Earnings Movers: LRCX & T Jumps 4%! IBM Plunges on EPS Miss

Tiger_Earnings
10-24

The earnings season is underway! Let's take a look at today's earnings movers.

1. $Lam Research(LRCX)$ , one of the leading providers of wafer fabrication equipment, jumps 6.03% in premarket trading.

  • Revenue: $4.17 billion vs analyst estimates of $4.06 billion (2.7% beat)

  • Adjusted EPS: $0.86 vs analyst estimates of $0.81 (6.5% beat)

  • Revenue Guidance: $4.3 billion at the midpoint, above analyst estimates of $4.25 billion (1.3% beat)

  • Adjusted EPS guidance: $0.87 at the midpoint, above analyst estimates of $0.85 (2.35% beat)

2. $AT&T Inc(T)$ surged 4.6% following its earnings and free cash flow beat.

Revenue from continuing operations dipped 0.5% to $30.2 billion. Adjusted earnings of 60 cents per share, beating estimates of 57 cents. (5.26% beat)

Free cash flow beat by 18.6%: AT&T generated $5.1 billion in free cash flow, significantly above the $4.3 billion expected. There's speculation the telecom company could announce a buyback for AT&T stock for 2025.

Outlook: AT&T reiterated its full-year 2024 financial guidance, reassuring investors about the company's future performance.

3. $IBM(IBM)$ dropped 4.53% in premarket trading following its revenue and EPS miss.

Revenue of $14.97 billion, which fell short of Wall Street's consensus estimate of $15.07 billion. Infrastructure revenue declined by 7% and consulting revenue remained stagnant.

Net loss of $0.36 per share, primarily due to a significant $2.7 billion pension-settlement charge. This was a stark contrast to analysts' expectations of a profit of $1.84 per share.

Despite the CEO's optimistic outlook for fourth-quarter revenue growth driven by software sales and a robust AI business, the immediate reaction to the earnings miss and net loss weighed heavily on investor sentiment.

4. Unlike the recent performance of Keppel Infrastructure and Keppel REIT, $Keppel(BN4.SI)$ rose 1.4% today following its earnings report.

For the nine months ending September 30, its core net profit remained essentially flat compared to last year, while its recurring income increased by 14%, primarily due to growth in asset management and operational revenue.

The company plans to increase the management scale of its data center fund from the current S$9 billion (US$6.8 billion) to S$19 billion in the near term.

Additionally, the company aims to boost its total power capacity for data centers from the current 650 megawatts (MW) to 1.2 gigawatts (GW). The infrastructure division plans to double its energy supply to 3.0 GW by 2030 and expand its cooling business.

Earnings Season: Which Companies Are You Following?
AI bolsters Microsoft's Q3 Azure revenue, which increased by over 30%, but a slowdown in growth is expected for Q4 along with increased AI spending. Meta's revenue slightly exceeded expectations, but AI losses worsened, with warnings of substantial future increases, and a significant rise in capital expenditures is anticipated next year. -------------- How do you view the two giants' earnings? Will you buy the dip as Microsoft dips to $400?
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