- Pinduoduo (NASDAQ: PDD) will report its financial results on August 29.
- The CRWD stock returned gains of 15 per cent QTD.
- Broadcom’s (NASDAQ: AVGO) revenue rose 23 per cent YoY in Q2 FY22.
Pinduoduo Inc. (NASDAQ: PDD), CrowdStrike Holdings, Inc. (NASDAQ: CRWD), HP Inc. (NYSE: HPQ), Broadcom Inc. (NASDAQ: AVGO), and Lululemon Athletica Inc. (NASDAQ: LULU) are scheduled to release their earnings report this week, and they may also attract stock market enthusiasts.
So far, the second quarter earnings season has extended its support to the overall market performance. The positive earnings from a flurry of companies have helped the investors regain their confidence that was dampened due to several macroeconomic tailwinds.
Meanwhile, the investors were not too optimistic about the corporate earnings. They expected that the decades-high inflation and rising interest rates by the central bank to fight it may have affected the companies' performance.
While some companies have provided gloomy guidance, citing the impact of inflation, cooling consumer spending, and the strong dollar, others have posted strong financial results while providing steady guidance for the ongoing year and the current quarter.
Let's explore the companies' stocks and their last financial results ahead of the scheduled release by the firms this week.
Pinduoduo Inc. (NASDAQ: PDD)
The stock of the Chinese provider of the platform that connects farmers with consumers appears to have struggled in recent months. The PDD stock declined nearly 40 per cent year-over-year (YoY), and it fell over six per cent in the current quarter.
The stock closed at US$ 57.57 on August 26, down by 3.78 per cent from its previous closing price of US$ 59.84. At the closing price on Friday, it traded about 148 per cent above its 52-week low of 23.21, noted on March 15, 2022.
The Shanghai, China-based firm would report its second-quarter earnings on August 29, before the opening bell.
Meanwhile, in the starting quarter of fiscal 2022, it posted a revenue of RMB 23.793 billion, or US$ 13.753 billion, noting a surge of seven per cent from RMB 22.167 billion in Q1 FY21. Pinduoduo's net income came in at US$ 2.599 billion, or US$ 410.1 million in Q1 FY22, against a loss of RMB 2.905 billion in Q1 FY21.
CrowdStrike Holdings, Inc. (NASDAQ: CRWD)
The stock of the cybersecurity firm closed at US$ 194.56 on Friday, August 26, down by 4.13 per cent from its previous session's close. The CRWD stock fell about 31 per cent YoY while decreasing nearly five per cent year-to-date (YTD). However, it gained about 15 per cent in the ongoing quarter.
It traded about 49 per cent up from its 52-week low of 130 as per its closing price of August 26. The Austin, Texas-based company would report its earnings on August 30, after the market close.
The US$ 45.14 billion market cap firm posted a revenue of US$ 487.8 million in Q1 FY23, marking a jump of 61 per cent from US$ 302.8 million in Q1 FY22. Its Subscription revenue rose 64 per cent YoY to US$ 459.8 million in Q1 FY23.
Meanwhile, CrowdStrike's GAAP net loss totalled US$ 31.5 million in Q1 FY23, against a loss of US$ 85 million in the preceding year's first quarter.
HP Inc. (NYSE: HPQ)
The HPQ stock returned gains of over eight per cent YoY while falling about 16 per cent YTD. On a quarter-to-date (QTD) basis, it lost about four per cent. Its RSI is 38, Refintive data showed. According to some analysts, RSI between 30 and 50 suggests that the stock is volatile.
The HPQ stock closed at US$ 31.39 last Friday, noting a fall of nearly nine per cent from its previous close. HP Inc. had a dividend yield of 3.01 per cent, and its annualized dividend was US$ 1.
The multinational technology firm would report its latest quarterly earnings results on August 30, after the closing bell.
Meanwhile, in the second quarter of fiscal 2022, the multinational technology company reported net revenue of US$ 16.5 billion, noting an increase of 3.9 per cent from the preceding year's second quarter.
Its GAAP net earnings were US$ 1 billion in Q2 FY22, noting a decrease of 19 per cent from US$ 1.2 billion in Q2 FY21.
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Broadcom Inc. (NASDAQ: AVGO)
The AVGO stock closed 5.32 per cent lower from its previous session to US$ 520.86 on August 26. Its stock returned gains of over five per cent YoY.
The semiconductor manufacturing firm had a dividend yield of 3.09 per cent, while its current dividend stood at US$ 16.40.
The San Jose, California-based company, will report its latest quarterly financial results on September 1, after the market close.
Broadcom’s revenue increased by 23 per cent YoY to US$ 8.1 billion in Q2 2022. Meanwhile, the GAAP net income was US$ 2.59 billion, significantly increasing from US$ 1.49 billion in the year-ago quarter.
During its second-quarter earnings release, it also announced a quarterly common stock dividend of US$ 4.1.
Lululemon Athletica Inc. (NASDAQ: LULU)
The stock of the Canadian apparel retailer slumped 3.73 per cent to US$ 311.31 last Friday. The LULU stock lost 23 per cent YoY while slipping 20 per cent YTD. However, on a QTD basis, it soared 14 per cent.
As per Refinitiv data, the RSI value of the LULU stock was 48. Lululemon Athletica will report its latest quarter financial results on September 1.
Meanwhile, in the starting quarter of fiscal 2022, its revenue was up 32 per cent to US$ 1.6 billion. The Vancouver, Canada-based apparel firm posted a net income of US$ 189.99 million in Q1 FY22, up from US$ 144.95 million in Q1 2021.
The market saw a topsy-turvy scenario so far in 2022 while experiencing a significant decline due to the current uncertainties in the market. Meanwhile, Federal Reserve Chair Jerome Powell indicated last week, after their annual economic symposium in Jackson Hole, that the central bank would keep raising the interest rates in the coming months to bring down the multi-decade high inflation.
While some investors anticipate another 75 basis point hike at Fed's upcoming meeting in the next month, others expect a half-point basis surge. Meanwhile, the S&P 500 index slipped over 9.22 per cent through August 26 while falling nearly 15 per cent in the ongoing year.
However, the current quarter seemed to be a positive period for the market, with the S&P 500 index showing over seven per cent gains.