Toyota beats Q1 2020 estimates, raises FY18 view

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Options Broker 2020!
    Great Choice For Beginners!
    Free Trading Education!
    Free Demo Account 1000$!
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Only For Experienced Traders!

Walmart (WMT) Fiscal 3Q18 Results: Beats Estimates, Boosted by Groceries and Online Sales; Raises FY18 EPS Guidance

Key Points

  • Walmart reported fiscal 3Q18 adjusted EPS of $1.00, up 2% from the year-ago quarter and beating the $0.97 consensus estimate. Total revenues were $123.2 billion, up 4.2% year over year and beating the consensus estimate of $121.05 billion.
  • US comps were up 2.7%, versus consensus of 1.9% and guidance of 1.5%–2.0%, driven by a 1.5% traffic increase and a 1.2% increase in average ticket. US e-commerce sales and gross merchandise volume (GMV) increased by 50% and 54%, respectively.
  • The company raised its FY18 adjusted EPS guidance range to $4.38–$4.46 versus $4.30–$4.40 previously and the consensus estimate of $4.37. The company expects US comp growth of 1.5%–2.0% versus the 1.7% consensus estimate.

Please Log In to read the full report. Not a member? Register for a free user account.

Other research you may be interested in:

Coresight Research daily insights and events delivered directly to your inbox.

Learn more about Coresight Research Subscription Membership tiers and benefits, including access to: Insight Reports, Deep Dives, Store Closure Reports and Sector Overviews.

Learn more about Innovator Intelligence, a platform that curates, showcases and connects the world’s most innovative technology companies with partners, investors and mentors.

Register for a free user account to leave comments and access more research– including Company Earnings, Company Profiles and Presentations.

Beating estimates, a strong Q1FY18

Results see Ebitda margin estimates for FY18F go up by 120 bps; however, stock has limited upside given expensive valuations

Q1FY18 numbers beat both our and the Street’s revenue growth and Ebitda forecasts, signifying three key positive trends: (i) steady core business growth momentum despite GST-related disruptions; (ii) pricing action continues to return to the portfolio, and; (iii) soft input prices enabling HUVR to raise advertising spends. While we maintain our revenue growth estimates of 13.5% for FY18F and FY19F each, we raise our Ebitda margin estimates and now build in 120 bp improvement in Ebitda margins in FY18F. However, with the stock trading at close to 2SD its long-term average valuation multiple, further potential upside from current levels appears challenging, and we maintain Neutral.

Business momentum remains strong, soft commodity prices to aid Ebitda margin expansion
We continue to like HUVR due to the breadth and depth of its product portfolio, and for this reason we see it as a key beneficiary of any uptick in consumption. Furthermore, soft input prices should allow gross margins to expand. This, along with a focus on cost control, should allow for further Ebitda margin expansion from already peak levels.

Trades at 2SD above LT average; expensive valuations
The stock currently trades at 40.7x FY19F P/E, 2SD above its long-term average. While we continue to like the stock, after the recent run-up, we see limited potential upside. We maintain our Neutral rating, but lift our TP to Rs 1,138, implying 1.7% potential downside from current levels. We value the stock using a 38x target multiple.

Q1FY18 results: a strong beat
Above or below estimates:HUVR’s Q1FY18 results exceeded both Nomura and Bloomberg consensus estimates at the revenue, Ebitda and PAT levels. While we expected flattish revenue, the company delivered 5.2% growth for the quarter, with 170 bp Ebitda margin expansion, contrary to our expectation of a modest 30 bp expansion. This led to Ebitda beating our estimate by 12.6%.
What do the results mean? A strong set of numbers, in our view. Despite the impact of destocking ahead of GST implementation, delivering flattish volumes highlights the strong core business momentum. Moreover, pricing action which is clearly visible through gross margin expansion, along with cost saving initiatives which helped Ebitda margins expand, should be taken positively. However, we see this recovery largely priced in with the recent stock price rally.
Increase target price to Rs 1,138; maintain Neutral: Following the changes to our earnings estimates, we retain our target multiple of 38x for the stock to arrive at our TP of Rs 1,138, implying 1.7% downside from current levels. Our target price changes primarily as we roll-forward to Q1FY20F and our increased earnings estimates.
We see the stock trading at 36x-40x: HUL has run up 40.3% YTD, which we believe is due to two key reasons: (i) HUL will be a key beneficiary of GST; (ii) expectations of a recovery in consumer demand in H1FY18F. We estimate an EPS CAGR of 18% to FY20F; however, we expect growth levels to taper down beyond this as category penetration stabilises and competition in this space heats up. Given this, we expect the stock to trade between 36x and 40x. At our revised EPS estimates, the stock trades at a P/E multiple of 40.7x FY19F EPS of Rs 28.4, close to 2SD above its LT average. At these levels, we see limited upside; therefore we maintain our Neutral rating. Our top picks in the Household and Personal Care segments are Emami and Dabur.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Options Broker 2020!
    Great Choice For Beginners!
    Free Trading Education!
    Free Demo Account 1000$!
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Only For Experienced Traders!

FY18 Q1 – Press Releases – Investor Relations – Microsoft

Press Release & Webcast

Earnings Release FY18 Q1

Microsoft Cloud Continues to Grow, Powers First Quarter Results

Commercial cloud annualized revenue run rate reaches $20.4 billion

REDMOND, Wash. — October 26, 2020 — Microsoft Corp. today announced the following results for the quarter ended September 30, 2020:

· Revenue was $24.5 billion and increased 12%

· Operating income was $7.7 billion and increased 15%

· Net income was $6.6 billion and increased 16%

· Diluted earnings per share was $0.84 and increased 17%

“This quarter we exceeded $20 billion in commercial cloud ARR, outpacing the goal we set just over two years ago,” said Satya Nadella, chief executive officer at Microsoft. “Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform.”

Microsoft returned $4.8 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2020. During the quarter, the company announced an 8% increase in its quarterly dividend to $0.42 per share.

“Our strong start to the fiscal year reflects the impact of our continued investment in product innovation and sales capacity to capture expanding market opportunities,” said Amy Hood, executive vice president and chief financial officer at Microsoft.

Revenue in Productivity and Business Processes was $8.2 billion and increased 28% (up 28% in constant currency), with the following business highlights:

· Office commercial products and cloud services revenue increased 10% (up 10% in constant currency) driven by Office 365 commercial revenue growth of 42% (up 42% in constant currency)

· Office consumer products and cloud services revenue increased 12% (up 10% in constant currency) and Office 365 consumer subscribers increased to 28.0 million

· Dynamics products and cloud services revenue increased 13% (up 12% in constant currency) driven by Dynamics 365 revenue growth of 69% (up 69% in constant currency)

· LinkedIn contributed revenue of $1.1 billion during the quarter

Revenue in Intelligent Cloud was $6.9 billion and increased 14% (up 13% in constant currency), with the following business highlights:

· Server products and cloud services revenue increased 17% (up 17% in constant currency) driven by Azure revenue growth of 90% (up 89% in constant currency)

· Enterprise Services revenue increased 1% (0% in constant currency) with growth in Premier Support Services offset by declines in custom support agreements

Revenue in More Personal Computing was $9.4 billion and relatively unchanged (down 1% in constant currency), with the following business highlights:

· Windows OEM revenue increased 4% (up 4% in constant currency), ahead of the overall PC market

· Windows commercial products and cloud services revenue increased 7% (up 6% in constant currency) driven by annuity revenue growth

· Search advertising revenue excluding traffic acquisition costs increased 15% (up 15% in constant currency) driven by higher revenue per search and search volume

· Surface revenue increased 12% (up 11% in constant currency) driven by sales of the new Surface Laptop

· Gaming revenue increased 1% (0% in constant currency) with Xbox software and services revenue growth of 21% (up 20% in constant currency) offset by lower hardware revenue

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel and corporate secretary, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor . The webcast will be available for replay through the close of business on October 26, 2020.

New Accounting Standards

We adopted new accounting standards related to revenue recognition and leases effective July 1, 2020. The prior periods presented here have been restated to reflect adoption of these new standards.

Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Financial Performance Constant Currency Reconciliation

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Options Broker 2020!
    Great Choice For Beginners!
    Free Trading Education!
    Free Demo Account 1000$!
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Trading Library
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: