Applied Materials posted record revenue and earnings per share in the third fiscal quarter. Revenue for the reporting quarter ended August 1 amounted to $ 6.2 billion, which is 41% higher than the level of the same period last fiscal year. The company’s net profit more than doubled – to $ 1.72 billion from $ 841 million a year earlier. Earnings per share jumped to $ 1.87 from $ 0.91, while earnings excluding one-off factors jumped to $ 1.9 from $ 1.06. The numbers exceeded both management expectations and market consensus.
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Microsoft reported a record net profit and revenue
Microsoft posted record-breaking net income and revenues for fiscal 2021 that ended June 30, which far surpassed market consensus. The company’s net profit rose 38% to $ 61.27 billion, adjusted profit increased 37% to $ 60.65 billion. Revenue increased 18% to $ 168.1 billion. In the fourth fiscal quarter, net income jumped 47% – to $ 16.458 billion, or $ 2.17 per share, compared with $ 11.202 billion, or $ 1.46 per share received in the comparable period of the previous year. Quarterly revenue increased by 21% and reached $ 46.152 billion against $ 38.033 billion a year earlier. The market expected the company’s quarterly earnings of $ 1.92 per share on revenue of $ 44.22 billion.
We appreciate the Enphase strategy
Enphase is an American company that manufactures micro-inverters and power electrical modules for residential and commercial PV systems. The key to the company’s success is the development of an ASIC that addresses the issues of cost savings and increased integration. We believe that semiconductor shortages could put pressure on Enphase Energy’s business through the end of 2021. However, we see high upside potential for the company’s stock, suggesting that supply chains will begin to recover in 2022. We believe the company’s strategic goals for 2022-2023 are feasible, especially given the move to GaN-based architecture, which can have a profound impact on cost and performance. However, we assume as the main risk that SolarEdge will be able to recapture some of the market share that Enphase Energy has grown in the US in 2020.
Record revenue expected in Q3
Airbnb nearly quadrupled its revenue in the second quarter of 2021 amid a pickup in local tourism activity. Revenue in April-June increased by 299% and reached $ 1.3 billion compared to $ 335 million in the same period a year earlier, which exceeded market expectations of $ 1.26 billion. The total volume of orders of the company jumped by 320%, to $ 13.4 billion, beating the market consensus forecast of $ 11.56 billion. Airbnb’s net loss in the last quarter fell to $ 68 million, or 11 cents per share, from $ 576 million, or $ 2.18 per share, a year earlier. The market had expected the figure at the level of $ 264 million, or 36 cents per share. In the second quarter, the company posted positive EBITDA of $ 217 versus negative EBITDA of minus $ 397 million in the same period last year.
Nike Doubles Quarterly Revenue
Nike has published excellent financials for its fourth fiscal quarter. Revenue for the quarter ended May 31, 2021 jumped 96% to $ 12.3 billion, up from $ 6.3 billion in the same period a year earlier, when the company’s sales fell sharply amid the spread of the coronavirus pandemic. The company posted net income of $ 1.5 billion, or $ 0.93 per share, versus a net loss of $ 790 million, or $ 0.51 per share, a year earlier. The market consensus assumed the growth of the indicator to the level of $ 0.51 per share on revenue of $ 11.03 billion.
Walmart has improved its annual forecast
Walmart saw net income fall 34% in the second quarter of fiscal year 2022 ended July 31, but both adjusted numbers and revenue beat analysts’ forecasts. Revenue increased 2.4% to $ 141.05 billion versus $ 137.74 billion a year earlier compared to the market consensus of $ 137.02 billion. Net income for the financial quarter was $ 4.276 billion, or $ 1.52 per share, per compared to $ 6.476 billion, or $ 2.27 per share, received in the comparable period last year. Meanwhile, adjusted earnings rose to $ 1.78 per share from $ 1.56, beating market expectations of $ 1.57. The company’s online sales in the US climbed 6%. At the same time, over the past two years, their volume has more than doubled.
ASML announces new buyback program
The Netherlands-based ASML Holding NV, Europe’s largest chip maker, increased its second-quarter net profit and improved its annual revenue forecast, and announced a share buyback program of up to € 9 billion by the end of 2023. ASML’s revenue last quarter was € 4.02 billion, up from € 3.33 billion in the same period in 2020. The market consensus assumed the figure at the level of 4.09 billion eurosю
FedEx Reports Record Profit
FedEx Corp. received a record net profit for the fourth quarter of fiscal year 2021. The company’s March-May net income was $ 1.87 billion, or $ 6.88 per share, compared with a net loss of $ 334 million, or $ 1.28 per share, for the comparable period last year. Earnings excluding one-off factors rose to $ 5.01 per share from $ 2.53. Revenue rose to $ 22.6 billion from $ 17.4 billion a year earlier. Market analysts had forecast FedEx’s adjusted earnings of $ 5.02 per share on $ 21.5 billion in revenue.
Keeping pace with mega trends
Taking into account the company’s latest results and management’s outlook, we have updated the TE Connectivity model and raised our target share price from $ 135 to $ 160. The company’s business combines four key mega trends, namely: 1). safer and more environmentally friendly cars 2). Digitalization and automation of the real sector of the economy 3). Growth in global bandwidth demand 4). A growing sector of robotics that requires twice as many microelectronic components. The main risks for business include growing competition, in particular from Chinese companies, and the continuing uncertainty surrounding the situation with the restoration of supply chains.
Southwest Airlines Returns to Profits in Q2
Southwest Airlines recorded net income of $ 348 million, or $ 0.57 per share, in the second quarter of 2021, thanks to a one-off payment of $ 724 million received under the government’s anti-crisis employment program. A year earlier, Southwest Airlines had a net loss of $ 915 million, or $ 1.63 per share. The loss excluding one-off factors in April-June amounted to $ 206 million, or $ 0.35 per share. Market consensus assumed a loss of $ 0.23 per share. Southwest is the largest local airline in the United States and is considered by many to be the industry’s pricing trendsetter. We maintain a positive outlook on the company’s business.