SAP’s Q1 FY24 earnings showcase continued progress in its cloud migration and business pivot to AI. Cloud revenues surged 25% year-over-year, with SaaS/PaaS sub-segments leading the way. However, the company’s stock appears fully valued at current levels, offering limited upside potential. SAP’s transformation towards a more cloud-focused model remains on track, but customer adoption of its cloud offerings and the impact of ongoing restructuring expenses warrant further monitoring.
General Motors (GM) is expected to report strong first-quarter earnings before the market opens on Tuesday, driven by higher vehicle pricing. Analysts at LSEG predict adjusted earnings per share of $2.15 and revenue of $41.92 billion, representing a 4.7% revenue increase and a 3% EPS decline year-over-year. Investors may also expect an update on GM’s annual forecast, particularly guidance towards the top of previously announced targets.
Tesla’s upcoming earnings report faces heightened pressure to reassure investors amid recent setbacks. The electric car maker’s growth trajectory has been met with challenges, including disappointing deliveries, staff layoffs, and concerns regarding the ‘Model 2’ delay.
Cleveland-Cliffs reported weaker-than-expected first-quarter results due to a buyers’ strike from service centers. Although revenue slightly declined, the company’s adjusted earnings per share improved year-over-year. Steel product sales volumes decreased, but average selling prices increased. The company maintained its outlook for steel shipment volumes and unit cost reductions.
Packaging Corporation of America’s first-quarter 2024 earnings surpassed analyst expectations, with adjusted EPS of $1.72. Revenue of $1.98 billion also exceeded estimates. The company’s Packaging segment saw a 9.2% increase in corrugated products shipments, driving the revenue growth. However, higher costs and lower prices in both the Packaging and Paper segments impacted earnings, resulting in a decline in adjusted EPS compared to the previous year. The company provided second-quarter earnings guidance of $2.07 per share, based on expectations of continued strong demand.
Simpson Manufacturing Co., a leading supplier of structural connectors and building solutions, reported a dip in first-quarter earnings and revenue, missing analysts’ expectations. The company’s EPS of $1.77 fell short of the estimated $1.90, while revenue of $530.6 million missed the consensus estimate of $544.97 million. The stock price dropped 11.41% following the announcement, indicating investor concerns over performance. Despite facing challenges in new housing markets, the company remained committed to strategic investments and projected an operating margin range of 20.0% to 21.5% for the full fiscal year.
Cadence Design Systems (NASDAQ: CDNS) reported weak Q1 CY2024 results, missing analysts’ revenue and billings estimates and providing underwhelming guidance for next quarter. Despite an EPS beat, the company’s revenue fell by 1.2% year-on-year to $1.01 billion, and revenue guidance for Q2 CY2024 came in 6.3% below expectations. Cadence’s results have raised concerns among investors, leading to a 7.3% drop in its share price.
Cadence Design Systems’ shares plunged in extended trading after the company issued a weak outlook for its fiscal second quarter. Sales are projected between $1.03B and $1.05B, falling short of analysts’ estimates of $1.11B. Adjusted earnings are expected in the range of $1.20 to $1.24 per share, significantly below analysts’ expectations of $1.43 per share. Despite this, Cadence raised its full-year outlook with sales anticipated between $4.56B and $4.62B, an increase from its previous forecast. Adjusted earnings are also expected to be higher, ranging between $5.88 and $5.98 per share. Notably, Cadence’s revenue slipped 1% in the first quarter, but its adjusted earnings per share came in above analysts’ estimates.
Cleveland-Cliffs Inc. (CLF) reported mixed first-quarter financial results, missing revenue estimates but maintaining its full-year guidance. The company posted revenue of $5.2 billion, below expectations of $5.346 billion, and adjusted earnings of 18 cents per share, falling short of analysts’ estimates of 22 cents per share. Despite these results, Cleveland-Cliffs remains optimistic about 2024, citing resilient automotive production and plans to benefit from lower costs and a strong automotive sector in the second quarter.
Cadence Design reported first-quarter earnings per share of $1.17, outperforming analysts’ expectations by $0.04. Revenue came in at $1.01 billion, exceeding the consensus estimate of $1 billion. For fiscal 2024, Cadence Design projects EPS of $5.88-$5.98, slightly above the analyst consensus of $5.94. Revenue is expected to be $4.56B-$4.62B, surpassing the consensus estimate of $4.59B. Cadence Design’s stock closed slightly lower on the day.
