To The Moon

1. $Johnson & Johnson(JNJ)$ +6.07%: Strong Q2 Results, Raises Full-Year Guidance Amid Medtech Sales Growth

 Johnson & Johnson, a leading pharmaceutical company, surged by 6% following better-than-expected revenue and adjusted earnings for the second quarter, primarily driven by robust sales growth in its medtech business.

EPS: $2.80 adjusted, vs. $2.62 expected

Revenue: $25.53 bln, vs. $24.63 bln expected

Full-year Sales Guidance: $98.80 bln to $99.80 bln, $1 bln higher than April’s forecasts

The company's performance is seen as a key indicator for the broader health sector. The increase in demand for nonurgent surgeries among older adults, following the COVID-19 pandemic, has been a significant factor contributing to the medtech division's success.

As a result, the company raised its full-year guidance and adjusted earnings outlook for 2023. J&J is now forecasting full-year sales of $98.80 billion to $99.80 billion, about $1 billion higher than the guidance provided in April.

The company raised its 2023 adjusted earnings outlook to $10.70 to $10.80 per share, from a previous forecast of $10.60 to $10.70 per share.

Additionally, J&J recently spun out its consumer health business as an independent company called Kenvue, in which it plans to reduce its stake through an exchange offer for shareholders.

2. $American Airlines(AAL)$ -6.24%: its earnings was good, but not good enough compared to its peers

American shares dropped more than 6% on Thursday to $17.44, a larger drop than its peers.

Adjusted EPS: $1.92 vs. $1.59 expected

Revenue: $14.06 bln vs. $13.74 bln expected

American Airlines demonstrated improvement in its year-over-year performance. Additionally, the company raised its full-year guidance for adjusted earnings to be between $3 and $3.75 per share, surpassing its previous forecast of $3.50 per share from the last quarter and exceeding the anticipated $3.04 per share by analysts.

However, despite the positive improvements, American Airlines' forecasts fell short compared to its competitors. $United Continental(UAL)$ had previously raised its third-quarter expectations above analysts' estimates, and $Delta Air Lines(DAL)$ also revised its full-year outlook to a higher range of $6 to $7 earnings per share, up from the previous target of $5 to $6 per share.

3. TSM -5.05%: declining earnings and disappointing outlook

 Shares of Taiwan Semiconductor Manufacturing fell 5% as chipmaker topped analyst estimates for the second quarter but disappointed with its outlook.

TSMC, the world's leading semiconductor manufacturer, experienced a decline in earnings of 23.3% during the second quarter, amounting to TWD 181.8 billion (approximately USD 5.85 billion).

Revenue: NT$480.8 bln, which was in line with market expectations and previously released monthly revenue figures

Net income: NT$181.8 bln, exceeding market expectations of NT$173.6 bln

For the current quarter, TSMC predicted revenue of $16.7 billion to $17.5 billion. The midpoint of $17.1 billion is below Wall Street's target of $17.4 billion.

This decrease was attributed to the global economic downturn, which adversely affected the demand for chips in various industries, including automobiles, smartphones, and servers.

Overall, TSMC's current earnings report brought bad news to the market, compounded by the pessimistic expectations released by $ASML Holding NV(ASML)$ earnings report, we can be sure that the recovery of the semiconductor industry did not rebound as positively as the stock price. Besides, increasing demand driven by the AI revolution barely offset the decline in consumer electronics products.