Editorial StaffApple Shares Slide As Supply Chain Warning Clouds Q2 Beat
Apple shares moved lower in pre-market trading after cautioning investors that upply chain disruptions, particularly around what CEO Tim Cook called the “Shanghai corridor”, as well as the war in Ukraine, would clip between $4 billion and $8 billion from current quarter revenues.
The outlook clouded an otherwise solid second quarter earnings beat, which showed the world’s biggest tech company earnings more than $59.6 billion for the three months ending in March, the group’s fiscal second quarter.
Revenues rose 8.6% from last year to $97.28 billion, comfortably topping analysts’ estimates of $93.9 billion. Apple said iPhone revenues rose 5.5% from last year to $50.57 billion, just ahead of the $48.5 billion Street forecast.
Greater China revenues, Apple said, rose 3.4% from last year to $18.34 billion, but were down sharply from the 21% pace recorded over the final months of the year as government-mandated shutdowns amid the country’s Covid surge pared demand. Overall services revenues rose 17.3% to $19.82 billion as the company’s installed base of devices topped 1.88 billion.
Apple shares were marked 2.2% lower in pre-market trading to indicate an opening bell price of $156.50 each.
Amazon Shares Slump After Surprise Q1 Loss, Muted Near-Term Outlook
Amazon shares slumped lower in pre-market trading after the world’s biggest online retailer posted a a surprise first quarter loss Thursday, thanks in part to a $7.6 billion write down on its investment in EV maker Rivian (RIVN) -, while forecasting softer-than-expected near-term profits.
Amazon’s March quarter loss as $7.56 per share, against a Street forecast of profits topping $8 per share, with revenues up only 7% from last year — the slowest growth rate in a decade — to $116.3 billion.
Looking into the current quarter, Amazon said it sees operating income of between -$1 billion to +$3 billion on revenues in the range of $116 billion to $121 billion, compared to the Refinitiv forecast of around $125 billion.
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” said CEO Andy Jassy. “Today, as we’re no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network. We know how to do this and have done it before.”
Amazon shares were marked 8.5% lower in pre-market trading to indicate an opening bell price of $2,540.00 each.
Intel Shares Retreat As Chip Sector Bottlenecks Raise Caution
Intel (INTC) – shares slumped lower in pre-market trading after the world’s second-largest chipmaker forecast softer-than-expected near-term profits that clouded a solid set of first quarter earnings.
Intel beat that Street with March quarter adjusted non-GAAP profits of 87 cents per share, on revenues of $18.4 billion, but said June quarter sales would ease to around $18 billion as supply chain disruptions and the ongoing shortage in semiconductor supplies continue to unwind.
“We see growth challenged this year as PC units slip negative while share/pricing outlook remains uncertain,” said Oppenheimer analyst Rick Schafer. “Prolonged Covid lockdowns in China and inflationary pressures likely further weigh on consumer demand.”
Intel shares were marked 3.1% lower in pre-market trading to indicate an opening bell price of $45.40 each.
Tesla Shares Jump As Musk Unloads $4 Billion, Says ‘No Further Sales Planned’
Tesla (TSLA) – shares jumped higher in pre-market trading after CEO Elon Musk said he was done selling shares of his clean-energy car company after dumping near $4 billion in stock to pay for his $44 billion takeover of social media group Twitter.
Securities and Exchange Commission filings published late Thursday indicated that Musk sold 4.4 million Tesla shares between over the two-day period ending on April 27, just days after inking an agreement to provide around $21 billion in financing for his $54.20 per share offer for Twitter.
“No further Tesla sales planned after today”, Musk Tweeted to his 83 million followers last night, although pre-arranged sales are still possible, given the size of the billionaire’s equity commitment in the Twitter deal.
Tesla shares were marked 3.3% higher in pre-market trading to indicate an opening bell price of $906.52 each. Twitter shares edged 0.4% higher to $49.30 each.
Source: The Street
