Grab your iPhone, pop in your AirPods, and tune into your favorite Spotify playlist. Dig into your Big Mac, and take a sip of your Coke. Relax and get caught up on this week’s earnings.
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微软
($MSFT): The most important numbers from Microsoft's fiscal earnings announcement for the second quarter of 2022–Revenue, EPS, Productivity and Business Processes, Intelligent Cloud, and More Personal Computing–failed to meet Wall Street’s expectations. The company indicated that a number of factors, including the war in Ukraine, an unfavorable foreign exchange rate, COVID-19 shutdowns in China, and reduced advertising spend, affected its financial results for the quarter. In spite of the miss in the company’s Intelligent Cloud business, it reports that Azure, its cloud computing service and other cloud service revenue, is up 40% year-over-year.?Microsoft’s earnings announcement follows news that it will partner with Netflix to roll out its lower-priced ad tier later in 2022, which is sparking debate among analysts about whether the deal could potentially be a play for Netflix to be acquired by Microsoft.?
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Alphabet Inc.
($GOOGL): Alphabet reported weaker-than-expected earnings for the second quarter. Revenue growth slowed to 13% in the second quarter of 2022 compared to 62% a year earlier thanks to a slowdown in consumer spending. Revenue growth was also impacted by the strengthening of the dollar, which is expected to impact next quarter’s results to a greater extent.?YouTube advertising revenue was affected by inflationary pressures, with sales increasing just 5% compared to an astounding 84% increase in the same period a year ago. The pullback in ad spending may also be a result of increased competition from TikTok. But the news wasn’t all bleak: Google’s Search and Other revenue was $40.69 billion compared to $35.85 billion the year prior, and Alphabet’s headcount rose 21% from the year prior.?
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Shopify
($SHOP): Shopify announced its second quarter earnings on Wednesday, reporting a loss of $0.03 per share vs. an expected gain of $0.02 per share, and a revenue of $1.3 billion vs. $1.33 billion. Just before reporting these numbers, the company announced its plan to lay off 10% of its employees.?In its earnings report, Shopify noted the likelihood of future operating losses in the second half of 2022. To meet the needs of the current e-commerce market, which has reverted to a level slightly higher than its pre-COVID trend, Shopify has a strategic plan in place, including: utilizing Deliver, the e-commerce fulfillment technology company they recently acquired; profiting from YouTube Shopping on Shopify; streamlining their workforce; and offering a variety of merchant services that build long-term brand loyalty.
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Spotify
($SPOT): Spotify’s second-quarter earnings weren’t all music to investors’ ears, but they weren’t static either. For the second quarter, Spotify reported a revenue miss of $2.91 billion versus $2.85 billion and a loss per share of -$0.86 versus -$0.72.?The company’s total monthly active users (MUAs) beat expectations at 433 million versus 428 million. In fact, monthly active users grew 19% year-over-year to 433 million, 5 million above guidance. Net additions of 19 million represented the company's largest ever second-quarter growth, with expectations set even higher than anticipated for the third quarter at 450 million. Premium subscribers grew 14% year-over-year to 188 million, 6 million above the first quarter's total and slightly above company guidance of 187 million. Advertising revenue jumped 31% to $365 million for the quarter; however, analysts remain cautious that a recession could affect advertising spend in the future.
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Meta
($META): Meta reported a bigger-than-expected drop in revenue, missed on earnings, and issued a weak forecast, noting its second consecutive decline in year-over-year sales.?The company’s online advertising business has been hurt by Apple’s iOS privacy update, which limits Meta’s ability to track users. The company is also feeling the pinch of a weakening economy, which is causing companies to limit their advertising spend. On a global scale, Meta is impacted by macroeconomic uncertainties, including the Ukraine war and the normalization of e-commerce.?Meta is struggling to profit enough from Instagram Reels to compete with TikTok. The company is banking on its Reality Labs unit, which is responsible for developing the metaverse and related virtual reality and augmented reality technologies, as a way to rebrand itself for the future.
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亚马逊
($AMZN): The iconic Amazon smile is faltering a little after this week’s second-quarter earnings announcement. The company beat analysts’ revenue expectations ($121.2 billion vs. $119.53 billion) but missed EPS expectations (-$0.20 vs. $0.52) and reported a net loss of $2 billion.?On a brighter note, Amazon Web Services (AWS) net sales beat expectations ($19.74 billion versus $19.4 billion) and reported better-than-expected guidance for next quarter: $125 billion to $130 billion vs. $126.5 billion. Amazon is facing inflationary pressures in fuel, energy, and transportation costs, but it’s making up for losses in other areas, including its fulfillment network. Amazon is also banking on its cloud business to bolster future revenue.
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苹果
($AAPL): Apple’s second quarter earnings may just convince investors to think different. In spite of difficult operating conditions, Apple beat analysts’ expectations for revenue ($83 billion vs. $82.7 billion), EPS ($1.20 vs. $1.16), iPhone ($40.7 billion vs. $38.9 billion) and iPad ($7.22 billion vs. $6.9 billion) revenue.?However, despite Apple’s record-breaking second-quarter revenue, the company’s net income fell 10.5% year-over-year. The loss is likely due in part to reduced consumer spending in light of rising inflation and slowed sales and production as a result of COVID-related slowdowns in China. Analysts are hopeful that these setbacks will be temporary and look to Apple’s services business and upcoming product launches to boost the company’s future performance.
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3M 公司
($MMM): On the heels of a disappointing net income announcement—$78 million in in the second quarter of 2022 vs. $1.5 billion a year earlier—3M announced that it will spin its healthcare business off into a separate publicly traded company that will focus on wound and oral care, healthcare IT and biopharma filtration. But that’s not all. The company also announced its plan to set aside $1 billion to fund a trust related to ongoing litigation surrounding its Combat Arms Earplugs.?In spite of 3M’s lackluster net income, the company reported strong second-quarter earnings–an EPS beat of $2.48 vs. $2.44 and revenue in line with analyst projections at $8.7 billion.?
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可口可乐公司
($KO): Based on its second quarter 2022 results, the Coca-Cola business is proving to be just as resilient as its iconic polar bears, which were first featured in a French print advertisement in 1922. The company closed the second quarter with 12% net revenue growth, benefiting from higher prices. The company raised prices to compensate for higher costs on freight, high fructose corn syrup, and aluminum.?The company attributes its resilience in the marketplace to several factors, including consumer behavior and its initiatives to create curated multi-channel experiences for customers, drive customer value and growth through digital enablement, build consumer-loved brands and support scalable innovation globally, and prioritize the elimination of waste and reduction of carbon emissions.
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麦当劳
($MCD): Investors are lovin’ McDonald’s 9.7% overall sales increase for the second quarter of 2022. The International Developmental Licensed Markets segment increased the most, at 16%, followed by the International Operated Markets segment at 13%. The U.S. segment increased 3.7%.?International Developmental Licensed Market’s growth was driven by strong sales in Brazil and Japan, although these sales were partly offset by negative sales in China due to continued COVID-19 concerns and government restrictions. International Operated Market’s growth was led by strong sales in France and Germany, while U.S. growth was driven by strategic menu price increases on the everyday menu and digital platforms.McDonald’s remains cautiously optimistic about the future, especially in terms of consumers’ willingness to tolerate future price increases. Christopher Kempczinski, President, CEO, and Director of McDonald’s said in the July 26, 2022 earnings call, “Food at home has increased pricing significantly faster than food away from home, we expect that there is some benefit that we're seeing as part of that.”
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埃克森美孚
($XOM) and
雪佛龙
($CVX): Exxon posted record profits during the second quarter of 2022 with earnings of $17.9 billion, compared to $4.7 billion during the year-earlier period.Exxon beat EPS expectations ($4.14 vs. $3.74) but fell short of revenue expectations ($115.68 billion vs. $132.7 billion).?Chevron also posted record profits during the second quarter of 2022 with earnings of $11.62 billion, compared to $3.08 billion during the second quarter of 2021.Chevron beat analysts’ expectations for EPS ($5.82 vs. $5.10) and revenue ($68.76 billion vs. $59.29 billion) by a wide margin.?The companies’ strong second-quarter results are overshadowed by recession fears and the subsequent implications for oil and petroleum demand. The energy sector hit a multiyear high in June and continues to be the top-performing group so far this year; however, the sector is down 18% since its peak. Both companies’ profitable quarters may draw attention from Washington, where officials may urge companies to increase output in an effort to reduce consumer expense.?
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辉瑞
($PFE): Pfizer had a healthy second quarter, beating analyst expectations for both revenue ($27.7 billion–a 47% increase compared to the same period last year) and EPS ($2.04 vs. $1.78). The company reported $9.9 billion in net income, a 78% increase compared to the second quarter of 2021.The company’s revenue is attributed to sales of the COVID-19 vaccine and Paxlovid, an antiviral treatment for COVID-19. Pfizer anticipates continued profitability in the coming months as it prepares to provide vaccine doses to the U.S. government ahead of a fall vaccination campaign. The long-term profitability of manufacturing COVID-19 vaccines and treatments looks promising as new variants of the COVID-19 virus continue to infiltrate the global population.
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