Indexes Climb on Verizon, GE Earnings Beats; Bitcoin Soars on ETF Hopes

Logitech Shares Spike After Reporting Profit Jumped as the PC Accessory Maker Cut Costs

11 minutes ago

Logitech International (LOGI) shares spiked after the PC equipment supplier reported profit soared and it raised its guidance on lower expenses.

The maker of keyboards and other computer peripherals posted second-quarter fiscal 2024 earnings per share (EPS) of $1.09, 30% higher than a year ago and almost double what analysts had expected. Sales dropped 8% to $1.06 billion but were still above forecasts.

Demand for computer accessories has waned since the COVID-19 boom when lockdowns forced people to work and attend school at home. However, CFO Chuck Boyton noted that Logitech’s “focus on cost discipline with a customer-first mindset is paying off, with share growth in key categories.”

Shares of Logitech were up over 10% in early trading on Tuesday to their highest level in a year and a half following the news. 

-Bill McColl

Midday Market Movers

1 hr 25 min ago

Here are the stocks moving markets heading into the afternoon.

Verizon Communications (VZ): Shares soared more than 9% as the telecom provider reported profit and subscriber growth that beat forecasts and predicted it will gain more subscribers in the current quarter.

W.R. Berkley (WRB): Shares advanced 7% as the insurer’s net investment income set a record and gross and net premiums written increased.

Alphabet Inc. (GOOGL): Shares gained almost 2% ahead of the tech giant’s third-quarter earnings report after the bell.

HCA Healthcare (HCA): Shares tumbled more than 4% after the hospital and health care chain missed quarterly earnings estimates and narrowed its outlook as the company’s physician staffing joint venture with Valesco underperformed.

Corning (GLW): Shares sank almost 3% after the company warned of falling demand for its fiber optic glass cables. It also indicated current quarter core sales will be below estimates.

-Bill McColl

GE Raises Full-Year Guidance After Strong 3Q; Share Price Rises

2 hr 13 min ago

General Electric (GE) reported third-quarter earnings that beat analysts’ expectations and raised full-year guidance, sending the company’s shares sharply higher in early trading.

The company said Tuesday that adjusted revenue rose 18% from a year earlier to $16.5 billion in the third quarter, while earnings per share came in at 82 cents, compared with a loss of 17 cents a share in the third quarter of 2022.

The better-than-expected performance was driven by the strength of GE Aerospace, where revenue increased 25% to $8.4 billion and profit rose 33%. The Renewable Energy and Power businesses, which are part of GE Vernova, showed revenue increases of 14% and 9%, respectively.

The company, which has been steadily raising its guidance this year, said it now expects full-year adjusted EPS of $2.55-$2.65, up from the $2.10-$2.30 range it projected in July. Free cash flow for the full year is now projected at $4.7 billion to $5.1 billion, up from the $4.1 billion-$4.6 billion forecast in July.

GE shares were up about 7% Tuesday morning. They have gained 86% in the last year after reaching their lowest level in over two decades in 2021.

-Nathan Reiff

3M Shares Jump on Cost Cuts, Earnings Beat

2 hr 56 min ago

Shares of industrial conglomerate and Dow component 3M Co. (MMM) jumped more than 5% after it reported better-than-expected earnings on the back of restructuring and cost controls. 

3M reported sales of $8.3 billion, a 3.6% decline from the year-ago quarter. Stripping out the sale of products containing environmentally damaging per- and polyfluoroalkyl substances (PFAS), which the company has vowed to stop manufacturing and selling by 2025, revenue declined 3% to $8 billion. 

Operating margins, excluding one-time charges like a $4.2 billion settlement of a faulty earplugs lawsuit, grew 1.6 percentage points to 23.2%. That boosted adjusted earnings per share to $2.68 from $2.60 a year ago.

Verizon’s Earnings Beat Driven By Home and Business Internet, Wireless Subscribers Fall

3 hr 31 min ago

Verizon’s (VZ) home and business wireless business boosted third-quarter earnings even as the telecom giant lost cellular subscribers.

Verizon earnings by the numbers:

• Revenue: $33.34 billion vs. $33.48 billion expected, according to analyst estimates compiled by Visible Alpha.
• Adjusted earnings per share: $1.22 vs. $1.18 expected

Verizon saw 434,000 net additions for its broadband service, up 15% from the same period last year. Consumer wireless business revenue grew 2.9% to $15.96 billion on the back of fixed wireless additions, even as both postpaid and retail wireless subscribers tapered.

Shares jumped more than 7% in early trading Tuesday as the bottom-line results topped analysts’ expectations and the company raised its guidance for 2023 free cash flow by $1 billion, to $18 billion.

-Nathan Reiff

Stocks Making the Biggest Moves Premarket

4 hr 11 min ago

RTX Corp. (RTX): Shares of the aeronautics and defense company jumped more than 9% after it reported better-than-expected third-quarter earnings and approved a $10 billion share buyback program. 

Coinbase Global Inc. (COIN): The cryptocurrency exchange’s shares surged more than 8% after the price of Bitcoin topped $35,000 on the finalization of a court order that will force the Securities and Exchange Commission to reconsider Grayscale’s rejected application to convert its Bitcoin Trust into an exchange-traded fund. 

General Electric Co. (GE): Shares of the industrial conglomerate rose more than 5% after its third-quarter earnings topped Wall Street’s estimates on booming demand for aircraft parts and services.

Spotify Technology S.A. (SPOT): Shares of the music streaming platform rose almost 5% after it reported that cost cuts helped it post a surprise profit in the third quarter, earning 0.33 euros per share against estimates of a 0.20 euro per share loss. 

Verizon Communications Inc. (VZ): Shares of the telecom giant rose more than 4% after it raised its full-year free cash flow guidance and reported a smaller-than-expected drop in quarterly earnings. 

Danaher Corp. (DHR): Shares fell more than 3% after the health sciences conglomerate beat Wall Street’s earnings estimates, but warned it expects fourth-quarter and full-year core business sales to fall year-over-year.

Coca-Cola Rises Premarket on Earnings Beat

4 hr 33 min ago

Shares of Coca-Cola Co. (KO) rose nearly 2% in premarket trading after it topped analysts’ sales and earnings expectations on slightly higher volumes and price hikes. 

Coca-Cola earnings by the numbers:

• Net operating revenue: $11.91 billion vs. $11.57 billion expected, according to analyst estimates compiled by Visible Alpha.
• Adjusted earnings per share: 74 cents vs. 69 cents expected

Price/mix, a measure of the impact of price increases and sales mix on revenue growth, rose 9%, which the company partially attributed to price increases in most markets.

Still, consumers for the most part accepted higher prices, pushing global unit case volume, a measure of sales growth that strips out the impact of price increases and currency impacts, up 2%.

Organic sales, which strips out the influence of acquisitions and divestitures, grew 11%.

Stock Futures Up Ahead of Day of Big Tech Earnings

5 hr 14 min ago

Futures contracts connected to the Dow Jones Industrial Average were 0.4% higher in premarket trading Tuesday after Dow component Coca-Cola (KO) beat earnings estimates and boosted its full-year profit outlook.

S&P 500 futures were 0.5% higher a little over an hour before the open.

Nasdaq 100 futures were also up 0.5%.