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DJIA Futures: -11 (-0.03%)
SPX Futures: +1 (+0.01%)
NASDAQ Futures: +43 (+0.3%)
Good morning friends!
Futures are mixed as traders await big tech earnings later today and digest the latest results reported this morning.
Let’s get right to it!
General Motors Hikes Guidance
General Motors (GM) shares are flat ahead of the open after beating Q2 estimates and hiking its guidance.
Here’s how the automaker’s results compared to analysts’ estimates:
- Adjusted EPS: $1.91 (not comparable to estimates)
- Revenue: $44.75 billion vs $42.64 billion expected
GM’s net income jumped nearly 52% year over year while revenue rose 25%.
The company now expects full-year adjusted earnings between $12 billion and $14 billion vs $11 billion to $13 billion previously.
GM also hiked its forecast for adjusted automotive free cash flow to between $7 billion and $9 billion, up from $5.5 billion to $7.5 billion previously.
That higher guidance is contingent on GM negotiating new labor agreements with the United Auto Workers and the Canadian Unifor unions without a strike.
CEO Mary Barra said, “We have a long history of negotiating fair contracts with both unions that reward our employees and support the long-term success of our business. Our goal this time will be no different. That’s the best possible outcome for all our key stakeholders, including our team, plant communities, dealers, suppliers and investors.”
Spotify Drops After Revenue Miss, Weak Guidance
Spotify (SPOT) shares are falling 5.6% in premarket trade after missing Q2 revenue expectations and issuing weak guidance.
Here’s how the music streaming company’s results compared to analysts’ estimates:
- Loss per share: 1.55 euros (not comparable)
- Revenue: 3.18 billion euros vs 3.21 billion euros expected
Spotify reported 551 million monthly active users last quarter, up 27% year over year.
The company had 220 million paid subscribers during Q2, up 17% from a year ago.
Spotify forecast 3.3 billion euros in Q3 revenue vs analysts’ expectations for 3.4 billion euros.
The report comes after the company announced price increases for its premium subscription plans on Monday.
Premium Individual and Family plans will increase by $1 while Duo plans will go up by $2.
Spotify said the market landscape has “continued to evolve” and these changes will help the company “continue to deliver value to fans and artists”.
3M Jumps On Earnings Beat
3M (MMM) shares are up 3.1% ahead of the open after beating Q2 expectations.
Here’s how the manufacturing giant’s results compared to analysts’ estimates:
- Adjusted EPS: $2.17 vs $1.73 expected
- Revenue: $8 billion vs $7.9 billion expected
The company also hiked its full-year outlook, now expected EPS between $8.50 and $9.10 vs $8.50 to $9 previously.
That was in line with analysts’ projections for $8.61.
General Electric Pops After Earnings Beat, Higher Guidance
General Electric (GE) shares are rising 3.8% in premarket trade after crushing Q2 expectations on the top and bottom line.
Here’s how the company’s results compared to analysts’ estimates:
- Adjusted EPS: $0.68 vs $0.46 expected
- Revenue: $15.9 billion vs $14.8 billion expected
Aerospace orders rose 37% year over year, while sales were up 28%.
Gas power orders rose 7% annually, sales were flat, and profits jumped 18%.
GE’s wind power business reported a record $8.3 billion in new orders, up from $3.1 billion last year.
The company now expects full-year EPS between $2.10 and $2.30 vs $1.70 to $2 previously.
GE also expects to generate roughly $4.3 billion in free cash flow vs previous guidance for $3.9 billion.
In Case You Missed It
- The U.S. economy grew at the slowest pace in 5 months in July. The S&P Global flash services PMI fell to 52.4 this month vs 54.0 expected. That was the lowest reading since February. The manufacturing PMI rose to 49 vs 46.7 expected, but remains in negative territory.