All 3 S&P 500 companies that reported this week beat EPS estimates: Earnings Scorecard
Da Seeking Alpha
U.S. stocks advanced on Friday, pushing past the week’s choppiness triggered by a higher than expected wholesale prices. Stocks rose as the debate brewed over whether the Federal Reserve next week will jumpstart rate cuts with a large half-percentage point reduction, leading to an ease for a volatile trading week for equities.
The S&P 500 (SP500) was up more than 0.5% on Friday, on course for a fifth straight win, with all 11 of the S&P 500 sectors in green.
Stock movements this week were influenced by a number of pivotal economic events, such as the Consumer Sentiment Index report, released on Friday, which showed that year-ahead inflation expectations ticked down for the fourth straight month, to 2.7% from 2.8%. While consumer sentiment rose to 69.0 in September, the highest reading since May, according to the report.
Another important report was the Producer Price Index released by the U.S. Department of Labor on Thursday. PPI rose 0.2% M/M in August, faster than the +0.1% expected and accelerating from 0.0% in July.
Weekly initial jobless claims also edged higher to 230K, raising the odds of the Fed opting for a jumbo-sized rate cut. While the Consumer Price Index held steady in August, matching the 0.2% increase expected and the 0.2% rise in July.
This week’s earnings turned out to be a little less impactful on the S&P 500 as only three companies reported their quarterly earnings this week. All the three companies beat their EPS expectations, while Kroger (KR) missed revenue estimates.
Despite missing revenue estimates, Kroger (KR) shares moved higher in premarket trading after its earnings report as the grocery store operator said its identical-store sales rose 1.2% for the quarter, slightly ahead of the expectations.
Gross margin was 22.6% of sales during the quarter, vs. 22% consensus, reflecting Kroger's (KR) ability to improve margin, while maintaining competitive pricing.
Tech giants Adobe (ADBE) and Oracle (ORCL) had positive earnings scorecards to show, as both of the companies beat EPS and revenue estimates.
Although Adobe (ADBE) surpassed its third quarter revenue and earnings per share consensus estimates, its fourth quarter outlook fell short of market expectations, leading to a 10% plunge in its shares in post-market trading.
Adobe expects fourth quarter revenue to range from $5.5B to $5.55B, with a mid-point of $5.525B. This was short of the consensus estimate of $5.6B. Adobe forecasts earnings per share to range from $4.63 to $4.68, with the mid-point below the estimate of $4.67.
Meanwhile, Oracle's (ORCL) stock rose about 8% premarket on Tuesday after fiscal first quarter results beat estimates, drawing positive reactions from analysts. Analysts upgraded the stock citing several reasons, such as the company reaccelerating into the double digits after 13 years of single-digit organic total revenue growth.
For the upcoming week, a number of S&P 500 companies are scheduled to report results, with the likes of Darden Restaurants, Inc (DRI), FactSet Research Systems (FDS), Fedex (FDX), and Lennar Corporation (LEN) expected to report on Thursday. While General Mills (GIS) is expected to report earnings on Wednesday.
The S&P 500 (SP500) was up more than 0.5% on Friday, on course for a fifth straight win, with all 11 of the S&P 500 sectors in green.
Stock movements this week were influenced by a number of pivotal economic events, such as the Consumer Sentiment Index report, released on Friday, which showed that year-ahead inflation expectations ticked down for the fourth straight month, to 2.7% from 2.8%. While consumer sentiment rose to 69.0 in September, the highest reading since May, according to the report.
Another important report was the Producer Price Index released by the U.S. Department of Labor on Thursday. PPI rose 0.2% M/M in August, faster than the +0.1% expected and accelerating from 0.0% in July.
Weekly initial jobless claims also edged higher to 230K, raising the odds of the Fed opting for a jumbo-sized rate cut. While the Consumer Price Index held steady in August, matching the 0.2% increase expected and the 0.2% rise in July.
This week’s earnings turned out to be a little less impactful on the S&P 500 as only three companies reported their quarterly earnings this week. All the three companies beat their EPS expectations, while Kroger (KR) missed revenue estimates.
Despite missing revenue estimates, Kroger (KR) shares moved higher in premarket trading after its earnings report as the grocery store operator said its identical-store sales rose 1.2% for the quarter, slightly ahead of the expectations.
Gross margin was 22.6% of sales during the quarter, vs. 22% consensus, reflecting Kroger's (KR) ability to improve margin, while maintaining competitive pricing.
Tech giants Adobe (ADBE) and Oracle (ORCL) had positive earnings scorecards to show, as both of the companies beat EPS and revenue estimates.
Although Adobe (ADBE) surpassed its third quarter revenue and earnings per share consensus estimates, its fourth quarter outlook fell short of market expectations, leading to a 10% plunge in its shares in post-market trading.
Adobe expects fourth quarter revenue to range from $5.5B to $5.55B, with a mid-point of $5.525B. This was short of the consensus estimate of $5.6B. Adobe forecasts earnings per share to range from $4.63 to $4.68, with the mid-point below the estimate of $4.67.
Meanwhile, Oracle's (ORCL) stock rose about 8% premarket on Tuesday after fiscal first quarter results beat estimates, drawing positive reactions from analysts. Analysts upgraded the stock citing several reasons, such as the company reaccelerating into the double digits after 13 years of single-digit organic total revenue growth.
For the upcoming week, a number of S&P 500 companies are scheduled to report results, with the likes of Darden Restaurants, Inc (DRI), FactSet Research Systems (FDS), Fedex (FDX), and Lennar Corporation (LEN) expected to report on Thursday. While General Mills (GIS) is expected to report earnings on Wednesday.
