Coffee With Greta: Stocks Extend Rally On Strong Earnings
DJIA Futures: +622 (+2.1%)
SPX Futures: +82 (+2.2%)
NASDAQ Futures: +269 (+2.4%)
Good morning friends!
Futures are rallying following a series of strong earnings reports this morning.
Let’s get right to it!
Goldman Sachs Rallies On Earnings Beat
Goldman Sachs (GS) shares are up 3.3% ahead of the open after topping Q3 expectations on the top and bottom line.
Here’s how the investment bank’s results compared to analysts’ expectations:
- EPS: $8.25 vs $7.69 expected
- Revenue: $11.98 billion vs $11.41 billion expected
Profit was down 43% year over year while revenue fell 12%.
Both fixed-income and equities trading revenue topped expectations, offsetting a miss in investment banking revenue.
Goldman’s asset management and consumer & wealth management divisions also beat estimates.
CEO David Solomon officially announced a corporate reorganization that was reported earlier this week.
He said, “Today, we enter the next phase of our growth, introducing a realignment of our businesses that will enable us to further capitalize on the predominant operating model of One Goldman Sachs. We are confident that our strategic evolution will drive higher, more durable returns and unlock long-term value for shareholders.”
Hasbro Earnings Squeezed By Inflation
Hasbro (HAS) shares are slipping 0.6% in premarket trade after reporting mixed Q3 results.
Here’s how the toy maker’s results compared to analysts’ expectations:
- Adjusted EPS: $1.42 vs $1.52 expected
- Revenue: $1.68 billion, in line with estimates
The CEO said Hasbro’s third quarter “was further impacted by increasing price sensitivity for the average consumer” as high prices squeeze buyers.
The company maintained its full-year forecast for revenue growth to be flat or slightly down.
Albertsons Beats Fiscal Q2 Estimates
Albertsons (ACI) shares are up 1% ahead of the open after beating fiscal Q2 expectations on the top and bottom line.
Here’s how the grocery chain’s results compared to analysts’ expectations:
- Adjusted EPS: $0.72 vs $0.65 expected
- Revenue: $17.92 billion vs $17.71 billion expected.
Revenue was up 8.6% year over year while same-store sales jumped 7.4%.
But the cost of sales surged 9.6% and Albertsons’ gross margin contracted to 27.9% to 28.6%.
Johnson & Johnson Tops Q3 Expectations, Trims Sales Guidance
Johnson & Johnson (JNJ) shares are up 1.3% in premarket trade after beating Q3 expectations.
Here’s how the pharmaceutical giant’s results compared to analysts’ expectations:
- Adjusted EPS: $2.55 vs $2.48 expected
- Revenue: $23.8 billion vs $23.4 billion expected
Johnson & Johnson forecast full-year sales between $93 billion to $93.5 billion, down from $93.3 billion to $94.3 billion previously.
The company expects full-year adjusted EPS of $10.02 to $10.07 vs $10 to $10.10 previously.
Microsoft Confirms Job Cuts
Microsoft (MSFT) shares are up 2.4% ahead of the open after a company spokesperson confirmed recent job cuts.
The spokesperson told CNBC, “Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead.”
Those cuts were first reported by Axios and impacted fewer than 1,000 people.
Salesforce Rallies On New Investor Stake
Salesforce (CRM) shares are up 6.5% in premarket trade after activist investor Starboard Value LP unveiled a stake in the company.
CNBC reported Starboard’s founder said he sees significant opportunity in the software maker.
He did not specify the dollar amount of his stake but said it is significant.
Homebuilder Sentiment Expected to Fall
The National Association of Homebuilders releases its sentiment index for October at 10:00 a.m. ET.
That index is expected to fall 2 points to 44, as high mortgage rates continue to squeeze builders.
That would be the 10th straight monthly decline with anything under 50 considered negative.
Upcoming Earnings
Here are the key companies set to report earnings after the market close today:
- Netflix (NFLX)
- United Airlines (UAL)