Earnings Recap – 01/25/23

While we all love talking about tech, there are other industries also reporting earnings today. Let’s recap the most notable ones.

First up is Boeing, which missed earnings and revenue expectations. 👎

The company’s adjusted loss per share was $1.75 vs. the $0.26 profit expected. And revenues of $19.98 billion fell short of the $20.38 billion estimated.

As we’ve heard from other industrial giants, the sharp recovery in air travel has boosted aircraft sales and deliveries. However, the company’s supply chain issues continue to hamper its results and impact its ability to ramp up production to meet demand. 🛫

It generated roughly $3.1 billion in cash flow last quarter and $2.3 billion for the year, its highest since 2018. It reiterated guidance for $3 to $5 billion in free cash flow this year. 

After an initial gap down, $BA shares rebounded throughout the day to close marginally positive. 

Next up is AT&T, whose shares jumped 6% after its earnings and full-year cash flow topped analyst estimates. 💵

The telecom giant’s adjusted earnings from continuing operations (excludes WarnerMedia spinoff) were $0.61 vs. the $0.57 expected. And revenues from continuing operations were $31.3 billion vs. the $31.4 billion expected.

Investors also focus on the company’s cash flows, which support its dividend. The company reported a full-year free cash flow of $14.1 billion, which beat estimates of $13.78 billion. Next year it expects $16 billion in free cash flow, lower than the $16.2 billion analysts forecasted.

In terms of subscriber numbers, postpaid phone subscribers topped estimates by 11,000. However, its fiber broadband subscribers continue to struggle, coming in at 280,000 vs. the 330,000 expected. 📱

Overall, growing cash flow and slowing capital expenditures in 2024 are seen as welcome signs for shareholders of the beaten-down telecom stock. It’s been a tough environment for competitors like Verizon as well, so we’ll have to see if today’s rally is short-lived or a longer-term turning point.

Copper mining company Freeport-McMoRan reported better-than-expected results. ⛏️

It reported adjusted earnings per share of $0.52 vs. the $0.45 expected. Revenues declined less than expected to $5.76 billion vs. the $5.4 billion consensus estimate.

Falling copper prices and rising operational costs were headwinds for the company. It booked an average copper price of $3.78 per pound in Q4, down about 14% YoY. Recently, copper prices have rebounded on China’s reopening hopes and improving odds that the U.S. and Europe could avoid a steeper recession in 2023. 🔻

Executives expect 2023 copper sales to be flat at 4.2 million pounds, with expected gold sales falling by 100,000 to 1.7 million ounces. Additionally, Unit cash costs are expected to rise to $1.60 per pound of copper in the coming year.

$FCX shares rose about 4.6% on the news, nearing a 9-month high. 📈

Casino operator Las Vegas Sands losses jumped and missed estimates. Revenues of $1.12 billion rose 10.9% YoY.

Despite the miss, shares of $LVS are up about 4% after hours. 🤷

Investors appear to be reading between the lines here. Bulls say that its Macau operations are still not back to normal and that China’s reopening will help fuel further growth. Essentially, if these results were okay without Macau performing well, then earnings/revenue should beat estimates in the future once it is. 

Whether or not that *gamble* will pay off for bulls remains to be seen. But for now, they’re placing their chips on green. 🎰

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