In the latest round of quarterly earnings reports, Apple, AMD, Starbucks, and Pfizer all shared their financial results and analysts’ responses. Here is a recap of their performances:
Apple:
Apple reported its third consecutive quarterly sales drop, causing its shares to drop 1.7% in premarket trading. Although the fiscal third-quarter results exceeded estimates, iPhone revenue, which makes up nearly half of total revenue, fell short of expectations. However, strength in Apple’s services business helped offset the decline in iPhone sales, with revenue from Apple News, Apple TV+, and iCloud growing from the previous year. Earnings per share came in above estimates as well. Despite the softness in iPhone sales, Apple expects an acceleration in performance in the coming quarter.
AMD:
AMD managed to beat both revenue and EPS estimates, as well as deliver above-par Q3 guidance. However, the stock fell 7% in the following session due to concerns voiced by analysts. Some fear that estimates for the company remain too high, while others find the stock to be overvalued. Nevertheless, AMD’s CEO highlighted the company’s significant growth in AI engagements. The decline in data center sales and client revenue constrained the company’s overall performance.
Starbucks:
Starbucks surpassed earnings estimates, although global comparable sales came in below expectations. Sales in China experienced a sharp recovery, offsetting the slackening demand for drinks and food in North America. Tapering commodity costs helped boost the company’s profit margin, but concerns about pricing trends and the operating environment persist. KeyBanc believes Starbucks is well-positioned, but Stifel maintained its Hold rating due to potential risk factors. Starbucks lowered its full-year revenue guidance, anticipating near-term challenges.
Pfizer:
Pfizer reported profits per share and revenue that beat analyst consensus, prompting the company to raise its full-year EPS guidance. The CEO expressed optimism for the company’s progress in the second half of 2023. Analysts from various firms maintained their neutral ratings on the stock, with a range of price targets. Truist and BMO Capital continued to recommend Pfizer as a buy.
These earnings reports provide a glimpse into the financial performance of major companies across different sectors. While Apple faces challenges with declining iPhone sales, its services business offers some relief. AMD delivered stellar results, but its stock declined amid concerns about high estimates. Starbucks showcased recovery in China, but North America experienced weaker demand. On the other hand, Pfizer exceeded expectations and expressed positive outlook for the future. As always, analysts remain cautious and offer a range of opinions on these companies’ stocks.
