Coffee With Greta: Earnings Ramp Up
DJIA Futures: +75 (+0.2%)
SPX Futures: +11 (+0.3%)
NASDAQ Futures: +31 (+0.3%)
Good morning friends!
Futures are rising as traders digest the latest batch of Q4 earnings and the Fed meeting is set to begin today.
Let’s get right to it!
General Motors Rallies After Smashing Q4 Expectations
General Motors (GM) are jumping 4.7% ahead of the open after sharply beating Q4 expectations.
Here’s how the automaker’s results compared to analysts’ expectations:
- Adjusted EPS: $2.12 vs $1.69 expected
- Revenue: $43.11 billion vs $40.65 billion expected
GM’s full-year revenue came in at $156.7 billion with adjusted earnings before interest and tax hitting a record $14.5 billion.
But profit margins are shrinking, the company’s adjusted profit margin fell to 9.2% in 2022, down 2.1% from the previous year.
GM forecast 2023 adjusted EPS will be between $6 and $7.
Although that would be lower than 2022, the outlook was above analysts’ expectations for adjusted EPS of $5.73 this year.
Exxon Slips On Weak Q4 Revenue
Exxon Mobil (XOM) shares are slipping 0.8% in premarket trade after reporting mixed Q4 results.
Here’s how the oil giant’s results compared to analysts’ expectations:
- Adjusted EPS: $3.40 vs $3.29 expected
- Revenue: $95.43 billion vs $97.3 billion expected
The company raked in a record $56 billion profit for all of 2022.
But analysts expect Exxon’s profit may have already peaked, forecasting EPS will not be higher than $3 in any quarter this year or next.
Pfizer Falls On Downbeat Guidance
Pfizer (PFE) shares are falling 2.8% ahead of the open as weak guidance overshadows a Q4 earnings beat.
Here’s how the pharmaceutical giant’s results compared to analysts’ expectations:
- Adjusted EPS: $1.14 vs $1.05 expected
- Revenue: $24.3 billion vs $24.28 billion expected
The company brought in a record $100.3 billion profit in 2022, driven by more than $50 billion in Covid vaccine and antiviral sales.
But Pfizer expects sales to fall sharply this year.
The company forecast revenue will decline up to 33% year over year as Covid vaccine sales slow.
Pfizer forecast 2023 EPS of $3.25 to $3.45, down by as much as 50% from the record $6.58 last year.
McDonald’s Drops Despite Q4 Earnings Beat
McDonald’s (MCD) shares are falling 1.8% in premarket trade despite beating Q4 expectations on the top and bottom line.
Here’s how the fast food giant’s results compared to analysts’ expectations:
- EPS: $2.59 vs $2.45 expected
- Revenue: $5.93 billion vs $5.68 billion expected
McDonald’s same-store sales in the U.S. jumped 10.3% beating estimates of 8.1%, as demand jumped and customers paid higher prices.
But the CEO warned the company is expecting short-term inflation pressures to continue in 2023.
The company expects to open 1,900 new restaurants globally this year, including more than 400 in the U.S.
UPS Jumps On Q4 Earnings Beat
UPS (UPS) shares are rising 1.9% ahead of the open after beating Q4 profit expectations.
Here’s how the shipping giant’s results compared to analysts’ expectations:
- Adjusted EPS: $3.62 vs $3.59 expected
- Revenue: $27.03 billion vs $28.09 billion expected
Even as shipping volumes have decreased and costs rise, UPS has benefited from elevated prices.
The company raised shipping rates by 6.9% at the end of 2022.
But UPS offered full-year 2023 guidance that was below analysts’ estimates.
The company expects between $97 billion and $99.4 billion in revenue this year vs analysts’ expectations of $99.98 billion.
Consumer Confidence Expected To Rise
The Conference Board releases its January consumer confidence index at 10:00 a.m. ET.
That survey is expected to rise to 109.5 from 108.4 in December.
Last month’s figure was the highest since April 2022 as inflation has started to cool.
But consumers are still expecting a recession to hit the U.S. economy in the months ahead.
Key Earnings After The Close
Here’s a look at the companies set to report earnings after the close today:
- Advanced Micro Devices (AMD)
- Snap (SNAP)