McDonald’s Earnings Are Monday. Inflation’s Impact Will Be in Focus. — Barrons.com

/ / Consumer Discretionary /

By Evie Liu When McDonald’s reports earnings Monday morning, investors will examine whether inflation continues to weigh on the frequency of customer visits and how much they spend at the fast-food chain. For the three months ended in December, analysts polled by FactSet expect McDonald’s to post $6.4 billion in revenue, up 8.8% from the year-ago period. Much of that growth would likely come from international markets as the company opens up more locations. Same-store sales are expected to increase 4.7% in the fourth quarter from a year ago, a more moderate pace compared with previous quarters as inflation eased toward the end of 2023. Analysts expect net income to come in at $2 billion for the period, which translates to earnings of $2.83 per share. That would be 8.3% higher than a year ago. There will likely be more growth going forward. In December, McDonald’s announced ambitious plans to […]

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Boeing Finds New Problem With 737 MAX Fuselages — WSJ

/ / Industrials /

By Sharon Terlep Boeing is reworking 50 undelivered 737 MAX jets after a supplier’s employee recently found misdrilled holes on some fuselages, a new production snafu for the aircraft manufacturer. Spirit AeroSystems, which has been at the center of quality issues affecting 737s, supplied the fuselages. Boeing said that the issue could delay some deliveries in the near term and that existing 737s can keep flying. “This is the only course of action given our commitment to deliver perfect airplanes every time,” Boeing’s commercial chief Stan Deal said in a memo to staff on Sunday. Boeing said it is finalizing instructions for the rework and expects to know how long it will take in coming days. Deal said the employee flagged to his manager two holes that may not have been drilled exactly to the jet maker’s requirements. Delays will allow the company to inspect and, if necessary, fix any

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Amazon Impresses In Q4: ‘Another Impressive Beat’ Signals Market Dominance

/ / Consumer Discretionary /

Shares of Amazon.com Inc (NASDAQ:AMZN) have been in focus, with tech giants reporting results this week. Amazon’s results came amid an exciting earnings season. Here are some key analyst takeaways from the release. Needham On Amazon Analyst Laura Martin maintained a Buy rating, while raising the price target from $175 to $205. Amazon reported strong fourth-quarter results, with 14% year-on-year sales growth and 51% EBITDA growth, Martin said in a note. Operating margins expanded in the quarter, with improvement in North America, she added. GenAI was a focus during the earnings call, the analyst stated, adding that Amazon is building several GenAI apps across its businesses. Telsey Advisory Group On Amazon Analyst Joseph Feldman reiterated an Outperform rating, while lifting the price target from $185 to $200. Amazon ended a strong year with robust fourth-quarter results, and provided better-than-anticipated guidance for the first quarter, Feldman said. “The growth in sales and profits

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Meta Platforms (META) Delivered ‘Solid’ Q4 Results, Even Better Guidance, BofA Securities Says

/ / Technology /

Meta Platforms (META) posted a “strong” Q4 EPS and revenue beat and Q1 guidance was a “positive surprise,” BofA Securities said Friday in a report. The investment firm raised Meta’s price target to $510 from $425 and reiterated the buy rating. The company reported Q4 earnings late Thursday of $5.33 per diluted share, up from $1.76 a year earlier. Analysts polled by Capital IQ expected $4.94. Revenue rose to $40.1 billion from $32.2 billion. Analysts expected $39.2 billion. The revenue beat was mainly driven by the company’s Reels video product, as well as its Messaging, artificial intelligence products and tools, and the launch of the Quest 3 virtual reality headset, BofA said. Meta said it expects Q1 revenue of $34.5 billion to $37 billion. Analysts polled by Capital IQ as of late Thursday expected $33.9 billion. The Q1 guidance was a “big surprise,” well above Wall Street estimates, BofA said.

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Amazon.com Sees ‘Inflecting’ Core Businesses Amid Efficiency Benefits, Accelerating AWS Segment, Morgan Stanley Says

/ / Consumer Discretionary /

Amazon.com’s (AMZN) core businesses are “inflecting” as the company sees benefits from logistics efficiencies, regionalization, inventory management, and acceleration of its Amazon Web Services, Morgan Stanley said in a Friday note. “[Amazon’s] results and guide speak to how improving execution, cost discipline, and an AWS recovery are leading to outsized EBIT and free cash flow revisions,” the investment firm said. Amazon reported Q4 diluted earnings late Thursday of $1 per share, up from $0.03 a year earlier, as net sales increased to $169.96 billion from $149.20 billion. Morgan Stanley said Amazon’s global cost to serve declined in 2023 for the first time since 2018 and the company could see further reductions from a bigger fleet, inventory optimization, and inbound shipping improvements. The firm also expressed optimism over AWS’ accelerating revenue and growing generative artificial intelligence offerings to continue through 2024. Morgan Stanley said Amazon is poised for an “efficiency-based cash

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Apple Expected to Launch Generative AI-Enabled Software Upgrade in June, Morgan Stanley Says

/ / Technology /

Apple (AAPL) is expected to unveil its first generative artificial intelligence-enabled software upgrade at the Worldwide Developers Conference in June, Morgan Stanley said in a note Friday. “We believe that new [large language model]-enabled software features can help accelerate iPhone replacement cycles, especially given the component requirements to run AI in the cloud and on-device,” Morgan Stanley said. Morgan Stanley said “every 0.25 year decrease in iPhone replacement cycles” is anticipated to drive an upside of roughly 6% to its fiscal 2025 iPhone unit and revenue forecasts. The firm said it sees the software upgrade, and the expected launch of iPhone 16 in September, “as upside catalysts to help reaccelerate growth” in fiscal 2025. Morgan Stanley said its fiscal 2025 revenue and EPS estimates for Apple are 1% to 4% higher than consensus and “remain largely unchanged” after the company released its fiscal Q1 results Thursday. The firm maintained its

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Nvidia Likely to Post ‘Notable But Measured’ Q4 Beats, BofA Says

/ / Technology /

Nvidia (NVDA) is likely to report “a notable but more measured” 3% to 5% or $500 million to $1 billion improvement in both reported Q4 and guided Q1 revenues, BofA Securities said in a Thursday note. The results are due on Feb 21. BofA analysts, including Vivek Arya and Blake Friedman, pointed to incremental supply gains offset by China restrictions and some transition effects prior to B100 accelerator launch planned for the second half for the improvement. “While a 3-5% beat would pale vs. the 10%/22% beat/raise of prior quarters and perhaps disappoint some bulls, the more measured pace will also be seen as creating more fertile ground for continued growth in CY25 and beyond,” the analysts said. BofA reiterated its buy rating on Nvidia while raising its price objective to $800 from $700, saying that valuation is compelling.

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Goldman Sachs On Exxon Mobil Q4 Performance: Focus On Upstream Strength And Cost Strategies Amid Production Surge

/ / Energy /

Goldman Sachs analyst Neil Mehta commented on Exxon Mobil Corp‘s (NYSE:XOM) fourth-quarter FY23 earnings. The company’s adjusted net profit came in at $9.96 billion, or $2.48 per share, down from $14.04 billion, or $3.40 per share, a year earlier, beating the consensus of $2.21. Adjusted EPS also came above Goldman Sachs’ estimate of $2.22. Revenue and other income slipped to $84.34 billion from $95.43 billion and missed Wall Street’s estimate of $85.23 billion. Net production stood at 3,824 thousand oil-equivalent barrels per day, vs. analyst estimate of 3,757 thousand oil-equivalent barrels per day. Also, the company’s upstream earnings came above the analyst’s estimate. Mehta expects the conference call to center on cost reduction targets, upstream volume guidance, refining outlook, the Pioneer Natural Resources acquisition, and capital spending balance. The analyst estimates revenue and EPS of $341.23 billion and $8.32 in FY24 and $348.05 billion and $9.51 in FY25, respectively. Mehta reiterated a Neutral

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Exxon Mobil(XOM.US) Q4 2023 Earnings Conference

/ / Energy /

The following is a summary of the Exxon Mobil Corporation (XOM) Q4 2023 Earnings Call Transcript: Financial Performance: Exxon Mobil reported 15% return on capital employed, with earnings worth $36 billion in 2023. Cost reductions and asset optimization have facilitated a 100% increase in the company’s earnings. Through the sale of assets, Exxon Mobil generated over $4 billion in cash during 2023. Despite adverse conditions in 2023, investments made by Exxon Mobil generated profits and remained cash-positive. For the fourth quarter, cash flow from operations amounted to $13.7 billion; ignoring working capital, cash flow stood at $16.9 billion. Business Progress: Exxon Mobil registered record-breaking performance in upstream and refining operations. Exxon launched Proxxima, a resin product, and entered the lithium business; successfully developing unique technology for carbon capture. Exxon Mobil has three new organizations in place – Global Supply, Trading, and Global Business Solutions; this organizational restructuring is anticipated to

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Costco Wholesale Corporation (COST) Stock Analyst Ratings

/ / Consumer Discretionary /

Costco Wholesale Corporation (COST) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/02/2024 7.35% Oppenheimer $695 → $760 Maintains Outperform 01/05/2024 -1.83% Oppenheimer $675 → $695 Maintains Outperform 12/29/2023 5.23% Tigress Financial $635 → $745 Maintains Buy 12/21/2023 4.67% Truist Securities $693 → $741 Maintains Buy 12/20/2023 -12.42% Northcoast Research → $620 Downgrades Buy → Neutral 12/15/2023 -1.12% BMO Capital $612 → $700 Maintains Outperform 12/15/2023 -15.25% DA Davidson $570 → $600 Maintains Neutral 12/15/2023 -4.65% Stifel $615 → $675 Maintains Buy 12/15/2023 -11.01% Citigroup $585 → $630 Maintains Neutral 12/15/2023 2.41% UBS $640 → $725 Maintains Buy 12/15/2023 -4.65% Oppenheimer → $675 Reiterates Outperform → Outperform 12/15/2023 -5.36% Raymond James $580 → $670 Maintains Outperform 12/15/2023 -2.11% Truist Securities $619 → $693 Maintains Buy 12/15/2023 -1.12% Telsey Advisory Group $625 → $700 Maintains Outperform 12/13/2023 -4.65% Oppenheimer $630 → $675 Maintains

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Meta Platforms Analysts Raise Expectations After Q4 Earnings Beat: ‘Growth, Profits, Buyback & Dividends All In One’

/ / Technology /

Social media and technology company Meta Platforms (NASDAQ:META) reported fourth-quarter financial results Thursday after market close. Analysts are sizing up the results, which included earnings per share and revenue coming in ahead of Street estimates and the company announcing its first quarterly dividend. The META Analysts: Goldman Sachs analyst Eric Sheridan has a Buy rating and raised the price target from $414 to $500. Guggenheim analyst Michael Morris has a Buy rating and raises the price target from $380 to $520. Roth MKM analyst Rohit Kulkarni has a Buy rating and raises the price target from $365 to $500. Wedbush analyst Scott Devitt has an Outperform rating and raises the price target from $420 to $520. Truist Securities analyst Youssef Squali has a Buy rating and raised the price target from $405 to 4525. Oppenheimer analyst Jason Helfstein has an Outperform rating and raises the price target from $385 to $525. Goldman

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Estee Lauder 2Q Sales Set to Drop, Eyes Set on Path to Recovery in China, U.S. — Earnings Preview

/ / Consumer Discretionary /

By Sabela Ojea Estee Lauder is scheduled to report earnings for its fiscal second quarter before the market opens on Monday. Here’s what you need to know: –PROFIT: Estee Lauder is expected to post a profit of $182 million, or 51 cents a share, according to FactSet. This compares with a reported profit of $394 million, or $1.09 a share, for the same period a year earlier. –ADJUSTED PROFIT: Stripping out one-time items, the cosmetics giant’s earnings are forecast to be 54 cents, according to FactSet. –SALES: The company’s sales are expected to drop to $4.19 billion, according to FactSet. This compares with reported sales of $4.62 billion for the prior year. The stock has jumped 20% in the past three months, but it has plunged over 50% over the past 12 months. WHAT TO WATCH: –Any potential progress made in China will be key to Estee Lauder’s prospects after

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