- Wall Street in mixed mood at the start of Tuesday's cash session
- US2000 at important resistance level
- JPMorgan cuts recommendation on Coinbase shares
- Johnson & Johnson, General Electric and United Airlines release their quarterly results
The Wall Street indices started Tuesday's session in a mixed mood, nevertheless, we are mostly seeing slight gains. Investors' attention today is primarily drawn to the release of Wall Street companies' Q4 2023 earnings and Richmond Manufacturing survey data.
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The US2000 index continues its gains and is currently trading near the resistance zone defined by the local peaks of the upper range of the consolidation initiated in August 2022.
News from companies
Johnson & Johnson (JNJ.US) reported fourth-quarter earnings and revenues that beat analysts' expectations. The stock, however, lost slightly at the opening of the session.
FOURTH QUARTER RESULTS
- Adjusted EPS $2.29, estimates $2.28
- Sales $21.40 billion, forecast $21.07 billion
ANNUAL FORECAST
- Still sees adjusted operating EPS of $10.55-10.75.
COMMENTARY
- Company reaffirms forecast for 2024 with operating sales growth of 5.0% - 6.0%.
- J&J considers medtech deals in cardiovascular area
- J&J is considering pharmaceutical deals in immunology, neuroscience, says CFO
General Electric (GE.US) shares are losing nearly 7% at the start of the session after reporting weaker-than-expected forecasts for the first quarter. The company expects earnings per share in the range of 60 cents to 65 cents, well below estimates of 72 cents per share.
FIRST-QUARTER FORECAST
- Adjusted EPS between 60c and 65c, estimates 70c
FOURTH QUARTER RESULTS
- Adjusted revenue $18.5 billion, forecast $17.25 billion
- Electricity revenues $5.79 billion, +15% y/y, estimates $4.89 billion
- Renewable energy revenue $4.21 billion, +23% y/y, $3.65 billion estimate
- Organic power revenue growth 12%, -0.62% estimate
- Electricity operating profit $759 million, +9.7% y/y, estimates $594.7 million
- Operating loss in renewable energy segment $347 million, -24% y/y, estimate $338.5 million loss
- Adjusted free cash flow $2.96 billion, estimate $2.87 billion
- GE Aerospace revenue $8.52 billion, +12% y/y, estimate $8.63 billion
- GE Aerospace segment profit $1.60 billion, +11% y/y, estimate $1.63 billion
- GE Aerospace organic revenue +12%, estimate +13.3%
Verizon Communications (VZ.US) gains nearly 5% after the company reported better-than-expected financial results in the fourth quarter.
ANNUAL FORECAST
- Forecast adjusted EPS $4.50 to $4.70, estimates $4.58
- Wireless revenue growth +2% to +3.5%.
- Capital expenditures of $17-17.5 billion (estimate: $17.4 billion)
FOURTH QUARTER RESULTS
- Adjusted EPS $1.08 vs. $1.19 y/y, $1.08 estimate
- Operating income $35.1 billion, estimate $34.49 billion
- Consumer revenues $27 billion, estimate $26.41 billion
- Business revenue $7.6 billion, estimate $7.73 billion
- Wireless service revenues $28.45 billion, estimate $27.65 billion
- Wireless service revenue $19.4 billion, estimate $19.44 billion
- Wireless equipment revenue $7.47 billion, estimate $6.84 billion
- Service revenue and other $27.66 billion, estimate $27.67 billion
- FIOS Internet subscribers +55,000, estimated +59,426
- Adjusted Ebitda $11.7 billion, estimate $11.69 billion
United Airlines (UAL.US) shares rose more than 6% after the release of its quarterly results. United Airlines reported earnings of $2 per share on revenue of $13.63 billion, ahead of expected EPS of $1.69 and revenue of $13.54 billion.
FOURTH QUARTER RESULTS
- Adjusted EPS $2.00 vs. $2.46 y/y, estimate $1.69
- Operating revenue $13.63 billion, +9.9% y/y, estimate $13.54 billion
- Passenger revenue $12.42 billion, +11% y/y, estimate $12.39 billion
- Cargo revenue $402 million, -15% y/y, estimate $345.6 million
- Other revenue $803 million, +11% y/y, estimate $805.9 million
- Revenue passenger miles 60.67 billion, +11% y/y, estimate 61.04 billion
- Average yield per revenue passenger mile 20.47c vs. 20.46c y/y, estimate 20.43c
- Available seat miles 73.73 billion, +15% y/y, estimate 73.48 billion
- Load factor 82.3% vs. 85.2% y/y, estimate 83.2%
- Fuel consumed 1.06 billion gallons, +13% y/y, estimate 1.06 billion
- Average price per fuel gallon $3.13, -12% y/y, estimate $3.18
YEAR FORECAST
- Sees adjusted EPS $9 to $11, estimate $9.45
- Sees adjusted capital expenditures $9 billion, estimate $9.36 billion
Analyst action
- JPMorgan is raising its target price for Mastercard (MA.US) and Visa (V.US) shares to $504 per share and $302 per share, respectively (previously it was $484 and $293, respectively).
- Wells Fargo believes Qualcomm Inc (QCOM.US) may post better-than-expected quarterly results due to accelerating demand for semiconductors for the mobile sector, so the bank decided to raise its target price for the stock to $120 from $110.
- JPMorgan downgraded its recommendation on shares of Coinbase (COIN.US) to an "underweight" rating, and added that 2024 could be a tough year for the company as the euphoria surrounding ETH Spot funds fades.
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