Breaking News
May 3, 2023
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Advanced Micro Devices Inc said revenue in the first quarter declined 9% to $5.4 billion from $5.9 billion and gross margin fell to 44% from 48% a year ago.
The company swung to a net loss of $139 million from $786 million and diluted earnings per share fell to ($0.09) from 56 cents a year ago.
For the second quarter of 2023, AMD expects revenue to be approximately $5.3 billion, plus or minus $300 million and non-GAAP gross margin to be approximately 50%.
Client group, which includes PC makers, sales plunged 65% to $739 million from $2.1 billion. Data center sales inched slightly higher to $1.295 billion from $1.293 and the company hinted for higher sales in the second half.
Gaming segment sales, which includes sales to console makers and graphics chips, edged lower to $1.8 billion from $1.9 billion and embedded segment, which includes networking chips, sales jumped to $1.5 billion from $595 million a year ago. -
Starbucks Corp said revenue in the first quarter rose 14% to $8.7 billion from $7.6 billion after sales picked up in China following the end of zero-Covid policy.
Net earnings attributable to shareholders increased to $908.3 million from $674.5 million and diluted earnings per share to 79 cents from 58 cents a year ago.
Global comparable store sales increased 11%, driven by a 6% increase in comparable transactions and 4% increase in average ticket. U.S. comparable store sales increased 12%, 6% and 6% and international comparable store sales increased 7%, 7% and China comparable store sales increased 3%, 4% and a 1% decline in average ticket respectively.
The company opened 464 stores in the quarter and U.S. and China stores comprised 61% of the company’s global portfolio, with 16,044 and 6,243 stores in the U.S. and China, respectively. -
Expeditors International of Washington Inc said revenue in the first quarter plunged 44% to $2.6 billion following the steep drop in rates and volumes.
Net income dropped 35% to $226.01 million from $346.1 million and diluted earnings per share fell to $1.45 from $2.05 a year ago.
In the quarter, the company repurchased 2.0 million shares at an average price of $108.98 a share. -
The Federal Reserve lifted the fed funds target range by 25 basis points to between 5.0% and 5.25% and increased the borrowing cost to the highest since September 2007.
The 10th rate increase was widely expected and in a unanimous decision rate setting committee agreed to revise rates higher but also left the door open to pause future rate hikes.
In the FOMC statement released after the meeting the Federal Reserve reiterated its commitment to lower inflation to 2% but showed flexibility to increase rates, if the economic and inflation data suggested the need for it.
The Fed's statement did not include the previous note "some additional policy firming may be appropriate,” which was interpreted by some investors that the central bank is open to the possibility of rate hike pause. -
Uber Technologies Inc increased 5.6% to $34.70 after the ride-hailing company reported better-than-expected quarterly results.
Revenue in the quarter increased 29% to $8.82 billion and net loss in the quarter shrank to $157 million from $5.9 billion and diluted loss per share fell to 8 cents from $3.03 a year ago.
Monthly active users in the quarter increased 13% from a year ago to 130 million and completed transactions soared 24% to 2.12 billion.
The company guided gross booking between $33 billion and $34 billion and adjusted operating earnings between $800 million and $850 million. -
DuPont de Nemours Inc dropped 8% to $63.55 after the company forecasted weaker-than-expected revenue and earnings outlook in the current quarter on the slower than expected recovery in the electronics market.
Revenue in the first quarter decreased 8% to $3.0 billion from $3.3 billion and net income plunged to $265 million from $508 million and diluted earnings per share dropped to 56 cents from 95 cents a year ago.
“Due to the delay in electronics recovery, we are adjusting the high-end of our existing guidance ranges for full year net sales, operating EBITDA and 4 adjusted EPS.
For the second quarter 2023, we expect similar results to the first quarter as overall market conditions are anticipated to be generally the same,” said chief financial officer Lori Koch.
The company estimated second quarter revenue of $3.02 billion and operating earnings of $750 million and adjusted earnings per share of 84 cents.
For the full-year 2023, the company tightened its revenue range to between $12.3 billion and $12.5 billion and operating earnings range between $3.0 billion and $3.1 billion and adjusted earnings per share between $3.55 and $3.70.
DuPont announced the acquisition of Spectrum Plastics Group for $1.75 billion from AEA Investors. After-tax, net purchase price is $1.72 billion.
The net purchase price is 15.6 times of 2023 forecasted EBITDA and 13.2 times including expected $20 million of cost synergies. -
BP Plc declined 4.8% to 508.70 pence after the energy company reported a decline in profit driven by lower crude oil and natural gas prices.
The company declared an ordinary share dividend of 61.6 cents per share and announced to purchase $1.75 billion of its shares prior to the release of its second quarter results around the first week in July.
The company also slowed its pace of stock repurchase to $4.0 billion, at the lower end of its $14 billion to $18 billion in capital expenditure in 2023, based on the $60 a barrel Brent crude price forecast.
Net profit attributable to shareholders declined to $8.2 billion from $10.2 billion in the fourth quarter of 2022 but ahead of $20.4 billion in losses a year ago. -
Chegg Inc plunged 46% to $9.47 after the company reported a decline in revenue and the company said AI tools are negatively impacting new subscribers growth.
Revenue in the first quarter declined 7% to $187.6 million and net income plunged to $2.2 million from $5.7 million and diluted earnings per share fell to 2 cents from 4 cents a year ago.
"In the first part of the year, we saw no noticeable impact from ChatGPT on our new account growth and we were meeting expectations on new sign-ups. However, since March we saw a significant spike in student interest in ChatGPT.
We now believe it’s having an impact on our new customer growth rate," said Dan Rosensweig, chief executive officer and president. -
Amazon.com, Inc declined 3.8% to $105.68 after the online retail platform operator reported weaker-than-expected revenue growth in its cloud services segment.
Revenue in the first quarter increased 9% to $127.4 billion from $116.4 billion a year ago. North America sales advanced 11% to $76.9 billion and international sales rose 1% to $29.1 billion and AWS segment sales advanced 16% to $21.4 billion.
Net income was $3.2 billion compared to a net loss of $3.8 billion and the company swung to a diluted earnings per share of 31 cents from a loss of 38 cents in the prior year.
Amazon.com forecasted second quarter revenue between $127.0 billion and $133.0 billion, an increase between 5% and 10% from a year ago. Operating earnings between $2.0 billion and $5.5 billion, compared to $3.3 billion a year ago. -
Intel Corporation soared 6.9% to $31.91 after the advanced semiconductor chipmaker reported smaller-than-expected quarterly loss.
Revenue in the first quarter plunged 36% to $11.2 billion and gross margin dropped to 34.2% from 50.4% a year ago. The company swung to a net loss of $2.8 billion from a profit of $8.1 billion and diluted earnings per share was ($0.66) compared to $1.98 a year ago.
The PC market weakness was one of many challenges faced by the advanced semiconductor company. Revenue in the client computing segment declined 38% to $5.8 billion, data center and AI dropped 39% to $3.7 billion, network and edge fell 30% to $1.5 billion but autonomous vehicle focus Mobileye Global increased 16% to $458 million.
The company forecasted second quarter revenue between $11.5 billion and $12.5 billion and gross margin of 33.2% and diluted loss per share of 62 cents.
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