All posts by Greta Wall
Coffee With Greta: PPI Runs Hot
DJIA Futures: -103 (-0.3%) SPX Futures: -4 (-0.1%) NASDAQ Futures: +32 (+0.2%) Good morning friends! Futures are mixed after the release of more hot inflation data. Let’s get right to it! Yields Spike After Hot PPI Treasury yields are popping this morning after more hot inflation data was released. The Bureau of Labor Statistics’ producer price index rose 0.3% monthly and 0.9% annually. That was higher than expectations for a 0.1% monthly and 0.6% annual increase. The core PPI rose 0.5% monthly vs 0.1% expected. This data comes days after the CPI also increased more than expected. The PPI is a leading indicator for consumer prices, signaling inflation may not be slowing as quickly as the Fed was hoping. The 10-year Treasury yield is up nine basis points at 4.32% while the 2-year yield is up 10 basis points at 4.68%. Housing Starts, Building Permits Fall New home construction slowed more than expected at the start of the year. The Census Bureau reported housing starts dropped 14.8% in January to a seasonally adjusted annual rate of 1.33 million units. It was the lowest level of starts since August 2023 and slower than expectations for a rate of 1.45 million units. Single-family starts fell 4.7% while multi-family starts tumbled 35.8%. The number of new permits issued last month also dropped more than expected. Permits fell 1.5% to a seasonally adjusted annual rate of 1.47 million units vs 1.5 million expected. Single-family permits rose 1.6% while multi-family permits dropped 9%. Coinbase Jumps After Surprise Profit Coinbase (COIN) shares are up 13.5% ahead of the open after reporting a surprise profit in Q4. Here’s how the crypto platform’s results compared to analysts’ estimates: EPS: $1.04 vs $0.01 loss expected Revenue: $954 million vs $822 million expected It’s the first time Coinbase has reported a profit since Q4 2021. Net revenue jumped nearly 50% year over year. Trading volume nearly doubled from Q3 to $154 billion, including $29 billion from retail traders and $125 billion from institutions. That topped expectations for overall volume of $142.7 billion. Roku Tumbles After Q4 Miss Roku (ROKU) shares are plunging 17.9% in premarket trade after reporting a wider-than-expected loss in the fourth quarter. Here’s how the streaming platform’s results compared to analysts’ estimates: Loss per share: $0.55 vs $0.52 expected Revenue: $984 million vs $968 million expected Roku forecast $850 million in Q1 revenue and expects to break even on adjusted ebitda. That was better than analysts’ estimates for $829 million in revenue and an $11 million adjusted ebitda loss. In a letter to shareholders the company said, “We plan to increase revenue and free cash flow and achieve profitability over time. At the same time, we remain mindful of near-term challenges in the macro environment and an uneven ad-market recovery.” DoorDash Drops After Earnings DoorDash (DASH) shares are down 9% ahead of the open after reporting mixed Q4 results. Here’s how the delivery company’s results compared to analysts’ estimates: Per share loss: $0.39 vs $0.16 expected Revenue: $2.3 billion vs $2.25 billion expected Revenue jumped 23% year over year. Gross order volume rose 22% to $17.6 billion vs $17.29 billion expected. Total orders rose 23% to 574 million vs 561 million expected. DoorDash forecast Q1 gross order volume of between $18.5 billion and $18.9 billion with adjusted ebitda between $320 million and $380 million. Analysts were anticipating $18.6 billion in gross orders and $362 million in adjusted ebitda. For the full-year, the company expects gross order volume between $74 billion and $78 billion, with adjusted Ebitda ranging from $1.5 billion to $1.9 billion. Analysts are expecting $76.8 billion in gross orders and adjusted ebitda of $1.63 billion. DoorDash also announced a $1.1 billion stock buyback. The company said, “In 2024, our focus will not change. We will invest to build tools that solve problems for consumers, merchants, and Dashers, while expanding the scale, breadth, and profit potential of our business. We look forward to the work.” In Case You Missed It Homebuilder confidence rose more than expected this month. The National Association of Homebuilders sentiment index rose four points to 48 vs 46 expected. This marked the third straight monthly increase and is the highest reading since August 2023. Sentiment about current sales conditions increased four points to 52, six-month sales expectations rose three points to 60, and buyer traffic increased four points to 33.
Continue Reading -->Coffee With Greta: Hanging On To Gains
DJIA Futures: +63 (+0.2%) SPX Futures: +5 (+0.1%) NASDAQ Futures: +14 (+0.1%) Good morning friends! Futures are rising as the market rally attempts to hang on. Let’s get right to it! Retail Sales Tumble Retail sales dropped far more than expected in January. The Commerce Department reported retail sales fell 0.8% last month to $700.3 billion. That was steeper than economists’ expectations for a 0.3% decline. Excluding autos, core retail sales dropped 0.6% vs expectations for a 0.2% gain. Year over year, sales were up 0.6% in January. Sales at building material and garden retailers tumbled 4.1% in January, miscellaneous sales dropped 3%, gasoline sales fell 1.7%, and sales at car dealers and auto parts stores dropped 1.7%. Sales were 1.5% higher at furniture stores, up 0.6% at grocery stores, and 0.7% higher at restaurants and bars. Weekly Jobless Claims Fall Weekly jobless claims fell more than expected last week as the labor market remains strong. The Labor Department reported 212,000 Americans filed initial claims for unemployment benefits last week. That was down by 8,000 from the previous week and lower than 220,000 expected. Continuing jobless claims rose by 30,000 to 1.895 million vs 1.880 million expected in the week ending February 3. Cisco Drops After Light Guidance Cisco (CSCO) shares are down 4.0% ahead of the open after beating fiscal Q2 expectations but issuing weak guidance. Here’s how the company’s results compared to analysts’ estimates: Adjusted EPS: $0.87 vs $0.84 expected Revenue: $12.8 billion vs $12.7 billion expected Revenue was down 6% year over year. Cisco also announced plans to reduce its workforce by 5% as part of a restructuring plan “ to realign the organization and enable further investment in key priority areas.” The company forecast fiscal Q3 revenue between $12.1 billion and $12.3 billion, marking a 16% decline year over year at the middle of the range. Analysts were expecting guidance of $13.1 billion. Cisco forecast adjusted EPS between $0.84 and $0.86 vs $0.92 expected. For the full fiscal year, the company expects revenue between $51.5 billion and $52.5 billion, lower than its prior forecast of $53.8 billion to $55 billion. Cisco forecast full-year adjusted EPS between $3.68 and $3.74, down from $3.87 to $3.93 previously.
Continue Reading -->Coffee With Greta: Shaking It Off
DJIA Futures: +98 (+0.3%) SPX Futures: +22 (+0.4%) NASDAQ Futures: +98 (+0.6%) Good morning friends! Futures are rising as traders attempt to shake off Tuesday’s inflation-fueled tumble. Let’s get right to it! Airbnb Slips After Earnings Airbnb (ABNB) shares are down 4.2% ahead of the open despite beating Q4 revenue expectations. Here’s how the vacation rental company’s results compared to analysts’ estimates: Loss per share: $0.55, not comparable to estimates Revenue: $2.22 billion vs $2.16 billion expected Nights of accommodation and experiences booked rose 12% year over year to 98.8 million. Airbnb said it expects that growth rate to moderate in Q1. The company forecast Q1 revenue between $2.03 billion and $2.07 billion, up 12% to 14% from a year ago. Lyft Surges On Q4 Beat, Strong Guidance Lyft (LYFT) shares are rallying 21.9% in premarket trade after beating Q4 expectations and issuing better-than-expected guidance. Here’s how the ride-hailing service’s results compared to analysts’ estimates: Adjusted EPS: $0.18 vs $0.08 expected Revenue: $1.22 billion, as expected Revenue increased 4% year over year while gross bookings jumped 17% to $3.7 billion. Lyft initially made a mistake in its earnings press release, saying it expected 5% margin growth in 2024. That prompted the stock to surge more than 60% in after-hours trade on Tuesday. But the CFO corrected that mistake during the earnings call, saying they expect 0.5% growth. The adjusted profit margin as a percentage of bookings is anticipated to be 2.1% this year vs 1.6% in 2023. Lyft expects gross bookings in Q1 to be between $3.5 billion and $3.6 billion, beating expectations for $3.46 billion. Robinhood Soars On Surprise Profit Robinhood (HOOD) shares are up 14.9% ahead of the open after reporting a surprise profit in Q4. Here’s how the online brokerage’s results compared to analysts’ estimates: EPS: $0.03 vs $0.01 loss expected Revenue: $471 million vs $455 million expected Monthly active users rose to 10.9 million from 10.3 million in Q3. Average revenue per user also rose to $81 from $80. Robinhood cited those metrics as signs that retail traders are returning to the market. Mortgage Demand Drops As Rates Surge Homebuyers pulled back last week as mortgage rates jumped higher. The Mortgage Bankers Association reported total application volume dropped 2.3% last week from the previous week. Purchase applications dropped 3% weekly and 12% year over year. Refinance applications fell 2% weekly and were still up 12% compared to the same week a year ago. The decrease in activity came as the average 30-year fixed contract rate rose to 6.87% from 6.80%, the highest since early December. Rates have since pushed back above 7% this week after the hotter-than-expected CPI data on Tuesday.
Continue Reading -->Coffee With Greta: Hot Inflation Stunts Rally
DJIA Futures: -361 (-0.9%) SPX Futures: -63 (-1.3%) NASDAQ Futures: -303 (-1.7%) Good morning friends! Futures are falling after the release of hotter-than-expected inflation data. Let’s get right to it! Yields Jump, Stocks Drop On Hot CPI Treasury yields are rising while stocks are sliding after the January CPI came in hot. The Bureau of Labor Statistics’ consumer price index rose 0.3% last month and 3.1% year over year. That was higher than expectations for a 0.2% monthly and 2.9% annual gain. The core CPI rose 0.4% monthly and 3.9% annually vs 0.3% monthly and 3.7% annually expected. Higher housing prices accounted for much of the increase with shelter prices up 0.6% monthly and 6% annually. Food prices rose 0.4% monthly and energy prices dropped 0.9%. The 10-year Treasury yield is up nine basis points at 4.28% while the 2-year yield is up 11 basis points at 4.6%. Coca-Cola Rises On Sales Beat Coca-Cola (KO) shares are up 1.2% ahead of the open after reporting mixed Q4 results. Here’s how the beverage giant’s results compared to analysts’ estimates: Adjusted EPS: $0.49, in line with expectations Revenue: $10.85 billion vs $10.68 billion expected Total revenue rose 7% year over year while organic revenue jumped 12%. Sales volume in North America shrank 1% but higher prices helped offset that decline. Coke forecast 2024 organic revenue growth of 6% to 7% in 2024 with comparable EPS expected to grow 4% to 5%. Shopify Drops Despite Earnings Beat Shopify (SHOP) shares are tumbling 12.3% in premarket trade despite beating Q4 expectations on the top and bottom line. Here’s how the e-commerce platform’s results compared to analysts’ estimates: Adjusted EPS: $0.34 vs $0.30 expected Revenue: $2.14 billion vs $2.08 billion expected Gross merchandise volume rose 23% to $75.1 billion vs $72.2 billion expected. Shopify forecast 2024 revenue growth year over year at a “low-twenties” percentage rate. Analysts were anticipating revenue of $8.39 billion which implies 19% growth. But the company warned it expects “meaningfully higher” operating expenses in the first quarter, which appears to be weighing on the stock. Hasbro Drops On Q4 Miss, Weak Outlook Hasbro (HAS) shares are down 5.8% ahead of the open after missing Q4 expectations and issuing weak guidance. Here’s how the toy maker’s results compared to analysts’ estimates: Adjusted EPS: $0.38 vs $0.65 expected Revenue: $1.29 billion vs $1.34 billion expected Revenue dropped 23.2% year over year and it was the third straight quarter Hasbro has missed earnings expectations. The company’s Wizards of the Coast and Digital Gaming segments saw revenue rise 10% from a year ago. But Consumer Products revenue dropped 25% as toys and game volume sank 19%. Entertainment revenue also plunged 31%. Hasbro said it expects Wizards of the Coast revenue to fall between 3% and 5% in 2024 with Consumer Products revenue down 7% to 14%.
Continue Reading -->Coffee With Greta: Inflation Week
DJIA Futures: -46 (-0.1%) SPX Futures: -2 (-0.04%) NASDAQ Futures: -10 (-0.1%) Good morning friends! Futures are slipping as traders get ready for an important week of data for the Fed. Let’s get right to it! Important Week This will be a much busier week for traders, focused on inflation. The economic data begins with the release of the January CPI Tuesday morning. That’s expected to show headline inflation pressures rose 0.2% monthly and 2.9% annually in the first month of the year. Thursday will be the busiest day of data with weekly jobless claims, the Empire State manufacturing survey, Philly Fed manufacturing survey, import prices, and retail sales all released before the market opens. Then the February homebuilder sentiment index will be released later in the morning. On Friday, traders will get January housing starts and building permits data plus the January PPI ahead of the open. The data concludes for the week with the University of Michigan’s consumer sentiment index later Friday morning. Earnings Season Continues Earnings will continue to roll-in this week on top of that economic data with 61 S&P 500 names scheduled to report. Here are some of the highlights: Tuesday AM: Coca-Cola (KO), Shopify (SHOP), Hasbro (HAS) Tuesday PM: Airbnb (ABNB), Robinhood (HOOD), Lyft (LYFT) Wednesday AM: Sony (SONY), Kraft Heinz (KHC) Wednesday PM: Cisco (CSCO) Thursday AM: Deere & Company (DE) Thursday PM: DoorDash (DASH), Coinbase (COIN) Oil Prices Fall Oil prices are falling this morning after last week’s rally that was fueled by escalating tensions in the Middle East. West Texas Intermediate crude futures are down over 1% at just over $76 bbl while Brent crude futures are down more than 1% at $81.30 bbl. Both contracts popped more than 6% last week after Israel rejected Hamas’ ceasefire proposal. But prices have been within a $10 trading range even amid those ongoing tensions.
Continue Reading -->Coffee With Greta: SPX Tops 5,000
DJIA Futures: +73 (+0.2%) SPX Futures: +14 (+0.3%) NASDAQ Futures: +66 (+0.4%) Good morning friends! Futures are rising after an encouraging revision to December’s inflation data. Let’s get right to it! December CPI Revised Lower The S&P 500 is poised to open above 5,000 this morning after briefly topping the historic milestone for the first time ever on Thursday. Futures are up across all the major indexes with all three on track for their fifth consecutive winning week. The government revised December’s CPI print lower this morning to a 0.2% monthly gain vs 0.3% previously. The core CPI remained at a 0.3% monthly gain. The revisions are part of seasonal adjustments made by the Bureau of Labor Statistics but confirm inflation was cooler faster than previously thought at the end of 2023. That is good news for traders hoping for a Fed rate cut sooner rather than later. CME Group’s FedWatch Tool still shows over 82% betting on no change at the March 20 Fed meeting with nearly 54% expecting the first rate cut at the May 1 meeting. Pinterest Revenue, Outlook Disappoint Pinterest (PINS) shares are dropping 9.3% ahead of the open after reporting mixed Q4 results and issuing weak guidance. Here’s how the company’s results compared to analysts’ estimates: Adjusted EPS: $0.53 vs $0.52 expected Revenue: $981.3 million vs $991 million expected Revenue rose 12% year over year while global monthly active users rose 11% to an all-time high of 498 million. Pinterest forecast Q1 revenue between $690 million and $705 million vs $702 million expected. Affirm Drops After Earnings Affirm Holdings (AFRM) shares are down 6.8% in premarket trade despite beating fiscal Q2 expectations. Here’s how the buy-now pay-later company’s results compared to analysts’ estimates: Loss per share: $0.54 vs $0.72 expected Revenue: $591.1 million vs $520.9 million expected Revenue jumped 48% year over year. Gross merchandise volume increased for the third straight quarter, up 32% from a year ago to $7.5 billion. Active consumers rose 13% to 17.6 million. Affirm forecast fiscal Q3 revenue between $530 million and $550 million vs $487.7 million expected. Pepsico Reports Mixed Results Pepsico (PEP) shares are up 0.1% ahead of the open after reporting mixed Q4 results. Here’s how the beverage giant’s results compared to analysts’ estimates: Adjusted EPS: $1.78 vs $1.72 expected Revenue: $27.85 billion vs $28.4 billion expected Revenue was down less than 1% year over year, the first quarter since 2020 the company has seen an annual decline. Organic revenue rose 4.5%, boosted by higher prices. But those higher prices hit demand as sales volumes declined. Volume at Pepsi’s North American Quaker Foods division dropped 8%, Frito-Lay North America posted a 2% volume decline, and the North American beverage unit saw sales volumes down 6%. Pepsi forecast 2024 organic revenue growth of at least 4% vs its previous outlook on the high end of 4% to 6%.
Continue Reading -->Coffee With Greta: Flirting With 5,000
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.
Continue Reading -->Coffee With Greta: Earnings Continue
DJIA Futures: +55 (+0.1%) SPX Futures: +15 (+0.3%) NASDAQ Futures: +78 (+0.4%) Good morning friends! Futures are higher as Q4 earnings continue to roll-in. Let’s get right to it! Snap Plunges On Disappointing Earnings Snap (SNAP) shares are plummeting 30.5% ahead of the open after missing Q4 revenue expectations and issuing soft guidance. Here’s how the social media company’s results compared to analysts’ estimates: Adjusted EPS: $0.08 vs $0.06 expected Revenue: $1.36 billion vs $1.38 billion expected Global daily active users: 414 million vs 412 million expected Average revenue per user: $3.29 vs $3.33 expected Revenue rose 5% year over year, marking the sixth straight quarter of single-digit growth. Snap forecast Q1 revenue between $1.095 billion and $1.135 billion putting the midpoint at $1.115 billion vs $1.117 billion expected. Ford Jumps On Strong Earnings, Outlook Ford Motor (F) shares are rising 5.6% in premarket trade after beating Q4 expectations and issuing strong guidance. Here’s how the automaker’s results compared to analysts’ estimates: Adjusted EPS: $0.29 vs $0.14 expected Automotive revenue: $43.2 billion vs $40.12 billion expected Total revenue rose 4% year over year to $46 billion. The automaker announced a special $0.18 dividend per share for the first quarter in addition to the regular dividend of $0.15 per share. The dividends are payable on March 1 to shareholders of record at the market close on February 16. Ford forecast adjusted earnings before interest and taxes of between $10 billion and $12 billion in 2024 vs $9 billion to $11 billion expected. The company also expects full-year adjusted free-cash flow of $6 billion to $7 billion and capital spending of $8 billion to $9.5 billion. Chipotle Crushes Earnings Expectations Chipotle Mexican Grill (CMG) shares are up 2.8% ahead of the open after beating Q4 expectations on the top and bottom line. Here’s how the burrito chain’s results compared to analysts’ estimates: Adjusted EPS: $10.36 vs $9.75 expected Revenue: $2.52 billion vs $2.49 billion expected Revenue rose 15.4% year over year while same-store sales jumped 8.4% vs 7.1% expected. Chipotle said foot traffic in its stores rose 7.4% during the quarter, bucking the trend of lower foot traffic at similar businesses. Sales were also boosted by a 3% menu price increase that was implemented in October. Chipotle forecast 2024 full-year same-store sales growth in the mid-single-digit range. Uber Slips Despite Earnings Beat Uber (UBER) shares are down 1.8% in premarket trade despite beating Q4 expectations on the top and bottom line. Here’s how the ride-hailing service’s results compared to analysts’ estimates: EPS: $0.66 vs $0.17 expected Revenue: $9.94 billion vs $9.76 billion expected Revenue jumped 15% year over year. Uber’s gross booking totaled $27.6 billion in the quarter, up 22% from a year ago. Mobility gross bookings rose 29% to $19.3 billion while delivery gross bookings jumped 19% to $17 billion. Uber forecast gross bookings in the first quarter between $37 billion and $38.5 billion vs $37.43 billion expected. The company expects adjusted EBITDA of $1.26 billion to $1.34 billion vs $1.26 billion expected. CVS Beats Expectations, Cuts Outlook CVS (CVS) shares are up 1.1% ahead of the open after beating Q4 expectations on the top and bottom line. Here’s how the drugstore chain’s results compared to analysts’ estimates: Adjusted EPS: $2.12 vs $1.99 expected Revenue: $93.81 billion vs $90.41 billion expected Revenue rose nearly 12% year over year but profits did shrink compared to a year ago. The company’s health services segment contributed the most to that revenue growth, generating $49.15 billion in revenue vs $46.35 billion expected. Same-store sales grew 11.3% year over year, up 15.5% in the pharmacy division, but down by 3.1% in the front of the store. CVS lowered its full-year adjusted EPS forecast to at least $8.30 vs $8.50 previously and $8.49 expected.
Continue Reading -->Coffee With Greta: Bouncing Back
DJIA Futures: +14 (+0.04%) SPX Futures: +7 (+0.2%) NASDAQ Futures: +40 (+0.2%) Good morning friends! Futures are higher as traders digest the latest batch of earnings. Let’s get right to it! Eli Lilly Rallies On Earnings Beat Eli Lilly (LLY) shares are up 5.2% ahead of the open after beating Q4 expectations on the top and bottom line. Here’s how the pharmaceutical company’s results compared to analysts’ estimates: Adjusted EPS: $2.49 vs $2.22 expected Revenue: $9.35 billion vs $8.93 billion expected Revenue jumped 28% year over year as the company saw strong demand for its weight loss products. $175.8 million in revenue was from Zepbound, Eli Lilly’s newly-approved weight loss drug. Its diabetes drug, Mounjaro, brought in $2.21 billion in sales vs $1.73 billion expected. Eli Lilly forecast full-year adjusted EPS of $12.20 to $12.70 on $40.4 billion to $41.6 billion in revenue. That was slightly better than expectations for adjusted EPS of $12.43 on $39.38 billion in revenue. Palantir Surges After Revenue Beat Palantir Technologies (PLTR) shares are surging 20.1% in premarket trade after beating Q4 revenue expectations. Here’s how the software company’s results compared to analysts’ estimates: Adjusted EPS: $0.08, as expected Revenue: $608.4 million vs $602.4 million expected Revenue jumped 20% year over year. In a letter to shareholders, the CEO said Palantir’s expansion and growth “have never been greater.” He wrote, “Our results reflect both the strength of our software and the surging demand that we are seeing across industries and sectors for artificial intelligence platforms.” Palantir forecast Q1 revenue between $612 million and $616 million and full-year revenue between $2.65 billion and $2.67 billion. That was roughly in line with analysts’ forecasts for Q1 revenue of $617 million and $2.66 billion in full-year sales. Spotify Rallies On Strong User Growth Spotify (SPOT) shares are up 8.4% ahead of the open after reporting stronger-than-expected user growth in the fourth quarter. Here’s how the streaming company’s results compared to analysts’ estimates: Per share loss: $0.36 vs $0.40 expected Revenue: $3.94 billion vs $3.99 billion expected Monthly active users: 602 million vs 601 million expected Premium subscribers: 236 million vs 235 million expected The company’s gross margin rose to 36.7% in the quarter, up 1.4% year over year thanks to cost-cutting efforts and higher prices. Spotify said it expects monthly active users to climb to 618 million and premium subscribers to hit 239 million in Q1. The company said, “With revenue and profitability trends both inflecting favorably heading into 2024, we view the business as well positioned to deliver improving growth and profitability.”
Continue Reading -->Coffee With Greta: Taking A Breath
DJIA Futures: -102 (-0.3%) SPX Futures: -14 (-0.3%) NASDAQ Futures: -27 (-0.2%) Good morning friends! Futures are lower as the Fed continues to strike down hopes of a rate cut soon. Let’s get right to it! Powell Doubles Down Fed Chair Jerome Powell doubled down on the bank’s plans for patience when it comes to rate cuts during an appearance on 60 Minutes Sunday night. The Chairman said, “With the economy strong like that, we feel like we can approach the question of when to begin to reduce interest rates carefully… “We want to see more evidence that inflation is moving sustainably down to 2%. Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.” The comments largely echoed those made during his press conference last Wednesday after the FOMC voted to keep interest rates unchanged. CME Group’s FedWatch Tool shows over 82% of traders expecting no rate hike or cut at the March 20 meeting. Currently, over 56% are betting on the first cut to happen in May. Quieter Week This will be a calmer week for traders after last week’s busy schedule. Several Fed speakers are scheduled throughout the week, which will give more insight on the bank’s future plans for interest rate policy. There is no major economic data set to be released besides the weekly jobless claims report on Thursday morning. The earnings calendar is also lighter after last week’s mega cap tech reports. Here are the highlights: Tuesday AM: Eli Lilly (LLY), Spotify (SPOT) Tuesday PM: Chipotle (CMG), Ford Motor (F), Snap (SNAP) Wednesday AM: Uber (UBER), CVS (CVS), Roblox (RBLX) Wednesday PM: Walt Disney (DIS), Arm Holdings (ARM), PayPal (PYPL) Thursday PM: Pinterest (PINS), Affirm (AFRM) Friday AM: Pepsico (PEP) McDonald’s Drops On Revenue Miss McDonald’s (MCD) shares are down 2.0% ahead of the open after missing Q4 revenue expectations. Here’s how the fast food giant’s results compared to analysts’ estimates: Adjusted EPS: $2.95 vs $2.82 expected Revenue: $6.41 billion vs $6.45 billion expected Revenue rose 8% year over year. McDonald’s reported global same-store sales growth of 3.4% vs 4.7% expected, weighed down by struggling sales in the Middle East. Domestic same-store sales rose 4.3%, in line with expectations and boosted by higher menu prices. McDonald’s reiterated its 2024 forecast for systemwide sales growth of nearly 2%.
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