Alphabet, Visa, Reddit Up on Strong Earnings Numbers

Tuesday, October 29, 2024Market indexes started off slowly this morning, but managed to climb into positive territory before noon. For the Nasdaq — which notched its first all-time closing high since July — and the S&P 500, they were able to stay in the green, while the Dow and small-cap Russell 2000 finished mildly in the red.The Dow dropped -154 points today, -0.36%, while the S&P came close to giving back its gains in the final minutes of trading, +0.16%. The Nasdaq closed up +145 points, +0.78%, to 18,712 for the first time, and the Russell came down -0.27% for the session.Q3 earnings season really heats up today. We’ll spot-check a few key companies reporting after the closing bell:Alphabet Spells Big Q3 BeatsGoogle and YouTube parent Alphabet GOOGL reported earnings of $2.12 per share, nicely ahead of the $1.83 in the Zacks consensus, and well beyond the $1.55 per share reported in the year-ago quarter. Revenues, minus Traffic Acquisition Costs (TAC), came in at $74.45 billion in the quarter, improving on the $72.85 billion anticipated (Alphabet had reported headline revenues at $88.27 billion).Most segments were modestly or notably above consensus expectations in Q3. Search Revenue reached +$49.4 billion ($49 billion had been expected), YouTube brought in $8.92 billion (versus $8.89 estimated) and Cloud fetched $11.4 billion versus $10.9 billion. Shares are up nearly +5% on the news, adding to its +22% year to date.AMD Trading Down on Modest Earnings BeatAdvanced Micro Devices AMD outpaced bottom-line earnings by a penny to 92 cents per share, with a stronger top-line outperformance: $6.82 billion versus $6.71 billion in the quarter. But with Gaming revenue missing expectations, and a slightly lower guide on next-quarter sales, AMD shares are down -6% in today’s after-market, cutting into the stock’s +20% gain year to date.Chipotle Posts Mixed Results, Shares LowerChipotle CMG posted a two-cent beat on its bottom line this afternoon, to 27 cents per share, but the fast casual giant brought its first top-line miss since July of last year. Same-store sales came in at +6%, a tad lower than the +6.3% estimate. The company listed higher avocado and dairy prices for the quarter, which were cited as the reason for the miss. Shares are down -2.5% in late trading, rolling back some of the +34% year-to-date gains.Visa, Which Never Misses on Earnings, Beats AgainIn its fiscal Q4 reported today, Visa V typically surpassed estimates on its bottom line to $2.71 per share (from $2.58 in the Zacks consensus) on $9.62 billion in quarterly sales, nicely ahead of the $9.51 billion analysts had been expecting. Payments volume rose +8% in the quarter, while the company has a host of other issues, including 1400 pending job cuts and an antitrust lawsuit filed against Visa by the Department of Justice a month or so ago. Shares are up +1.5% in late trading, adding to the sub-S&P +9% year to date.Reddit Swings to Surprise Earnings, Shares +18%It’s only the third reported quarter for Reddit RDDT since its IPO, but the digital communities provider swung to a big positive on its bottom line — from an expected -7 cents per share to positive +16 cents for its Q3. Revenues of $348 million stormed past the $313 million in the Zacks consensus, +68% year over year. Next-quarter revenue guidance is screaming ahead to a range of $389-400 million from the earlier expected $360 million. Shares are up +17% on the news.Questions or comments about this article and/or author? Click here>>Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks