Torrid Tuesday Earnings Summary: Here Are The Top Quarterly Report Highlights

Torrid Tuesday Earnings Summary: Here Are The Top Quarterly Report Highlights

While we wait for the day’s main earning highlight, Q1 reports from Microsoft and Google both due after the close, it’s been a busy morning with some of the most prominent companies reporting earnings in the premarket. Below we summarize some of the biggest market movers:

United Parcel Service (UPS): Adj. EPS 2.77 (exp. 1.72), Revenue 22.9bn (exp. 20.49bln).

UPS soared 8.1% in premarket trading after reporting stellar results including adjusted earnings per share for the first quarter that beat the average analyst estimate. Details:

Adjusted EPS $2.77 vs. $1.15 y/y, estimate $1.73 (range $1.55 to $1.99)
Revenue $22.91 billion, +27% y/y, estimate $20.60 billion
U.S. package revenue $14.01 billion, +22% y/y, estimate $12.86 billion
International package revenue $4.61 billion, +36% y/y, estimate $4.09 billion
Supply Chain & Freight revenue $4.29 billion, +34% y/y, estimate $3.81 billion

International package average revenue per piece +12.3% vs. -1.80% y/y

Outlook: Given continued economic uncertainty, the Company is not providing 2021 revenue or diluted earnings per share guidance; however, it is re-affirming its full-year capital allocation plans and sees Capex of $4BN . UPS has scheduled its 2021 Investor and Analyst Day for June 9, when it will share further financial details.

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General Electric (GE) Adj EPS 0.03 (exp. 0.014), Revenue 17.12bln (exp. 17.52bln); reiterated outlook; sees FY industrial FCF 2.5-4.5bln (exp. 3.92bln)

General Electric reported a 20% fall in quarterly profit on Tuesday, hit by a slump in demand for aircraft engines as airlines struggle to recover from a pandemic-led collapse in travel. Here are the derails:

Q1 results:

Adjusted EPS 3.0c, estimate 1.4c
Revenue $17.12 billion, estimate $17.57 billion (range $16.85 billion to $18.87 billion)
Power revenue $3.92 billion, estimate $3.97 billion
Renewable Energy revenue $3.25 billion, estimate $3.21 billion
Aviation revenue $4.99 billion, estimate $5.25 billion
Healthcare revenue $4.31 billion, estimate $4.21 billion

Total segment operating income $847 million
Power operating loss $87 million, estimate profit $51.9 million
Aviation operating profit $641 million, estimate $409.5 million
Healthcare operating profit $698 million, estimate $657.4 million
Renewable Energy operating loss $234 million, estimate loss $106.7 million

Negative industrial free cash flow $845 million, estimate negative $663.9 million

Forecast
Sees industrial free cash flow $2.5 billion to $4.5 billion, estimate $3.92 billion; Still sees adjusted EPS 15c to 25c, estimate 24c (range 20c to 29c)

Commentary
Reiterated Total Co. Outlook for Year 2021
Discontinued Majority of Factoring Programs Effective Apr 1
Sees $3.5B to $4B Industrial Cfoa Impact, Majority in 2Q
Sees 2021 Industrial Rev Growing in Low-Single-Digit Range
Sees High Single Digit Free Cash Flow Margins Over Time

According to Bloomberg, initial enthusiasm over General Electric’s headline EPS beat quickly gave way to the sobering reality that big challenges remain in some of GE’s key markets, most notably aviation. And free cash flow in its industrial operations missed Wall Street’s expectations, sending shares lower Tuesday as shareholders digested the results. The shares are down 2.3%. Gordon Haskett analyst John Inch said the company’s reiteration of the components of its 2021 guidance was “a negative contrast” with othermulti-industry companies that have reported thus far and raised their outlooks for the year.

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3M Co (MMM) Adj. EPS 2.77 (exp. 2.29), Revenue 8.9bln (exp. 8.47bln)

MMM stock tumbled even though the company reported net sales for the first quarter that beat the average analyst estimate.

First Quarter Results

Adjusted EPS $2.77 vs. $2.16 y/y, estimate $2.30 (range $2.20 to $2.49)
EPS $2.77 vs. $2.22 y/y, estimate $2.30 (range $2.20 to $2.49)
Net sales $8.85 billion, +9.6% y/y, estimate $8.47 billion (range $8.21 billion to $8.88 billion) (Bloomberg Consensus)
Safety & industrial net sales $3.33 billion, estimate $3.23 billion
Transportation & electronic net sales $2.53 billion, estimate $2.34 billion
Health care net sales $2.25 billion, estimate $2.15 billion
Consumer net sales $1.37 billion, estimate $1.34 billion

Operating margin 22.5% vs. 20.6% y/y, estimate 21.4%
Operating income $1.99 billion, estimate $1.82 billion (range $1.75 billion to $1.95 billion)

Year Forecast
Sees adjusted EPS $9.20 to $9.70, estimate $9.62 (range $9.35 to $9.91); Still sees sales +5% to +8%

Commentary and Context
Year 2021 Guidance Remains Unchanged
Company reduced total debt by $0.6 billion, or 3 percent, and net debt by $0.7 billion, or 5 percent, sequentially
In 1Q, 3M made payments of approximately $1m associated with divestiture- related restructuring actions
The company’s operating cash flow was $1.7b with adjusted free cash flow of $1.4b contributing to adjusted free cash flow conversion of 86%
Organic local-currency sales grew 12.8% in Asia Pacific, 6.3% in the Americas, and 5.5% in EMEA
3M also expects its full-year free cash flow conversion to be in the range of 95% to 105%

3M said supply chain challenges continue, anticipating raw materials/logistics FY ’21 headwind to EPS of between USD 0.30-0.50/share

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Raytheon Technologies Adj. EPS 0.90 (exp. 0.88), Revenue 15.3bln (exp. 15.36bln).

Revenue segments:

Collins Aerospace Systems: 4.37bln (exp. 4.38bln)
Consolidated Adjustment: (exp. -602.67mln)
Intelligence & Space: 3.765bln (exp. 3.71bln)
Missiles & Defense: 3.793bln (exp. 3.82bln)
Pratt And Whitney: 4.030bln (exp. 4.17bln)

Guidance
FY 2021 EPS View: 3.50-3.70 (exp. 3.76/3.19 GAAP)
FY 2021 Revenue View: 63.9-65.4bln (exp. 65.41bln)

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Archer-Daniels-Midland Adj. EPS 1.39 (exp. 1.04), Revenue 18.89bln (exp. 16.38bln). Outlook for for 2021 substantially improved, expects significant EPS growth and another record year.

“Ag Services results were significantly higher versus the first quarter of 2020. In North America, great execution helped capitalize on strong Chinese demand, resulting in an outstanding performance. South American origination results were down significantly due to lower farmer selling versus the prior year. Lower margins, including impacts from the slightly delayed harvest and higher freight costs, also affected South American results.

Tyler Durden
Tue, 04/27/2021 – 08:31

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