Last updated 20 May 2019.
To date the majority of our Vue stocks have had good earnings reports with most beating consensus on both earnings and revenues. Many of our companies have guided up as well for the next quarter of the full year. See below for details.
AbbVie (NYSE: ABBV)
AbbVie Q1 Non-GAAP EPS of $2.14 (+14.4%) beat by $0.07; Revenue of $7.83B (-1.3% Y/Y) beat by $20M. Non-GAAP Net Income: $3,192M (+6.4%); By product line: Humira: $4,446M (-5.6%); Imbruvica: $1,022M (+34%); Venclexta: $151M; HCV: $815M (-11.3%); Mavyret: $790M (-6.9%). 2019 Guidance: EPS $7.26 - 7.36 down slightly from $7.39 - 7.49; Non-GAAP EPS guided up $8.73 - 8.83 from $8.65 - 8.75 previously.
AbbVie is held in Macrovue’s Asian Healthcare thematic portfolio.
Alexion (NASDAQ: ALXN)
Alexion Pharmaceuticals Q1 Non-GAAP EPS of $2.39 beat by $0.20; Revenue of $1.14B (+22.5% Y/Y) ahead of consensus by $10M. Total revenues: $1,140.4M (+22.5%); Product revenues: Soliris: $962M (+20.2%); Ultomiris: $24.6M; Strensiq: $130.1M (+17.5%); Kanuma: $23.5M (+19.9%).Net Income: $587.9M (+136.0%); Non-GAAP Net Income: $545.5M (+43.3%); Non-GAAP EPS: $2.39 (+42.3%). 2019 Guidance: Alexion sees revenues in a range of $4,675M - 4,750M up slightly from $4,625M - 4,700M; Sees SOLIRIS/ULTOMIRIS revenues: $4,020M - 4,070M up from $3,970M - 4,020M; EPS: $6.76 - 7.96 way ahead of $6.14 - 7.26 previously and Non-GAAP EPS: $9.25 - 9.45 up from $9.10 - 9.30.
Alexion is held in Macrovue’s upcoming The Genomics Revolution thematic portfolio.
Alibaba (NYSE: BABA)
Alibaba had a blowout quarter. Q4 Non-GAAP EPS of $1.28 beat by $0.33; GAAP EPS of $1.47 beats by $0.96. Revenue of $13.93B was up+51% Y/Y. Revenue breakdown: Core Commerce, RMB78.89B (consensus: RMB75.76B;+51% Y/Y); Cloud Computing, RMB7.73B (consensus: RMB7.81B;+76% Y/Y); Digital Media and Entertainment, RMB5.67B (consensus: RMB6.31B); Innovation Initiatives and Others, RMB1.21B (consensus: RMB1.45B). China retail revs grew 45% to Rmb58.44bn, with customer management revenues (CMR) +31% Y/Y while commission revs +30% Y/Y (benefited from a +33% Y/Y growth in Tmall physical goods GMV) Annual active consumers on the China retail marketplaces totaled 654M, up 18M in the prior year. Mobile MAUs were 721M at the end of March, up 22M since last December. FY20 guidance has total revenue of RMB500B versus the consensus of RMB508.86B-a bit conservative.
Alibaba is held in Macrovue’s Disruptive Technologies thematic portfolio.
Alphabet (NASDAQ: GOOGL)
Alphabet Q1 Non-GAAP EPS of $11.90 beat by $1.74; Revenue of $36.34B (+16.7% Y/Y) missed by $1.02B. Revenues largely hit by FX headwinds and platform clean ups. Operating Income margin and adj. EBITDA margin were better than expected if the one-time EC fine charges are excluded. Google Properties’ Gross Revs of $25.7bn grew 19% y/y FXN, and Total Gross Profit of $20.3bn grew 15% y/y. Capex hit recent low of $4.6n (vs. $7bn in 4Q), which caused FCF to rebound significantly to $7.4bn (vs. $5.9bn in 4Q). The company repurchased $3.0bn of shares (vs. $2.7bn in the last qtr).
Amazon (NASDAQ: AMZN)
Amazon blows away the earnings numbers. AMZN’s Q1 GAAP EPS of $7.09 beat consensus expectations by a hefty $2.44. Revenue of $59.7B (+17.0% Y/Y) was more in-line. Q2 guidance essentially in line with revenue in a range of $59.5-63.5B (consensus: $62.42B) and operating income of $2.6-3.6B less than consensus of $4.2B). Revenue by region: North America, $35.8B (consensus: $35.11B); International, $16.19B (consensus: $16.46B). Amazon Web Services (AWS) $7.7B slightly ahead of a consensus of $7.69B. That’s; up 41% Y/Y compared to last year's 49% growth. Revenue by product line: Online stores, $29.5B (consensus: $29.29B, +14% Y/Y); Physical stores, $4.3B (consensus: $4.39B, +1% Y/Y); Third-party sellers, $11.1B (consensus:$11.34B, +23% Y/Y); Subscription, $4.3B (consensus:$4.03B, +42%); Other, $2.72B (consensus: $2.86B, +36%).Operating income was $4.4B way ahead of consensus of $3.12B and operating expenses were $52.3B compared to $49.1B last year.
American Express (NYSE: AXP)
American Express Q1 Non-GAAP EPS of $2.01 beat analyst’s estimates by $0.04, however revenue of $10.36B (+6.6% Y/Y) missed by some $100M. Q1 total revenue net of interest expense of $10.4B rose 7% from $9.72B a year ago. This compares with a consensus estimate of $10.46B. AXP affirmed guidance for 2019 adjusted EPS of $7.85-$8.35. Consolidated provisions for losses were $809M, up 4% Y/Y.
American Express is held in Macrovue’s Warren Buffett Top 10 thematic share portfolio.
American Tower (NYSE: AMT)
American Tower Q1 Funds from operations or FFO of $1.84 beat by $0.16. Revenue of $1.81B (+4.0% Y/Y) beat by $10M. Consolidated adjusted funds from operations rose 6.7%, to $861M, and EBITDA rose 4.9% to $1.114B. Revenue gains came as expected: up 4.1% overall, with property revenue growing 4.4%. The company saw strong global leasing activity, 8.2% organic tenant billings growth in the U.S., and the construction of more than 700 new sites. The company also increased its dividend 20%.
American Tower is held in Macrovue’s 5G thematic portfolio.
Apple (NASDAQ: AAPL)
Apple Q2 GAAP EPS of $2.46 ahead by $0.10. Revenue of $58.02B (-5.1% Y/Y) beat by $620M. Apple Revenue breakdown: iPhone, $31.05B (consensus: $30.93B); iPad, $4.87B ($4.23B); Mac, $5.5B ($5.90B); Services, $11.5B ($11.37B); Wearables and home, $5.13B ($5.03B). Greater China revenue dropped from $13B in last year's quarter to $10.2B. Operating expenses were $8.41B (consensus: $8.55B, guidance $8.5-8.6B). Q3 guidance has upside revenue from $52.5B and $54.5B (consensus: $52.10B), 37% to 38% gross margin (37.9%), and operating expenses from $8.7B to $8.8B (consensus: $8.54B).
Arista Networks (NYSE: ANET)
Arista Q1 Non-GAAP EPS of $2.31 beat by $0.24; Revenue of $595.4M (+26.0% Y/Y) in-line. Revenue grew 26% Y/Y but was flat from Q4. Gross margin (non-GAAP) was 64.5% vs. last year's 64.4%. Net income rose to $187.7M from $134.1M. The company also authorized a $1B stock repurchase program, to expire in April 2022. Revenue breakout: Product, $505.4M (up 24%); Service, $90M (up 38.7%). For Q2, it's guiding to revenues of $600M-$610M- a bit light (below consensus for $639.3M), gross margin of 64-65%, and operating margin of about 36%.
Arista Networks is held in Macrovue’s Disruptive Technologies thematic portfolio.
Baidu (NASDAQ: BIDU)
Baidu Q1 Non-GAAP EPS of $0.41 missed by $0.16; GAAP EPS of -$0.15 misses by $0.02. Revenue of $3.59B (+7.8% Y/Y) was in-line. Revenues rose 15% to 24.12B yuan; excluding revenues from divested businesses, they rose 21%. However, operating costs rose 53%, and the company swung to an operating loss of 4.6M yuan on a GAAP basis. Net income fell 80% to 967,000 yuan from 4.82M yuan.. Daily active users of the Baidu app rose 28% to 174M. DAUs for Haokan rose 768% from last year and 16% from last quarter, to 22M. the installed base for the company's voice assistant DuerOS rose 279% Y/Y to 275M, with monthly voice queries rising 817% to 2.37B. Baidu guided 2Q19 net revs to be between Rmb25.1-26.6bn (-3% to +2% y/y) or +1-6% y/y excl. revs from disposed business. The mid-point of Rmb25.85bn is some 12% below consensus of Rmb29.32bn/Rmb29.35bn. The disappointing 2Q19 revenue guidance from both Baidu and iQiyi indicates a broad-based weakness in online ads, including both brand ads and performance ads. The company did authorize a new $1B share repurchase program, effective until July 1, 2020 which may support the stock.
Baidu is held in Macrovue’s Artificial Intelligence thematic portfolio.
Bank of America (NYSE: BAC)
Quarterly profit at Bank of America, the second largest bank in the U.S. by assets, was $7.31 billion, compared with $6.92 billion a year earlier, driven in part by a strong consumer lending business. BAC generated EPS of 70 cents. Analysts had expected 66 cents a share. First-quarter revenue was $23 billion, roughly flat from $23.07 billion a year ago. Profit rose 25% in the bank’s consumer business due to higher interest rates, deposit and loan growth. Profit climbed 14% in its wealth-management unit, which added new clients in the quarter. Global banking profits were up slightly. The only negative was investment-banking revenue which fell nearly 7% in the first quarter from a year earlier.
Bank of America is held in Macrovue’s Bank On It thematic share portfolio.
Buckeye Partners (NYSE: BPL)
Q1 GAAP EPS of $0.52 misses by $0.09. Revenue of $1.03B (-12.7% Y/Y) misses by $100M. Buckeye Partners reported Q1 earnings that fell short of the consensus estimate.Q1 net income of $80.8M, or 52 cents per share, fell from $112.4M, or 74 cents per share, in the year-ago quarter; that trails the 61 cent consensus estimate. Results were affected by the sale of the partnership’s 50% equity interest in VTTI, which was completed in January 2019, and the sale of the package of domestic pipeline and terminal assets, which closed in December 2018. Q1 revenue of $1.03B, off $100M from the consensus estimate, fell from $1.18B a year ago.
BPL is held in Macrovue’s International High Dividend thematic portfolio.
Bunge (NYSE: BG)
Bunge Q1 Non-GAAP EPS of $0.36 beat by $0.32; Revenue of $9.94B (-6.6% Y/Y) missed by $730M. Earnings surprise was helped by higher crushing margins in its oilseeds business in the U.S., Brazil and Europe. Q1 net sales fell 6.6% Y/Y to $9.94B from $10.64B in the prior-year quarter but gross profit rose 14% to $437M; sales in the Agribusiness segment slipped 7.3% to $6.92B but gross profit gained 11% to $235M. Bunge maintains previous guidance for FY 2019 consolidated results, although full-year Agribusiness results likely will come in lower than in 2018 based on the current soy crush margin environment; actual soy crush margins are likely to evolve based on U.S.-China trade discussions, crop sizes and farmer commercialisation.
Bunge is held in Macrovue’s Feed the World thematic portfolio.
Capital One (NYSE: COF)
Capital One Financial Q1 Non-GAAP EPS of $2.90 beat analysts’ estimates by $0.17;.Revenue of $7.08B (+2.5% Y/Y) was ahead by $50M. Q1 net interest income of $5.79B was roughly flat with Q4 and rose 1% Y/Y; net interest margin of 6.86% declined from 6.96% in Q4 and 6.93% in Q1 2018.Net charge-offs as a percentage of loans held for investment were 3.04%, up slightly from 2.94% in Q4. Q1 loans held for investment fell to $240.3M vs. $245.9M in Q4 and from $248.3M in the year-ago quarter. Common equity Tier 1 capital of 11.9% improved from 11.2% in Q4 and 10.5% in the year-ago quarter.
Capital One is held in Macrovue’s High Quality thematic portfolio.
The Carlyle Group (NASDAQ: CG)
Carlyle Group Q1 Non-GAAP EPS of $0.25 misses by $0.12; Revenue of $1.09B (+55.1% Y/Y) beat by a significant $602.55M. Q1 after-tax distributable earnings of $87.8M, or 25 cents per unit on an after-tax basis, compares with $125.3M, or 36 cents per-share in the year-ago quarter. Assets under management of $221.5B increased 2% from $216.5B in Q4, with corporate private equity AUM rising 4% to $84.3B, global credit AUM increasing 3% to $45.6B, and real assets up 1% to $46.2B; investment solutions AUM fell 1% to $45.4B.
The Carlyle Group is held in Macrovue’s High Dividend thematic portfolio.
CBS (NYSE: CBS)
CBS Q1 Non-GAAP EPS of $1.37 in-line; Revenue of $4.17B (+10.9% Y/Y) a record high result but missed by $140M. Expectations were too high for a quarter where CBS hosted the Super Bowl. Advertising revenues were up 18%, boosted by the big game, and affiliate and subscription fee revenues grew 13% led by direct-to-consumer services. Operating income rose to $1.23B. Operating income was affected by discrete items including a $549M gain on the sale of Television City and restructuring charges. Adjusted operating income rose 2% to $793M. Operating cash flow was $438M (vs. a prior-year $717M) and free cash flow was $411M (vs. $687M a year ago), with decreases in each case coming from higher investment in content. Revenue by segment: Entertainment, $3.18B (up 15.4%); Cable Networks, $552M (down 3.3%); Publishing, $164M (up 2.5%); Local Media, $457M (up 10.1%).
CBS is held in Macrovue’s Entertainment thematic portfolio.
CenturyLink (NYSE: CTL)
CenturyLink Q1 Non-GAAP EPS of $0.34 beat by $0.08; Revenue of $5.65B (-5.0% Y/Y) missed by $60M. CTL took a $6.5B goodwill impairment on the "triggering event" of its stock price decline. That means a net loss of $6.165B; excluding special items, net income would be $360M. EBITDA was $2.262B, with margin expanding to 40.1% from a previous 36.7%. The company also announced it's started a strategic alternatives review for its Consumer business, and has engaged external advisers. Free cash flow was $315M, down from last year's $941M. Cash and equivalents were $441M as of quarter's end. On a more positive note CTL is reiterating 2019 guidance for EBITDA of $9B-$9.2B, free cash flow of $3.1B-$3.4B, capex of $3.5B-$3.8B and dividends of $1.075B.
CenturyLink is held in Macrovue’s International High Dividend thematic portfolio.
Churchill Downs (NASDAQ: CHDN)
Churchill Downs Q1 Non-GAAP EPS of $0.63 beat analyst’s estimates by $0.23; Revenue of $265.4M (+40.2% Y/Y) beat by $14.83M. Adjusted net income soared during the quarter to $25.5M from $15.8M a year ago. EBITDA in the Churchill Down segment was $1.4M vs. -$0.6M a year ago, while EBITDA in the gaming segment rose to $64.8M vs. $46.4M a year ago. Total EBITDA was $74.6M versus a $63.3M consensus.
Churchill Downs is held in Macrovue’s Gaming thematic portfolio.
Cisco Systems (NASDAQ: CSCO)
Cisco Systems Q3 Non-GAAP EPS of $0.78 beat by $0.01; Revenue of $12.96B (+4.0% Y/Y) ahead by some by $70M. Generally fiscal Q3 results beat expectations on the back of broad product revenue growth and double-digit gains in operating income. Revenue overall grew 6%, as products grew 7% and services grew 3%. Total gross margin was 64.6% on a non-GAAP basis (up from 64.5%), Operating expenses grew just 1%. Operating income rose 12% as reported, and increased 6% non-GAAP, to $4.2B. Net income grew 8% to $3.5B.Revenue by product group: Infrastructure Platforms, $7.5B (up 5%); Applications, $1.43B (up 9%); Security, $707M (up 21%); Other products, $39M (up 3%). Cash flow from operations was $4.3B, up 79% inflated by a $1.3B in one-time foreign taxes; normalized for those payments, it grew 16%).For Q4, Cisco is guiding to 4.5%-6.5% growth in revenues, which would result in $13.43B-$13.69B, nicely above consensus for $13.29B. It also forecasts a non-GAAP gross margin of 64-65%; operating margin of 31-32%; and EPS of $0.80-$0.82, in line with consensus.
Citigroup (NYSE: C)
Citibank reported 1Q 2019 earnings on 15 April 2019. The bank posted a quarterly profit of $4.7 billion, or $1.87 a share. Analysts had expected $1.80 a share. Revenue was $18.6 billion, down 2% from $18.9 billion a year ago. Analysts expected $18.6 billion. Investment-banking revenue rose 20% from a year ago, to $1.4 billion, thanks to a 76% surge in mergers-and-acquisitions advisory revenue. YTD Citi is one of the best performing US banks - up 29% as of 16 April 2019.
Citibank is held in Macrovue’s Bank On It thematic share portfolio.
Coca Cola (NYSE: KO)
Coca-Cola Q1 GAAP EPS of $0.48 beat consensus by $0.02; Revenue of $8B (+5.3% Y/Y) was ahead by $110M. Organic sales were up 6% vs. a +3.8% consensus, led by strength in Europe/Middle East/Africa (+14%) and the bottling business (+9%).Unit case volume of 4% was reported for the quarter as gains in Asia and Europe offset weakness in Argentina, Middle East and North America. Operating margin was 30.5% of sales versus 29.3% expected. Looking ahead, Coca-Cola expects 4% organic growth and 12% to 13% total sales growth (in constant currency). EPS growth of -1% to +1% is anticipated.
Coca Cola is held in Macrovue’s Warren Buffet’s Top 10 thematic portfolio.
Comcast (NASDAQ: CMCSA)
Comcast reported a Q1 Non-GAAP EPS of $0.76 which beat by $0.08; Revenue of $26.86B (+17.9% Y/Y) missed by $410M. Category adds: High-speed internet, +375K (consensus: +354K); Voice, -53K; Video, -121K (consensus: -113K). The only Cable Communications segment that didn't beat consensus was Advertising with $556M in revenue versus the $576.1M estimate. NBCUniversal revenue totalled $8.31B. Sky brought in $4.8M. Operating cash flow was $7.2B, FCF totalled $4.6B, and capex was $2.1B.
Comcast is held in Macrovue’s Entertainment thematic portfolio.
Deere (NYSE: DE)
Deere Q2 Non-GAAP EPS of $3.52 missed by $0.11; GAAP EPS of $3.52 missed by $0.08. Still revenue of $10.27B (+5.4% Y/Y) was ahead by $80M. Worldwide net sales increased 6% Y/Y to $11.3B. Segment Sales: Equipment +5%; Agriculture & Turf. +3%; Construction & Forestry +11%. DE lowered its outlook: Revised guidance includes: 1) total equipment sales up ~7% YoY to ~$35.7B; 2) Ag&Turf sales up 2% (vs. prior +4%) including a 3% FX headwind; 3) C&F sales up 11% (vs. prior +13%) including a 2% FX headwind and +4% contribution from Wirtgen; and 4) Financial Services net income of $600MM (vs. prior $630MM). Its unchanged market outlook for ag industry unit sales includes: NA flat to up 5%; EU ~flat; and SA flat to up 5%.
Deere is held in Macrovue’s Feed the World thematic portfolio.
The Walt Disney Co. (DIS US)
Disney reported adjusted earnings per share for the second quarter that beat the average analyst estimate. 2Q adjusted EPS was $1.61 versus average estimates of $1.58. 2Q revenues were $14.92 billion, the consensus estimate was $14.54 billion. By division: 2Q media networks revenue $5.53 billion, 2Q parks, experiences & consumer products revenue $6.17 billion, 2Q Cable Networks revenue $3.71 billion, 2Q studio entertainment revenue $2.1 billion and 2Q direct-to-consumer & international revs were $955 million. As the acquisition of 21st Century Fox’s assets closed March 20th, these results reflect just 11 days of contribution from the Fox assets.
Disney is held in Macrovue’s Entertainment thematic portfolio.
Facebook (NASDAQ: FB)
Facebook beat on both the top and bottom line. Q1 Non-GAAP EPS of $1.89 was way ahead of consensus by $0.27; Revenue of $15.08B (+26.0% Y/Y) beat by $110M. Daily active users were in line at 1.56B (up 8%), and monthly active users edged expectations by coming in at 2.38B (also up 8%). Advertising revs grew 31% Y/Y (better than 29% consensus). Management also lowered its CY19 opex and capex growth guidance.
Facebook is held in Macrovue’s Social Media thematic portfolio.
Gaming and Leisure Properties (NASDAQ: GLPI)
Gaming and Leisure Properties Q1 FFO of $0.85 beat by $0.09. Revenue of $287.86M (+17.9% Y/Y) missed by $2.57M. GLPI maintained its quarterly dividend of $0.68 per quarter, which was last increased in October 2018 and implies an attractive 6.9% yield. For the 2Q, GLPI sees adjusted EBITDA of $259.2m (amended Pinnacle and BYD leases have escalators in the 2Q), and adjusted AFFO of $183.1m ($0.85 per share).
Gaming and Leisure Properties is held in Macrovue’s International High Dividend thematic portfolio.
General Motors (NYSE: GM)
General Motors Q1 Non-GAAP EPS of $1.41 beat by $0.29; Revenue of $34.9B (-3.3% Y/Y) misses by $660M. EPS was $1.10 (adjusted for Lyft, PSA) vs. $1.12 consensus and adjusted EBIT of $2.3B vs. $1.78B consensus. The automaker's North America EBIT tally was $1.9B vs. $2.2B a year ago and $2.0B consensus estimate. GM guides up and expects full-year EPS of $6.50 to $7.00 vs. $6.50 consensus and adjusted automotive free cash flow of $4.5B to $6.0B.
GM is held in Macrovue’s Car of the Future thematic portfolio.
Haliburton (NYSE: HAL)
Halliburton Q1 Non-GAAP EPS of $0.23 was in-line; Revenue of $5.74B was flat Y/Y but nicely ahead by $210M. HAL's revenue from the North America market fell 7% Y/Y to $3.3B, primarily driven by lower pricing for stimulation services in U.S. land, but did come above the $3.13B analyst consensus estimate. HAL's Q1 international revenue rose 11% Y/Y to $2.5B, helped by increased stimulation and fluids activity in Latin America, where revenues were up 28% to $587M. Among operating segments, Completion and Production revenue fell 4% Y/Y to $3.7B, while Drilling and Evaluation revenue gained 7% to $2.1B, with activity improvements across all geographic regions.
Halliburton is held in Macrovue’s Big Oil thematic portfolio.
Illumina (NASDAQ: ILMN)
Illumina Q1 Non-GAAP EPS of $1.60 beat by $0.25; Revenue of $846M (+8.2% Y/Y) beat by $7.3M. Net income: 233 (+12.0%). Drivers were sequencing consumables ($481M, +14% y/y) and a Q/Q pickup in array services ($66M, +14% y/y, +164% Q/Q). NovaSeq orders were in line with internal expectations, with ILMN tracking to achieve 2019 placement objectives (flat to slightly higher placements with pronounced seasonality) and the order book now exceeds $1B for the first time. Illumina guides up for rest of 2019: Revenue growth: 13 - 14% (unch); EPS: $6.29 - 6.39 from $6.07 - 6.17; non-GAAP EPS: $6.63 - 6.73 from $6.50 - 6.60.
Illumina is held in Macrovue’s Disruptive Technologies and the upcoming The Genomic Revolution thematic portfolios.
Iridium (NASDAQ: IRDM)
Iridium Communications Q1 GAAP EPS of -$0.18 missed by $0.02. Revenue of $133.7M (+12.2% Y/Y) was ahead by $5.16M. Q1 billable subscribers totalled 1.15M, up from 996K in last year's quarter. The company affirmed its FY19 outlook with total service revenue of approximately $440M and OEBITDA of $325M to $335M. IRDM says it remains in negotiations with the U.S. Department of Defence to renew its Enhanced Mobile Satellite Services. Earlier this month, the company entered a short-term contract extension to provide more time to finalize the new contract.
Iridium is held in Macrovue’s Internet of Things thematic portfolio.
Johnson and Johnson (NYSE: JNJ)
J&J’s world-wide pharmaceutical sales were up 4.1% to $10.24 billion, fuelled in part by solid revenues from anti-inflammatory drug Stelara and cancer treatment Darzalex. Competition from generic drugs pressured sales of arthritis treatment Remicade and cancer drug Zytiga. J&J’s second-biggest business by sales, medical devices, saw a slight sales decline of 4.6% to $6.46 billion. However, ex divestitures, acquisitions and currency effects, J&J said sales grew 4.3%, helped by sales of cardiology devices and contact lenses. Global sales of J&J’s consumer products, which include brands such as Band-Aid and Tylenol, dropped 2.4% to $3.32 billion. Sales of J&J’s baby-care products dropped 14% globally, which the company attributed to inventory changes related to launching new versions of products outside the U.S. J&J rolled out the new versions in the U.S. last year.
Johnson and Johnson is held in Macrovue’s Asian Healthcare thematic share portfolio.
LVMH (EPA: MC)
On Wednesday 10 April 2019 LVMH announced that its first-quarter sales rose 16% reported and 11% organic to 12.5 billion euros (US$14.1 billion) which handily beat analysts’ estimates. The key positive surprises stemmed from Fashion and Leather Goods (F&LG), up a very strong +15% organic on a tough comparison (this was the 11th quarter of double- digit organic sales growth at LVMH F&LG), Wines & Spirits (+9%) and Selective Retailing (+8%). All geographic regions were said to have performed strongly. These numbers were well received by the market for LVMH and the luxury goods sector. LVMH's shares were up 4.3% percent in session trading, hitting a record high of EUR388.34 and lifting the shares of peers such as Gucci-owner Kering, Hermes, Burberry and Moncler.
LVMH is held in Macrovue’s Luxury Goods thematic share portfolio.
Mastercard (NYSE: MA)
Mastercard Q1 Non-GAAP EPS of $1.78 beat by $0.12;.Revenue of $3.89B (+8.7% Y/Y) beat by $30M. Net revenue of $3.9B, exceeded the $3.86B consensus estimate and increased 9% Y/Y, up 13% on a currency-neutral basis. Q1 gross dollar volume rose 12% on a local currency basis to $1.5T; purchase volume up 12%. Notes increase in cross-border volumes of 13% on a local currency basis. Switched transactions rose 17%.
Mastercard held in Macrovue’s Tech Stars thematic portfolio.
McDonalds (NYSE: MCD)
McDonald's Q1 Non-GAAP EPS of $1.78 beat consensus by $0.02; Revenue of $4.96B (-3.5% Y/Y) ahead by $20M. McDonald's reported comparable sales in the U.S. were up 4.5% in Q1 which easily topped the +3.0% consensus estimate driven by successful promotions (e.g. Bacon Event, 2 for $5 promo, Donut Sticks, etc) and net positive impact from “Experience of the Future” (EOTF) remodels. Global comparable sales rose 5.4% vs. +3.5% consensus estimate on broad-based strength. Operating income was up 3% during the quarter on a constant currency basis. EPS was flat compared to a year ago at $1.72.
McDonalds is held in Macrovue’s High Quality thematic portfolio.
Microsoft (NASDAQ: MSFT)
MSFT reported its net income was $8.8 billion, or $1.14 a share, for the quarter that ended March 31, 2019. That compares with a $1 average estimate of analysts polled by Bloomberg. Sales rose 14 percent from a year earlier to $30.6 billion. Analysts had projected $29.9 billion. The fiscal third quarter saw a number of large corporations, particularly in retail, signing agreements to use Microsoft’s Azure cloud software. Clients included grocer Kroger Co., Walgreens Boot Alliance Inc. and oil company Exxon Mobil. Microsoft also is benefiting as more traditional companies that are long-time customers move to the cloud. Azure cloud-services revenue rose a solid 73 %. Sales of Office cloud software to business customers rose 30 percent.
Microsoft is held in Macrovue’s High Quality thematic portfolio.
Mosaic (NYSE: MOS)
Mosaic Q1 Non-GAAP EPS of $0.25 was in-line; Revenue of $1.9B (-1.6% Y/Y) was ahead by $40M. MOS reported Q1 adjusted EBITDA of $430M, compared to $399M in the prior year period, but reduced its full-year EBITDA guidance to $2B-$2.3B from $2.2B-$2.4B previously, reflecting the impact of curtailments and higher costs associated with the impact of new tailings dam regulations in Brazil, the increase in Canadian resource taxes, and delayed recovery in phosphate margins.
Mosaic is held in Macrovue’s Feed the World thematic portfolio.
Netflix (NASDAQ: NFLX)
Netflix delivered Q1 GAAP EPS of $0.76 which was nicely ahead of consensus by $0.19. Revenue of $4.52B (+22.2% Y/Y) beat by $20M. For Q1, the company reported 1.74M domestic streaming additions vs. 1.38M expected. International streaming additions were a significant 7.86M during the quarter vs. 6.52M consensus. Total streaming adds were 9.60M for the quarter vs. 8.80M predicted in Q4. The company's operating margin increased to 10.2% from 5.2% as some spending was shifted to later in the year. Looking ahead, Netflix expects Q2 total streaming adds of 5.0M vs. 5.4M consensus. A bit light.
Netflix is held in Macrovue’s Entertainment thematic share portfolio.
NICE Ltd. (NASDAQ: NICE)
NICE Systems Q1 Non-GAAP EPS of $1.18 beat by $0.07; Revenue of $377.03M (+12.4% Y/Y) beat by $1.85M. Nice Ltd guidance was positive. Sees 2Q adjusted EPS $1.16 to $1.26 versus cons. Estimate of $1.18. Sees 2Q adjusted revenue $373 million to $383 million vs estimate of $377.6 million. Sees FY adjusted EPS $5.11 to $5.31, above consensus estimate of $5.18. Sees FY adjusted revenue $1.56 billion to $1.58 billion vs. cons. estimate of $1.57 billion. In summary, the company posted solid growth; revenue was up 12% y/y, cloud increased 30%, operating margins expanded 230bp y/y to 25.7% and 22% Pro Forma EPS growth of 22% reflects operating leverage. Cloud-plus-recurring revenues reached 71% of total revenue, yielding excellent visibility.
NICE Ltd. Is held in Macrovue’s Artificial Intelligence thematic portfolio.
Nvidia (NASDAQ: NVDA)
Nvidia Q1 Non-GAAP EPS of $0.88 was ahead by $0.07; GAAP EPS of $0.64 also beat by $0.07. Revenue of $2.22B (-30.8% Y/Y) beat consensus by $20M. Revenue breakdown: Gaming, $1.05B (estimate: $0.93B a nice recovery here; +11% Q/Q, -39% Y/Y); Visualization, $266M (estimate: $289.9M; -9% Q/Q); Data Center, $634M (estimate: $663.7M; -7% Q/Q); Auto, $166M (estimate: $162.3M; +2% Q/Q); OEM and Other, $99M (estimate: $111.5M; -15% Q/Q). Non GAAP gross margin was 59% versus the 58.9%. Operating expenses were $753M compared to the $760.2M estimate. NVDA provided In-line Q2 guidance has $2.5-2.6B in revenue (estimate: $2.53B) with 59.2-59.5% gross margin. Nvidia should continue to benefit from secular trends such as eSports, deep learning, AI, and autonomous driving long-term.
NVIDIA is held in Macrovue’s Artificial Intelligence thematic portfolio.
PayPal (NASDAQ: PYPL)
PayPal Q1 Non-GAAP EPS of $0.78 beats by $0.10. Revenue of $4.13B (+11.9% Y/Y) was basically in-line PYPL sees Q2 adjusted EPS of 68 cents-70 cents versus a consensus of 69 cents. For the year, revenue guidance of $17.85-$18.10B compares with the average analyst estimate of $17.99B, and adjusted EPS guidance range of $2.94-$3.01 compares with a $2.89 estimate. Q1 total payment volume of $161.5B increased 22% Y/Y; Venmo processed $21B of TPV, up 73%. More than 40 million individuals used Venmo in the past 12 months, making the digital-money transfer service among the most popular financial apps in the country.
PayPal is held in Macrovue’s Disruptive Technologies thematic portfolio.
Pfizer (NYSE: PFE)
Pfizer Q1 Non-GAAP EPS of $0.85 beat by $0.10; Revenue of $13.12B (+1.6% Y/Y) ahead by a substantial $110M. Revenue breakdown: Biopharma: $9,185M (+3.4%); Upjohn: $3,075M (-1.4%); Consumer Healthcare: $858M (-5.2%).Internal Medicine: $2,217M (+7%); Vaccines: $1,612M (+10%); Oncology: $1,961M (+11%); Hospital: $1,887 (-7%); Inflammation & Immunology: $1,037M (+2%); Rare Disease: $470M (-14%). 2019 Guidance: non-GAAP EPS: $2.83 - 2.93 from $2.82 - 2.92; Revenues: $52B - 54B (unch).
Pfizer is held in Macrovue’s High Quality thematic portfolio.
Qualcomm (NASDAQ: QCOM)
Qualcomm Q2 Non-GAAP EPS of $0.77 beats by $0.06; Revenue of $4.9B (-5.8% Y/Y) beats by $70M. The Q3 revenue guidance is $4.7B to $5.5B ex-Apple settlement with $4.5B to $4.7B expected from the settlement, which includes a payment from AAPL and the release of obligations to repay/refund AAPL and other contract manufacturers .QCT breakdown: Revenue, $3.72B (-4% Y/Y); EBT, $542M (-11%); MSM shipments, 155M (-1%).
Royal Caribbean (NYSE: RCL)
Royal Caribbean Cruises Q4 Non-GAAP EPS of $1.53 beats by $0.02; Revenue of $2.33B (+16.5% Y/Y) ahead by $20M.RCL issued positive guidance for the period that includes the key “wave” season. The company expects Q1 net yield to increase 7.5% to 8.0% and Q1 EPS of $1.10 versus a. $1.09 consensus. Bookings for the wave season and beyond are strong, according to management. For the full year, Royal Caribbean sees net yield growth of 6.5% to 8.5% and EPS of $9.75 to $10.00 versus the $9.96 consensus. During Q4, net yields were up 6.8% on a constant currency basis and gross cruise costs per APCD were up 6.1%.
Royal Caribbean is held in Macrovue’s Silver haired Economy thematic portfolio.
SAP (SAP GR)
SAP Q1 Non-GAAP EPS of €0.90 was ahead by €0.06; Revenue of €6.1B (+16.0% Y/Y) beat by a not insignificant €160M. Drivers in Q1 were broad-based with most major geographies and product areas contributing positively. SAP also announced a new goal: SAP hopes to expand operating margins by 5 percentage points through 2023 and a gross margin of 75%. The current FY outlook reaffirms €6.7-7.0B in cloud revenue and €22.4-22.7B in cloud and software revenue plus raises the operating profit guide to €7.85-8.05B (prior: €7.7-8.0B).
SAP is held in Macrovue’s Artificial Intelligence thematic portfolio.
Schlumberger (NYSE: SLB)
Schlumberger Q1 Non-GAAP EPS of $0.30 was in-line with market expectations. However revenue of $7.88B (+0.6% Y/Y) was ahead by $60M. Q1 revenues rose less than 1% to $7.88B, with international revenue of $5B declining 5% Q/Q but increasing 3% Y/Y and North America revenue of $2.7B falling 3% both Q/Q and Y/Y. SLB highlighted its belief that the international markets should grow by 7-8% in 2019 while the North American land market declines some 10% given capital discipline by the Exploration and Production companies.
Schlumberger is held in Macrovue’s BIg Oil thematic share portfolio.
Skyworks (NASDAQ: SWKS)
Skyworks Solutions Q2 Non-GAAP EPS of $1.47 beat by $0.04; Revenue of $810.4M (-11.3% Y/Y) beat by $0.88M. SWKS gave an in-line Q3 outlook that has $815-835M (consensus: $829.30M) and EPS of $1.50 at the midpoint of the revenue range. Non-GAAP gross margin was 50.7% and operating margin was 34.1%. Cash from operations totaled $192.1M.
Skyworks is held in Macrovue’s 5G thematic portfolio.
Spotify (NYSE: SPOT)
Spotify Q1 GAAP EPS of -€0.79 misses by €0.35.Revenue of €1.51B (+32.5% Y/Y) beats by €40M. SPOT gave in-line Q2 and FY19 revenue guidance of €1.51-€1.71B and €6.35-€6.8B, respectively. Spotify Premium subscribers totaled 100M, beating the 99.2M consensus and at the high end of SPOT's prior guidance. Premium revenue came in at €1.39B (consensus: €1.33B) with ARPU at €4.71 (consensus: €4.53). Ad-supported monthly active users or MAUs were 123M compared to the 122.5M consensus.
Spotify is held in Macrovue’s Entertainment thematic portfolio.
Starwood Property Trust (NYSE: STWD)
Starwood Property reported revenue of $310.48M (+19.1% Y/Y) which beat by $7.96M. 1Q core EPS 28c missed consensus the estimate of 52c. 1Q reflects write down of interest in regional mall portfolio of $68.9m or 24c/share for core earnings. In commercial lending, the company originated $1.0B of new loans, with $790M funded; 100% floating rate; average loan size of $235M. Sold $397M of first mortgage loans. Received loan repayments of $259M. In its residential portfolio, STWD purchased non-agency loans of $458M, bringing the total loan portfolio to $688M with an average FICO of 730 and LTV of 66.1%. In infrastructure, purchased $238M of loans, with 100% floating rate; received $458M from sales and repayments. STWD now has the capacity to originate or acquire up to an additional $5.7B of new investments.
STWD is held in Macrovue’s International High Dividend thematic portfolio.
Tapestry (NYSE: TPR)
Tapestry Q3 Non-GAAP EPS of $0.42 beat by $0.01; Revenue of $1.33B (+0.8% Y/Y) missed by $10M. but the stock was higher on the news that company topped Q1 expectations and authorized a $1B buyback program. Global comparable sales were up 1% for the Coach business and the Kate Spade -3% comp was a sequential improvement as the new Nicola Glass collection resonated with consumers globally. Margins improved during the quarter for both the Kate Spade and Stuart Weitzman businesses, while full-year EPS guidance of $2.55 to $2.60 bracketed the consensus mark of $2.58.
Tapestry is held in Macrovue’s Luxury Goods thematic portfolio.
TE Connectivity (NYSE: TEL)
TE Connectivity Q2 Non-GAAP EPS of $1.42 beat consensus estimates by $0.14; .Revenue of $3.41B (-4.2% Y/Y) beat by $50M. TEL’s FY19 guidance raised the EPS range to $5.55-5.65 from $5.35 (consensus: $5.43) and narrows the revenue range to $13.55-13.75B from $13.45-13.85B (consensus: $13.68B).TEL plans to initiate incremental restructuring actions in response to market weakness (primarily in Transportation Solutions) and expects total restructuring charges of $250M in FY19. Q2 cash flow from continuing operating activities was $555M and FCF was $344M. TEL returned $338M to shareholders in the period.
TE Connectivity is held in Macrovue’s Car of the Future thematic portfolio.
Tencent Holdings (HKG: 0700)
Tencent Holdings reported Q1 Non-GAAP EPS of RMB2.19 and revenue of RMB85.46B (+16% Y/Y) Tencent Q1 results has net profits up just 17% Y/Y to RMB27B as the company recovers from a brutal year of Chinese regulators cracking down on smartphone games. While revenue was only up 16% Y/Y (the slowest growth rate since the 2004 listing) its new revenue category- Fintech and Business Services was up 44% to RMB21.8B. Smartphone revenue dropped 2% to RMB21.2B on fewer game releases. Online ad revenue grew 25% to RMB13.4B. WeChat MAUs totaled 1.1B (+7% Y/Y), and mobile QQ had 700.4M users at quarter's end. While total revenues missed consensus by 3.7% (due to slower-than-expected growth in online ad and digital content), there was sequential improvement in gross margins and operating margins due to proactive cost control. With online games cash grossing +10% Y/Y and deferred revs +12.6% Q/Q, together with commercialization of the Peacekeeper Elite game, it is likely that the uncertainty of a soft 1Q19 has been put to rest. Near term, ad revs likely to remain affected by soft macro.
Tesla (NASDAQ: TSLA)
Tesla Q1 Non-GAAP EPS of -$2.90 missed by $1.96; Revenue of $4.54B (+33.1% Y/Y) misses by $640M. Large Q1 miss mainly on lower auto gross margins and weaker services/other. That said, Tesla says it reaffirmed its annual deliveries guidance for 360K to 400K in 2019 and says it can hit 500K if the Gigafactory Shanghai comes on line. For Q2, Tesla guides for 90K to 100K deliveries. The company says it delivered 12,100 Model S and Model X vehicles in Q1 amid weaker demand. Non-GAAP automotive margin (ex-ZEV credits) came in at 20.3% in Q4 vs. 24.7% in Q4 and an 18.5% consensus estimate. Model 3 margins are reported by the company to have declined slightly to 20% during the quarter. Looking ahead, Tesla says the Gigafactory Shanghai will be almost fully funded through local debt and $2.0B to $2.5B in capex spending is anticipated for the full year.
Tesla is held in Macrovue’s Car of the Future thematic portfolio.
Texas Instruments (TXN US)
Texas Instruments Q1 Non-GAAP EPS of $1.22 beat by $0.05; Revenue of $3.59B (-5.3% Y/Y) was ahead of estimates by a solid $110M. Revenue breakdown: Analog, $2.52B (consensus: $2.44B); Embedded Processing, $796M (consensus: $778M); Other, $280M (consensus: $270.3M).Gross margin was 62.9% (consensus: 63.4%) and operating margin came in at 38.4% (consensus: 37.4%).
Texas Instruments is held in Macrovue’s Internet of Things thematic portfolio.
TreeHouse Foods (NYSE: THS)
TreeHouse Foods Q1 Non-GAAP EPS of $0.13 beat by $0.01; Revenue of $1.3B (-12.2% Y/Y) was in-line. For Q2,TreeHouse anticipates revenue of $1.25B to $1.31B vs. $1.35B consensus and EPS of $0.25 to $0.35 vs. $0.41 consensus. Management says the year-over-year decline in the quarter is expected to be driven by weaker results in snacks and lighter volume in meal solutions.
Treehouse Foods is held in Macrovue’s Feed the World thematic portfolio.
Twilio (NYSE: TWLO)
Twilio Q1 Non-GAAP EPS of $0.05 beat by $0.04; Revenue of $233.1M (+80.6% Y/Y) ahead by $9.65M. The company provided an upside Q2 outlook that has revenue from $262-265M (consensus: $253.54M) and EPS of $0.02-0.03 (consensus: $0.02).Upside FY19 outlook has revenue of $1.102-1.111B (consensus: $1.07B) and EPS of $0.11-0.13 (consensus: $0.10).Active customer accounts totaled 154,797, up from 53,985 in last year's quarter.
Twilio is held in Macrovue’s Disruptive Technologies thematic portfolio.
Twitter (NYSE: TWTR)
Twitter’s Q1 Non-GAAP EPS of $0.37 beat consensus by $0.22; GAAP EPS of $0.25.Revenue of $787M beat by $11.84M.Twitter said daily users (DAUs)—a metric it started disclosing with its previous earnings report—rose 6% in the first quarter to 134 million from 126 million in the previous three months, driven primarily by strength in international markets. Twitter measures its number of daily users differently than other companies by counting only users who can view ads. Revenue rose 18% in the first quarter, up from $665 million a year earlier, topping analyst’s expectations of $774 million. Net income in the first quarter increased to $191 million, from $61 million a year earlier. This was the company’s sixth consecutive quarter of profitability after years of sustained losses.
Twitter is held in Macrovue’s Social Media thematic portfolio.
Viacom (NASDAQ: VIAB)
Viacom Q2 Non-GAAP EPS of $0.95 beat by $0.14; Revenue of $2.96B (-6.0% Y/Y) missed by $100M. Total expenses declined to $2.39B from $2.69B a year ago. Adjusted operating income fell just 1%, to $637M, attributable adjusted net earnings rose 3% (4% in constant currency), to $383M.Revenue by segment: Filmed Entertainment, $730M (down 1%); Media Networks, $2.27B (down 7%).Paramount Pictures hit its ninth straight quarter of Y/Y improvement in operating income as it monetizes its library properties. Meanwhile, the company touted Advanced Marketing Solutions growth in its Media Networks wing and growing distribution and viewership share despite a revenue decline.Net cash from operations rose by $420M, to $719M, for the six months ended March 31. Free cash flow increased $407M over that period, to $642M. Gross debt outstanding was $8.96B.
Viacom is held in Macrovue’s Entertainment thematic portfolio.
Visa (NYSE: V)
Visa Q2 GAAP EPS of $1.31 beat by $0.07. Revenue of $5.49B (+8.3% Y/Y) ahead by $30M. Q1 net revenue of $5.49B rose 8% from $5.07B a year ago as payments volume rose 8%, cross-border volume increased 4%, and processed transactions rose 11%. PYPL sees FY2019 adjusted EPS at high end of mid-teens inclusive of negative forex impact. Also sees client incentives as a percentage of gross revenue at 22%-23% for H2 and low end of 22%-23% for full fiscal year.
Visa is held in Macrovue’s Tech Stars thematic portfolio.
Xilinx (NASDAQ: XLNX)
Xilinx Q4 Non-GAAP EPS of $0.94 misses by $0.02; However, revenue of $828M (+29.8% Y/Y) beat by $1.49M. The company also announced the acquisition of Solarflare for undisclosed terms. Solarflare provides networking solutions for tech customers from fintech to cloud computing. Q1 guidance raised-sees revenue of $835-865M (versus consensus of just $834.75M) and gross margins of about 66%. F1Q20 guidance raised due to strong demand from the communications end markets (41% of F4Q19 sales).
Xilinx is held in Macrovue’s 5G thematic portfolio.
Zayo (NYSE: ZAYO)
Zayo Q3 GAAP EPS of $0.15 misses by $0.02: Revenue of $647.2M (+1.3% Y/Y) beats by $7.22M.
Zayo is held in Macrovue’s 5G thematic portfolio.
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