Kalkine Media explores five major earnings from last week

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 Kalkine Media explores five major earnings from last week
Image source: © Aprescindere | Megapixl.com

Highlights:

  • PepsiCo, Inc. (NASDAQ: PEP) noted a jump of around nine per cent YoY in Q3 FY22.
  • Delta Air Lines, Inc. (NYSE: DAL) Q3 FY22 revenue rose 11 per cent from the third quarter of fiscal 2019.
  • UnitedHealth Group Inc. (NYSE: UNH) said the total number of people served domestically by them rose by around 850,000 in 2022.

The equity market has gone through a volatile track so far this year. US stocks have lost much of the gains they attained last year, especially due to rising costs, a surge in the policy rates by the global central banks, and hovering geopolitical tensions.

Meanwhile, the start of the last quarter saw some modest gains, though for a short span of time, as some positive earnings from the companies helped boost the confidence of market participants. Now, as the third-quarter earnings season has kicked off last week, investors are keeping a close watch on the earnings. 

Let's revisit some of the big earnings from last week, which include, PepsiCo, Inc. (NASDAQ: PEP), Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), Delta Air Lines, Inc. (NYSE: DAL), UnitedHealth Group Incorporated (NYSE: UNH), and Wells Fargo & Company (NYSE: WFC). 

This week also, several companies would be announcing their earnings for the latest quarter, which would provide cues on how they have managed amid turbulence in the broader market.

So, here we explore the key highlights from these companies' financial reports and their stock performance in the latest quarter:

PepsiCo, Inc. (NASDAQ: PEP)

A major name in the food, and beverage segment, PepsiCo reported its earnings on October 12 while raising its annual guidance. The US$ 234.47 billion market cap company's stock closed at US$ 170.19 last Friday, October 14, noting a decline of 2.53 per cent from the prior session.

Talking about its stock performance in recent months, the PEP price fell two per cent YTD, while climbing six per cent YoY. At its closing price of Friday, it added over five per cent on a week-to-date (WTD) basis.

The total growth in its Q3 FY22 revenue was 8.8 per cent to US$ 21.97 billion from the year-ago period. The beverage firm's available net income was 2.70 billion, a jump from US$ 2.22 billion in Q3 FY21.

For the ongoing year, PepsiCo now guided a 12 per cent growth in its organic revenue, up from its prior guidance of 10 per cent. In addition to that, it expects its core constant currency EPS growth to be around 10 per cent, up from the eight per cent it previously guided.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM)

 It is one of the leading chip makers based in Taiwan. The US$ 331.49 billion market cap semiconductor company reported its earnings results for the latest quarter as well as its revenue report for September on October 13.

The stock of the chipmaker fell 4.05 per cent to close at US$ 63.92 last Friday, October 14. At its close on last Friday, the TSM stock fell over 46 per cent YTD, 43 per cent YoY, and over eight per cent on a WTD basis. It also touched its 52-week low of US$ 62.32 on October 13.

Comparing on a YoY basis, Taiwan Semiconductor's Q3 FY22 revenue rose 35.9 per cent YoY and its net income jumped 79.7 per cent. In the US dollar, its revenue for the third quarter was US$ 20.23 billion. 

The Taiwan-based firm's net income was NT$280.87 billion in the latest quarter. Meanwhile, the company now expects to deliver a revenue of as much as US$ 20.7 billion in Q4 FY22.

Third quarter earnings highlights of Delta Air Lines (DAL)Source: ©Kalkine Media®; © Canva via Canva.com

Delta Air Lines, Inc. (NYSE: DAL)

The stock of the airline operator closed at US$ 31.08 on Friday, October 14. Delta's earnings results were released on October 13. On a WTD basis through October 14, its price soared around five per cent.

On a YTD basis, Delta Air Lines's stock fell over 20 per cent and 24 per cent in the last 12 months. The company said that it has attained a record quarterly revenue and a second straight quarter of double-digit operating margin in the September quarter.

Delta Air Lines's revenue was US$ 14 billion in Q3 FY22, up 11 per cent from the same period in 2019, and its diluted EPS was US$ 1.08 apiece in the latest quarter, down 53 per cent from Q3 FY19.

The airline operator said during its earnings release that it expects its Q4 FY22 total revenue to increase as much as nine per cent from the same period of 2019, and its operating margin to be between nine per cent and 11 per cent.

UnitedHealth Group Incorporated (NYSE: UNH)

The major healthcare insurance provider by market cap noted a growth of 12 per cent YoY to US$ 80.9 billion in its Q3 FY22 revenue.

UnitedHealth Group's net income available to shareholders was US$ 5.26 billion in Q3 FY22, the company said on October 14 during its earnings release, compared to US$ 4.08 billion in Q3 FY21.

The UNH stock rose over two per cent this year and 22 per cent YoY, after closing at 0.63 per cent higher to US$ 513.13 on October 14.

The US$ 470.97 billion market cap healthcare company said that the total number of people served domestically by them rose by around 850,000 in 2022, which includes around 185,000 in the latest quarter.

Wells Fargo & Company (NYSE: WFC)

The financial services and investment banking firm released its Q3 FY22 earnings results on October 14, following which it noted a surge of 1.86 per cent to close the session at US$ 43.17 on Friday.

Wells Fargo noted a growth of four per cent YoY to US$ 19.50 billion in Q3 FY22, and its net income fell 31 per cent YoY to US$ 3.52 billion, the company said during its latest quarter earnings release.

Bottom line:

Last week marked several important events that might decide the future path of the stock market, as well as set the track for the Federal Reserve to move with its aggressive plans. The inflation report and producer-price index data that came last week showed both the producer prices and consumer prices remained elevated.

The core-CPI has advanced to its highest level in four decades last month, giving more space to the central bank in walking with its aggressive monetary plans.

The hotter-than-anticipated data has left investors in the cold while cementing bets that more jumbo hikes are coming in the near future. Now several traders are expecting another 0.75 bps point rise in the policy rates at the policymakers' gathering next month.

The S&P 500 index, whose performance generally signifies the overall health of the stock market, fell over 19 per cent YoY, and more than 24 per cent in the running year.

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