Earnings Previews: American Express, CSX, Intuitive Surgical, Schlumberger (Plus a Carvana Surprise)
Before U.S. markets opened on Wednesday, Carvana Co. (NYSE: CVNA) reported quarterly results earlier than originally planned. The stock dropped sharply after Tuesday evening’s announcement of the change, and then the stock price soared early Wednesday morning after Carvana’s report. Shares traded up 34% a few minutes after Wednesday’s opening bell. A short squeeze probably contributed to the morning’s increase. Nearly 60% of Carvana’s float was sold short.
Among the companies reporting as planned Wednesday morning, Goldman Sachs missed the consensus estimates on both earnings per share (EPS) and revenue. In a sign of how weak analysts expected the bank’s report to be, shares traded up by about 0.4% shortly after Wednesday’s opening bell.
ASML also reported misses on EPS and revenue. The Netherlands-based semiconductor equipment maker raised third-quarter and full-year revenue guidance, however, limiting the share price decline to around 3.5% in early trading Wednesday.
Baker Hughes beat estimates on both the top and bottom lines and issued inline guidance for third-quarter revenue. The oilfield services company also raised revenue guidance for the 2023 fiscal year. Shares traded up about 0.1%.
Halliburton reported mixed results, beating the EPS estimate but missing on revenue. As was the result at rival Baker Hughes, the stock traded down 1.7%.
U.S. Bancorp reported better than expected top-line and bottom-line results but issued downside revenue guidance for the third quarter. The bank also guided fiscal year revenue in line with estimates. The stock traded down 0.8%.
After U.S. markets close on Wednesday, IBM, Kinder Morgan, Netflix and Tesla will report quarterly results. Early the next morning, American Airlines, Freeport-McMoRan, Newmont, and Taiwan Semiconductor take their turns in the earnings spotlight.
Late Thursday and early Friday, these four companies are scheduled to report quarterly earnings.
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American Express
American Express Co. (NYSE: AXP) has posted a 12-month share-price decrease of nearly 5%. After missing consensus first-quarter estimates in April, fiscal 2023 estimates were lowered again. They had been reduced in January. The Dow Jones industrial average component reports second-quarter results early on Friday.
There have been reports that Goldman Sachs wants to end its Apple credit card partnership, and Amex has been touted as a replacement. That would not be bad news for the company, but it probably will not be enough to drive much investor enthusiasm. Still, lowered expectations and higher interest rates could spell a solid beat for the company’s second quarter.
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