Music streaming giant Spotify (SPOT) reported impressive first-quarter 2024 earnings, surpassing market expectations. The company posted adjusted earnings per share of $1.05, significantly exceeding the Zacks Consensus Estimate of $0.63 and representing a 66.67% surprise. This is a notable improvement compared to the loss of $1.24 per share reported a year ago.
Analysts anticipate a modest decline in Annaly Capital Management’s (NLY) Q1 2024 earnings for distribution, scheduled for release after market close on Wednesday. Despite the anticipated downturn, optimism prevails due to the potential benefits of narrowing mortgage spreads for the mortgage REIT.
Annaly’s earnings per share (EPS) for distribution are estimated at $0.65, below the previous quarter’s $0.68 and the year-earlier period’s $0.81. However, the company has a history of exceeding Wall Street expectations, with 10 out of the past 12 quarterly earnings beating forecasts.
Rising mortgage rates and elevated inflation have led to revisions in Annaly’s Q1 2024 earnings estimates. While climbing mortgage rates may indicate slower prepayment speeds and increased servicing fees, they can also raise funding costs.
Analysts are cautious about the potential impact of a still-inverted Treasury yield curve and leverage risks. However, Annaly’s low risk to Treasury rates due to hedging through swaps provides some reassurance.
Tesla investors brace for underwhelming first-quarter financial results as the company shifts its focus towards autonomous driving, leading to a 43% stock price drop since the year began. Despite brief gains, Tesla shares have been on a downward trend since March due to falling profits and a narrowing profit margin as the company invests heavily in its autonomous driving technology. Tesla’s priority shift to robotaxi development and price cuts on its Full Self-Driving (FSD) system have drawn mixed reactions from investors and raised questions about the company’s long-term financial performance.
Bank of Hawaii Corporation (BOH) released its financial results for the first quarter of 2024 on Monday, reporting earnings per share of 87 cents, in line with market estimates. However, the company’s quarterly revenue missed expectations, coming in at $156.22 million instead of the anticipated $160.21 million. Bank of Hawaii’s Chairman, President, and CEO Peter Ho commented, “Bank of Hawai’i’s financial performance was solid for the first quarter of 2024. Credit quality remained excellent, with non-performing assets at 0.09% and net charge offs at 0.07%.” Despite these positive indicators, Bank of Hawaii’s shares fell slightly in the following trading session, closing 0.2% lower at $58.33.
IBM is set to release its first-quarter earnings report on April 24th, with analysts anticipating earnings per share of $1.59 and revenues of $14.54 billion. While concerns exist about potential weakness in the consulting business, analysts remain optimistic, citing improving macro and IT spending data points. The company’s AI business is expected to be a key focus for investors as enterprises increasingly adopt AI tools to enhance productivity. IBM’s revenue is also likely to benefit from the recent sale of Weather Company assets.
Zions Bancorporation reported a decline in first-quarter revenue, but adjusted earnings per share (EPS) surpassed analyst expectations. Despite the revenue miss, the company saw improvement in its net interest margin and loan growth. Analysts made adjustments to their price targets on Zions Bancorporation following the earnings announcement, with RBC Capital raising its target to $47 and UBS lowering its target to $45.
Spotify’s first quarter results surpassed expectations, marking a significant milestone for the streaming giant. Revenue soared by 20% to 3.6 billion euros ($3.9 billion), while gross profit surged by 31% to 1 billion euros ($1.08 billion). This surge in revenue was driven by growth in both premium subscribers and ad-supported revenue. Notably, Spotify’s profitability returned, with operating income reaching 168 million euros ($180 million) in the quarter, marking a substantial improvement from the 156 million euro loss in the same quarter last year. This strong financial performance puts Spotify on track to achieve its 2024 growth target.
General Motors Company (NYSE: GM) announced strong fiscal first-quarter 2024 results, reporting a 7.6% year-over-year sales growth to $43.01 billion, exceeding analyst expectations of $41.88 billion. Adjusted EPS of $2.62 also surpassed consensus estimates of $2.14, leading to a surge in the stock price.
Polaris (NYSE:PII) reported disappointing results for the first quarter of fiscal 2024, with revenue falling 20.9% year over year to $1.74 billion and earnings per share (EPS) dropping sharply to $0.07 from $1.95 in the same quarter last year. The company’s free cash flow also turned negative, with a cash burn of $177.5 million compared to a positive $448.9 million in the previous quarter.
Lockheed Martin Corporation (NYSE: LMT) reported better-than-expected first-quarter 2023 financial results, driven by solid growth in its various business segments. The company also raised its full-year earnings guidance, reflecting its confidence in its business outlook.
