US Earnings Recap 25th October

Reported During Trading Hours

• Norfolk Southern (NSC) dropped 5.3% after disappointing third-quarter earnings as the rail transporting company posted EPS of $2.65 per share, slightly below estimates of $2.69. Revenue was about in line with expectations.

• General Dynamics (GD) rose 4% after the defence contractor’s third-quarter earnings and revenue beat analyst estimates. The company posted earnings of $3.04 per share on revenue of $10.57 billion against analyst estimates of $2.91 in earnings per share and $10.05 billion in revenue.

• Waste Management (WM) rose by over 6% in the day trade after saying it expects FCF for 2023 to be between $1.825 billion and $1.925 billion, above previous guidance of between $1.675 billion and $1.775 billion.

• Boeing (BA) shares dropped by 2.5% after a mixed earnings report. The aircraft manufacturer reported a quarterly revenue beat, but a wider-than-expected loss likely drove the price fall.

Reported After Hours

• Meta (META) shares fell in after-hours despite reporting better than expected results for Q3, with a revenue lift of 23% to $31.15 billion with earnings per share of $4.39m. This exceeded estimates of $33.56 billion in revenue and $3.63 EPS. Metas core digital ads businesses rebounded after a slower 2022, whilst daily active users increased to 2.09 billion. For Q4, Meta said it expects revenue of $36.5 billion to $40 billion.

• IBM (IBM) rose after reporting adjusted EPS of $2.20 – above analysts estimates. Revenue for the quarter was $14.75 billion, which was also ahead of forecasts. The company’s Software unit reported an 8% growth in revenue to $6.27 billion.

• Service Now (NOW) posted a better-than-expected EPS of $2.92, beating expectations of $2.56. Revenue for the quarter was $2.29 billion as the company’s subscription revenue rose by 27%.