest in orders for AI-optimized servers equipped with the next generation of AI GPUs, including the H200 and the MI300X.” 

Even after this quarter AI related revenue is less than 10% but growth will come from 3 areas, servers, storage and services.

Company wide revenue growth is expected to be only mid single digits this year, with better growth of 7-8% in the years 2025 and 2026.

I estimate earnings to grow much faster at around 12% for the next three years. As a cyclical, Dell gets low multiples and I wouldn’t assign more than 16x, so at 2026 earnings of $10, we should target a price of $160. About 12% a year.