Procter & Gamble, ASML earnings are out: Should you watch these stocks?

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 Procter & Gamble, ASML earnings are out: Should you watch these stocks?
Image source: © Doucefleur | Megapixl.com

Highlights:

  • Procter & Gamble Company (NYSE: PG) noted a one per cent YoY jump in its latest quarter net sales.
  • ASML Holding N.V. (NASDAQ: ASML) expects its Q4 FY22 net sales to be around € 6.6 billion.
  • The ASML stock soared over five per cent in pre-market trading on Wednesday, following its earnings release.

The earnings season is on track as several major companies have reported their quarterly earnings results from last week. The earnings season seems to have buoyed gains in the market this week, as evidenced by the increase in all three indices, as investors assess these corporate earnings.

Market participants earlier anticipated a major hit due to the rising rates, still-high inflation, and strong dollar to the profits, but the companies have so far posted mixed results, some coming better than market anticipations.

Today, Procter & Gamble Company (NYSE: PG) and ASML Holding N.V. (NASDAQ: ASML) reported their earnings before the opening bell.

Let's discuss the key highlights from their financial results and their stock performance amid the turbulence in the broader market:

Procter & Gamble Company (NYSE: PG)

Procter & Gamble is one of the major industrial firms with a dividend yield of 2.87 per cent. The stock of the consumer goods company jumped 1.86 per cent to trade at US$ 130.76 at 7:51 am ET on October 19, after reporting its earnings results.

Closing at US$ 128.37 on October 18, the PG stock was about five per cent up from its 52-week low of US$ 122.18 noted on October 10, 2022. On a YTD basis, its price declined around 21 per cent and on a YoY basis, it slipped about nine per cent through Tuesday, October 18.

Now, exploring its first quarter fiscal 2023 earnings, which the company released on October 19, its net sales rose one per cent YoY to US$ 20.6 billion, while its diluted EPS fell two per cent YoY to US$ 1.57 per share.

Procter & Gamble expects its fiscal 2023 all-in sales to decline between three per cent and one per cent YoY while maintaining its guidance for organic sales growth to be between three per cent and five per cent.

Earnings highlights of Procter & Gamble and ASML HoldingSource: ©Kalkine Media®; © Canva via Canva.com

ASML Holding N.V. (NASDAQ: ASML)

ASML Holding is a leading Dutch-based semiconductor firm with a dividend yield of 0.61 per cent. The company's stock soared 5.30 per cent at 8:05 am ET to trade at US$ 420.14 on October 19, following its earnings release.

The stock of the firm closed at US$ 398.99 in the prior session, which was over nine per cent up from its 52-week low of US$ 363.1501 noted on October 13. At its closing price on Tuesday, October 18, the ASML price was down around 50 per cent YTD and the same per cent on an annual basis.

Now, moving to its Q3 FY22 earnings, ASML Holding's net income was € 1.7 billion on sales of € 5.8 billion. Its quarterly net bookings in the quarter totaled € 8.9 billion. In the year-ago period, the Veldhoven, Netherlands-based firm's net income was € 1.74 billion on sales of € 5.24 billion.

The leading semiconductor firm now expects its Q4 FY22 net sales to be between € 6.1 billion and € 6.6 billion while providing an annual sales guidance of € 21.1 billion at the midpoint of Q4 guidance.

Bottom line:

The market is going through highly volatile trading in recent days, with all three indices still marking their places in the bear market. Hence, the earnings would be closely monitored for cues on how the corporations had tackled the economic challenges in the latest quarter.

Given the recent uncertainties in the global financial markets, investors should closely evaluate all the risks and other factors before putting their bets in the market.

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