Yahoo Finance Apple, Amazon, Airbnb Beat on Earnings, Sales
Market indices showed some promise after hitting session lows this morning, until a mid-day swoon led to slightly lower reads as they rang the bell this afternoon. Pretty flat, overall: the Dow -0.07%, the Nasdaq -0.11%, the S&P 500 -0.27% and the small-cap Russell 2000 -0.20%. We obviously remain down over the past week of trading, but are still up respectably over the past month. We’ll see if tomorrow’s Employment Situation report has what it takes to light a fire under bullish investors going forward.
Earlier today, July S&P PMI Services came in slightly below expectations and the previous month’s print to 52.3, while ISM Services slipped even further: to 52.7% from 53.3% expected and 53.9% last time around. Both metrics are still positive (+/- 50) but indicate cooling, rather in-line with other smaller (i.e. “not huge”) economic reports. Factory Orders for June, on the other hand, showed a surprise tick up to +2.3% for the month. This is nearly 4x the previous month’s +0.4%, but a mere 10 basis points (bps) higher than analysts expected.
Apple AAPL beat estimates on fiscal Q3 earnings this afternoon, making a second-straight beat following its first miss since 2016: $1.26 per share bettered the $1.19 analysts were looking for. Revenues of $81.8 billion dipped -1% year over year — the third-straight quarter of declining revenues — but beat expectations of $81.36 billion. According to many analysts, revenue growth is expected to return in fiscal Q4.
iPhone sales came in a smidge below estimates: 39.67 million versus 39.91 million expected. But Services grew +8% year over year to $21.21 billion, easily surpassing the $20.76 billion in the Zacks consensus. Apple’s enormity — $3 trillion market cap, or near it — makes it rather unimpeachable. Yet analysts are already noting the company has thus far taken a back seat on the A.I. hysteria; perhaps, along with some hints on guidance, the conference call will address where Apple is in terms of A.I. development.
Amazon AMZN killed it on the bottom line this afternoon, putting up earnings of 65 cents per share versus a Zacks consensus 34 cents. Revenues of $14.4 billion over the past three months outpaced the $131.5 billion expected. Amazon Web Services (AWS) grew another +12% year over year to $22.1 billion, outperforming expectations. For guidance, Net Sales in the coming quarter are expected to reach between $138-143 billion, with Operating Income guiding to $5.5-8.5 billion. Shares have launched over +6% on the news, surpassing near-term highs above $137 per share; still a ways from 2021 highs.
Airbnb ABNB also notched solid beats on both top and bottom lines this afternoon, with earnings of 98 cents per share easily striding past the 77 cents expected, making it nine straight quarterly earnings beats, on $2.5 billion in sales which outdid the $2.42 billion anticipated. Experiences Booked were a tad slight in the quarter, while Gross Value Bookings were a bit higher. Average Daily Rate is moderating, not increasing. Shares are down -1% so far in late trading on the news, still up more than +60% year to date.
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