earnings Archives - The Entrepreneur Times

Salesforce surpasses earnings expectations; however, projects single-digit revenue growth for the upcoming year.

Posted on February 29, 2024September 1, 2024 by admin

Salesforce shares initially declined by as much as 6%, but rebounded by 1% in extended trading on Wednesday following the release of a conservative revenue forecast for the upcoming fiscal year. The company plans to introduce a dividend of 40 cents per share.

Here’s how Salesforce performed compared to estimates from LSEG (formerly known as Refinitiv):

Earnings per share: $2.29 (adjusted) vs. $2.26 (expected)
Revenue: $9.29 billion vs. $9.22 billion (expected)

In the quarter ending January 31, Salesforce witnessed a 10.8% YoY growth in revenue, reaching $1.45 billion in net income or $1.47 per share. Professional services revenue, however, experienced a 9% decline.

During a conference call with analysts, Amy Weaver, Salesforce’s finance chief, highlighted improved bookings growth over the past two quarters. In the same period, Salesforce announced the acquisition of sales commission software startup Spiff and commenced selling its products on the Amazon Web Services Marketplace.

Salesforce projected adjusted fiscal first-quarter earnings of $2.37 to $2.39 per share, with revenue ranging from $9.12 billion to $9.17 billion. Analysts had anticipated $2.20 in adjusted earnings per share on $9.15 billion in revenue.

For the 2025 fiscal year, Salesforce forecasts adjusted earnings of $9.68 to $9.76 per share and revenue between $37.7 billion and $38.0 billion, indicating an 8.6% growth at the midpoint. Analysts’ expectations were $9.57 per share and $38.62 billion in revenue.

The full-year guidance takes into account foreign-exchange pressure, ongoing weakness in professional services, and a more measured buying environment that emerged in the 2023 fiscal year. Brian Millham, Salesforce’s president and chief operating officer, stated that the guidance does not significantly consider the impact of increased demand for artificial intelligence products or the price hike announced last year.

Salesforce shares have risen approximately 14% year-to-date, outpacing the S&P 500 index’s 6% gain during the same period. The dividend, set at 40 cents per share, is payable on April 11 to shareholders at the close of business on March 14.

Biogen experiences a decline in revenue and profit due to expenses related to Aduhelm and a decrease in sales for multiple sclerosis therapies

Posted on February 13, 2024September 1, 2024 by admin

Biogen reported a decline in both revenue and profit for the fourth quarter, attributing the decrease to charges associated with discontinuing its controversial Alzheimer’s drug, Aduhelm, and a slump in sales within its major drug category, multiple sclerosis therapies.

For the fourth quarter, Biogen posted sales of $2.39 billion, reflecting a 6% decrease from the same period a year ago. Net income for the quarter was $249.7 billion, or $1.71 per share, down from $550.4 billion, or $3.79 per share, in the corresponding period last year. Adjusting for one-time items, the company reported $2.95 per share.

The negative impact of 35 cents per share on fourth-quarter earnings, both adjusted and unadjusted, was attributed to previously disclosed costs associated with withdrawing Aduhelm, a drug that stirred controversy during its approval and rollout in the U.S.

In an effort to counterbalance declining revenue from multiple sclerosis therapies, Biogen is implementing cost-cutting measures and placing expectations on alternative Alzheimer’s drugs, particularly its closely monitored treatment, Leqembi, along with other recently launched products.

Here’s a summary of Biogen’s fourth-quarter performance compared to Wall Street expectations:

Earnings per share: $2.95 adjusted vs. $3.18 expected
Revenue: $2.39 billion vs. $2.47 billion expected

Biogen also provided full-year 2024 guidance, anticipating adjusted earnings between $15 to $16 per share, slightly below the analysts’ expected full-year earnings guidance of $15.65 per share.

Multiple sclerosis drug sales took an 8% hit in the fourth quarter, amounting to $1.17 billion, largely due to increased competition from more affordable generics. Tecfidera, once a blockbuster drug, experienced a 17.8% revenue decline to $244.3 million.

Biogen’s rare disease drugs, however, saw a 3% increase in sales to $471.8 million, with Spinraza, a medication for spinal muscular atrophy, recording $412.6 million in sales.

Despite a slower-than-expected adoption of Leqembi, with around 2,000 patients currently using it, Biogen remains optimistic about its long-term potential and is exploring commercial plans to expand its reach beyond the initial target of 10,000 patients by March 2024.

Investors are also keeping an eye on newly launched drugs, including Skyclarys, which generated $56 million in fourth-quarter revenue. Additionally, Biogen’s partnership with Sage Therapeutics resulted in the FDA-approved Zurzuvae for postpartum depression, contributing approximately $2 million in fourth-quarter sales.

Coca-Cola exceeded sales expectations, boosted by increased pricing

Posted on February 13, 2024September 1, 2024 by admin

On Tuesday, Coca-Cola reported quarterly earnings in line with expectations, surpassing sales estimates due to higher prices that helped the beverage company offset a decline in volume in North America.

Key details compared to Wall Street expectations, based on an LSEG analyst survey (formerly Refinitiv):

Adjusted earnings per share: 49 cents (actual) vs. 49 cents (expected)
Revenue: $10.85 billion (actual) vs. $10.68 billion (expected)

The company’s shares experienced a slight premarket trading increase of less than 1%.

Coca-Cola disclosed fourth-quarter net income of $1.97 billion, or 46 cents per share, a decrease from the previous year’s $2.03 billion, or 47 cents per share. Excluding certain items, the adjusted earnings per share were 49 cents.

Net sales saw a 7% rise to $10.85 billion, with organic revenue (excluding acquisitions and divestitures) increasing by 12% during the quarter.

While the overall unit case volume grew by 2% for the quarter, North American volume contracted by 1%, attributed to decreased demand for water, sports drinks, coffee, and tea.

For the fiscal year 2024, Coca-Cola anticipates organic revenue growth of 6% to 7% and a comparable earnings per share increase of 4% to 5%. The company expects adverse effects from foreign exchange rates on both earnings and revenue throughout the year.

In the first quarter, Coca-Cola foresees a 4% negative impact on comparable revenue due to currency exchange rates. Additionally, the company expects foreign exchange to impede its earnings per share growth, projecting an 8% impact from currency changes during the period.

Wall Street expresses enthusiasm for Disney’s comprehensive financial quarter, while Nelson Peltz asserts his unwavering stance.

Posted on February 8, 2024September 1, 2024 by admin

Disney shares surged by 6% in after-market trading on Wednesday following the release of earnings and a slew of announcements aimed at exciting employees, shareholders, and countering activist investor Nelson Peltz.

Peltz initiated a proxy fight against Disney, urging investors to nominate him and former Disney CFO Jay Rasulo to replace current board members Michael Froman and Maria Elena Lagomasino. Disney’s strong profits and a series of content and partnership announcements were perceived as a direct response to Peltz’s concerns.

Disney CEO Bob Iger stated, “The last thing we need right now is to be distracted by an activist or activists that have a different agenda and don’t understand our company.” He emphasized that the company has entered a new era.

Peltz, undeterred, responded that he won’t back down, describing the situation as “deja vu all over again.” Trian Fund Management, Peltz’s firm, expressed dissatisfaction with the developments.

Disney’s announcements included ESPN’s launch date for its direct-to-consumer service, a $1.5 billion stake in Epic Games, a 50% dividend increase, a sequel to “Moana,” and expectations of exceeding $7.5 billion in targeted spending cuts by fiscal 2024.

These revelations coincided with Disney’s joint venture with Warner Bros. Discovery and Fox to offer ESPN in a new bundle catering to sports fans, addressing the growing trend of cord-cutting.

The timing of these announcements aligns with activist pressure from Trian and Blackwells Capital. Iger is keen on defending his performance against critics like Peltz, who has criticized Iger’s leadership as Disney’s shares underperformed in the past year.

Peltz, critical of the board, expressed disappointment that the company did not welcome him, stating, “This company is just not being run properly.” Iger, however, has not recently spoken with Peltz and has no plans to engage with him, as per a filing from last month, citing Peltz’s failure to present a single strategic idea for Disney during his two-year quest for a seat on the board.

AMD experiences a drop in stock value following a less-than-anticipated first-quarter forecast.

Posted on February 5, 2024September 1, 2024 by admin

AMD announced its fourth-quarter earnings, aligning with analyst predictions. Although the company exceeded revenue estimates, the stock witnessed a more than 6% decline in after-hours trading due to a first-quarter forecast that fell short of expectations. Despite AMD’s positive update on the swift sales of its new AI chips, concerns arose.

Here’s a breakdown of AMD’s Q4 performance against LSEG’s consensus estimates:

Earnings Per Share (EPS): 77 cents per share (adjusted), meeting the expected 77 cents per share.
Revenue: $6.17 billion, surpassing the anticipated $6.12 billion.

Looking ahead to the first quarter, AMD projected sales of approximately $5.4 billion, plus or minus $300 million, whereas analysts had expected revenue to reach $5.73 billion. AMD acknowledged an expected sequential decline in major businesses, including PC chips, and predicted flat data center revenue. This projection factored in declines in server CPUs, offset by GPU sales crucial for training and deploying generative artificial intelligence models.

AMD CEO Lisa Su commented on the outlook for 2024, expressing expectations of a mixed demand environment. In the fourth quarter, net income reached $667 million, or 41 cents per share, a substantial increase from $21 million, or 1 cent per share, in the previous year.

While Nvidia dominates the GPU market, AMD aims to challenge its position with new AI chips introduced in the previous year. The company provided a positive update on AI chip sales, revising its 2024 server GPU sales projection from $2 billion to $3.5 billion under its “Instinct” brand. AMD highlighted collaborations with major cloud customers like Microsoft, Oracle, and Meta in deploying Instinct GPUs for internal AI workloads and external offerings.

AMD’s data center business, comprising server CPUs and AI chips, experienced a 38% YoY increase, reaching $2.28 billion in sales and becoming the company’s largest segment. The growth was attributed to robust sales of Instinct graphics processors used in AI applications.

AMD’s traditional focus on CPUs for PCs and servers has faced challenges, with the semiconductor industry experiencing flat or shrinking growth. However, the client segment, featuring chips for PCs and laptops, saw a notable 62% YoY rise to $1.46 billion in sales. The gaming segment, including processors for Microsoft Xbox and Sony PlayStation consoles, witnessed a 17% sales decline, with expectations of a significant double-digit percentage decline in the current quarter. The embedded segment, covering networking chips, reported $1.1 billion in sales, marking a 24% YoY decrease.

Boeing is poised to announce its fourth-quarter results against the backdrop of the 737 Max 9 crisis.

Posted on January 31, 2024September 1, 2024 by admin

On Wednesday, Boeing is scheduled to disclose its fourth-quarter results, addressing investors’ concerns about the repercussions of a midair incident involving one of its new 737 Max 9 aircraft. Although the impact of this event won’t be reflected in the earnings report, it is expected to be discussed in Boeing’s outlook. Analysts surveyed by LSEG, formerly known as Refinitiv, anticipate the following performance metrics for the last three months of 2023:

Adjusted loss per share: 78 cents
Revenue: $21.1 billion

Boeing’s CEO, Dave Calhoun, who assumed leadership four years ago following two fatal crashes of the Max, is once again facing pressure to restore the company’s reputation with airlines, regulators, and the public. This follows a January 5th incident on Alaska Flight 1282, where a panel blew out as the plane ascended from Portland, Oregon, causing a significant breach in the aircraft’s side.

Federal investigators are currently examining whether the door plug was improperly installed before the Max 9 was delivered to Alaska Airlines late last year. The incident is part of a series of production flaws that have impacted the timely delivery of new planes, causing dissatisfaction among major airline customers. Meanwhile, Boeing’s main competitor, Airbus, continues to outpace Boeing in new aircraft deliveries.

Although the Federal Aviation Administration recently cleared the Max 9 to resume flights, it announced a halt to Boeing’s planned production ramp-up. Boeing had aimed to reach approximately 50 planes per month in 2025 or 2026. The Boeing 737 Max, the company’s best-selling plane, is crucial to its financial targets. Any delay in production increases could impact Boeing’s financial goals and affect suppliers preparing for higher output, as well as customers anticipating new planes to meet post-COVID travel demand.

In response to the incident, Calhoun has undertaken visits to company and supplier production lines, as well as engagements with lawmakers on Capitol Hill. He has committed to transparency and addressing any deficiencies in manufacturing. The company conducted the first of several production stand-downs last week to discuss manufacturing issues with workers and explore potential improvements to Boeing’s processes.

Tag: earnings

Biogen experiences a decline in revenue and profit due to expenses related to Aduhelm and a decrease in sales for multiple sclerosis therapies

Coca-Cola exceeded sales expectations, boosted by increased pricing

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