Coffee With Greta: Flirting With 5,000

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DJIA Futures: +19 (+0.1%)

SPX Futures: -5 (-0.1%)

NASDAQ Futures: -18 (-0.1%)

Good morning friends!

Futures are mostly lower with the S&P 500 on the brink of crossing 5,000 points for the first time ever.

Let’s get right to it!

Disney Pops After Earnings Beat, Higher Guidance

Walt Disney (DIS) shares are up 8.2% ahead of the open after beating fiscal Q1 expectations and hiking its guidance. 

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

  • Adjusted EPS: $1.22 vs $0.99 expected
  • Revenue: $23.55 billion vs $23.64 billion expected

The company announced a $0.45 dividend payable in July, up 50% from the January payout. 

Entertainment revenue fell 7% year over year to $9.98 billion, ESPN revenue rose 4%, and experiences revenue jumped 7%. 

Disney+ subscribers decreased by 1.3 million from the previous quarter due to price increases but average revenue per user rose. 

Disney said it is on track to meet or exceed its goal of cutting costs by at least $7.5 billion this fiscal year. 

The company forecast fiscal 2024 EPS of $4.60, which would be at least 20% higher than 2023. 

CEO Bob Iger also announced Disney will take a $1.5 billion stake in Epic Games to create new games using its intellectual property, including Disney, Pixar, Marvel, Star Wars and Avatar.

PayPal Plunges On Disappointing Guidance

PayPal (PYPL) shares are tumbling 8.4% in premarket trade after beating Q4 expectations but issuing soft guidance. 

Here’s how the digital payments giant’s results compared to analysts’ estimates:

  • Adjusted EPS: $1.48 vs $1.36 expected
  • Revenue: $8.03 billion vs $7.87 billion expected

Revenue increased 9% year over year while net income jumped 52%.

The number of active PayPal accounts fell 2% from a year ago to 426 million vs 427.17 million expected. 

For the first quarter, PayPal forecast annual EPS growth in the mid-single digits vs 8.7% expected.

The company expects full-year earnings of $5.10 per share vs $5.48 expected.

Arm Spikes On Strong Forecast

Arm Holdings (ARM) shares are surging 27.9% ahead of the open after beating fiscal Q3 expectations and issuing strong guidance. 

Here’s how the chipmaker’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.29 vs $0.25 expected
  • Revenue: $824 million vs $761 million expected

Total revenue jumped 14% from the same quarter a year ago.

Royalty revenue rose 11% year over year to $470 million which Arm attributed to a recovery in the smartphone market. 

The company forecast fiscal Q4 earnings between $0.28 and $0.32 per share on $850 million to $900 million in revenue. 

Analysts expect EPS of $0.21 on $780 million in sales. 

Spirit Airlines Rises As Losses Narrow

Spirit Airlines (SAVE) shares are up 3.0% in premarket trade after reporting a narrower loss than expected in the fourth quarter. 

Here’s how the airline’s results compared to analysts’ estimates: 

  • Adjusted loss per share: $1.36 vs $1.46 expected
  • Revenue: $1.32 billion, in line with expectations

Revenue was down 5% year over year. 

Spirit said fare revenue per passenger tumbled 25% to $48.24, while nonticket revenue per passenger dropped 6.6% to $66.60. 

The company said it expects to post another profit loss in Q1 but forecast revenue between $1.25 billion and $1.28 billion which beat analysts’ expectations. 

Spirit is planning for 2024 capacity to be flat to up mid single digits and 1.5% higher in Q1.

Weekly Jobless Claims Fall

Weekly jobless claims fell more than expected as the labor market remains tight. 

The Labor Department reported 218,000 Americans filed initial claims for unemployment benefits last week. 

That was down by 9,000 from the previous week and lower than 220,000 expected. 

Continuing claims fell by 23,000 to 1.87 million in the week ending January 27.

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