For immediate release
Chicago, IL – April 29, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Apple AAPL, Amazon AMZN, Rivian RIVN and Intel INTC.
Here are highlights from Thursday’s analyst blog:
Market rally, Apple and Intel Beat: Amazon posts negative profits
Markets rallied on Thursday to take some of the big losses they racked up over the past week of trading. The Dow gained +615 points or +1.85% on the day, while the S&P 500 did even better: +2.47%. The Nasdaq added 382 points, +3.06% in regular trading, while the small-cap Russell 2000 rose +1.77%. The Dow and S&P are down -1.5% over the past five trading days; the Nasdaq is at -2% over this period, the Russell at more than -3%.
Even with negative Q1 GDP reported this morning – for the first time since the second quarter of the Covid pandemic – market participants managed to see some “green shoots” in first quarter earnings from companies across a wide range of sectors. Unemployment benefit claims also remained at generational lows, a testament to the innate strength of the economy, even with negative quarterly GDP.
Apple had an excellent second fiscal quarter, especially given the challenges faced by many of its major competitors: earnings of $1.52 per share exceeded the expected $1.43 and $1.40 per share announced a year ago. Revenue of $97.28 billion also easily topped estimates of $94.54 billion. Gross margins were 43.7%, while expectations were closer to 43%.
In a quarter deeply plagued by the difficulties in China and the resulting productivity problems, iPhone sales still exceeded the estimated 47.88 billion, at 50.57 billion. It’s worth revisiting this incredible figure: in a global market plagued by headwinds, Apple has still sold more than 50 billion high-end products in the last three months. Services were relatively online and the iPad was down -2%, but the success of the iPhone continues to dominate the tech sector and just about every other metric you want to use.
Shares are up +2% on the news, after gaining +4.5% in Thursday’s regular session. Apple is still down 10% year-to-date, but the company has also increased its dividend by 5% and launched a stock buyback program. A quarter of aces for Apple, all around.
Amazon initially dropped over -10% on its Q1 report, delivering surprise negative earnings – -$7.56 per share vs. +$8.73 expected; it’s a surprise! – on revenue that also came to light in the Zacks consensus: $116.44 billion vs. $117.02 billion expected. The revenue forecast has been lowered to a higher level below current expectations.
The company cited a familiar list of quarterly headwinds: labor, logistics and supply chain costs, as well as a -$7.6 billion one-time writedown on its Rivian assets. Even though Amazon raised its price for Prime subscriptions, this segment brought in less than expected at $8.4 billion. AWS grew by +37% year over year, which is above expectations. But e-commerce underperformed slightly, in North America as elsewhere.
Intel shares initially plunged to their latest pace both up and down in its first-quarter earnings report: 87 cents a share beat expectations of 7 cents, on quarterly sales that narrowly topped the Zacks consensus at $1.835 billion. Both the PC market and the client computing market were a little below expectations, but Intel has an impressive track record in terms of earnings: it hasn’t had any shortfalls since the third quarter of 2014.
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