Microsoft and General Dynamics See Stock Gains, While Alphabet and CoStar Group Shares Drop
In midday trading, several companies have been making headlines. Microsoft, the popular Xbox maker, saw a 2.5% increase in its shares as investors celebrated its fiscal first-quarter results. The tech giant reported a nearly 13% year-over-year revenue growth, with its Azure cloud segment experiencing a significant 29% revenue gain. Microsoft’s rise in profit can be attributed to slower operating expense growth.
However, Alphabet, the parent company of Google, experienced a drop of over 8% in its shares, marking its worst day in nearly a year. This decline came after the search engine giant reported cloud revenue that fell short of analysts’ expectations.
Norfolk Southern, a freight railroad company, also faced disappointment as its third-quarter earnings fell below estimates. The company earned $2.65 per share, excluding items, while analysts had predicted a profit of $2.69 per share. Revenue, however, remained in line with expectations.
On the other hand, General Dynamics, a defense contractor, enjoyed a 4.4% increase in its shares after exceeding earnings and revenue estimates for the third quarter. The company reported earnings of $3.04 per share on revenue of $10.57 billion, surpassing analyst predictions of $2.91 per share and $10.05 billion, respectively.
Snap, the social media company, experienced a slight decrease of over 2% in its shares. Although the stock initially soared 20% after beating third-quarter estimates, it pulled back due to concerns over advertiser spending in light of the war in the Middle East.
Gap, an apparel retailer, saw a rise of more than 5% in its shares following an upgrade to overweight Wells Fargo. The financial institution believes that Gap’s stock is on the verge of a turning point as it improves its costs.
Boeing, the passenger plane manufacturer, witnessed a modest 1% increase in its shares after releasing mixed earnings. While the company reported a revenue beat for the quarter, it also posted a wider-than-expected loss. Boeing, however, raised its 787 Dreamliner production forecast from four to five per month, although it lowered its 2023 guidance for 737 Max deliveries, which was widely anticipated.
Deutsche Bank, the German bank listed on the U.S. stock market, experienced an 8% surge in its shares after beating expectations for third-quarter net profit.
CoStar Group, a commercial real estate company, encountered a drop of over 5% in its shares due to fourth-quarter earnings and revenue guidance that fell short of consensus estimates on FactSet.
Contrastingly, Waste Management, a waste management company, saw a 5% increase in its shares after announcing its forecasted 2023 free cash flow to be between $1.825 billion and $1.925 billion, surpassing its previous guidance range of $1.675 billion to $1.775 billion.
Texas Instruments, a semiconductor manufacturer, witnessed a decline of nearly 4% in its shares after providing a fourth-quarter guidance that fell far below estimates. The company expects earnings per share to range between $1.35 and $1.57, while analysts polled FactSet anticipated $1.76. Furthermore, investors were disappointed in the company’s third-quarter revenue of $4.35 billion, falling short of the estimated $4.58 billion.
Overall, the market saw a mix of successes and setbacks as various companies released their quarterly results. Microsoft and General Dynamics enjoyed stock gains, while Alphabet and CoStar Group faced stock declines. Investors will continue to monitor these developments closely as they make decisions regarding their portfolios.
Addressing the latest market trends, CNBC’s team, including Lisa Kailai Han, Fred Imbert, Hakyung Kim, and Yun Li, have contributed to this report.