Chevron Corporation (CVX) Q2 2024 Earnings Call Transcript

/ / Energy /

Chevron Corporation (NYSE:CVX) Q2 2024 Earnings Conference Call August 2, 2024 11:00 AM ET Company Participants Jake Spiering – General Manager, Investor Relations Michael K. Wirth – Chairman of the Board and Chief Executive Officer Eimear P. Bonner – Vice President and Chief Financial Officer Conference Call Participants Neil Mehta – Goldman Sachs Alastair Syme – Citi Paul Cheng – Scotiabank Biraj Borkhataria – RBC Doug Leggate – Wolfe Research Josh Silverstein – UBS Roger Read – Wells Fargo Devin McDermott – Morgan Stanley Nitin Kumar – Mizuho Jason Gabelman – TD Cowen Bob Brackett – Bernstein Neal Dingmann – Truist Geoff Jay – Daniel Energy Partners Betty Jiang – Barclays John Royall – JPMorgan Operator Good morning. My name is Justin, and I will be your conference facilitator today. Welcome to Chevron’s Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After […]

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Caterpillar Lowers 2024 Outlook Amid Dealer Inventory, Construction Industry Pressures

/ / Industrials /

Caterpillar now expects 2024 revenue to be slightly lower than the $67.1 billion it saw in 2023, with the decline in the second half expected to be similar to the prior year. On an earnings call, CEO Jim Umpleby says this is in part due to its latest assumptions for dealer inventory, principally in resource industries, according to a transcript provided by FactSet. In North America, Caterpillar anticipates slightly lower construction industry sales for 2024 due to a weaker than expected rental fleet, though government-related infrastructure projects are expected to remain healthy, Umpleby says. Caterpillar gains 3.5% in early trading.

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Caterpillar Demonstrates Quality Attributes, Resilience Amid Macro Slowdown, BofA Says

/ / Industrials /

Caterpillar (CAT) demonstrated some quality attributes relative to other original equipment manufacturers with growth in adjusted operating profit amid a decline in sales, margin expansion despite destocking and negative dealer retailer sales, and pricing over cost, BofA Securities said in a note Wednesday. The firm said it still expects risks of an increase in destocking and construction industries’ pricing while the company maintains its earnings in a macroeconomic slowdown. Caterpillar reported Q2 adjusted earnings of $5.99 per diluted share, up from $5.55 a year earlier. Analysts polled by Capital IQ expected $5.54. Revenue for the quarter was $16.69 billion, above expectations of $16.67 billion. BofA said it is “too early to talk about ‘other side’” with price deflation, a decline in the non-residential construction sector and commodities under pressure. “Yet the longer Caterpillar demonstrates a higher/resilient earnings per share profile, the next cycle EPS power comes into focus,” the firm

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Caterpillar Is ‘Holding The Line’ On Earnings, Despite Macro Slowdown: Analyst Takeaways From Q2 Results

/ / Industrials /

Caterpillar Inc. (NYSE:CAT) shares are climbing on Wednesday, after the company reported strong second-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways. BofA Securities On Caterpillar Analyst Michael Feniger reiterated a Buy rating while reducing the price target from $385 to $376. Caterpillar reported better-than-expected second-quarter results, “demonstrating a higher/resilient EPS profile in a gloomy macro,” Feniger said in a note. Adjusted earnings came in at $5.99 per share, beating consensus estimates of $5.53 per share, he added. “While CAT is still a cyclical OEM, we are observing some quality attributes relative to other OEMs and prior slowdowns,” the analyst wrote. He further stated that Caterpillar was “holding the line” on earnings, despite a macro slowdown. Truist Securities On Caterpillar Analyst Jamie Cook maintained a Buy rating while raising the price target from $390 to $399. Caterpillar exceeded consensus earnings by 8% “on

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Airbnb Warns of Slowdown in U.S. Demand Despite 2Q Revenue Growth

/ / Consumer Discretionary /

Airbnb said revenue rose in the second quarter as a result of holidays and events like the Olympics, but warned about a potential slowdown in demand among U.S. consumers in the current quarter. The San Francisco-based short-term rental company on Tuesday posted a net income of $555 million, or 86 cents a share, compared with $650 million, or 98 cents a share, for the same period a year earlier. Analysts polled by FactSet had forecast earnings per share of 91 cents. Revenue rose 11% to $2.75 billion, beating the $2.74 billion expected by analysts. Airbnb had most recently said it expected revenue of $2.68 billion to $2.74 billion, representing growth of 8% to 10%. Gross booking value was up 11%, driven by a 9% increase in nights and experiences booked and a 2% rise in average rates. Wall Street analysts were also expecting growth of 11% in gross bookings. Airbnb

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Airbnb 3Q Outlook Impacted By Shortening Booking Windows

/ / Consumer Discretionary /

Airbnb’s 3Q outlook suggests booked nights growth lower than 2Q as travel demand in the US looks weak, according to BofA Securities in a research note. The analysts say that they’ve been cautious on a fading reopening benefit, as tough comparisons along with slowing long-term stays growth impacts bookings growth. They add that the home-sharing company also noted that shortening booking windows are impacting its 3Q outlook, leaving open a possibility of improving trends if US consumers end up booking late and maintaining relatively stable trip growth in September. Shares dive 15% to $111.57 in early trading, putting it on pace for its largest percentage decrease on record.

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Airbnb Reports ‘Tough’ Q2 Results Amid Slower Demand, Increased Marketing Expenses, RBC Says

/ / Consumer Discretionary /

Airbnb’s (ABNB) Q2 earnings performance was “tough” due to slower demand and increased marketing expenses, RBC Capital Markets said in a note Wednesday. “We believe the company is facing a textbook multiple compression situation driven by higher marketing spend into slowing demand,” RBC said in the note. Airbnb on Tuesday posted Q2 earnings of $0.86 per share on revenue of $2.75 billion. Analysts polled by Capital IQ expected EPS of $0.91 on revenue of $2.74 billion. Management’s focus on “product cycle opportunities as a way to reignite growth was constructive” and a significant opportunity could exist, RBC said. However, the “marketing to counter deceleration” tactic led to a lowering of estimates, the brokerage said. RBC cut its price target on Airbnb’s stock to $120 from $150 and maintained sector perform rating. Airbnb shares were down by nearly 13% in recent trading.

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Intel Calls Off Innovation Conference After Turbulent Two Weeks

/ / Technology /

Intel is canceling its Intel Innovation conference for the year after two weeks in the spotlight for all the wrong reasons. The chip giant’s stock plunged last week after its sales fell short of analyst expectations, and it said it planned to lay off about 15,000 employees. The company’s decision to replace the conference with “smaller, more targeted events” appears to be part of its urgent attempt to cut costs as Chief Executive Pat Gelsigner tries to right the ship.

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Delta’s ‘Willful Misconduct’ Claim Against CrowdStrike Over Tech Outage Difficult to Prove, Wedbush Says

/ / Consumer Discretionary /

Delta Air Lines’ (DAL) claim that CrowdStrike (CRWD) engaged in “gross negligence” and “willful misconduct” related to the July global tech outage would be difficult to prove, Wedbush Securities said in a Friday client note. CrowdStrike’s legal counsel, Michael Carlinsky, said in a July 29 letter to David Boies, who is representing Delta, that any liability by CrowdStrike is contractually capped at an amount in the single-digit millions. Boies rejected that cap in a Thursday letter. “The contract does not cap liability or damages for gross negligence or willful misconduct,” according to Boies’ letter. Proving an entity engaged in gross negligence and willful misconduct has a high bar, according to Wedbush, citing discussions with legal experts. “That said, the situation remains fluid,” analysts led by Taz Koujalgi wrote in the note. Wedbush has an outperform rating on CrowdStrike’s stock with a 12-month price target of $315.

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Intel’s Senior Unsecured Rating Downgraded by Moody’s

/ / Technology /

Intel (INTC)’s senior unsecured rating was downgraded by Moody’s to BAA1 from A3 rating over apprehensions about the chipmaker’s profitability, Reuters reported Thursday citing the credit ratings firm. Moody’s also changed Intel’s unsecured ratings outlook to negative from stable, while affirming the company’s Prime-2 short-term commercial paper rating, the report said. Moody’s said that it expects Intel to face much weaker profitability over the next 12 to 18 months, according to Reuters.

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Walmart Likely to Post In-line Q2 Earnings, US Comps, Morgan Stanley Says

/ / Consumer Discretionary /

Walmart (WMT) is expected to report in-line Q2 earnings per share and US comparable sales despite a weak consumer/retail backdrop and moderating expectations for the company, Morgan Stanley said in an earnings preview Thursday. The firm said it does not see any risk to Walmart’s valuation “even with an in-line quarter” as long as it keeps a consistent market share compared with peers and relative to Amazon.com (AMZN), and growth of its US earnings before interest and taxes exceeds sales growth driven by “fast-growing higher margin alternative revenue.” Alternative profits, including digital media, 3P marketplace, and membership growth alongside supply chain savings, are expected to drive US margin expansion in Q2, according to the note. International growth will fall behind Q1 due to fewer holiday contributions, the firm said. “Given slow July retail data, the risks of a consumer slowdown rising and an upcoming election in [H2], we think retaining

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Delta Air Says It’ll Take $380 Million ‘Direct’ Revenue Hit From CrowdStrike Outage

/ / Consumer Discretionary /

Airline expects total costs of at least $500 million Delta Air Lines Inc. late Thursday detailed the half-billion-dollar price tag it has put on flight cancellations and other problems caused by last month’s CrowdStrike Holdings Inc. (CRWD) software outage. Delta (DAL) said in a filing that it will see a “direct” revenue impact of around $380 million in the third quarter due to the incident, mostly related to refunds for cancelled flights and to providing customer compensation in cash and miles. Its fuel expenses were lowered by some $50 million as a result of those canceled flights, Delta said. Delta had to cancel about 7,000 flights as it ran into problems with reservations and crew scheduling. The airline chalked up another $170 million in non-fuel costs, mostly related to customer-expense reimbursements and crew-related expenses, it said. Total costs will reach at least $500 million, the airline said in the filing,

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