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Q1 Earnings Continue

Zacks Equity Research

A huge day of Q1 earnings reports are hitting the tape ahead of today’s opening bell. Later this week, we shift focus to monthly and weekly jobs numbers, but for today, it’s all about the earnings. After today’s close, we will hear from Apple Inc. AAPL, the last of the FAANG stocks to report this quarter.

For this morning, we only have time to look at a few of the big names reporting:

McDonald’s MCD reported Q1 earnings ahead of expectations by a nickel to $1.78 per share, where revenues of $4.95 billion tops the $4.91 billion expected. This is still a penny lower than year-ago earnings, but shares are up 1.6% at this hour in the pre-market.

Global comps rose 5.4% year over year, led by growth in U.S. comps, which were up 4.5% in the quarter. McDonald’s has not missed an earnings estimate since Q2 2014. The company brought a Zacks Rank #3 (Hold) rating into its latest earnings report.

Mastercard MA also posted $1.78 per share in its Q1 earnings release, with $3.88 billion in revenues that surpassed estimates of $3.87 billion. The credit card major, which has not missed any earnings estimates over the past 5 years, is up roughly 30% year to date, and sees another post-earnings boost of around 1%.

Pfizer PFE outperformed expectations on both top and bottom lines: 85 cents per share on sales of $13.12 billion in the quarter topped 77 cents per share and $12.80 billion expected, respectively. Pfizer, another Zacks Rank #3 stock, has last missed an earnings estimate back in Q4 of 2016. Shares are up marginally in the pre-market.

General Electric GE continues its turnaround story early Tuesday, with 13 cents per share outpacing the 9 cents expected; revenues of $27.3 billion was also beyond the Zacks consensus $26.92 billion. This Q1 report is the company’s first earnings beat in the last 3 quarters. Healthcare and Aviation was strong, though the grounding of Boeing’s 737 MAX (for whom GE makes engines) may negatively affect this space going forward.

General Motors GM posted a mixed quarter this morning, beating on the bottom line to $1.41 per share — way up from $1.09 expected — though sales missed estimates to $34.9 billion, which was also down 3.3% year over year. U.S. auto sales fell 7% in the quarter. Shares are trading down 2.6% so far in today’s pre-market.

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