Coffee With Greta: Traders Focus On Guidance In Earnings

Shares

DJIA Futures: -150 (-0.4%)

SPX Futures: -20 (-0.5%)

NASDAQ Futures: -86 (-0.7%)

Good morning friends!

Futures are falling as traders digest new Q4 earnings. 

Let’s get right to it!

3M Drops After Earnings Miss, Weak Outlook

3M (MMM) shares are down 4.5% ahead of the open after the company missed Q4 expectations and issued weak guidance. 

Here’s how the manufacturing giant’s results compared to analysts’ expectations: 

  • Adjusted EPS: $2.28 vs $2.36 expected
  • Revenue: $8.1 billion as expected

For the full year, 3M earned $10.10 per share in 2022. 

But the company expects profits to fall this year.

3M forecast 2023 earnings will be between $8.50 and $9 per share vs analysts’ expectations of $10.20. 

Sales are expected to fall between 2% and 6% compared to last year as consumer electronics demand is down “significantly”. 

The company also cited “near-term weakness in consumer discretionary spending.”

3M also announced plans to cut about 2,500 manufacturing jobs around the world as the company prepares for those challenges. 

Johnson & Johnson Slips Despite Earnings Beat

Johnson & Johnson (JNJ) shares are falling 1.1% in premarket trade despite reporting better-than-expected Q4 results and issuing strong guidance. 

Here’s how the pharmaceutical giant’s results compared to analysts’ expectations: 

  • Adjusted EPS: $2.35 vs $2.23 expected
  • Revenue: $23.71 billion vs $23.896 billion expected

Revenue fell 4.4% year over year while unadjusted profits were down 25.7%. 

Johnson & Johnson forecast full-year 2023 EPS between $10.45 to $10.65 vs $10.33 expected.

General Electric Earnings Beat, Outlook Falls Short

General Electric (GE) shares are down 0.4% ahead of the open after beating Q4 earnings expectations but issuing weak guidance. 

Here’s how the company’s results compared to analysts’ expectations: 

  • Adjusted EPS: $1.24 vs $1.15 expected
  • Revenue: $21.79 billion vs $21.25 billion expected
  • Free cash flow: $4.3 billion vs $3.98 billion expected

Total revenue jumped 7% year over year. 

That growth was largely driven by GE’s aerospace division which saw revenue rise 25.7%, power revenue rose 26.4%, renewable energy revenue increased 3.7%, and healthcare revenue slipped 0.4%. 

The company forecast 2023 adjusted EPS between $1.60 and $2.00 vs analysts’ expectations of $2.37. 

Verizon Falls On Disappointing Outlook

Verizon (VZ) shares are falling 2.3% ahead of the open after its 2023 outlook disappointed. 

Here’s how the cell phone giant’s Q4 results compared to analysts’ expectations: 

  • EPS: $1.19 as expected
  • Revenue: $35.3 billion vs $35.1 billion expected

Verizon added 41,000 new monthly wireless subscribers last quarter after losing 189,000 in Q3 and 215,000 in Q2. 

The company also added 416,000 broadband users in Q4, up from 377,000 in Q3 and is best performance in more than a decade. 

Verizon forecast full-year 2023 adjusted EPS of $4.55 to $4.85 vs $4.96 expected. 

In Case You Missed It

  • The Conference Board’s leading economic indicators index fell more than expected in December. The index slumped 1% vs economists’ expectations for a 0.7% decline. That drop was due to a softening labor market, a slowdown in manufacturing activity, and fewer homes being built. The continued decline in LEI signals a recession is likely in the near term.

Leave a Comment: