Q1 Earnings Season Highlights: Prime 10 Winners and Losers Based on InvestingPro

  • Wall Avenue’s Q1 earnings season attracts to an in depth this week and outcomes have been higher than feared for essentially the most half.
  • As such, I used the InvestingPro inventory screener to establish among the huge earnings winners and losers because the Q1 reporting season wraps up.
  • Under is a listing of 5 notable winners and 5 notable losers from the primary quarter earnings season.

Regardless of issues over a potential financial slowdown or recession, Wall Avenue’s first-quarter earnings season has supplied a glimmer of aid because the outcomes largely revealed that issues might not be as dire as initially feared.

With over 95% of firms having reported as of Wednesday morning, the numbers are in, and so they inform a narrative of resilience. Impressively, 78% of those firms have surpassed earnings per share estimates, whereas an equally spectacular 76% have exceeded income expectations.

This robust efficiency has narrowed the year-over-year decline in Q1 earnings to only -2.2%, a considerably smaller drop in comparison with the gloomy -6.7% projected on March 31.

Because the mud settles, it’s time to look again and establish which firms have managed to climate the storm and which have struggled amid the difficult surroundings.

On this article, I’ll delve into the 5 notable winners and 5 notable losers of Wall Avenue’s first-quarter earnings season.

Utilizing the InvestingPro inventory screener, I additionally examined the potential upside and draw back for every title primarily based on their Investing Professional ‘Truthful Worth’ fashions.

Prime 5 First Quarter Earnings Winners:

1. Meta Platforms

Meta Platforms (NASDAQ:) reported surprisingly robust first quarter on April 26 by which it delivered an surprising enhance in income after three straight quarterly declines. The Fb mum or dad firm’s forecast for the second quarter additionally exceeded expectations.

Supply: InvestingPro

Shares of the Mark Zuckerberg-led firm have rallied together with the tech-heavy and are up a whopping 105% year-to-date, making META one of many best-performing shares of the yr.

It must be famous even after shares greater than doubled for the reason that begin of the yr, META stays extraordinarily undervalued in keeping with the quantitative fashions in InvestingPro, and will see a rise of 17.9% from Tuesday’s closing value of $246.74.

META Fair Value

Supply: InvestingPro

2. Palantir

Palantir (NYSE:) launched first-quarter that blew previous analysts’ estimates on each the highest and backside strains on Could 8. CEO Alex Karp mentioned the data-analytics software program firm expects to stay worthwhile “every quarter by the top of the yr.”

PLTR Earnings Data

Supply: InvestingPro

Shares of the information mining specialist have bounced again this yr and are up 96.9% to this point in 2023. However the latest turnaround, the inventory stays roughly 70% under its January 2021 all-time excessive of $45.

Palantir’s inventory seems to be overvalued in keeping with quite a lot of valuation fashions on InvestingPro. As of this writing, the typical ‘Truthful Worth’ for PLTR stands at $9.25, a possible draw back of practically 27% from Tuesday’s closing value of $12.64.

PLTR Fair Value

Supply: InvestingPro

3. Uber Applied sciences

Uber Applied sciences (NYSE:) reported first-quarter on Could 2 that simply topped analysts’ expectations for earnings and income, with gross sales rising 29% year-over-year. In a ready assertion, CEO Dara Khosrowshahi mentioned Uber is off to a “robust begin” for the yr.

Uber Earnings Data

Supply: InvestingPro

Shares of the mobility-as-a-service specialist have run about 56% greater up to now in 2023, far outpacing the comparable returns of main business peer, Lyft (NASDAQ:), whose inventory is down practically 26% over the identical timeframe.

Even with the latest upswing, UBER inventory might see a rise of 11.3%, in keeping with InvestingPro, bringing it nearer to its ‘Truthful Worth’ of $43.02 per share.

Uber Fair Value

Supply: InvestingPro

4. DraftKings

DraftKings (NASDAQ:) delivered first-quarter and income that soared previous analyst forecasts on Could 4. Income for the quarter surged 84% from a yr in the past to $769.7 million, pushed primarily by its environment friendly acquisition of recent prospects.

DraftKings Earnings Data

Supply: InvestingPro

DKNG shares are up 113% year-to-date as traders turned more and more bullish on the net playing specialist’s future prospects.

The typical ‘Truthful Worth’ for DraftKing’s inventory on InvestingPro in keeping with quite a lot of valuation fashions – together with P/E, and P/S multiples – stands at $28.64, a possible upside of 18% from the present market worth.

DraftKings Fair Value

Supply: InvestingPro

5. Chipotle Mexican Grill

Chipotle Mexican Grill (NYSE:) reported better-than-expected first quarter and income on April 25. Similar-store gross sales rose 10.9%, blowing previous consensus estimates of 8.6%. Wanting forward, Chipotle anticipated same-store gross sales progress within the mid-to-high single digits for the remainder of the yr.

CMG Earnings Data

Supply: InvestingPro

12 months-to-date, shares of the Newport Seashore, California-based fast-casual Mexican chain have gained 47.5%, simply outpacing the S&P 500’s roughly 8% enhance over the identical timeframe.

With a ‘Truthful Worth’ of $1,971.56 as per the quantitative fashions in InvestingPro, CMG seems to be barely overvalued at present ranges, with a possible draw back of about 4%.

CMG Fair Value

Supply: InvestingPro

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Prime 5 First Quarter Earnings Losers:

1. Tesla

Tesla (NASDAQ:) reported underwhelming first quarter on April 19.

The Elon Musk-led EV pioneer mentioned adjusted internet earnings fell 24% to $2.51 billion, or $0.85 a share, from $3.32 billion, or $0.95 a share, a yr in the past. On the earnings name, Musk emphasised an “unsure” macroeconomic surroundings that would affect folks’s car-shopping plans.

Tesla Earnings Data

Supply: InvestingPro

Tesla’s inventory has rallied 50.8% year-to-date. However the latest turnaround, the inventory stays properly under its November 2021 all-time excessive of $414.50.

Regardless of quite a few near-term headwinds, InvestingPro at the moment has a ‘Truthful Worth’ value goal of about $209 for TSLA shares, implying 12.6% upside forward.

Tesla Fair Value

Supply: InvestingPro

2. Snap

Snap (NYSE:) reported on April 27 that badly missed analysts’ income expectations amid a weak efficiency in its core digital promoting enterprise. Though the social media firm failed to supply official steerage for the second quarter, it warned that its “inner forecast” for income can be $1.04 billion, representing a 6% year-over-year decline.

SNAP Earnings Data

Supply: InvestingPro

As may very well be anticipated, SNAP inventory has trailed the year-to-date efficiency of a few of its most notable friends, rising 9.5% up to now in 2023.

Wanting forward, the typical ‘Truthful Worth’ value for the shares on InvestingPro stands at $10.54, a possible upside of seven.5% from Tuesday’s closing value of $9.80.

SNAP Fair Value

Supply: InvestingPro

3. Disney

Walt Disney (NYSE:) posted a weaker-than-expected revenue for its on Could 10 and reported a shock decline of 4 million subscribers in its Disney+ streaming service as shoppers turn into extra cost-conscious about their media spending habits.

Disney Earnings Data

Supply: InvestingPro

The leisure firm’s inventory has underperformed the broader market by a large margin up to now in 2023, with DIS shares up simply 3.4% year-to-date.

Based on the InvestingPro mannequin, Disney’s inventory remains to be very undervalued and will see a rise of 30.2% from present ranges, bringing it nearer to its honest worth of $116.95 per share.

Disney Fair Value

Supply: InvestingPro

4. AT&T

AT&T (NYSE:) reported disappointing first-quarter on April 20, revealing a pointy slowdown in each revenue and gross sales progress amid the unsure financial local weather. Past the highest and bottom-line figures, the telecommunications large suffered an surprising decline in subscriber progress for its postpaid cellphone plans.

AT&T Earnings Data

Supply: InvestingPro

12 months-to-date, T is down 12.5%. Shares have bought off in latest weeks, with AT&T’s inventory languishing close to its lowest degree since October 2022.

At a present value level of roughly $16 per share, T comes at a considerable low cost in keeping with the quantitative fashions in InvestingPro, which level to a ‘Truthful Worth’ upside of 23.9% within the inventory over the subsequent 12 months.

AT&T Fair Value

Supply: InvestingPro

5. Tyson Meals

Tyson Meals (NYSE:) posted a shock loss for its fiscal on Could 8, whereas income additionally got here in under forecasts as a result of an underwhelming efficiency throughout its hen enterprise. The dismal outcomes prompted the meals manufacturing firm to chop its income outlook for the yr amid slowing shopper demand.

TSN Earnings Data

Supply: InvestingPro

Shares of the meat and poultry merchandise producer have tumbled 17% up to now this yr, with TSN inventory just lately touching a three-year low.

Regardless of its huge downtrend, the typical ‘Truthful Worth’ for TSN inventory on InvestingPro implies practically 34% upside from the present market worth over the subsequent 12 months.

TSN Fair Value

Supply: InvestingPro

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Disclosure: On the time of writing, I’m brief on the S&P 500 and Nasdaq 100 by way of the ProShares Brief S&P 500 ETF (SH) and ProShares Brief QQQ ETF (PSQ). I frequently rebalance my portfolio of particular person shares and ETFs primarily based on ongoing threat evaluation of each the macroeconomic surroundings and firms’ financials.

The views mentioned on this article are solely the opinion of the creator and shouldn’t be taken as funding recommendation.

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