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Dow 30 Earnings Score Card From The Past Week: IBM, Visa, Goldman And More

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Dow 30 Earnings Score Card From The Past Week: IBM, Visa, Goldman And More

The fiscal second-quarter reporting season is beginning to gain momentum. The week ended July 21 saw the release of earnings by eight Dow 30 components. Here is how each of them fared in the second quarter and how their respective stocks reacted to their earnings.

 

1. Goldman Loses Luster As FICC Revenues Plunge

Goldman Sachs Group Inc (NYSE: GS) reported its second-quarter results before the market on Tuesday.

    EPS: $3.95 versus consensus of $3.39
    Revenue: $7.89 billion versus estimate of $7.521 billion

Although Q2 results handily beat expectations, investors were put off by the lackluster performance by its Fixed Income, Currencies and Commodities business, which saw a 40 percent plunge to $1.159 billion.

The outperformance was orchestrated by gains in its private equity portfolio investment.

The stock closed Friday's session down 0.95 percent on the day at $220.18, down 3.68 percent on the week.

2. Johnson & Johnson Healthy Despite Competition

Johnson & Johnson (NYSE: JNJ), which reported Tuesday before the market open, posted above-consensus quarterly results and also raised its 2017 adjusted earnings per share guidance to $7.12 to $7.22 per share, from $7.00 to $7.15, citing strong performances by new pharmaceutical products.

    Adjusted EPS: $1.83 versus consensus of $1.80
    Revenue: $18.84 billion versus estimate of $18.95 billion

The performance was commendable as it came despite a stronger dollar and weakness in some emerging markets.

Additionally, some of the company's blockbusters such as arthritis treatment Remicade and diabetes drug Invokana faced stiff competition, which led to erosion in sales.

Johnson & Johnson gained 1.7 percent on Tuesday, closed Friday down 0.92 percent on the day at $135.31 and ended the week with 2.04 percent gains over the last five trading days.

See also: 3 Reasons Alcoa Is No Longer The Curtain-Raising Event Of Earnings Season

3. Beat-And-Raise From UnitedHealth

UnitedHealth Group Inc (NYSE: UNH) also released its second-quarter results ahead of the market open on Tuesday.

    Adjusted EPS: $2.46 versus consensus of $2.38
    Revenue: $50.05 billion, Up 7.7 percent year over year

The health insurer raised its 2017 adjusted earnings per share to $9.75–$9.90 from $9.65–$9.85. The second quarter beat was achieved on the back of strong pharmacy benefit management business and medical cost control. However, withdrawal from the ACA exchanges and deferral of ACA health insurance tax impacted the top line by $1.8 billion.

UnitedHealth reacted with only a marginal move to the upside on the day of the earnings release. For the past five trading days ending Friday, the stock was up 2.59 percent.

4. Revenue Blues Continue At The Big Blue

International Business Machines Corp. (NYSE: IBM) reported its second-quarter results after the market close on Tuesday. The company extended the revenue-declining streak to 21 quarters, although adjusted earnings per share beat estimates.

    Adjusted EPS: $2.97 versus consensus of $2.74
    Revenue: $19.29 billion versus consensus of $19.46 billion

The company reiterated its 2017 adjusted earnings per share guidance of $13.80. Even as its in-focus businesses such as strategic imperatives and cloud showed growth, the rate of growth slowed. Meanwhile, IBM's traditional businesses continue to drag its performance.

The stock has lost 4.12 percent since Wednesday and closed out the week down 4.64 percent over the past five trading days.

5. Weather Imparts Gloom To Travelers' Earnings

Travelers Companies Inc (NYSE: TRV) reported its second-quarter results before the market open Thursday.

    Adjusted EPS: $1.92 versus consensus of $2.11
    Revenue: $7.18 billion versus consensus of $6.56 billion

The company blamed the inclement weather for the earnings miss, as tornados and hail lashed through an otherwise solid quarter.

The stock lost 1.5 percent on Thursday and ended the past five trading days down 0.45 percent.

6. Microsoft Rode High On Cloud, Tax Gain

Microsoft Corporation (NASDAQ: MSFT)'s fiscal year fourth-quarter results released after the market close Thursday revealed tax benefit from the sale of its loss making Windows phone business boosting bottom line results. Microsoft's Azure cloud business put up another stellar showing, as revenues at the business nearly doubled.

    Non-GAAP EPS: $0.98 versus consensus of $0.71
    Revenue: $24.7 billion versus consensus of $24.3 billion

Microsoft closed Friday down 0.58 percent at $73.79, closing out the week up a total of 1.39 percent.

 

7. Payments Pay-Off For Visa

Visa Inc (NYSE: V) also released its fiscal third-quarter results after the market close Thursday. The top line benefited from payment growth and contribution from Visa Europe.

    Earnings per Class A share $0.86 versus consensus of $0.81
    Revenue: $4.57 billion versus consensus of $4.36 billion

The company reaffirmed its full-year outlook. Visa shares, which ended Thursday's session off the all-time closing high of $98.25 hit on Wednesday, is poised to chase record performance on the back of the stellar quarterly results.

The stock was up 2.73 percent over the past five trading days and closed Friday's session up 1.52 percent at $99.60.

8. Quality Of GE's Beat Questioned

General Electric Company (NYSE: GE) reported its second-quarter results ahead of the market open Friday.

    Adjusted earnings per share $0.28 versus consensus of $0.25
    Revenue: $29.56 billion versus consensus of $29.02 billion

GE's earnings beat came about mainly due to the company reining in cost and the benefits it reaped from its restructuring efforts.

The company backed its 2017 earnings per share guidance of $1.60–$1.70 on 3–5 percent organic sales growth, although it suggested that earnings might be trending at the low end of the guidance due to weaker oil and gas business.

The stock was down about 3 percent on Friday, pressured by a lack of operational improvement and the lukewarm outlook for the year.

Posted-In: Earnings News Technicals Previews Movers Tech Trading Ideas Best of Benzinga

 

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