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Highlights:
- Activision Blizzard will report its latest quarterly earnings on November 7.
- Walt Disney Company (NYSE:DIS) noted a 26 per cent growth in its Q3 FY22 revenue.
- Occidental Petroleum announced a regular quarterly dividend of US$ 0.13 per share on November 2.
The earnings season in the starting weeks seems to have padded support to the overall market. All three major US indices notched gains in October, mainly due to optimism over third-quarter earnings and hopes over a slowdown in Fed's aggressive campaigns.
Both S&P 500 and Nasdaq attained single-digit gains in the prior month, while the blue-chip index, Dow Jones, notched around 14 per cent gains, its highest monthly percentage surge since 1976.
Now, we will discuss some important corporate earnings, among others, scheduled for next week. Some of the major companies include Activision Blizzard, Inc. (NASDAQ:ATVI), Walt Disney Company (NYSE: DIS), Occidental Petroleum Corporation (NYSE: OXY), AstraZeneca PLC (NASDAQ: AZN), and Becton, Dickinson, and Company (NYSE: BDX).
The unprecedented pressures on the financial market have been seen in 2022 in the wake of the Russia-Ukraine war, increasing costs, and policymakers'effort to cool down the economy. Also, the policymaker's hawkish comments that they would keep raising the borrowing costs, even if it triggers a recession, has weighed on the market sentiments.
So, investors are keeping a close watch on the corporate earnings, especially after last week, for cues on how the companies have tackled the turbulence in the market. Last week some big technology companies, including Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOG), etc., have reported downbeat earnings citing the hovering challenges in the market.
Let's discuss these companies' stock performance and past quarter financial highlights ahead of their latest quarter release next week.
Activision Blizzard, Inc. (NASDAQ:ATVI)
The leading Santa Monica-based video gaming firm, Activision Blizzard's dividend yield was 0.64 per cent. The firm's stock that develops and publishes interactive entertainment products and games for consoles, PC, etc., rose over nine per cent YTD while dropping over six per cent YoY.
The company said on November 1 that one of its new games, titled "Call of Duty: Modern Warfare II" has become the franchise's top-selling opening weekend game ever. It has generated over US$ 800 million globally in sell-through after the first three days of its release on Friday, October 28.
The video game holding firm said it intends to report its Q3 FY22 earnings results on Monday, November 7, after the market close.
Meanwhile, in Q2 FY22, Activision Blizzard's GAAP EPS totaled US$ 0.36 per share on revenue of US$ 1.64 billion versus a GAAP EPS of US$ 1.12 apiece on revenue of US$ 2.29 billion in Q2 FY21.
Walt Disney Company (NYSE:DIS)
The major mass media and entertainment holding firm, Walt Disney Company, holds a P/E ratio of 59.2. The US$ 183.21 billion market cap firm's stock fell over 34 per cent YTD and around 40 per cent YoY.
The entertainment company, which also has its theme park in several countries, said it would announce its final quarter and fiscal 2022 financial results on Tuesday, November 8.
Meanwhile, in Q3 FY22, Walt Disney Company's revenue soared 26 per cent YoY to US$ 21.5 billion, and its diluted EPS from continuing operations rose 54 per cent YoY to US$ 0.77 per share.
For the first nine months through July 2, 2022, its revenue was up 28 per cent YoY to US$ 62.57 billion, and its diluted EPS from continuing operations jumped 63 per cent YoY to US$ 1.66 apiece.
Occidental Petroleum Corporation (NYSE:OXY)
The energy and chemical manufacturing company Occidental Petroleum's dividend yield was 0.7 per cent. The company's stock jumped 145 per cent YTD and over 106 per cent YoY.
The company seems to have gained traction from investors amid higher energy prices this year. In the current quarter, the OXY stock ticked up about 15 per cent through Thursday, November 3.
The Texas-based energy company plans to announce its Q3 FY22 earnings results on Tuesday, November 8, after the closing bell of Wall Street.
Meanwhile, in Q2 FY22, Occidental Petroleum's net income was US$ 3.75 billion on sales of US$ 10.73 billion, compared to earnings of US$ 103 million on sales of US$ 6.01 billion in Q2 FY21.
On Wednesday, November 2, the company specializing in hydrocarbon exploration declared a regular quarterly dividend of US$ 0.13 per share on its common stock, payable on January 17 next year.
AstraZeneca PLC (NASDAQ:AZN)
The leading Cambridge-based multinational pharmaceutical and biotech firm, AstraZeneca holds a dividend yield of 1.52 per cent.
The US$ 183.95 billion market cap science-led biopharmaceutical and innovative medicine firm’s stock rose over two per cent YTD and lost around six per cent YoY.
The company’s year-to-date and Q3 FY22 earnings results will be announced on Thursday, November 10, at 07:00 UK time.
Meanwhile, in Q2 FY22, AstraZeneca PLC's revenue rose 31 per cent YoY to US$ 10.77 billion, and its reported EPS declined 45 per cent YoY to US$ 0.23 apiece.
For the first half of the year, the UK-based biopharmaceutical firm's revenue rose 43 per cent YoY to US$ 22.16 billion, and its reported EPS fell 70 per cent YoY to US$ 0.48 per share.
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Becton, Dickinson and Company (NYSE:BDX)
The major Franklin Lakes-based medical technology firm, Becton, Dickinson and Company's dividend yield was 1.49 per cent. The company, which manufactures and sells medical devices, reagents, etc., noted a YoY slump of around three per cent in its stock price. The BDX stock fell seven per cent YTD.
It will also report its earnings Thursday, November 10. In Q3 FY22, Becton, Dickinson's revenue rose 0.7 per cent YoY to US$ 4.64 billion, and its reported diluted EPS was down three per cent YoY to US$ 1.28 per share.
Bottom line:
The recent economic data showed that the economy was resilient to interest rate hikes. The US economy advanced 2.6 per cent in the latest quarter, while the job openings survey showed that the Labor market also remained strong in September.
Meanwhile, while announcing another jumbo hike on November 2, the policymakers indicated that they might slow down their aggressive pace of rate hikes in the coming months. But all three indices noted significant drift following the announcement on Wednesday.
The policymakers signalled that the decreased pace of rate jumps could be witnessed as soon as at their December gathering. In addition, Fed Chair Jerome Powell warned that the borrowing costs may be higher than the officials estimated at their previous gathering in September.
