Amazon.com Could Post Q1 Beat, But Face Challenges in Q2, BofA Securities Says

/ / Consumer Discretionary /

Amazon.com’s (AMZN) retail margins, advertising revenue, and Amazon Web Services growth are likely to drive a Q1 beat, but the company is likely to face headwinds in Q2, BofA Securities said in a Monday note. “We expect a 1Q beat, and while 2Q set up has some unusual q/q hurdles, we expect positive 1Q metrics and call commentary to be constructive,” said the investment firm. BofA Securities noted that positives for Q1 include Prime Video ads, improving AWS demand and AI traction, and greater-than-expected retail margin expansion, among others. But while BAC aggregated credit and debit card and Bloomberg Second Measure data pointed to eCommerce upside in Q1, this could slow in Q2 because of certain holiday sales in the first quarter, the investment firm added. BofA Securities lowered its Q2 estimate for the company, saying recent sale events could have pulled forward some some demand for the period. The […]

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Tik Tok Divestiture Neutral for Oracle But a Ban Would Slow Cloud Infrastructure Growth, UBS Says

/ / Technology /

A TikTok divestiture would be roughly neutral for Oracle (ORCL), while a ban would be a six-to-nine month growth headwind for Oracle Cloud Infrastructure beginning as early as the February 2025 quarter, UBS said in a note Monday. In a divestiture, the buyer of Tik Tok’s operations would probably continue the current OCI contract until the termination date, the analysts said. But in ban or shut-down scenario, Oracle would lose what is likely its largest OCI customer, UBS said, adding that this could be mitigated by a repurposing of the unused capacity, UBS said. The recent decline in Oracle’s stock suggests the market has already adjusted the price to reflect the uncertainties related to TikTok, according to the note. The bulk of TikTok’s cloud usage peaked in 2022 and it has not been a significant driver of recent revenue growth for Oracle Cloud Infrastructure, the firm added. UBS reiterated its

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American Express EPS Growth Achievable, Sustainable After 2024 Outlook Reiteration, RBC Says

/ / Industrials /

American Express (AXP) maintaining its 2024 guidance backs the belief that mid-teens earnings per share growth is achievable and sustainable amid a slower revenue environment, RBC said in a note. Analysts, including Jon G. Arfstrom, said in a Friday note that the company’s management continues to be confident about its long-term growth trajectory and ability to sustain the current spending momentum, particularly domestically. “Over the medium to long term, we believe the company has significant opportunities to build upon its leading market share in the small business and corporate card space with its targeted investments in technology and its digital platform. We also see opportunities for the company to increase penetration over time in international markets,” the analysts said. The analysts added that they are adjusting their 2024 EPS estimate from $12.80 to $13.10 and 2025 EPS from $15 to $15.15. American Express said in its Q1 earnings report that

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Verizon (VZ) Q1 2024 Earnings Conference

/ / Telecommunications /

The following is a summary of the Verizon Communications Inc. (VZ) Q1 2024 Earnings Call Transcript: Financial Performance: Verizon reported a 3.3% year-over-year growth in Q1 2024 wireless service revenue. The adjusted EBITDA rose 1.4% YoY to $12.1 billion. The company’s free cash flow rose by 16%, nearing $400 million compared to Q1 2023, stating at $2.7 billion. Overall, net unsecured debt improved YoY by $3.7 billion, concluding the quarter at $126 billion. Verizon raised its quarterly dividends reflecting continued improvement in its payout ratio. Significant increase in free cash flow targeted for Q2 and aims to maintain growth in service revenue throughout 2024. Business Progress: Verizon has documented growth in its consumer business, expecting the number of customers on ‘myPlan’ to double by the end of 2024. As part of its C-band rollout, the company achieved significant milestones and completed a pension transaction to increase financial flexibility. Deals were

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CFRA Maintains Sell Opinion On Shares Of Verizon Communications Inc.

/ / Telecommunications /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our 12-month target price at $33, applying an EV/EBITDA multiple of 6.4x to our 2024 estimate, a slight discount to peers, reflecting our weak growth outlook. We trim our 2024 EPS estimate by $0.01 to $4.57 and lower 2025’s by $0.02 to $4.65. VZ reported Q1 operating EPS of $1.15 vs. $1.20, $0.02 above the consensus. Q1 revenue increased 0.2%, driven by 1) 0.8% growth in the Consumer business, with gains in service partially offset by declines in wireless equipment revenue due to lower upgrades and 2) a 1.6% fall in the Business segment, driven by declines in wireline and equipment revenue. Consumer postpaid net losses were 158k, while business postpaid adds were 90k with consolidated broadband net adds of 389k. While results came in

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Apple Likely to Deliver Strong Performance in March Quarter, BofA Says

/ / Technology /

Apple (AAPL) is likely to show a solid performance in the March quarter, with potential for slightly lower guidance for June, BofA Securities said in a note Monday. “The demand environment is weak and a lower guide for [fiscal Q2] could influence a pullback in shares,” the firm said. BofA said its fiscal Q2 revenue and EPS estimates stand a bit higher than Street estimates because it has factored in Vision Pro camera sales of up to $1 billion. BofA projects Q2 revenue of $91.5 billion and EPS of $1.53, compared with Street estimates of $90.3 billion and $1.50, respectively The tech giant’s fiscal Q2 results are scheduled for May 2, and BofA said it also expects a new $90 billion buyback authorization to be announced. BofA reiterated its buy rating on Apple with a price objective of $225, citing the company as a “top pick” in 2024 due to

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Salesforce Ends Deal Talks With Informatica

/ / Technology /

Salesforce is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. Merger talks with data-management software provider Informatica ended after the companies couldn’t agree on terms, The Wall Street Journal reported, according to people familiar with the matter. Meanwhile, Salesforce called for companies to provide disclosures about the environmental impact of AI development and operations. Dow Jones & Co. owns Factiva.

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What Apple Investors Should Make of Stock’s ‘Tricky Setup’ Ahead of Earnings

/ / Technology /

By Emily Bary Investors don’t necessarily need to ‘step in front of’ earnings, but BofA says they could buy any pullback ahead of ‘biggest WWDC ever’ Apple Inc. is expected to beat expectations for its March quarter but deliver disappointing guidance for the June quarter, according to a Morgan Stanley analyst. That prospect already seems priced into Apple’s stock (AAPL), Morgan Stanley’s Erik Woodring wrote in a note to clients Monday, but he nonetheless sees a “tricky setup” in light of recent market volatility. See also: Some Apple Vision Pro users suffer black eyes, headaches and neck pain Apple shares have fallen 14% over the past three months, and sentiment has gotten more negative. Investors are looking ahead to the company’s WWDC event in June that’s expected to bring an artificial-intelligence announcement. “As a result, there’s a chance Apple could see a relief rally/squeeze higher on a ‘better-than-feared’ earnings report/guide,”

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Nike Needs a Win, and It’s Betting on Caitlin Clark to Deliver One

/ / Consumer Discretionary /

By Weston Blasi Some Nike athletes’ careers are ‘winding down,’ one expert said, and the company is looking to make a big splash with Clark’s meteoric rise. Caitlin Clark is reportedly adding to the $76,535 starting salary she’ll make in the WNBA in a big way: with an eight-figure endorsement deal with Nike Inc. Clark’s endorsement deal with Nike (NKE) will have a total value that’s “above $20 million,” Shams Charania of The Athletic (NYT) reported, and would come after an iconic run for Clark through the women’s March Madness that saw her star rise to a point where the women’s tournament final had more viewers than the men’s final for the first time. As part of the Nike deal, Clark would be getting a signature shoe, something almost unheard of for a basketball player who has yet to play in a professional game. In the basketball space, Nike has

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Amazon’s Earnings Poised for Boost From AWS, Ads, and Retail Innovation: BofA Analyst

/ / Consumer Discretionary /

BofA Securities analyst Justin Post reiterated a Buy rating on Amazon.Com Inc (NASDAQ:AMZN) with a price target of $204. Post expects Amazon’s first-quarter earnings to reflect positive trends with a revenue forecast of $143 billion, closely aligning with market expectations. The focus will be on potential upside from AWS and advertising and, according to the analyst, a possible retail segment outperformance. For AWS, a quarter-over-quarter growth of $545 million and a 16% year-over-year increase are likely slightly ahead of the market’s 15% expectation. Operating profit will likely hit $11.5 billion, with a cautious eye on a possible $12 billion prediction by others. Looking ahead to the second quarter, he adjusted revenue expectations by $1.5 billion to $149.9 billion, considering the recent U.S. dollar depreciation and potential demand shifts due to seasonal sales events. Despite these adjustments, he maintained an optimistic outlook for Amazon’s continued growth in eCommerce, bolstered by data indicating a slight

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Nucor Reports Results for the First Quarter of 2024

/ / Basic Materials /

Nucor Reports Results for the First Quarter of 2024 PR Newswire CHARLOTTE, N.C., April 22, 2024 First Quarter of 2024 Highlights — Net earnings attributable to Nucor stockholders of $844.8 million, or $3.46 per diluted share. — Net sales of $8.14 billion. — Net earnings before noncontrolling interests of $959.0 million; EBITDA of $1.50 billion. CHARLOTTE, N.C., April 22, 2024 /PRNewswire/ — Nucor Corporation (NYSE: NUE) today announced consolidated net earnings attributable to Nucor stockholders of $844.8 million, or $3.46 per diluted share, for the first quarter of 2024. By comparison, Nucor reported consolidated net earnings attributable to Nucor stockholders of $785.4 million, or $3.16 per diluted share, for the fourth quarter of 2023 and $1.14 billion, or $4.45 per diluted share, for the first quarter of 2023. “Nucor’s performance continues to be strong even as steel market conditions have come off their post-pandemic record highs,” said Leon Topalian, Nucor’s

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Nucor Q1 EPS $3.46 Misses $3.65 Estimate, Sales $8.14B Miss $8.26B Estimate

/ / Basic Materials /

Nucor (NYSE:NUE) reported quarterly earnings of $3.46 per share which missed the analyst consensus estimate of $3.65 by 5.21 percent. This is a 22.25 percent decrease over earnings of $4.45 per share from the same period last year. The company reported quarterly sales of $8.14 billion which missed the analyst consensus estimate of $8.26 billion by 1.49 percent. This is a 6.58 percent decrease over sales of $8.71 billion the same period last year.

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