After U.S. markets closed on Tuesday, AMD beat both earnings per share (EPS) and revenue estimates and issued third-quarter guidance in line with Wall Street estimates. The chipmaker also said it expects current quarter data center and client revenue to grow by double digits while gaming and embedded segments weaken. Shares traded down 6.6% in late morning action.
Devon Energy met EPS expectations and beat the consensus revenue estimate by almost 6%. However, revenue was down 38.6% year over year for the quarter, and shares traded down 6.6%.
Starbucks beat the consensus EPS estimate but missed on revenue, which rose by 12.5% year over year. The stock traded up 2.6%.
Virgin Galactic also beat the EPS estimate and missed on revenue. The company issued downside revenue guidance for the current and next quarters as well. The stock traded down 5.3%.
Before markets opened on Wednesday, Cameco reported a smaller loss per share than expected but missed the consensus revenue estimate. Revenue fell 13.6% year over year. Shares traded down 7.2%.
CVS Health beat estimates on both the top and bottom lines and reaffirmed fiscal 2023 EPS guidance. The stock traded up 3.9% Wednesday morning.
Kraft Heinz missed the consensus revenue estimate by about 1.1% and beat on EPS. Revenue rose 2.5% year over year. Shares traded down about 0.3%.
Albemarle, MGM Resorts, Occidental Petroleum, PayPal and Qualcomm will report quarterly results after markets close on Wednesday. The following morning, AB-InBev, ConocoPhillips and Warner Bros. Discovery are on deck to report quarterly earnings, followed by Airbnb, Amazon and Apple later on Thursday.
Here is a preview of what to expect from three more companies reporting results after Thursday’s closing bell.
Block
Over the past 12 months, the share price of Block Inc. (NYSE: SQ) has declined by only about 2%. But that is after a jump of almost 22% in the year to date. Since posting a 52-week low in early November, the shares have risen about 46.1%. That gain includes a 15% drop in late March on a short seller’s report. Investors will be watching for higher gross profits from Block’s Cash App business.
Analysts remain mostly bullish on the shares, with 33 of 47 brokerages having a rating of Buy or Strong Buy. Another 12 rate it at Hold. At a recent price of about $75.80 a share, the upside potential based on a median price target of $90.00 is 18.7%. At the high price of $147.00, the upside potential is almost 94%.
Second-quarter revenue is forecast at $5.1 billion, which would be up 2.2% sequentially and by 15.9% year over year. Adjusted EPS are expected to come in at $0.37, down 7.3% sequentially but 105.6% higher year over year. For the full 2023 fiscal year, estimates call for EPS of $1.71, up 70.7%, on sales of $20.73 billion, up 18.2%.
Block’s shares trade at 44.3 times expected 2023 EPS, 31.7 times estimated 2024 earnings of $2.38 and 24 times estimated 2025 earnings of $3.15 per share. Its 52-week trading range is $51.34 to $93.19. Square does not pay a dividend. The total shareholder return for the past year was negative 3.07%.
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