More Movers & Shakers – 02/02/23

We’re in the heart of earnings season, so there’s a lot to keep on top of. Luckily, we’ve summarized today’s biggest movers and commentary below. 📝

British multinational oil and gas company Shell posted its highest-ever annual profit of $40 billion. Like its peers, it’s returning some cash to shareholders via a $4 billion buyback program and a 15% dividend per share increase. Additionally, the company continues to work towards its net-zero emissions goal by 2050. However, analysts point out that Shell’s fossil fuel investments continue to dwarf its renewables investments. $SHEL shares were down 1% on the day. ⛽

Italian luxury sports car manufacturer Ferrari saw profits rise 13% in 2022. Its earnings per share of 1.21 euros and 1.368 billion euro revenue beat expectations. The company shipped a record 13,221 vehicles, though its profit margin slipped from 22.6% to 21.8%. Its guidance forecasts a strong year ahead, with revenue of 5.7 billion euros and adjusted earnings per share of 6.00 to 6.20 euros. $RACE shares rose 5% following the news. 🏎️

Germany’s Deutsche Bank reported a tenth straight quarter of profit as its 2019 restructuring plan continues to drive results. Its 1.8 billion net profit doubled Wall Street estimates, but revenue figures missed estimates. Investment banking and corporate center weakness were driving those results, which were partially offset by corporate bank strength. It did not announce a share buyback but recommended a 50% dividend increase to 30 cents per share. $DB shares fell 7% today. 🏦

U.S. automaker Ford reported poor fourth-quarter results and a full-year net loss of $2 billion. Its adjusted earnings per share of $0.51 were 11 cents below estimates, while automotive revenue of $41.8 billion outpaced the $40.37 billion expected. The company blamed its ugly results on execution and supply chain management issues. Those issues caused it to miss expected sales by 100,000 units, amounting to roughly $1 billion in missed earnings. The company says its cost structure is not competitive. Executives will be aggressively reducing expenses this year, potentially including more layoffs. $F shares slumped over 6% on the news. 🚗

Starbucks reported earnings and revenue that fell short of expectations. Adjusted earnings per share of $0.75 missed by 2 cents, and revenue of $8.71 billion was $70 million short. Global same-store sales rose 5%, with a 7% increase in average transaction spending. However, international same-store sales dipped 13%, dragged down by China. The U.S. remained a bright spot, with same-store sales growth of 10%, driven by traffic rising 1% and higher average spending. The company is looking for 10-12% revenue growth and adjusted EPS growth of 15-20% for the full-year 2023. $SBUX shares dribbled down 4% on the news. ☕

Semiconductor and telecom equipment maker Qualcomm is feeling the smartphone slowdown just like its peers. While the company’s adjusted earnings per share of $2.37 beat expectations by a cent, its revenues of $9.46 billion were less impressive. Sales in its handset business fell 18% YoY, down from 40% growth in the previous quarter. Where things got hairy for investors was the company’s first-quarter forecast. It now expects revenue between $8.7 and $9.5 billion, below estimates of $9.55 billion. Additionally, its CEO Cristiano Amon said that inventory clearance would persist in the year’s first half. $QCOM shares gave back an initial 3% gain and are now down 3% after hours. 📱

American entertainment company Penn Entertainment met revenue expectations but missed earnings. The company’s adjusted earnings per share of $0.13 fell short of the $0.33 expected, while revenues of $1.59 billion were in line with estimates. Looking ahead, the company expects full-year revenue of $6.15-$6.58 billion. More notably, it was the first U.S. gambling company to post a profit in its sports betting business during the final three months of a year. Usually, marketing and promotion spending eats into profits, but its interactive business made a $5.2 million profit on $208 million of revenue. $PENN shares were down over 5% on the day. 🎰

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First up is Best Buy, which reported better-than-expected holiday-quarter earnings and revenue. 🎁

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