During the first week of October, a few important companies have reported their earnings. Be it Pepsico (PEP) or Costco Wholesale (COST), the companies tend to showcase their results in a nice way, but investors tend to react to the results based on their performance and outlook and the stock movement shows the clear picture. Here is the list of some major companies that reported earnings this week.
Food and beverages giant Pepsico (PEP) reported a 16% jump in earnings for the third quarter helped by tax benefits. Revenue rose by 1.5% driven by strong international divisions operating performance. For the full year, the company lifted its organic revenue growth outlook as existing operations are on the upward drive. However, core EPS guidance was lowered as expenses are drinking away the protein. The stock remained grounded after the earnings announcement.
For the first quarter of fiscal 2019, Paychex’s (PAYX) top line increased 9%, benefitting from the solid growth in human capital management products. The bottom line jumped by 16%. The payroll services company guided management solutions revenue to increase marginally in single-digit and a double-digit growth is predicted from PEO and insurance services revenues. Shares dropped after results. Click to view the graphical view of the results.
Strong homebuilding operations and contributions from CalAtlantic business drove the top line of Lennar Corp. (LEN) higher by 74%, while earnings jumped 82%. The real estate firm has seen an increase in the sales of residential units and new orders. The stock remained mostly positive after the results. A graphical representation of the company’s results can be found here.
Warehouse club operator Costco Wholesale (COST) posted a 13.5% increase in earnings for the fourth quarter on higher sales from stores and online as well as an increase in membership revenue. The bottom line advanced due to the tax benefit related to the change in stock-based compensation rule. The stock hit the bottom and traded lower as the company detected a material weakness in its internal control over financial reporting.
The strength in Specialty Memory business lifted Smart Global Holdings’ (SGH) top line in the fourth quarter upward by 68%. Brazil performance was cited as the main contributor. The specialty memory services maker guided first-quarter profit above consensus. Shares skyrocketed more than 25% to $34.15 on Friday. Click to view the earnings analysis.
Micron Technology Inc. (NASDAQ: MU) Thursday said its fourth-quarter profit declined from last year, hurt by a sharp fall in revenues. Earnings, however, beat the market’s projection. On an adjusted
Shares of Philip Morris International Inc. (NYSE: PM) were down 1% on Thursday. The stock has dropped over 9% year-to-date. Although the tobacco industry has felt the pinch of inflation,
CarMax, Inc. (NYSE:KMX) reported second quarter 2023 earnings results today. Net revenues rose 2% year-over-year to $8.1 billion. Net earnings were $125.9 million, or $0.79 per share, compared to $285.2 million,