Earnings Previews: Alberstons, GM, Raytheon, UPS
All three major U.S. equity indexes closed higher on Thursday. The Dow Jones rose 0.51%, the S&P 500 closed up 0.99% and the Nasdaq saw a 1.36% gain. Nine of 11 sectors, led by consumer cyclicals (up 2.3%) and health care (up 1.5%), ended the day with gains. Energy (down 1.8%) and communications services (down 0.1%) lagged. A rise in the number of new claims for jobless benefits was likely interpreted as a signal that the Federal Reserve’s interest rate hikes are working to reduce inflation. The Dow was up slightly while the S&P 500 and the Nasdaq were in the red in late morning trading on Friday.
After markets closed Thursday, Snap reported a smaller-than-expected loss per share, along with a slight revenue miss. The company did not offer a forecast for the third quarter other than to say revenue is running about flat with the second quarter, about 10% below the consensus estimate for the current quarter. Shares traded down about 36% Friday morning.
Before markets opened on Friday, Twitter missed estimates on both the top and bottom lines. The company blamed the economy and Elon Musk. Who could have guessed? The stock traded down about 0.5%.
Verizon missed the consensus profit estimate by a penny and exceeded the revenue estimate. The company also pulled in revenue expectations in some areas. Shares were down about 6%.
American Express beat consensus estimates on both the top and bottom lines. The stock up about 4.8% Friday morning.
NextEra Energy beat the bottom-line estimate but missed on revenue. The stock traded up about 3.4%.
Schlumberger beat both top-line and bottom-line estimates and issued upside guidance for full-year revenue. The stock traded up about 2.7%.
Cleveland-Cliffs missed the consensus earnings per share (EPS) estimate by 17% and reported better-than-expected revenue. Shares were down around 2.8% Friday morning.
Newmont, NXP Semiconductor, and Range Resources will report quarterly results on Monday. We already have previewed four other companies that will report earnings before Tuesday’s opening bell: Coca-Cola, General Electric, McDonald’s and 3M.
Here is a look at four more companies set to report results first thing Tuesday morning.
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Albertsons
Grocery store operator Albertsons Companies Inc. (NYSE: ACI) has added almost 30% to its share price over the past 12 months. That is nearly double a 16% rise in Kroger’s stock and declines ranging from about 5% to 37% for e-commerce giants like Walmart, Target and Amazon. Inflationary pressures are likely to hit the grocers harder than their more digitally enabled rivals, and already slim grocery margins could virtually disappear.
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