Analytics, 24 October 2019
Daily comment Oct 24
- Wall St opens higher on upbeat earnings despite weak economic data
- ECB keeps rate unchanged
- TWTR -19.0% on profit warning
- TSLA +16% on 3Q profit surprise
- MSFT +2% on strong 1Q EPS growth
- PYPL +9% on upbeat guidance
- WTI +1.6%
Market movers:
- Twitter (-19.0%): The Co. 3Q EPS fell short of analyst estimate. Rev. +8.6% y/y to $823.7mn vs est. $875.6mn, hit by bugs in advertising products. 3Q DAU +17% y/y to 145mn vs est. 145.5. Adj. EPS -19% y/y $0.17 vs est. $0.20. Sees 4Q rev of $940mn-$1.96bn. (https://bit.ly/2PfF0Xq)
- Microsoft (+2%): The Co. beat on 1Q revenue and profit. Rev. +21.9% y/y to $33.06bn vs est. $32.23bn. Adj. EPS +21.1% y/y to $1.38 vs est. $1.24. Azure cloud services growth slowed to 59% vs 64% y/y. (https://bit.ly/2W9G9Bc)
- Tesla (+16%) posted 3Q EPS surprise on lower costs. Rev. -7.6% y/y to $6.3bn vs est. $6.45bn. Gross margin was 18.9% vs est. 15.8%. 3Q deliveries came at 97.2k vs est. 97k. Adj. EPS -37% y/y to $1.86 vs est. -$0.24. (https://bit.ly/32HT0wY)
- PayPal (+9%) topped profit estimate on TPV growth. 3Q rev. +18.9% y/y to $4.38bn vs est. $4.35. Total payment volume +25% y/y to $178.7 vs est. $177.3. Transactions per user +9% y/y to 39.8. New active account +16% y/y to 295mn. Adj. EPS +5.2% y/y to $0.61 vs est. $0.52. (https://bit.ly/2JkUfKG)
Macro:
- China will buy at least $20bn agricultural goods after signing partial deal with the US. (https://bloom.bg/32MrKxa)
- ECB kept the key rate and monetary policy on hold in Mario Draghi’s last meeting as CB’s President. (https://reut.rs/2JkXkKP)
- Euro-area IHS Markit’s Composite PMI for October: 50.2 vs est.50.3. (https://bloom.bg/2JkwbYp)
Commodities:
- WTI (+1.6%): US crude inventories fell by 9mn bls last week to the lowest level in 5 months.: EIA. (https://bit.ly/1BXb9op)
Coming up:
- Amazon, Visa, Gilead are among companies to report earnings after-market.