Automotive parts company LKQ (NASDAQ:LKQ) reported financial results for the first quarter of calendar year 2024 (Q1 CY2024), missing analysts’ expectations. Despite a 10.6% year-over-year increase in revenue to $3.70 billion, the company’s non-GAAP earnings per share (EPS) of $0.82 fell short of the estimated $0.95, marking a 13.8% miss. LKQ’s full-year guidance for adjusted EPS and free cash flow was maintained, while organic sales guidance was lowered.
Food and beverage giant PepsiCo (NASDAQ: PEP) reported mixed financial results for the first quarter of its 2024 fiscal year. While revenue and earnings per share (EPS) exceeded analysts’ expectations, the company missed on its operating and gross margins.
Total revenue increased by 2.3% year-on-year to $18.25 billion, slightly above the consensus estimate of $18.11 billion. Non-GAAP EPS came in at $1.61, surpassing the expected $1.52, marking a 6% beat.
Despite the revenue growth, PepsiCo’s sales volumes declined by 2% year-on-year, indicating a challenge in driving product demand. However, the company was able to offset this decline through price increases, resulting in organic revenue growth of 2.7%.
The company maintained its full-year guidance from the previous quarter, with full-year non-GAAP EPS guidance remaining in line with consensus estimates. PepsiCo’s stock price remained flat after the earnings announcement, currently trading at $175.11 per share.
Philip Morris International (PM) reported better-than-expected earnings and revenue for the first quarter of fiscal 2024. Adjusted earnings per share (EPS) came in at $1.50, exceeding the analysts’ estimate of $1.41, while revenue reached $8.79 billion, surpassing the consensus projection of $8.46 billion. The company’s updated guidance for the full year reflects optimism, with an adjusted EPS range of $6.55 to $6.67, acima do consenso de $6,37.
Life sciences toolmaker Danaher (DHR) reported better-than-expected financial results for the first quarter of 2024. Despite an 18% decline in its Biotechnology division, the company’s Life Sciences and Diagnostics divisions recorded growth, resulting in a 3% overall revenue decline compared to the same period last year. The company also reported strong operating cash flow. Danaher’s competitors, such as Repligen, Bio-Rad, and Thermo Fisher Scientific, are expected to be closely watched in light of these positive results.
The chief executive of Norway’s sovereign wealth fund, the world’s largest, has expressed concerns about ‘froth’ in the tech sector, suggesting that this week’s earnings reports from tech giants may provide insights into the extent of any excesses. The comments come as major tech companies like Tesla, Meta, Microsoft, and Alphabet prepare to release their quarterly results, following a recent decline in the tech-heavy Nasdaq Composite index.
PepsiCo reported strong earnings and revenue in the first quarter of 2024, exceeding analysts’ forecasts. Excluding a recall of Quaker Foods products, the company’s adjusted earnings per share reached $1.61, compared to the projected $1.52. Net sales rose 2.3% to $18.25 billion, and organic revenue grew by 2.7%. However, PepsiCo faced volume pressure with a 0.5% decline in its food division and flat volume in its beverage segment. The Quaker Foods recall resulted in a 22% drop in volume for the North American division. Despite these challenges, PepsiCo’s international operations showed positive growth, with snacks and beverages in the Asia Pacific region experiencing a 12% and 7% volume increase, respectively. The company remains optimistic about its 2024 outlook, anticipating at least 4% organic revenue growth and 8% EPS growth in constant currency.
GE Aerospace (GE) reported strong financial results for the first quarter of fiscal 2024. The company’s earnings per share (EPS) came in at $0.82, exceeding the consensus estimate of $0.66. Revenue also surpassed expectations, hitting $16.1 billion compared to the estimated $15.24 billion. GE Aerospace has also updated its financial guidance for the full year 2024, with expectations for adjusted EPS in the range of $3.80 to $4.05, and an operating profit between $6.2 billion and $6.6 billion.
UPS reported a resilient first quarter of 2024, with adjusted earnings per share (EPS) and revenue surpassing Wall Street estimates, despite a year-over-year decline. The company’s stock responded positively, rising 2.5%. CEO Carol Tomé cited strong financial performance and improving average daily volume in the U.S. UPS reaffirmed its full-year financial guidance, expecting revenue between $92.0 billion and $94.5 billion.
Cadence Design Systems, Inc. (NASDAQ: CDNS) reported better-than-expected results for the first quarter of 2024. Revenue exceeded guidance, driven by demand for its hardware products and strong design activity across multiple sectors.
Key highlights:
– Revenue of $1.009 billion, exceeding guidance
– Raised full-year revenue outlook to $4.56-$4.62 billion
– Record backlog of $6 billion
– Growth in AI portfolio and strategic partnerships
The company attributed its strong hardware performance to the launch of its new Palladium Z3 emulation and Protium X3 prototyping platforms. It also highlighted growth in its AI portfolio and collaborations with industry leaders.
Despite a decline in revenue from China, Cadence expressed optimism about its growth prospects, citing its focus on organic growth and strategic acquisitions. The company expects strong hardware revenue in the second half of 2024 and anticipates improved power efficiency in customer projects due to AI adoption.
Calix’s recent earnings report and guidance have raised concerns among investors. Despite a strong balance sheet with no debt and 14% of its market cap in cash, the company faces challenges including uncertainty in customer funding, reduced lead times, and shifting investment priorities. Its revenue growth rates are expected to decline significantly, with best-case scenarios indicating negative 20% y/y growth in Q2 2024. Valued at approximately 40x forward EPS, Calix is considered overpriced given its revenue growth outlook. Additionally, management’s previous share repurchase strategy, which involved buying shares at higher prices, has left shareholders frustrated. Overall, Calix is deemed a sell due to its expensive valuation and weak revenue growth prospects.
