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3 Large-Cap Tech Stocks Release Quarterly Financial Results

- By Alberto Abaterusso

These large-cap tech stocks released quarterly earnings results on Thursday.

Shares of Adobe Inc. (ADBE) fell 2.51% to $260.98 in after-hours trading on Thursday after beating consensus estimates on non-GAAP earnings for the first quarter of fiscal 2019 by 9 cents, having posted $1.71 per share or a 10.3% increase from the prior-year quarter.


Instead, GAAP earnings of $1.36 per share rose 16.2% year-over-year.

Revenue grew 25% from the same quarter of fiscal 2018 to $2.6 billion, beating expectations by $50 million.

Per business segment, first-quarter revenue was shared as follows. Revenue from the digital media segment was $1.78 billion, revenue from the digital experience segment was $743.3 million and revenue from publishing totaled $81 million. Thanks to a quarter-over-quarter increase of $357 million reported in the first trimester, digital media annualized recurring revenue went up to $7.07 billion.

Despite a 13% year over year increase in non-GAAP operating income, the non-GAAP operating income margin of total revenue fell 4 percentage points to 37.9% in the first quarter of fiscal 2019 from 41.9% in the first quarter of fiscal 2018.

In addition, cash flow from operations increased 2.4% to $1.01 billion, and the deferred revenue item in the liabilities section of Adobe's balance sheet was $3.22 billion as of March 1, 2019, compared to $3.05 billion as of Nov. 30, 2018.

The balance sheet had $3.23 billion in cash and short-term securities, $4.13 billion in total debt and $9.87 billion of total stockholders' equity as of March 1.

For the second quarter of fiscal 2019, the San Jose, California-based computer software provider guided for revenue of roughly $2.7 billion versus consensus of $2.72 billion and non-GAAP earnings of $1.77 per share versus consensus for $1.88 per share. For full fiscal 2019, the company forecasts non-GAAP earnings of $7.8 per share dropping from total revenue of $11.15 billion. Analysts expect non-GAAP earnings of $7.77 per share and total revenue of $11.16 billion.

The stock closed at $267.7 per share on Thursday for a market capitalization of about $130.93 billion. The share price is above the 200-, 100- and 50-day simple moving average lines. The 52-week range is $204.95 to $277.61.

The share price of Oracle Corp. (ORCL) fell 3.15% to $51.38 in after-hours trading on Thursday after beating consensus estimates for third-quarter fiscal 2019 non-GAAP earnings by 3 cents per share. Oracle posted non-GAAP earnings of 87 cents per share, which was 8% higher than the prior-year quarter.

GAAP earnings of 76 cents per diluted share compared to a loss of 98 cents in the third quarter of fiscal 2018.

Revenue totaled $9.61 billion, which was 0.6% lower but beat consensus estimates by $20 million. The revenue was shared among cloud services and license support at $6.66 billion, cloud license and on-premise license at $1.25 billion, hardware at $915 million and services at $786 million.

Thanks to 2% upside in the non-GAAP operating income, the non-GAAP operating income margin jumped 1.1 percentage points to about 44.7% of total revenues.

The balance sheet had approximately $40 billion in cash and short-term securities, $56.16 billion in total borrowings, $8 billion in deferred revenues and $24.24 billion of equity as of Feb. 28.

In addition, the Redwood City, California-based computer technology corporation hiked its quarterly dividend by 26.3% to 24 cents per common share. On April 25, Oracle will pay the cash quarterly dividend to its shareholders of record April 11. The ex-dividend date is scheduled for April 10. Based on the share price at close Thursday, the quarterly distribution of free cash flow leads to a forward dividend yield of 1.81% versus an industry median of 1.79%. The company has paid dividends since 2009.

The share price was $53 at close on Thursday for a market capitalization of about $190.39 billion. The share price is above the 200-, 100- and 50-day simple moving average lines. The 52-week range is $42.40 to $53.47.

Shares of Broadcom Inc. (AVGO) soared 4.83% to $281.15 in after-hours trading on Thursday after beating consensus estimates on non-GAAP earnings by 32 cents per diluted share for first quarter of fiscal 2019. The company posted non-GAAP earnings of $5.55 per diluted share, reflecting an 8.4% increase from the prior-year quarter.

The San Jose, California-based provider of semiconductor and infrastructure software solutions also posted GAAP earnings of $1.12 per diluted share, marking a sharp 92.3% fall from the prior-year quarter.

First-quarter revenue jumped 8.6% to $5.79 billion, missing expectations by $40 million.

The revenue was shared amid semiconductor solutions at $4.37 billion, infrastructure software at $1.4 billion and intellectual property licensing at $12 million.

Compared to the prior-year quarter, Broadcom recorded an increase of 660 basis points in gross margin to 71.4% and a 4.3% increase in net income to $2.45 billion.

Further, the operating cash flow soared 26.5% to $2.13 billion in the first quarter of fiscal 2019 from $1.69 in the first quarter of fiscal 2018.

Looking ahead to full 2019, Broadcom has guided for net revenue of $24.5 billion versus consensus estimates of $24.31 billion, GAAP operating margin of 17.6% and non-GAAP operating margin of 51%.

The balance sheet had $5.09 billion in cash and equivalents, $37.64 billion in total debt and $23.22 billion of total stockholders' equity as of Feb. 3.

In addition, on March 29, Broadcom will pay $2.65 cash quarterly dividend per common share to its shareholders of record March 21. The ex-dividend date is scheduled for March 20. Based on the share price of $268.2 at close on Thursday, the quarterly distribution of free cash flow leads to a forward dividend yield of 3.95% compared to an industry median of 2.03%.

The stock has a market capitalization of about $106.24 billion. The share price at close on Thursday is slightly above the 50-day simple moving average line and plainly above the 200- and 100-day SMA lines. The 52-week range is $197.46 to $286.63.

Disclosure: I have no position in any securities mentioned.

This article first appeared on GuruFocus.