Wednesday's round of corporate quarterly results is the main driver of today´s morning trading. The three indexes are hitting record levels with multiple companies reporting quarterly results.
Advanced Micro Devices Inc. (AMD, Financial) shares were up almost 10% in pre-market trading as the company reported better-than-expected earnings for its second quarter. EPS of two cents beat expectations by two cents while revenue of $1.22 billion exceeded estimates by $60 million and is up 19% year over year.
President and CEO Lisa Su said the results demonstrate strong growth driven by leadership products and focused execution.
"Our Ryzen desktop processors, Vega GPUs and EPYC datacenter products have received tremendous industry recognition," Su said. "We are very pleased with our improved financial performance, including double-digit revenue growth and year-over-year gross margin expansion on the strength of our new products.”
For the next quarter, the company expects revenue to increase approximately 23% sequentially, plus or minus 3% with a midpoint of about 15% year over year.
Another morning gainer is The Boeing Co. (BA, Financial), whose shares rose 7% in pre-market trading as the company reported second-quarter EPS of $2.55 on revenue of $22.74 billion. The company's performance was driven by planned production rates and timing of commercial and defense aircraft deliveries. Sales decreased 8.2% year over year, missing revenue estimates by $280 million, while profit expectations were beaten by 25 cents per share.
Further, the company achieved strong cash flow in the quarter, operating cash flow reached $5 billion by strong operating performance and favorable timing of receipts and expenditures. With that liquidity, Boeing repurchased 13.6 million shares for $2.5 billion and paid $0.9 billion in dividends to shareholders.
AT&T Inc. (T, Financial) shares were well in the green in pre-market trading. The company reported better-than-expected earnings and in-line revenues. EPS of 79 cents beat estimates by five cents while revenue of $39.8 billion was in line with expectations but registered a 1.8% year-over-year decline.
Global Markets
European stock markets closed well in the green with the FTSE 100, the DAX, the CAC 40 and the IBEX 35 advancing 0.33%, 0.3%, 0.59% and 0.41%, respectively. Meanwhile, gold fell for the third consecutive day.
In Asia, markets closed higher. Japan’s Nikkei, China’s Shanghai Composite Index, Hong Kong’s Hang Seng Index and India’s BSE Sensex closed in green territory.
Disclosure: The author holds no positions in any stocks mentioned.
