We are still in the midst of earnings season, with a large number of companies reporting their earnings daily. Investors can watch for companies like Coca-Cola and Airbnb to release their results in the coming week.
Update 9 February
As market participants, investors, and traders alike head into the last few weeks of a jam-packed U.S earnings season, we highlight the latest earnings results for a handful of companies, namely British multinational oil and gas company, BP (LON: BP), mass media and entertainment conglomerate, Walt Disney (NYSE: DIS), and financial technology kingpin, PayPal (NASDAQ: PYPL).
BP shareholders would have been rather pleased to see the oil and gas giant report a record-breaking profit of $28 billion for its 2022 financial year, the company’s highest profit in its 114-year history. BP reported a quarterly earnings per share (EPS) figure of $1.59, significantly exceeding expectations of $0.27 per share. Despite beating revenue and earnings expectations, climate-conscious activists were less than impressed by the group’s decision to cut back on green energy targets. Nevertheless, bullish sentiment has paved the path for BP to see a recent rally in its share price.
Walt Disney saw its share price surge to open at $118.04 on Thursday, the 9th of February, following CEO Bob Iger’s announced plans to cut 7 000 jobs as part of an overall restructuring plan aimed at achieving “sustained growth and profitability”. Iger expects Disney’s “significant transformation” to save $5.5 billion over the next few years. Moreover, Disney reported a quarterly EPS figure of $0.99, beating expectations of $0.79 by nearly 25%, leading the way for bullish sentiment to enter the market. Despite gapping higher in extended trading hours on Wednesday, Disney’s share price dropped to close at $110.36 on Thursday, the 9th of February, reflecting a 2.4 million decline in the subscription count for Disney+.
PayPal reported quarterly earnings of $1.24 per share, surpassing expectations of $1.20 per share. However, the share price fell approximately 3% during post-market trading hours on Thursday, following a lower-than-expected revenue figure coming in at $7.38 billion and CEO Dan Shulman announcing that he will step down from his position at the end of 2023. Despite the price action trending marginally lower over the past few days, PayPal shares have outperformed the broader market comfortably so far this year, having gained around 11.9% since the beginning of 2023 compared to the S&P 500, whose year-to-date gains have totalled 7.3%.
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