- Scott Peters
- 28 Jul, 2022
- New York City
Virtual mental healthcare services provider Teladoc reported another quarter with a large write down of its recent acquisition and lowered its annual outlook.
Teladoc Health Inc plunged 23.5% to $33.01 after the online healthcare platform operator said June quarter revenues rose 18% to $592 million.
Net income plunged to $3.1 billion from $133.8 million a year ago after the company took a one-time goodwill charge of $3 billion and increased total charge in the six-month period to $9.6 billion.
Teladoc's net loss adjusted for impairment charge would be approximately $102 million.
Net loss includes a sizable goodwill impairment charge of $3.0 billion linked to its $18.5 billion acquisition of Livongo in October 2020, the digital chronic condition management company.
Two years ago at the time of acquisition, Teladoc highlighted its focus on creating one app for primary care, chronic care, and other virtual care services.
In early 2020, Teladoc acquired InTouch Health for $600 million, a provider of enterprise telehealth solutions for hospitals and health systems.
In the second quarter, Teladoc's access fee revenues rose 20% to $518.7 million and visit fee revenues increased 7% to $66.7 million.
Average revenue per U.S. paid member increased to $2.60 in the second quarter from $2.31 a year ago.
U.S. paid membership increased 9% to 56.6 million from 52.0 million a year ago and U.S. fee only access visits increased 9% to 24.0 million from 22.0 million.
In the first-half of 2022, revenues increased 21% to $1.1 billion, access fees revenues increased 20% to $519 million, and visit fees rose 7% to $67 million.
Teladoc continues to face higher advertising costs in reaching patients with mental health care needs and sales cycles are getting longer in chronic condition market, said chief executive Jason Gorevic to analysts during the conference call.
Outlook and Guidance
Teladoc reiterated its third quarter and full-year outlook but said results are expected to be towards the lower end of those ranges.
For the third quarter, revenues are anticipated between $600 million and $620 million and net loss per share between 85 cents and 60 cents.
Total U.S. paid membership to range between 55.5 million and 56.5 million, fee only access visits about 24 million and total visits between 4.8 million and 5.0 million.
For the full-year 2022, Teladoc estimates revenues between $2.4 billon and $2.5 billion and net loss per share between $61.0 and $62.0, and total visits between 18.8 million and 19.3 million.
Stock & Performance
Teladoc stock has lost about 63% of its value this year and dropped more than 91% from its peak in February 2021.
Teladoc priced its initial public offering on July 1, 2015 at $19 a share and raised $157 million, according to the data compiled by Ticker.com
- Brian Turner
- 28 Jul, 2022
- New York City
Spirit Airlines rose 3.8% to $25.22 after the discount airline canceled its plan to merge with Frontier Air and agreed to be acquired by JetBlue after protracted negotiations.
The boards of directors of both airlines approved the merger agreement under which JetBlue will acquire Spirit for $33.50 a share in cash, including a prepayment of $2.50 per share in cash payable upon Spirit stockholders
- Barry Adams
- 28 Jul, 2022
- New York City
Stocks on Wall Street rested after the U.S. economy shrank for the second quarter in a row.
Seasonally adjusted GDP declined at a slower pace of 0.9% in the second quarter following the 1.6% fall in the first quarter, the Bureau of Economic Analysis reported Thursday.
The S&P 500 index rose 0.3% to 4,034.44 and the Nasdaq Composite index gained 0.06% to 12,037.61.
Futures of crude oil price increased 54 cents to $97.80 a barrel and natural gas was nearly unchanged at $8.55 a thermal unit.
Stocks traded volatile after benchmark indexes soared more than 2% in the previous session following the 0.75 percentage point rate hike by the Federal Reserve.
Best Buy Co increased 1.7% to $75.78 after the electronics retailer lowered its comparable sales outlook for the fiscal year 2023 second quarter ending in July to decline 13% and revenues are expected to rise 7.5% from two years ago.
Comparable sales in the second quarter 2022 rose 19.6% as sales were supported by pandemic assistance.
The retailer guided fiscal year 2023 comparable sales to decline 11%, revised from the previous estimate of a decline between 3% and 6%.
Etsy Inc increased 9.8% to $104.81 after the e-commerce marketplace operator reported higher-than-expected sales and earnings.
Consolidated revenues increased 10.6% to $585.1 million, net income declined 25.6% to $73.1 million and diluted earnings per share fell to $0.51 from 61 cents a year ago.
The online marketplace operator said active sellers surged 41.5% to 7.4 million and active buyers increased 3.4% to 93.9 million in the quarter.
Gross market sales volume on the platform declined 0.4% to $3.0 billion.
Metal Platforms, Inc declined 7.9% to $156.12 after the parent of Facebook and Instagram said June quarter revenues declined 1% to $28.8 billion on digital advertising slowdown.
Net income in the period fell 36% to $6.7 billion from $10.4 billion a year ago.
Diluted earnings per share fell 32% to $2.46 from $3.61 a year ago.
Spirit Airlines rose 3.8% to $25.22 after the discount airline canceled its plan to merge with Frontier Air and agreed to be acquired by JetBlue after protracted negotiations.
The proposed $3.8 billion merger, which still requires a clearance with the U.S. Department of Justice, will create the fifth-largest U.S. airline after a fierce battle between Frontier and JetBlue.
Frontier Group soared 8.9% to $12.26 and JetBlue declined 2.7% to $8.17.
Southwest Airlines declined 8.7% to $37.20 after the discount carrier guided a challenging business environment and predicted higher operating costs.
The company also reported total operating revenues increased 67.8% to $6.7 billion and net income soared 118% to $760 million from a year ago.
Diluted earnings per share rose to $1.20 from 57 cents a year ago.
Stanley Black & Decker, Inc plunged 12.4% to $102.81 after the toolmaker lowered its full-year outlook and said the demand softened towards the end of the quarter.
Teladoc Health Inc plunged 23.5% to $33.01 after the online healthcare platform provider said June quarter revenues rose 18% to $592 million.
Net income plunged to $3.1 billion from $133.8 million a year ago after the company took a one-time goodwill charge of $3 billion and increased total charge in the six-month period to $9.6 billion.
Average revenue per U.S. paid member increased to $2.60 in the second quarter from $2.31 a year ago.
- Barry Adams
- 28 Jul, 2022
- New York City
Stocks on Wall Street rested after the U.S. economy shrank for the second quarter in a row.
Seasonally adjusted GDP declined at a slower pace of 0.9% in the second quarter following the 1.6% fall in the first quarter, the Bureau of Economic Analysis reported Thursday.
Weak private investments and lower investment in inventories and falling government spending drove the pace of the decline.
Higher exports helped but the falling real personal expenditure also dragged the economic activities in the quarter.
On Wall Street most investors regard two consecutive quarterly economic growth declines as the start of the recession.
The National Bureau of Economic Research's view on the economy is widely accepted as the final assessment of the health of the economy and the organization's views are generally released months later.
Initial jobless claims totaled 256,000 for the week ended July 23, a fall of 5,000 from the upwardly revised data for the previous week, according to the report released by the Labor Department.
The S&P 500 index declined 0.4% to 4,009.74 and the Nasdaq Composite index dropped 0.6% to 11,961.26.
Futures of crude oil price increased 54 cents to $97.80 a barrel and natural gas was nearly unchanged at $8.55 a thermal unit.
Stocks edged lower after benchmark indexes soared more than 2% in the previous session following the 0.75 percentage point rate hike by the Federal Reserve.
Spirit Airlines rose 3.8% to $25.22 after the discount carrier canceled its merger plan with Frontier Group and agreed to be acquired by JetBlue after protracted negotiations.
The proposed $3.8 billion merger, which still requires a clearance by the U.S. Department of Justice, will create the fifth-largest U.S. airline after a fierce battle between Frontier and JetBlue.
Frontier Group soared 8.9% to $12.26 and JetBlue declined 2.7% to $8.17.
Southwest Airlines declined 8.7% to $37.20 after the discount carrier guided a challenging business environment and predicted higher operating costs.
The company also reported total operating revenues increased 67.8% to $6.7 billion and net income soared 118% to $760 million from a year ago.
Diluted earnings per share rose to $1.20 from 57 cents a year ago.
Stanley Black & Decker, Inc plunged 12.4% to $102.81 after the toolmaker lowered its full-year outlook and said the demand softened towards the end of the quarter.
Metal Platforms, Inc declined 7.9% to $156.12 after the parent of Facebook and Instagram said June quarter revenues declined 1% to $28.8 billion on digital advertising slowdown.
Net income in the period fell 36% to $6.7 billion from $10.4 billion a year ago.
Diluted earnings per share fell 32% to $2.46 from $3.61 a year ago.
Teladoc Health Inc plunged 23.5% to $33.01 after the online healthcare platform provider said June quarter revenues rose 18% to $592 million.
Net income plunged to $3.1 billion from $133.8 million a year ago after the company took a one-time goodwill charge of $3 billion and increased total charge in the six-month period to $9.6 billion.
Average revenue per U.S. paid member increased to $2.60 in the second quarter from $2.31 a year ago.
- Brian Turner
- 28 Jul, 2022
- New York City
The U.S. economy declined for the second quarter in a row largely on the account of fall in investments and weak government spending.
The GDP shrank at an annual rate of 0.9% following the 1.6% decline in the first quarter, the Bureau of Economic Analysis said Thursday.
Real GDP decreased less in the second quarter than in the first quarter reflecting an upturn in exports and a smaller decrease in federal government spending that were partly offset by larger declines in private inventory investment and state and local government spending, a slowdown in PCE, and downturns in nonresidential fixed investment and residential fixed investment.
Imports decelerated.
The decrease in private inventory investment was led by a decrease in retail trade driven by the weakness in general merchandise stores and lower level of activities at automobile dealers.
The decrease in residential fixed investment was led by a decrease in brokers' commissions as the home unit sales declined.
The decrease in federal government spending reflected a decrease in non-defense spending that was partly offset by an increase in defense spending.
The decrease in non-defense spending reflected the sale of crude oil from the Strategic Petroleum Reserve, which results in a corresponding decrease in consumption expenditures.
Because the oil sold by the government enters private inventories, there is no direct net effect on GDP.
The decrease in state and local government spending was led by a decrease in investment in structures.
The decrease in nonresidential fixed investment reflected decreases in structures and equipment that were mostly offset by an increase in intellectual property products.
The increase in imports reflected an increase in services (led by travel).
The increase in exports was driven by higher exports of industrial supplies and materials and services led by the rebound of international tourist arrivals.
The increase in PCE or personal consumption expenditure reflected an increase in services led by food services and accommodations as well as health care, partly offset by a decrease in goods led by food and beverages consumption.
- Barry Adams
- 27 Jul, 2022
- New York City
Stocks rallied on Wall Street after the Federal Reserve increased the key lending rate by a larger-than-expected amount.
The 75 basis points increase was welcomed by investors and reaffirmed the Fed's commitment in fighting inflation.
After the increase, the federal funds rate have a target rate range between 2.25% and 2.5%.
"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run" and "anticipates that ongoing increases in the target range will be appropriate.
In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities," noted the accompanying statement released by the Federal Reserve.
Investors are anticipating a better read on the second quarter GDP before the market opens on Wednesday after the first quarter GDP declined at an annual rate of 1.6%.
The S&P 500 index increased 2.6% to 4,023.61 and the Nasdaq Composite index gained 4.1% to 12,032.42.
Futures of crude oil rose $3.11 to $98.11 a barrel and natural gas fell 32 cents to $8.66 a thermal unit but still hovered near the price last seen in 2008.
The yield on 10-year Treasury notes declined to 2.78% and on2-year notes fell to 2.98%.
The broad rally lifted stocks across all sectors led by a surge in tech stocks.
Investors also reacted to the latest batch of earnings releases.
Microsoft gained 6.7% to $268.40 after the company exceeded lowered earnings expectations.
Microsoft said quarterly net income growth slowed after cloud business growth slowed and video game business shrank.
June quarter sales increased 12% to $51.9 billion and rose in constant currencies 16% from a year ago.
Net income jumped 2% or 7% in constant currencies to $16.7 billion from a year ago.
Diluted earnings per share rose 3% to $2.23 from $2.17 a year ago.
For the full-year net revenues rose 18% to $198.3 billion, net income surged 19% to $72.7 billion and earnings per share rose 20% to $9.65.
Alphabet Inc jumped 7.7% to $113.05 after the parent of Google reported a decline in earnings but were ahead of the expectations set by some investors.
Alphabet reported its slowest quarterly revenues increase in two years as rising dollar and weakening economic backdrop impacted advertising environment.
Alphabet Inc said second quarter revenues increased 13% or 16% in constant currencies to $69.7 billion.
Net income fell to $16.0 billion from $18.5 billion and diluted earnings per share fell to $1.21 from $1.36 a year ago.
Chipotle Mexican Grill, Inc soared 12.7% $1.510.08 after the operator of fast food restaurants was able to increase customer price faster than the increase in food prices and wage costs.
PayPal Holdings Inc increased 12.2% to $86.47 after the activist investor Elliott Management acquired a stake in the payment processor. The news was first reported by the Wall Street Journal.
Shopify Inc increased 11.7% to $35.24 despite the e-commerce platform operator reporting wider-than-expected loss and said losses in the current quarter are expected to rise.
Boeing Co declined 0.11% to $156.09 after the aerospace and defense contractor reported lower-than-expected revenues and wider-than-expected quarterly loss.
However, the company did not revise its production schedule for 737 MAX jets.
Hilton Hotels rose 7.5% to $129.25 after the hotel operator lifted its annual outlook citing a rebound in travel demand. The company also delivered better-than-expected quarterly results.
McDonald's Corp gained 0.7% to $258.89 after the fast food chain reported stronger-than-expected earnings.
Global comparable store sales increased 9.7% driven by the U.S. sales increase of 3.7% and systemwide sales increased 4.0% or 10.0% in constant currencies.
Consolidated revenues declined 3% to $5.7 billion and net income plunged 46% to $1.2 billion and diluted earnings per share fell by the same amount to $1.60 from a year ago.
- Scott Peters
- 27 Jul, 2022
- New York City
United Parcel Services increased 44 cents to $181.90 after the company reported June quarter sales increased 5.7% from a year ago to $24.8 billion.
Net income in the quarter increased 6.5% to $2.9 billion from $2.7 billion a year ago and diluted earnings per share increased to $3.25 from $3.05.
Supply chain revenues, which boomed during the pandemic era, rose only 0.7% to $4.2 billion.
Average revenues per package increased 2.3% to $7.61 and total international package revenues including export revenues rose14.8% lifting the consolidated average revenues increase to 11.9% to $13.72.
The price increases drove most of the revenue gains in the quarter.
U.S. Domestic Parcel Volume Falls
U.S. domestic package revenues increased 7.3% to $15.5 billion and international package revenues increased 5.3% to 5.1%.
Average daily parcel volume declined 9.2% driven by 13.4% fall in the U.S. and 4.4% in exports volumes.
U.S. domestic package revenue increase was driven by 11.9% increase in revenues per piece with fuel surcharge of 400 basis points increase and the remainder 790 basis points increase was driven by base rate increase, fuel prices, and mix improvements.
Average daily parcel volume in the U.S. declined 4.0% to 19.7 million from 20.5 million a year ago.
Dividends and Stock Repurchase
UPS said it plans to return to shareholders $5.2 billion in dividends and the company lifted its stock repurchase limit to $3.0 billion in 2022.
Outlook
The company reaffirmed its full-year revenues estimate of $102 billion and capital expenditure of 5.4% revenues or $5.5 billion.
UPS estimated full-year 2022 domestic revenues to increase 5.5% and international revenues to grow in low-single digits.
Supply chain revenues in the full-year are estimated to be near $9.0 billion and consolidated operating margin of 13.6%.
Free cash flow in 2022 is estimated around $9.0 billion.
- Scott Peters
- 27 Jul, 2022
- New York City
Visa Inc declined 2.2% to $207.67 after the payment processing network operator said June quarter revenues increased 19% to $7.3 billion.
Net income in the quarter increased 32% to $3.4 billion and diluted earnings per share rose 36% to $1.60 from $1.18 a year ago.
Payments volume in the quarter increased 12% in constant dollars from a year ago.
Cross-border volume excluding transactions within Europe surged 48% in constant dollars.
Total cross-border volume, including Europe, increased 40% in the quarter.
Total processed transactions in the quarter, which represent transactions processed by Visa, were 49.3 billion, a 16% increase from a year ago.
During the quarter, Visa repurchased 12.2 million shares of class A common stock at an average price of $202.16 a share for $2.5 billion.
- Brian Turner
- 27 Jul, 2022
- New York City
The Federal Reserve lifted its key lending rate range by 75 basis points, second rate hike in a row.
In a unanimous decision, policy makers agreed to lift the federal funds rate to 2.25% to 2.5% and held out for future rate hikes to warm off sky-high inflation.
Policymakers in an accompanying statement set the hawkish tone for future rate hikes and highlighted the Fed's commitment in bringing the inflation down to the Fed's target rate of 2%.
"The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run," The Fed's statement noted.
Fed policymakers also guided future rate hikes as anticipated by financial markets.
Fed Chairman Jerome Powell said at a press conference after the rate decision that he does not believe the U.S. is currently in a recession.
Fed's action may appear aggressive but the policymakers are severely lagging the inflation. It may take several sustained rate increases and other measures to bring down the raging inflation forces.
The Consumer Price Index has stayed above the Fed's target rate of 2% for 18 months in a row, and the Fed's action may do little to bring down rising food and fuel prices.
Much of the inflationary forces are driven by the supply side factors that are less influenced by the Federal Reserve's decisions.
Investors are worried that the Fed's aggressive moves may force the economy into a recession despite the strong labor market.
Home prices are still rising despite the elevated mortgage rates and record high home prices.
After the rate decision, the yield on 10-year Treasury notes declined to 2.76% and 2-year notes traded down to 2.98%.
- Barry Adams
- 27 Jul, 2022
- New York City
Stocks surged on Wall Street after Alphabet and Microsoft exceeded lowered earnings expectations.
The Federal Reserve is set to announce its rate decision at the end of a 2-day meeting at 2:00 p.m. ET.
Investors are anticipating rate hike by at least 50 basis points.
The S&P 500 index increased 1.1% to 3,966.15 and the Nasdaq Composite index gained 2.1% to 11,802.69.
Futures of crude oil rose $2.32 to $97.31 a barrel and natural gas fell 29 cents to $8.70 a thermal unit but still hovered near the price last seen in 2008.
The yield on 10-year Treasury notes declined to 2.76% ahead of the Fed's rate decision.
Alphabet Inc jumped 6.4% to $110.45 after the parent of Google reported a decline in earnings but were ahead of the expectations set by some investors.
Alphabet reported its slowest quarterly revenues increase in two years as rising dollar and weakening economic backdrop impacted advertising environment.
Alphabet Inc said second quarter revenues increased 13% or 16% in constant currencies to $69.7 billion.
Net income fell to $16.0 billion from $18.5 billion and diluted earnings per share fell to $1.21 from $1.36 a year ago.
Boeing Co declined 1.01% to $154.05 after the aerospace and defense contractor reported lower-than-expected revenues and wider-than-expected quarterly loss.
However, the company did not revise its production schedule for 737 MAX jets.
Chipotle Mexican Grill, Inc soared 15.3% $1.517.98 after the operator of fast food restaurants was able to increase customer price faster than the increase in food prices and wage costs.
Total revenue in the quarter ending in June increased 17.0% to $2.2 billion and comparable restaurant sales increased 10.1%
Diluted earnings per share increased 40.2% to $9.25 from $6.60 a year ago.
Chipotle opened 42 new restaurants with 32 locations including a Chipotlane.
Hilton Hotels rose 4.5% to $125.80 after the hotel operator lifted its annual outlook citing a rebound in travel demand. The company also delivered better-than-expected quarterly results.
Microsoft Corp gained 4.6% to $263.50 after the company exceeded lowered earnings expectations.
Microsoft said quarterly net income growth slowed after cloud business growth slowed and video game business shrank.
June quarter sales increased 12% to $51.9 billion and rose in constant currencies 16% from a year ago.
Net income jumped 2% or 7% in constant currencies to $16.7 billion from a year ago.
Diluted earnings per share rose 3% to $2.23 from $2.17 a year ago.
For the full-year net revenues rose 18% to $198.3 billion, net income surged 19% to $72.7 billion and earnings per share rose 20% to $9.65.
PayPal Holdings Inc increased 11.5% to $85.70 after the activist investor Elliott Management acquired a stake in the payment processor. The news was first reported by the Wall Street Journal.
Shopify Inc increased 5.9% to $33.40 despite the e-commerce platform operator reported wider-than-expected loss and said losses in the current quarter are expected to rise.
United Parcel Services increased 44 cents to $181.90 after the company reported June quarter sales increased 5.7% from a year ago to $24.8 billion.
Net income in the quarter increased 6.5% to $2.9 billion from $2.7 billion a year ago and diluted earnings per share increased to $3.25 from $3.05.
The company reaffirmed its full-year revenues estimate of $102 billion and capital expenditure of 5.4% revenues or $5.5 billion.
UPS said it plans to return to shareholders in $5.2 billion in dividends and lifted its stock repurchase limit to $3.0 billion in 2022.
Visa Inc declined 2.2% to $207.67 after the payment processing network operator said June quarter revenues increased 19% to $7.3 billion.
Net income in the quarter increased 32% to $3.4 billion and diluted earnings per share rose 36% to $1.60 from $1.18 a year ago.
Payments volume in the quarter increased 12% in constant dollars from a year ago.
Cross-border volume excluding transactions within Europe surged 48% in constant dollars.
Total cross-border volume, including Europe, increased 40% in the quarter.
Total processed transactions in the quarter, which represent transactions processed by Visa, were 49.3 billion, a 16% increase from a year ago.
During the quarter, Visa repurchased 12.2 million shares of class A common stock at an average price of $202.16 a share for $2.5 billion.
- Barry Adams
- 27 Jul, 2022
- New York City
Stocks surged on Wall Street after Alphabet and Microsoft exceeded lowered earnings expectations.
The Federal Reserve is set to announce its rate decision at the end of a 2-day meeting at 2:00 p.m. ET.
Investors are anticipating rate hike by at least 50 basis points.
Many economists are also looking for the Fed to take an aggressive stand and lift the rates by 75 basis points and front-load future rake hikes.
The Fed has been lagging inflation for at least two years and the consumer price index, a measure of inflation, has exceeded the Fed's target rate of 2% for 18 months in a row.
The CPI index for May and June hovered near 8.6% rate.
The S&P 500 index increased 1.1% to 3,966.15 and the Nasdaq Composite index gained 2.1% to 11,802.69.
Futures of crude oil rose $2.32 to $97.31 a barrel and natural gas fell 29 cents to $8.70 a thermal unit but still hovered near the price last seen in 2008.
The yield on 10-year Treasury notes declined to 2.76% ahead of the Fed's rate decision.
Microsoft gained 4.6% to $263.50 after the company exceeded lowered earnings expectations.
Microsoft said quarterly net income growth slowed after cloud business growth slowed and video game business shrank.
June quarter sales increased 12% to $51.9 billion and rose in constant currencies 16% from a year ago.
Net income jumped 2% or 7% in constant currencies to $16.7 billion from a year ago.
Diluted earnings per share rose 3% to $2.23 from $2.17 a year ago.
For the full-year net revenues rose 18% to $198.3 billion, net income surged 19% to $72.7 billion and earnings per share rose 20% to $9.65.
Alphabet Inc jumped 6.4% to $11.45 after the parent of Google reported a decline in earnings but were ahead of the expectations set by some investors.
Alphabet reported its slowest quarterly revenues increase in two years as rising dollar and weakening economic backdrop impacted advertising environment.
Alphabet Inc said second quarter revenues increased 13% or 16% in constant currencies to $69.7 billion.
Net income fell to $16.0 billion from $18.5 billion and diluted earnings per share fell to $1.21 from $1.36 a year ago.
Chipotle Mexican Grill, Inc soared 15.3% $1.517.98 after the operator of fast food restaurants was able to increase customer price faster than the increase in food prices and wage costs.
PayPal Holdings Inc increased 11.5% to $85.70 after the activist investor Elliott Management acquired a stake in the payment processor. The news was first reported by the Wall Street Journal.
Shopify Inc increased 5.9% to $33.40 despite the e-commerce platform operator reported wider-than-expected loss and said losses in the current quarter are expected to rise.
Boeing Co declined 1.01% to $154.05 after the aerospace and defense contractor reported lower-than-expected revenues and wider-than-expected quarterly loss.
However, the company did not revise its production schedule for 737 MAX jets.
Hilton Hotels rose 4.5% to $125.80 after the hotel operator lifted its annual outlook citing a rebound in travel demand. The company also delivered better-than-expected quarterly results.
- Scott Peters
- 26 Jul, 2022
- New York City
Alphabet reported its slowest quarterly revenues increase in two years as rising dollar and weakening economic backdrop impacted advertising environment.
Alphabet Inc said second quarter revenues increased 13% or 16% in constant currencies to $69.7 billion.
Operating income in the quarter rose to $19.5 billion from $19.4 billion a year ago.
Operating margin declined to 28% from 31% a year ago on higher operating costs.
Net income fell to $16.0 billion from $18.5 billion and diluted earnings per share fell to $1.21 from $1.36 a year ago.
Segment Breakdown
Total advertising revenues increased to $56.3 billion from $50.4 billion and traffic acquisition costs increased to $12.2 billion from $10.9 billion a year ago.
Google search revenues increased to $40.7 billion from $35.8 billion and ads on the YouTube channel increased to $7.3 billion from $7.0 billion a year ago.
Google cloud revenues increased to $6.3 billion from $4.6 billion, an increase of 37% from a year ago.
Google headcount increased by about 30,000 to 174,014.
- Scott Peters
- 26 Jul, 2022
- New York City
Microsoft said quarterly net growth slowed after cloud business growth slowed and videogame business shrank.
Microsoft said June quarter sales increased 12% to $51.9 billion and rose in constant currencies 16% from a year ago.
Operating income in the quarter rose 8% or 14% in constant currencies to $20.5 billion.
Net income jumped 2% or 7% in constant currencies to $16.7 billion from a year ago.
Diluted earnings per share rose 3% to $2.23 from $2.17 a year ago.
For the full-year net revenues rose 18% to $198.3 billion, net income surged 19% to $72.7 billion and earnings per share rose 20% to $9.65.
Segment Revenues
Cloud revenues increased 20% to $20.9 billion and revenues in productivity and business process segment rose 13% to $16.6 billion.
Revenues in personal computing increased 2% to $14.4 billion but Xbox and related revenues fell 6%.
Search and news advertising revenue excluding traffic acquisition costs increased 18% and LinkedIn revenues increased 26%.
Azure and other cloud services reported sales surge of 40% from a year ago.
Share Buyback Program
Microsoft returned $12.4 billion to shareholders including stock repurchases and dividends in the fourth quarter of fiscal year 2022, an increase of 19% from a year ago.
- Scott Peters
- 26 Jul, 2022
- New York City
General Motors declined 2.8% to $33.75 and the vehicle maker said June quarter revenues increased 4.6% to $35.8 billion and net income plunged 40% to $1.7 billion from $2.8 billion a year ago.
The company blamed the earnings fall on China lockdown and parts shortages preventing the automaker from shipping 100,000 vehicles.
The automaker said it has secured materials needed to make one million electric vehicles by 2025.
General Motors guided full-year net income between $9.6 billion and $11.2 billion and adjusted operating earnings between $13.0 billion and $15.0 billion.
The company also guided full-year diluted earnings per share between $5.76 and $6.76 and adjusted earnings per share between $6.50 and $7.50.
- Scott Peters
- 26 Jul, 2022
- New York City
Coca-Cola Company gained 1.8% to $63.33 after the beverage maker said second quarter revenues rose 12% to $11.3 billion and net income dropped 28% to $1.9 billion from $2.6 billion a year ago.
Diluted earnings per share declined to 44 cents from 61 cents a year ago.
The concentrate volume sales increase of 4 percentage points and acquisition related sales increase of 2 percentage points was offset by 6 percentage points decline in sales from the stronger dollar.
The increase in price and volume mix of 12 percentage points drove all of the total sales increase in the quarter.
Unit case volumes across all geographies rose 8% and in the North America rose 2%.
The company guided organic revenues in the full-year to increase between 12% and 13%, an increase from the previous estimate between 7% and 8%.
Coca-Cola guided its adjusted earnings per share based on constant currency to increase to between 14% and 15% from the previous estimate of between 8% and 10%.