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Alberto Abaterusso
Alberto Abaterusso
Articles (1518) 

4 Large Companies Announce 1st-Quarter Earnings

Twitter soars 7.5% in premarket trading after earnings beat. Coca-Cola, Verizon, and Lockheed Martin also surprise on profit

April 23, 2019 | About:

These four large caps announced first-quarter results for fiscal 2019 before the opening bell on Tuesday.

Twitter Inc. (NYSE:TWTR) soared 7.5% to $36.97 per share in premarket trading on Tuesday after posting non-GAAP earnings of 37 cents per share, which was 131.3% higher year-over-year. Earnings beating expectations by 22 cents. GAAP earnings, which were impacted by $124 million tax benefit, increased 212.5% to 25 cents per share.

Revenue rose 18.3% to $787 million, beating consensus estimates by $11.84 million. Advertising segment revenue jumped 18% to $679 million and data licensing increased nearly 19% to $107 million.

Twitter recorded an 11.7% increase in average monetizable daily active users to 134 million with 105 million from international and 28 million from the U.S. The average monthly active users decreased 1.8% to 330 million in the quarter, with 262 million being international and 68 million from the U.S.

The company also posted a 23% increase in total ad engagements and a 4% drop in the cost per engagement.

For the second quarter, Twitter forecasted operating income of $35 million to $70 million and total revenue of $770 million to $830 million.

Over the past 52 weeks, shares of Twitter increased 13% to a closing price of $34.39 on Monday for a market capitalization of $26.41 billion. The share price is above the 200-, 100- and 50-day simple moving average lines. The closing price on Monday was 31.3% above the 52-week low of $26.19 and nearly 39% below the 52-week high of $47.79.

Shares of Coca-Cola Co. (NYSE:KO) were up 1.75% to $48.23 in premarket trading on Tuesday after the company beat consensus estimates on non-GAAP earnings by 2 cents, having posted 48 cents or 2% growth from the prior-year quarter. GAAP earnings increased 24% to 38 cents per share.

Revenue increased 5% to $8 billion, beating consensus estimates by $110 million.

Helped by a 14% jump in the Europe, Middle East and Africa business and a 9% increase in the bottling business, organic sales improved 6%.

The company also reported a decline of 20 basis points in operating margin to 30.5%, a 14% increase in operating cash flow to $699 million and 1% decline in free cash flow to $335 million.

Looking ahead, Coca-Cola expects organic sales to grow approximately 4% and total sales to grow about 12.5% in 2019. Also, the company anticipates a change within the range of a 1% decline to 1% increase in earnings per share compared to 2018.

Shares of Coca-Cola Co. closed at $47.4 on Monday for a market capitalization of $202.64 billion. The stock climbed 10% over the 52 weeks through April 22 to above the 200-, 100- and 50-day simple moving average lines. The closing price on Monday was 14.4% above the 52-week low of $41.45 and 7.3% below the 52-week high of $50.84.

Verizon Communications Inc. (NYSE:VZ) was down 1.01% to $57.78 per share in premarket trading Tuesday after the company released non-GAAP earnings of $1.20 per share, up 2.6%, and GAAP earnings of $1.22, up 9.9%, on revenue of $32.13 billion, up 1.1%.

Verizon Communications beat expectations on non-GAAP earnings by 4 cents and matched expectations on revenue.

The wireless revenue segment grew 3.7% to $22.7 billion as a result of significant service revenue growth, while the wireline segment decreased 3.9% to $7.3 billion.

For full fiscal 2019, Verizon expects low single-digit percentage growth in GAAP revenue and adjusted earnings per share. The company also anticipates an effective tax rate at around 25%, capital spending ranging between $17 billion and $18 billion, and higher cash taxes.

Over the past 52 weeks, shares of Verizon increased 18% to a closing price of $58.4 on Monday for a market capitalization of $241.07 billion. The share price is trading above the 200-, 100- and 50-day simple moving average lines. The closing price on Monday was 26.7% above the 52-week low of $46.09 and 5.4% below the 52-week high of $61.58.

Shares of Lockheed Martin Corp. (NYSE:LMT) were up 3.7% to $326.93 in premarket trading on Tuesday after the company beat consensus estimates on GAAP earnings by $1.65, having posted $5.99 or 49% growth from the prior-year quarter.

At $14.3 billion, revenue increased nearly 23% year-over-year, beating expectations by $1.74 billion.

The aeronautics division increased 27% to $5.58 billion, the missiles and fire control division grew 40% to $2.35 billion, the rotary and mission systems division went up 17% to $3.76 billion and the space division jumped 13% to $2.64 billion.

The company also recorded a boost in its order backlog to a record $133.5 billion, and strong growth in the operating margin of three out of four divisions.

Lockheed said it expects full-year 2019 earnings per share of $20.05 to $20.35, up 4.7% from previous guidance, versus consensus estimates of $19.58, and forecasted revenues of $56.75 billion to $58.25 billion, up 1.8% from previous guidance, versus a $56.81 billion consensus.

Shares of Lockheed Martin Corp. closed at $315.3 on Monday for a market capitalization of $89.16 billion. The stock declined 6% over the 52 weeks through April 22; however, the closing price on Monday was above the 200-, 100- and 50-day simple moving average lines. The share price was also 30.7% above the 52-week low of $241.18 and 14.8% below the 52-week high of $361.99.

Disclosure: I have no positions in any security mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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