Intel’s Q2 Guidance ‘Left a Lot to Be Desired,’ Wedbush Says

/ / Technology /

Intel’s (INTC) Q2 financial outlook “left a lot to be desired,” with revenue seen only rising modestly and margins projected to fall meaningfully on a sequential basis, Wedbush Securities said Friday. Late Thursday, the technology giant said it expects Q2 non-GAAP earnings of $0.10 per share on revenue of $12.5 billion to $13.5 billion. Analysts polled by Capital IQ expect EPS of $0.11 on revenue of $13.22 billion. Intel’s outlook contrasts with its previous estimate for sequential improvement through the course of the year, Wedbush analyst Matt Bryson said in a note. “In addition, we believe some incremental color that Intel provided on the call was less compelling than might have been hoped for.” The brokerage lowered its price target on the Intel stock to $32.50 from $40.00 while keeping its neutral rating. The company’s shares were down more than 8% in recent trading.

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IBM Delivers on Two Key Metrics in ‘Solid’ Q1 Despite Revenue Miss, RBC Says

/ / Technology /

International Business Machines (IBM) delivered on free cash flow and Red Hat sales in Q1 for a “solid” start to the year despite trailing estimates on total revenue, RBC Capital Markets said Thursday in a report. “The highlight from our perspective was the performance of our two focal metrics” with free cash flow of $1.9 billion topping RBC’s $1.7 billion estimate and Red Hat revenue in line with expectations, according to the report. IBM on Wednesday reported Q1 adjusted earnings rose to $1.68 a share from $1.36 a year earlier, topping the Capital IQ consensus of $1.59. Revenue rose to $14.46 billion, trailing the consensus of $14.54 billion. “The biggest negative surprise was around the consulting space where IBM’s resiliency relative to the broader market over the past year showed some signs of softening,” RBC said. On Wednesday, IBM also agreed to buy multi-cloud infrastructure automation company HashiCorp (HCP) for

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Microsoft Q3 Shines Light On ‘AI Innovation Cycle’: Analysts See ‘Plenty Of Runway For Growth’

/ / Technology /

Technology giant Microsoft Corporation (NASDAQ:MSFT) reported third-quarter financial results that saw revenue and earnings per share beat estimates from analysts. Analysts are praising the company’s growth of artificial intelligence platforms. The MSFT Analysts: Oppenheimer analyst Timothy Horan has an Outperform rating and price target of $450. Raymond James analyst Andrew Marok has an Outperform rating and raises the price target from $450 to $480. Goldman Sachs analyst Kash Rangan has a Buy rating and raises the price target from $450 to $515. Morgan Stanley analyst Keith Weiss has an Overweight rating and price target of $520. Wedbush analyst Daniel Ives has an Outperform rating and price target of $500. Bank of America analyst Brad Sills has a Buy rating and price target of $480. JPMorgan analyst Mark Murphy has an Overweight rating and raises the price target from $440 to $470. BMO Capital analyst Keith Bachman has an Outperform rating and price

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Microsoft Delivers Another Strong Quarter With Impressive Results, Wedbush Says

/ / Technology /

Microsoft (MSFT) latest Q3 results showcased yet another strong quarter with impressive outcomes across the board, Wedbush said in a report Friday. Microsoft Azure’s growth soared at 31%, surpassing both the Wall Street’s estimate of 29% and the company’s own guidance of 28%, driven by strong demand for their updated tech stack. “Copilot conversions continue exploding with partners/customers lining up for further Copilot deployments to increase efficiencies and profitable growth with more use cases seen across the product portfolio as the AI Revolution heats up,” Wedbush said. In Q3, Microsoft’s total revenues reached $61.86 billion, surpassing estimates, driven by successful AI integration, the firm said. Looking ahead, Microsoft anticipates solid revenue growth for Q4, “as more customers see increased use cases with MSFT’s AI technology stack to further expand profitable growth” while generating greater efficiencies across operations despite increasing investments, Wedbush said. Microsoft also issued robust guidance for 2025, anticipating

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CFRA Keeps Buy Opinion On Shares Of Exxon Mobil Corporation

/ / Energy /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $130, cut $5, reflects a 6.7x multiple of enterprise value to projected 2025 EBITDA, about in line with XOM’s historical forward average. We cut our 2024 EPS estimate by $0.09 to $9.02 and 2025’s by $0.55 to $9.50. Q1 EPS of $2.06 vs. $2.83, missed the consensus view by $0.12. XOM continues to make progress on structural cost reductions, with $0.4B in such cuts in Q1, now totaling $10.1B overall, which is substantial progress toward a goal of $15.0B in structural cuts by 2027 vs. 2019 levels. Production of 3.78 mmboe/d in Q1 was 0.4% below consensus, and down 40,000 boe/d sequentially, but we expect the Pioneer transaction to close in Q2. Shares are down about 3% today, which we chalk up

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CFRA Maintains Buy Recommendation On Shares Of Kla Corporation

/ / Technology /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our price target by $23 to $778, 25x our CY 2025 EPS view ($31.13), near peers and above KLAC’s three-year average (~18x) on growing confidence that the semi industry is exiting a downcycle, driven by AI. KLAC posted Mar-Q sales of $2.36B (-3% Y/Y) and EPS of $5.26 (-4%), above consensus, including a -$0.40 impact to EPS from its March decision to exit the flat panel business. We raise our FY 2024 (Jun.) EPS view by $0.06 to $23.36, lift FY 2025’s by $1.27 to $28.56, and raise FY 2026’s by $0.70 to $33.40. We expect CY 2024 growth to be led by foundry/logic activity (64% of Mar-Q process control sales) as customers move at a faster pace toward gate-all-around and 2-nm, while advanced DRAM

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Alphabet’s Blockbuster Results Highlight Its Transition From AI Laggard To Going ‘On The Offensive’: 11 Analysts Revise Forecasts After Q1 Results

/ / Technology /

Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) shares were climbing on Friday after the company reported its first-quarter results amid a lot of hype around the AI revolution. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. Goldman Sachs On Alphabet Analyst Eric Sheridan reiterated a Buy rating while raising the price target from $185 to $195. Alphabet’s first-quarter results reflected higher-than-expected revenues from Search and YouTube, “as Google’s broader ad ecosystem benefited from a strong end demand environment and continued to demonstrate product innovation with Performance Max and YT Shorts,” Sheridan wrote in a note. “AI innovation continues to build scale in the advertising business (conversions, Performance Max and search generative experience),” he added. “Alphabet struck a multi-sided theme of investing for the long-term (highlighted by Q1 capex levels that would be sustained throughout 2024), upside in both Services and Cloud operating income margins as prior period

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Fitch Says Near-Term Financial Pressures Of Boeing To Be Mostly Offset By Near-Term Reduction Of Inventory, Production Optimization

/ / Industrials /

Fitch Says Near-Term Financial Pressures Of Boeing To Be Mostly Offset By Near-Term Reduction Of Inventory, Production Optimization; Also Forecast Around 75 787 Aircraft Deliveries During Year, With Low-To-Mid Single Digit Production Per Month

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Alphabet’s Google Properties Likely to Grow by $20 Billion in 2024, UBS Says

/ / Technology /

Alphabet’s (GOOG) Google properties are expected to grow by around $20 billion in 2024 as Search monetization steps up and YouTube recovers, UBS said Friday in a note to clients. The Search franchise is on track to accelerate and add $16 billion in revenue, while YouTube is set to recover and grow $5 billion in revenue this year, UBS said. “Overall, our revenue estimates march higher as we factor in quick acceleration in YouTube (where YouTube TV is gaining budgets from linear TV and seeing better YouTube Shorts monetization) and take off some of the conservatism in Search,” UBS said. UBS estimates 2024 Google Search revenue of $190.5 billion, versus the previous estimate of $187.2 billion, and YouTube Ads revenue of $36.6 billion, up from $35.3 billion. UBS raised Alphabet’s price target to $173 from $166 and maintained its neutral rating. Alphabet shares rose 9.4% in recent Friday trading.

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Chevron Corporation (CVX) Q1 2024 Earnings Call Transcript

/ / Energy /

Chevron Corporation (NYSE:CVX) Q1 2024 Earnings Conference Call April 26, 2024 11:00 AM ET Corporate Participants Jake Spiering – General Manager, IR Mike Wirth – Chairman and Chief Executive Officer Eimear Bonner – Vice President and Chief Financial Officer Conference Call Participants Sam Margolin – Wolfe Research Neil Mehta – Goldman Sachs Paul Cheng – Scotiabank Betty Jiang – Barclays Josh Silverstein – UBS Biraj Borkhataria – RBC Nitin Kumar – Mizuho Jason Gabelman – TD Cowen Bob Brackett – Bernstein Research Roger Read – Wells Fargo Lloyd Byrne – Jefferies Devin McDermott – Morgan Stanley Ryan Todd – Piper Sandler John Royall – JPMorgan Alastair Syme – Citi Neal Dingmann – Truist Operator Good morning. My name is Katie, and I will be your conference facilitator today. Welcome to Chevron’s First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I will

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CFRA Keeps Hold Opinion On Shares Of Chevron Corporation

/ / Energy /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $175, raised $15, reflects a 5.7x multiple of enterprise value to projected 2025 EBITDA, slightly below CVX’s historical forward average. We think a modest discount is reasonable in light of CVX’s higher exposure to natural gas than its chief rival Exxon Mobil (XOM 119 ****), where we see continued price weakness in the near term. We lift our 2024 EPS estimate by $0.20 to $12.75 and 2025’s by $0.94 to $14.14. Q1 EPS of $2.93 vs. $3.55 beat the consensus view by $0.02. Permian production of 859,000 boe/d (26% of total Q1 production) was better than CVX had expected, helped by a lower decline rate, and the company now sees Permian production exiting 2024 at about 900,000 boe/d. We note that the

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Exxon Mobil(XOM) Q1 2024 Earnings Conference

/ / Energy /

The following is a summary of the Exxon Mobil Corporation (XOM) Q1 2024 Earnings Call Transcript: Financial Performance: Exxon Mobil reported Q1 2024 earnings of $8.2 billion and a cash flow of $14.7 billion. Structural cost savings reached $10.1 billion for the quarter, with an aim of reaching $15 billion by 2027. The company invested $5.8 billion in growth projects (CapEx). Shareholder distributions totalled $6.8 billion, including $3.8 billion in dividends. Exxon Mobil lowered net debt to capital to 3%, the lowest in more than a decade. The company plans to increase buybacks to a pace of $20 billion annually post approval of the Pioneer combination. Business Progress: Exxon Mobil has been focusing on efficiency improvements in all business aspects like centralizing activities, removing areas of duplication, and optimizing cost. Strategic projects delivered record first-quarter refining throughput and strong performance chemicals volume growth, with more planned for startup in 2025.

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