Stock futures indicate a positive start for markets on Tuesday as Wall Street gears up for the two-day Federal Reserve meeting and earnings results from major U.S. corporations.
F5 Reports Strong Q3 Earnings
Cloud security company F5 (FFIV) announced fiscal third-quarter earnings of $3.21 per share on revenue of $702.6 million. This exceeded analysts’ expectations of $2.86 per share on revenue of $698.9 million. As a result, F5’s shares surged 10% in premarket trading.
Logitech Beats Q1 Estimates
Computer peripherals maker Logitech International (LOGI) witnessed a 5.2% jump in its shares after beating fiscal first-quarter earnings estimates and increasing its guidance.
Cadence Design Systems Updates Forecast
Cadence Design Systems (CDNS) revised its forecast for the year, anticipating earnings of $5.05 to $5.11 per share on revenue ranging from $4.05 billion to $4.09 billion. Analysts, on average, had predicted earnings of $5.03 per share on revenue of $4.06 billion. However, CDNS stock declined by 4.5%.
NXP Semiconductors Exceeds Expectations
Netherlands-based chip maker NXP Semiconductors (NXPI) surpassed analysts’ projections for second-quarter earnings and revenue. Additionally, the company forecasted third-quarter profit of $3.39 to $3.82 per share, slightly lower than the expected $3.44 per share. Consequently, NXP Semiconductors saw its stock rise by 2.3% in premarket trading.
Walmart Upgraded to Overweight
Piper Sandler upgraded Walmart (WMT) from Neutral to Overweight and set a price target of $210, according to the Fly. The shares of the world’s largest retailer climbed 1.3% to $161.35 in premarket trading.
General Electric Reports Second-Quarter Earnings
General Electric (GE) is set to announce its second-quarter earnings, with analysts expecting to see earnings of 46 cents per share on sales of $14.8 billion. This is a slight decrease compared to the previous year, where GE recorded a profit of 61 cents per share on revenue of $17.9 billion. However, despite the dip in earnings, the stock has shown a promising increase of 68% so far this year.
The boost in GE’s stock can be attributed to the recovery of global air travel and the improved profitability of its power division. These positive developments have instilled confidence in investors and contributed to the stock’s upward trajectory. The earnings report is scheduled to be released before the market opens on Tuesday, providing valuable insights into the company’s performance.
General Motors Expects Improved Sales and Earnings
Prior to the start of trading, General Motors (GM) will also unveil its quarterly results. Analysts are predicting earnings of $1.87 per share on sales of $42.1 billion for the second quarter. This signifies significant growth compared to the year-earlier quarter, where GM reported adjusted earnings of $1.14 per share on sales of $35.8 billion.
The positive outlook for GM is fueled by expectations of improved sales and earnings as supply-chain issues gradually resolve themselves. Notably, the auto industry has been grappling with challenges like semiconductor shortages for several years. However, these issues are gradually easing, bringing hope for a turnaround in the industry’s fortunes.
Microsoft’s Focus on Azure Cloud Computing and Artificial Intelligence
After the market closes on Tuesday, software giant Microsoft (MSFT) will reveal its fiscal fourth-quarter report. Investors are particularly interested in gaining insights into the performance of Microsoft’s Azure cloud computing arm and its expanding work on artificial intelligence.
Microsoft’s Azure cloud computing platform has shown immense potential and is closely watched by industry experts. As businesses increasingly adopt cloud solutions, Azure’s performance has a direct impact on Microsoft’s overall success. Additionally, Microsoft’s advancements in artificial intelligence are poised to disrupt various sectors and hold significant investment potential.
Alphabet’s Earnings Reflect Advances in Artificial Intelligence
Investors are eagerly anticipating the earnings report from Alphabet (GOOGL), the parent company of Google. The report will be released after the market closes, and analysts will closely scrutinize Google’s moves in artificial intelligence.
Beyond artificial intelligence, investors are also interested in any signs of improvement in the advertising market and cloud spending trends. As one of the global leaders in technology and advertising, Google’s performance in these areas carries significant weight in assessing its future prospects.
As earning reports from these tech giants are unveiled, the market awaits critical insights into their financial health, developments, and growth potential.
Upcoming Earnings Reports
Next Tuesday is set to be a busy day, with several companies reporting their earnings. Here are some of the key players:
Verizon Communications (VZ)
Texas Instruments (TXN)
(formerly Raytheon Technologies)
Dow Inc. (DOW)
Spotify Technology (SPOT)
Waste Management (WM)
Stay tuned for the latest updates on these earnings reports.