6 big earnings reports: Macy's, Salesforce soar on smashed estimates | Pro Recap
By Davit Kirakosyan
Investing.com -- Here is your daily Pro Recap of the biggest earnings headlines you may have missed on InvestingPro since yesterday’s close. Start your free 7-day trial to get this news first.
Macy’s catapults higher on a sparkling 4Q
Macy’s Inc (NYSE:M) surged 15% after the retailer smashed 4Q expectations and issued solid guidance. Earnings came in at $1.88, $0.30 higher than what the Street expected, and sales also beat at $8.3 billion; analysts were looking for $8.22B.
Macy’s also said it expects to pull in an adjusted full-year profit of $3.67 to $4.11 vs. the analyst consensus of $3.84.
Shares were recently changing hands at $20.43 pre-market.
Salesforce leaps on Q4 beat & better than expected guidance
Salesforce (NYSE:CRM) shares surged more than 15% premarket today after the company reported its Q4 results, with both EPS of $1.68 and revenue of $8.38 billion coming in better than the consensus estimate of $1.36 and $8B, respectively.
Subscription and support revenues grew 14% year-over-year to $7.79B, while professional services and other revenues were up 19% to $0.60B.
For Q1/24, the company expects EPS of $1.60-$1.61, better than the consensus of $1.32, and revenue of $8.16B-$8.18B, compared to the consensus of $8.05B.
For the full year, the company expects EPS in the range of $7.12-$7.14, better than the consensus of $5.84, and revenue in the range of $34.5B-$34.7B, compared to the consensus of $34.03B.
Following the results, dozens of analysts raised their price targets on the company, including BMO Capital with a new price target of $230 (from $185), Jefferies with a new price target of $250 (from $230), and JPMorgan with a new price target of $230.00 (from $200.00).
Snowflake plunges on disappointing outlook, announces $2B buyback
Snowflake (NYSE:SNOW) shares dropped some 7% in recent premarket trading today after the company provided worse-than-expected guidance, while Q4 results beat the estimates.
Q4 EPS came in at $0.14, better than the consensus of $0.05. Revenue was $589 million, beating the consensus estimate of $576.22M.
For Q1/24, the company expects product revenue in the range of $568M-$573M, missing the consensus estimate of $624M. For the full year, the company sees product revenue at $2.7B, worse than the consensus estimate of $3B.
Furthermore, the company announced a $2B stock repurchase program.
Following the announcements, several analysts lowered their price targets on the company, including Goldman Sachs with a new price target of $185 (from $200).
Anheuser Busch InBev shares fall on Q4 sales miss
Anheuser Busch InBev (EBR:ABI) (NYSE:BUD) experienced a decrease in sales volumes of 0.6% year-over-year in Q4, which was the first quarterly decline since the pandemic began.
Nevertheless, the company managed to achieve a 10.2% increase in revenue by implementing price hikes, transferring increases in input costs to its consumers. Despite this, the revenue was lower than the projected 11%.
EPS came in at $0.86, better than the consensus estimate of $0.78.
Additionally, the company announced a dividend hike, more than doubling its annual dividend to $0.75 a share.
Brussels shares were recently off 1%, and shares in New York were trading some 1.5% lower premarket today.
Splunk shares drop on guidance miss
Splunk (NASDAQ:SPLK) shares were down nearly 4% premarket today after the company missed its guidance expectations, despite reporting a Q4 beat.
Q4 EPS was $2.04, above the consensus estimate of $1.14. Revenue increased 39% year-over-year to $1.25B, beating the consensus estimate of $1.08B. Total ARR grew by 18% to $3.67B
The company expects Q1/24 revenue in the range of $710M-$725M, significantly worse than the consensus estimate of $807M. For the full year, management sees revenue in the range of $3.85B-$3.9B, compared to the consensus of $4.02B.
Merck warns of decline in 2023 profit
Merck KGaA (ETR:MRCG) reported its Q4 results, with adjusted core profit coming in at €1.63B (€1 = $1.0629), missing the consensus estimate of €1.69B.
The company warned that its core profits are expected to decline in 2023 due to challenges from rising costs and flagging COVID-19 demand for lab supplies from drug and vaccine makers.
Nevertheless, the company expects to report slight to solid organic growth in net sales this year, boosted by contributions in particular from its drug processing solutions unit and new healthcare products.
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