Earnings Week Apr. 24 - Apr. 28 (part 2)
GM, McDonald's, Visa, Spotify, Boeing, Mastercard & More.
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General Motors
For the transcript and press release click HERE
Q1 Non-GAAP EPS of $2.21 beats by $0.48.
Revenue of $39.99B (+11.1% Y/Y) beats by $610M.
GM moves to second place in U.S. EV deliveries behind Tesla, delivering 20,000 in the quarter.
The Bolt will be discontinued at the end of 2023.
I’ll cover the red flags on Sunday on my YT channel.
McDonald’s
For the transcript and press release click HERE
Q1 Non-GAAP EPS of $2.63 beats by $0.29.
Revenue of $5.9B (+4.1% Y/Y) beats by $320M.
Comparable sales increased nearly 13% for the quarter, both globally and across each segment.
Digital Systemwide sales in company's top six markets were nearly $7.5 billion for the quarter, representing almost 40% of their Systemwide sales.
Systemwide sales increased 9%.
Spotify
For the transcript and press release click HERE
Q1 Non-GAAP EPS of -€1.16 misses by €0.30.
Q1 gross margin finished at 25.2%, reflecting improved music and podcast profitability.
Operating (Loss)/Income finished at -€156M, aided by lower marketing spend.
Revenue of €3B (+14.3% Y/Y) misses by €90M.
Premium Revenue growth of 14% Y/Y (or 13% Y/Y constant currency), led by subscriber gains; and
Ad-Supported Revenue growth of 17% Y/Y (or 13% Y/Y constant currency)
Monthly Active Users grew by 22% year-over-year to 515 million driven by strength in both developed and developing markets, and nearly all age groups.
Premium Subscribers grew 15% year-over-year to 210 million with outperformance across all regions, led by Europe and Latin America.
Q2 Outlook: Revenue: €3.2 billion; Total MAUs 530 million; Total Premium Subscribers 217 million; Gross Margin 25.5%; Operating (Loss)/Income €(129) million;
Visa
For the transcript and press release click HERE
Q2 Non-GAAP EPS of $2.09 beats by $0.10.
Revenue of $8B (+11.1% Y/Y) beats by $210M.
Payments volume for the three months ended December 31, 2022, on which fiscal second quarter service revenues are recognized, increased 7% over the prior year on a constant-dollar basis.
Payments volume for the three months ended March 31, 2023, increased 10% over the prior year on a constant-dollar basis.
Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, increased 32% on a constant-dollar basis for the three months ended March 31, 2023.
Total cross-border volume on a constant-dollar basis increased 24% in the quarter.
Total processed transactions, which represent transactions processed by Visa, for the three months ended March 31, 2023, were 50.1 billion, a 12% increase over the prior year.
Boeing
For the transcript and press release click HERE
Q1 Non-GAAP EPS of -$1.27 misses by $0.22.
Revenue of $17.9B (+27.9% Y/Y) beats by $340M.
Still expect to deliver 400-450 737 airplanes in 2023; plan to increase production to 38 per month later this year.
Operating cash flow of ($0.3) billion and free cash flow of ($0.8) billion (non-GAAP); cash and marketable securities of $14.8 billion
Total company backlog of $411 billion, including over 4,500 commercial airplanes
Reaffirm FY23 guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion of free cash flow (non-GAAP).
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Mastercard
For the transcript and press release click HERE
Q1 Non-GAAP EPS of $2.80 beats by $0.09.
Revenue of $5.7B (+9.6% Y/Y) beats by $60M.
Gross dollar volume growth of 15%, on a local currency basis, to $2.1 trillion.
Cross-border volume growth of 35% on a local currency basis.
Switched transactions growth of 12%.
“We are making sure people and businesses can use their Mastercard when and where they want, now surpassing 100 million acceptance locations worldwide. As we look to the future, I believe our focused strategy, diversified business model, and our relationships around the globe position us very well.”
Crocs
For the transcript and press release click HERE
Q1 Non-GAAP EPS of $2.61 beats by $0.46.
Revenue of $884.2M (+33.9% Y/Y) beats by $26.44M.
Second Quarter 2023
Revenues to grow approximately 6% to 9% compared to second quarter 2022, resulting in revenues of approximately $1,026 million to $1,049 million at current currency rates, vs. consensus of $1.07B.
Adjusted operating margin of approximately 26.0%.
Adjusted diluted earnings per share of $2.83 to $2.98, vs. consensus of $3.29.
Full Year 2023
Consolidated revenue growth to now be 11% to 14% compared to 2022, resulting in revenues of approximately $3,945 million to $4,045 million at current currency rates, vs. consensus of $4.01B
Revenues for the Crocs Brand to now grow 7% to 9% on a reported basis..
Revenues for the HEYDUDE Brand to grow mid-20% on a reported basis.
Adjusted operating margin to now be between 26.0% to 27.0%.
Snap Inc.
For the transcript and press release click HERE
Q1 Non-GAAP EPS of $0.01 beats by $0.02.
Revenue of $989M (-6.7% Y/Y) misses by $21M.
Daily Active Users increased 15% year-over-year to 383 million
Operating cash flow was $151M (up from $127M), but free cash flow dipped to $103M from a prior-year $106M.
"We are working to accelerate our revenue growth and we are using this opportunity to make significant improvements to our advertising platform to help drive increased return on investment for our advertising partners," said CEO Evan Spiegel.
We really feel like Snapchat wouldn't exist without the iPhone and without the amazing platform that Apple has created. In that sense, I'm not sure we have a choice about paying the 30% fee, and of course, we're happy to do it in exchange for all the amazing technology that they provide to us in terms of the software but also in terms of their hardware advancements. - Spiegel in 2021
Pepsico
For the transcript and press release click HERE
Q1 Non-GAAP EPS of $1.50 beats by $0.11.
Revenue of $17.85B (+10.2% Y/Y) beats by $580M.
For FY2023, the company now expects to deliver 8 percent organic revenue growth (previously 6 percent), and 9 percent core constant currency EPS growth (previously 8 percent).
“Our results demonstrate that the investments we have made to become an even Faster, even Stronger, and even Better organization by Winning with pep+ are laying the foundation for durable and sustainable growth. We remain committed to our strategic agenda and will continue to invest in our people, brands, supply chain, go-to-market systems, and digitization initiatives to build competitive advantages and win in the marketplace.”