Coffee With Greta: Twitter, Meta Pop on Earnings
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Good morning friends!
Futures are higher on another big day of earnings.
Let’s get right to it!
Twitter Tops Q1 User Expectations
Twitter (TWTR) shares are up 1.1% in premarket trade after reporting better-than-expected user growth in Q1.
The social media giant reported net income of $513 million in the quarter, or $0.61 per share.
That figure was not comparable to analysts’ expectations as it includes a gain from Twitter’s sale of MoPub.
Twitter’s $1.2 billion in revenue was shy of analysts’ estimates for $1.23 billion.
But the company had 229 million monetizable daily active users (mDAUs) last quarter, better than 226.9 million expected by analysts.
U.S. mDAUs jumped 6.4% year-over-year while international mDAUs surged 18.1%.
The positive report came as a surprise to many analysts who had been speculating Twitter accepted Musk’s buyout deal earlier this week in anticipation of bad earnings.
The company declined to provide guidance citing that deal.
Meta Surges On Q1 Earnings Beat
Meta Platforms (FB) shares are rallying 14.2% ahead of the open after beating Q1 expectations.
The Facebook parent company reported adjusted earnings of $2.72 per share on $27.91 billion in revenue.
That topped analysts’ expectations for adjusted EPS of $2.56 but was shy of estimates for $28.2 billion in revenue.
Revenue rose 7% year-over-year, marking the first time in company history that metric has been in single digits.
Daily active users rose more than expected, after declining for the first time in Q4.
Facebook had 1.96 billion DAUs in Q1, up 3 million from Q4 and better than 1.95 billion expected.
Monthly active users came in shy at 2.94 billion vs 2.97 billion expected.
The company continued to ramp up spending on the metaverse with its Reality Labs segment losing $2.96 billion in Q1, up more than 61% year-over-year.
Meta forecast Q2 revenue between $28 billion and $30 billion in Q2, falling short of Wall Street’s expectations for $30.6 billion.
The company lowered its total expenses guidance for 2022 to between $87 billion and $92 billion.
Ford Tops Q1 Expectations
Ford (F) shares are up 1.5% in premarket trade after reporting a strong first quarter.
The automaker reported adjusted earnings of $0.38 per share on $32.1 billion in revenue.
That was better than analysts’ expectations for adjusted EPS of $0.37 on $31.13 billion in revenue.
The adjusted results excluded the $5.4 billion loss caused by Ford’s 12% stake in electric truck maker Rivian (RIVN).
Ford reiterated its guidance for full-year pretax adjusted earnings between $11.5 billion and $12.5 billion.
Analysts had been expecting a downgrade due to inflation and continued supply chain issues.
The CFO said he expects Ford’s wholesale volumes to increase by 10% to 15% this year compared to 2021.
PayPal Cuts Outlook
PayPal (PYPL) shares are 2.6% higher ahead of the open despite the company cutting its earnings outlook.
PayPal reported adjusted Q1 earnings of $0.88 per share on $6.5 billion in revenue.
That was in-line with analysts’ expectations.
The fintech giant had 429 million active accounts last quarter, up from 426 million in Q4 and better than analysts’ estimates for 428.4 million.
PayPal forecast adjusted Q2 earnings of $0.86 per share and $6.8 billion in revenue. That missed Wall Street’s outlook for adjusted EPS of $1.21 and revenue of $7.1 billion.
The company also cut its full-year outlook, forecasting revenue growth between 11% and 13% this year and adjusted EPS between $3.81 and $3.93.
Pinterest Rallies On Earnings Beat, User Growth
Pinterest (PINS) shares are rising 7.7% in premarket trade after reporting strong Q1 user numbers.
The social media company reported adjusted earnings of $0.10 per share on $575 million in revenue.
That beat analysts’ expectations for adjusted EPS of $0.04 on $573 million in revenue.
Revenue rose 18% year-over-year.
Pinterest had 433 million monthly active users last quarter, up from 431 million in Q4.
That was shy of analysts’ expectations for 437.0 million but was the first increase in a year.
Pinterest forecast its Q2 revenue will rise 11% year-over-year to $680 million.
That missed Wall Street’s expectations for $693 million.
Qualcomm Crushes Fiscal Q2 Expectations
Qualcomm (QCOM) shares are up 6.2% ahead of the open after crushing fiscal Q2 expectations.
The chipmaker reported adjusted earnings of $3.21 per share on $11.16 billion in revenue. That was sharply higher than analysts’ expectations for adjusted EPS of $2.91 on $10.6 billion in revenue.
Profits surged 69% year-over-year while revenue jumped 41%.
Qualcomm reported $9.55 billion in chip sales last quarter, up 52% year-over-year and better than $8.86 billion analysts were expecting.
Its technology licensing sales fell 2% annually to $1.58 billion but still topped estimates for $1.55 billion.
Qualcomm forecast fiscal Q3 earnings between $2.75 and $2.95 per share on $01.9 billion in revenue.
That was stronger than expected guidance for $9.98 billion in sales.
Southwest Airlines Jumps On Revenue Beat
Southwest Airlines (LUV) shares are 3.4% higher in premarket trade after beating Q1 revenue expectations.
The airline reported an adjusted loss of $0.32 per share vs analysts’ expectations for a $0.30 loss.
Southwest’s $4.69 billion in revenue was higher than estimates for $4.67 billion.
March was the first month that operating revenue was higher than 2019 levels since the pandemic began.
Southwest expects to be profitable for the full-year and forecast Q2 revenue growth of 8% to 12% compared to 2019.
Teladoc Craters After Sharp Q1 Loss
Teladoc (TDOC) shares are plummeting 44.1% in premarket trade after slashing its outlook.
The telemedicine company reported a loss of $41.58 per share, which included a $6.6 billion impairment charge related to goodwill.
Teladoc’s revenue of $565.4 million missed analysts’ expectations for $569 million.
The company forecast Q2 adjusted ebitda of $39 million to $49 million on $580 million to $600 million in revenue.
That missed analysts’ estimates for adjusted ebitda of $71 million and $615 million in revenue.
Teladoc now expects full-year revenue between $2.4 billion to $2.5 billion, down from previous guidance for $2.55 billion to $2.65 billion.
The company is the third largest holding in Cathie Wood’s Ark Innovation ETF (ARKK) which is down 1.3% ahead of the open.
U.S. Economy Unexpectedly Contracts in Q1
U.S. economic growth declined unexpectedly in the first quarter.
The Commerce Department reported GDP contracted 1.4% at the start of the year.
That sharply missed economists’ expectations for an expansion of 1% and was a major reversal from 6.9% growth at the end of 2021.
A record-high trade deficit was blamed for the contraction .
The goods trade deficit averaged $113 billion in Q1 vs $87 billion a year ago.
That reduced GDP growth by 3.2%.
And that deficit in goods hit a record-high in March.
The Commerce Department reported Wednesday that gap surged 17.8% last month to $125.3 billion.
U.S. imports of goods rose 11.5% while exports only increased 7.2%.
Weekly Jobless Claims Fall
Weekly jobless claims were in-line with expectations last week as labor market remains tight.
The Labor Department reported 180,000 Americans filed initial claims for unemployment benefits.
That was down 5,000 from the week before. Continuing claims fell by 1,000 to 1.41 million in the week ending April 16, marking the lowest level since 1970.
- Pending home sales fell for the fifth straight month in March. The National Association of Realtors reported pending sales fell 1.2% last month. The data represents the number of contracts signed to purchase a home in March, with those sales expected to close in 60 to 90 days. The index was down 8.2% year-over-year. The NAR also revised its full-year forecast, now expecting existing home sales to fall 9% in 2022.
- Mortgage demand continues to fall as rates rise. The Mortgage Bankers Association reported total application volume fell 8.3% last week and was down 50% year-over-year. The drop came as the average 30-year fixed mortgage rate hit 5.37%, the highest level since 2009.