Wednesday’s Headlines: Microsoft Impresses With Earnings
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nautilus (NLS) +9.1%
Ericsson (ERIC) +7.3%
Chuy's (CHUY) +4.5%
Upstart Holdings (UPST) +3.1%
Wynn Resorts (WYNN) +2.0%
Moving Down ⬇️
Peloton Interactive (PTON) -10.7%
Cloudflare (NET) -9.1%
Pinterest (PINS) -8.5%
Datadog (DDOG) -8.0%
Coupa Software (COUP) -7.1%
1. Microsoft (MSFT) posted a strong earnings beat yesterday after the markets had closed. The tech giant reported adjusted earnings per share (EPS) of $2.48 against analyst expectations of $2.31, on revenue of $51.73 billion versus an anticipated $50.88 billion. This earnings call came just a week after Microsoft’s landmark announcement of plans to purchase gaming company Activision Blizzard (ATVI) in a deal worth almost $70 billion. Gaming revenue rose 8% following a record quarter in its previous earnings call, so the company will be confident it can continue to grow this segment following its latest addition. Despite the stock initially dropping in extended trading after the call, it has now reversed following a positive sales forecast for the year. Read more here.
2. Swedish telecommunications firm Ericsson (ERIC) posted an impressive earnings beat early yesterday, sending its share price soaring by over 7%. The company posted adjusted EPS of $0.36 for the quarter on revenue of $8.1 billion, beating analyst estimates. Despite continued struggles in China, caused by Sweden banning China’s Huawei from rolling out 5G on its shores, increased demand in other markets was able to offset this. Ericsson posted strong growth in Europe, Latin America, and the United States — with the latter growing by 16% through the quarter. The company’s own 5G rollout has so far generated 170 contracts, with executive management confident this can continue to propel the business forward. Read more here.
3. Nvidia (NVDA) is preparing to abandon its proposed $40 billion acquisition of chip-design company Arm. The deal has come under major regulatory scrutiny in Britain, where authorities are investigating concerns it could threaten national security. The proposed deal also faces pushback in both the United States and China. A failed purchase could push Arm to go public, with reports emerging that current owners SoftBank are making preparations should the Nvidia purchase fall through. An Nvidia spokesperson was eager to restate the company’s position that “this transaction provides an opportunity to accelerate Arm and boost competition and innovation.” Read more here.
Two companies on the MyWallSt shortlist will report earnings today:
Get this week’s full earnings calendar here.