- Lockheed Martin (LMT) reported Q1 results with sales of $15.13 billion, up 1.1% YoY, and EPS of $6.43. LMT's Space segment sales were up 15.6% to $2.96 billion while its other segments experienced declining revenue but not by more than 3%.
- LMT's FY23 outlook remains the same with an EPS of $26.60-26.90 and revenue of $65.0-66.0 billion, and the company plans to return to growth in 2024.
- LMT's success is attributed to steady investments in defense and its advanced technologies amid increasing demand due to near-term threats posed by China and Russia.
- Goldman Sachs' (GS) Q1 performance fell short of expectations, mainly due to a 16% decline in its Global Banking & Markets segment.
- GS's fixed income trading business experienced significantly lower revenue in currencies and commodities, causing FICC's total net revenue to fall by 17% YoY to $3.93 billion.
- Johnson & Johnson's Q1 results were solid, with every segment posting growth, led by Pharmaceutical (sales grew by 4.2% to $13.41 billion) and Consumer Health (sales grew by 7.4% to $3.85 billion).
- JNJ has raised its FY23 guidance, and also increased its quarterly dividend by 5.3%.
- JNJ's new CEO Joaquin Duato has been in charge for a full year and is working on reshaping JNJ pretty dramatically. The company is in the process of spinning off its consumer health business, renamed Kenvue, and the spin-off is expected to happen in 2023.
- J.B. Hunt Transport missed Q1 estimates, with adjusted EPS contracting by 17% YoY to $1.89 and revs tumbling by 7% to $3.23 billion.
- JBHT's President Shelley Simpson noted that the company is in a freight recession, and the current environment is creating deflationary price pressure on an industry constantly facing inflationary cost pressures.
- JBHT's largest segment, Intermodal, saw revs dip 4% to $1.54 billion, fueled by tempered capacity demand, lower imports, and elevated inventory levels across the supply chain.
- Alphabet's stock is down 3% today due to a report in the New York Times that Samsung may replace Google Search with Microsoft Bing as the default search engine on its devices.
- The potential move could cost Google an estimated $3 billion in annual revenue, and there are concerns that other companies like Apple may follow suit.
- Samsung's move would be a signal of Microsoft's lead in the AI race since Bing recently incorporated AI technology.
- Google is not relying on its history to remain competitive and is emphasizing AI development, making it the underlying driver behind its top long-term priorities.
- Although today's news illustrates the wind may have already shifted, many competitors are popping up within the AI space, jeopardizing Google's dominance in the online search industry.
- However, the market is not overly concerned since Google's search engine market share was around 60% before 2009, crushing Bing's estimated 9%.
