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Strong reporting despite falling sales in China

Nike posted better-than-expected earnings and revenues for the second quarter of fiscal 2022 ended November 30, despite a sharp decline in sales in China. Nike’s quarterly revenues increased 1% yoy to $ 11.36 billion, better than the market forecast of $ 11.25 billion. Excluding currency fluctuations, the figure was flat on an annualized basis. Online sales of the company for the reporting period increased by 12% year-on-year.

Micron triples its quarterly profit and improves its annual forecast

Micron Technology almost tripled its net profit in the first fiscal quarter of 2022, which ended on December 2, and revenue by 33.3% yoy, which was better than analysts’ forecasts. Micron’s quarterly revenue jumped to $ 7.69 billion from $ 5.77 billion, while the market forecast estimated the figure at $ 7.68 billion, and management predicted $ 7.65 billion. Nevertheless, revenue growth slowed slightly, which happened for the first time in a year. In the previous fiscal quarter, this figure increased by 36.6% over the previous year.

Strong results coupled with announcement of new $ 10 billion buyback program

Oracle, one of the world’s largest software companies, posted a net loss in the second quarter of fiscal 2022 ending November 30, but adjusted earnings and revenues rose above analysts’ expectations. Oracle’s revenue increased 6% year-on-year to $ 10.4 billion, up from $ 9.8 billion in the same period last year. The indicator grew the most since 2018, while the market expected revenue to grow to $ 10.2 billion.

Snowflake doubles its quarterly revenue

Snowflake has excellent Q3 earnings. Revenue soared 110% to $ 334.4 million, beating market forecasts of $ 305.6 million in sales. For the quarter, the company posted a loss of $ 0.51 per share, outperforming market consensus. estimated the expected loss at $ 0.60 per share. The figure was also significantly better than last year’s figure of $ 1.01 loss per share. Snowflake’s management improved its forecast for fourth-quarter revenue from $ 345mn to $ 350mn, beating market expectations of $ 316mn. We are impressed by the good financials and have revised our fair share price estimate upwards from $ 375 to $ 450.

Dell Records Record Revenue and Operating Profit

With strong sales of personal computers, servers and storage systems in the third fiscal quarter, Dell posted record revenues and operating margins. Revenue for the quarter ended Oct. 29 increased 21% to $ 28.39 billion from $ 23.48 billion in the same period last fiscal year. Market consensus implied growth in the indicator to $ 27.37 billion. The company’s operating income increased by 19%, to $ 1.35 billion. Dell’s net profit in the last quarter rose to $ 3.84 billion, or $ 4.87 per share, up from $ 832 million, or $ 1.08 per share, a year earlier. Profit excluding one-off factors was $ 2.37 per share, beating the average analyst forecast of $ 2.3 per share.

Black Friday results – a potential short-term driver of capitalization growth

Net income for the fiscal quarter ended October 31 was $ 3.11 billion, or $ 1.11 per share, compared with $ 5.14 billion, or $ 1.80 per share, in the comparable period last year. Adjusted earnings were fixed at $ 1.45 per share, better than the consensus of $ 1.4. Walmart’s updated forecast for fiscal 2022 expects adjusted earnings per share to be $ 6.40, up from the previously announced $ 6.20-6.35. Like-for-like sales in the US are projected to grow 6% (up from 5-6% previously). The market estimates the company’s 1-year adjusted earnings at $ 6.34 per share.

The outlook for the 4th quarter disappointed investors, but the company retains its investment attractiveness

PayPal in the third quarter of 2021 PayPal increased revenue by 13%, but the company’s forecast for the current quarter fell short of market expectations. Revenue in July-September increased to $ 6.18 billion against $ 5.46 billion a year earlier, it turned out to be weaker than market expectations at $ 6.23 billion. Net income rose to $ 1.087 billion, or $ 0.92 per share, compared to $ 1.021 billion, or $ 0.86 per share, for the same period last year. Adjusted earnings rose to $ 1.11 per share from $ 1.07 per share a year earlier, in line with market consensus.

Disney publishes weak reporting

Walt Disney, the world’s largest entertainment and media company, posted weaker-than-expected earnings and revenues in its fiscal fourth quarter, and saw a significant slowdown in subscriber growth for its Disney + streaming service. Disney’s quarterly revenue increased 26% to $ 18.5 billion, below market guidance of $ 18.8 billion. Net income for the quarter ended October 2 was $ 159 million, or $ 0.09 per share, compared with a net loss of $ 710 million, or $ 0.39 per share, for the same period last year. Earnings excluding one-off factors were $ 0.37 per share, well below the consensus forecast of $ 0.52 per share. Weak reporting disappointed investors. Disney shares were down 9% last week.

Good reporting and strong driver ahead

At the end of October, Merck released strong 3Q results. The company’s revenue increased by 20.4% yoy in the last quarter, reaching $ 13.15 billion, which turned out to be better than the consensus forecast of $ 12.32 billion. Net profit in July-September grew by 55.4% yoy and amounted to $ 4.57 billion, or $ 1.80 per share, up from $ 2.94 billion, or $ 1.16 per share, in the same period a year earlier. Excluding one-off factors, earnings per share rose to $ 1.75 from $ 1.37, also beating market expectations of $ 1.55. The company’s management has improved its forecast for adjusted earnings per share for 2021 to $ 5.65-5.60 from $ 5.47-5.57. Revenue is expected to be $ 47.4-47.9 billion. The market expects these figures to be $ 5.63 and $ 47.60 billion, respectively.

Results are worse than expected, but we believe in strong future

On Tuesday, after the close of the main session, Coinbase released its Q3 earnings. The company’s revenue fell 41% qoq to $ 1.31 billion, which was worse than the market consensus of $ 1.57 billion. The decrease in the indicator was due to a drop in interest in the crypto currency market after bitcoin fell in value from $ 60 thousand to May to $ 30,000 in July. Against this background, many alternative tokens, including meme coins, have become uninteresting to the investment community and trading volumes have dropped significantly. Coinbase’s 3Q trading volume fell 29% qoq to $ 308.88 billion, while active users fell 16% to 7.09 million.Adjusted EBITDA declined 46% qoq to $ 618 million, which was also worse the forecast of $ 662.3 million. Earnings per share was $ 1.62 versus $ 6.42 a quarter earlier, but the financial result almost coincided with the market consensus ($ 1.68). The company’s results were met negatively, with shares plummeting 15% after the market closed in an additional session.