Tech Titans Continue Reporting

While investors are primarily focused on retailer earnings this week, they can’t escape the volatility that comes with tech earnings. Let’s quickly recap what we heard from two tech giants. πŸ“

First up, cybersecurity firm Palo Alto Networks saw its first-quarter revenues jump 20% YoY to $1.88 billion. Meanwhile, adjusted earnings of $1.38 topped expectations of $1.16.

Executives say an unprecedented level of attacks is fueling strong demand in the cybersecurity market, but that higher cost of funds is offsetting or delaying some demand. As a result, its second-quarter billings guidance of $2.34-$2.39 billion fell short of the $2.43 billion consensus estimate. πŸ›‘οΈ

$PANW shares continue their pullback from all-time highs, falling about 7% after the bell. πŸ”»

Networking, cloud, and cyber company Cisco also dropped after its guidance fell short of expectations. πŸ‘Ž

The company’s adjusted earnings per share of $1.11 on $14.67 billion in revenues both topped estimates.Β Like other tech companies, Cisco raised its full-year earnings guidance but reduced its revenue guidance.

Executives said new product orders slowed during the quarter as clients worked to install and implement products ordered in the three previous quarters. They anticipate that one or two-quarters of shipped products are waiting to be implemented, which could reduce (or at least delay) future orders. πŸ—“οΈ

For now, Cisco remains focused on cost management to buoy earnings until demand rebounds. But the lackluster revenue guidance was enough to tick off investors, who are sending $CSCO shares down 11% after hours. πŸ“‰

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Nvidia Delivers Bears Another Blow

With it being Nvidia day and all, let’s recap the semiconductor giant’s earnings and reaction. πŸ‘‡

Before the print, we noted that Nvidia had only seen a downside surprise in earnings vs. expectations three times in the last ten years. However, with analyst estimates high and bullish sentiment roaring into the print, bears thought the contrarian view might have paid off.

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Investors Arm Portfolios With Semis

After missing out on last year’s tech run, many investors are choosing not to risk that feeling again. As a result, they continue to pile into stocks in the semiconductor industry and related fields. Arm Holdings joined the fray today, jumping sharply after reporting results.

The chip design technology giant reported third-quarter adjusted earnings per share of $0.29 on $824 million in revenues. That topped estimates of $0.25 and $761 million. 🀩

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Bumble’s Path Of Least Rizz-istance

Dating apps are a tricky business in the post-pandemic world, with investors continuing to swipe left on Bumble after its latest earnings report. πŸ“°

The company behind dating apps Bumble, Badoo, and Fruitz said a slowdown in user spending caused it to miss first-quart revenue expectations. As a result, new CEO Lidiane Jones’ first move is to cut 350 roles, costing $20 to $25 million in one-time charges over the first two quarters. βœ‚οΈ

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Semis Continue To Tower Over Market

Semiconductors continue to dominate the market and thus dominate our headlines. With that said, today we’ve got a fresh stock breaking out and another setting up, so stick with us. πŸ‘‡

First up is Tower Semiconductor, an Israeli chip manufacturer that reported results today. The company’s revenue fell 13% YoY to $351.7 million during the fourth quarter but topped the $350 million expected by analysts. Its earnings per share were down about 30% YoY to $0.48, but again, better than anticipated. πŸ”Ί

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