Markets are calm following 3 stocks releasing earnings

Published: January 26 2023, 05:10 GMT+0

Markets are calm following 3 stocks releasing earnings

Microsoft, Verizon, Texas Instruments are the ones to read about today.

Markets did not have a clear cut direction — Nasdaq lost 0.18% and ended the session at 11,300. S&P 500 closed at 4,016.22 after a flat day.

What is an earnings report?

An earnings report is an official statement of a company's profitability over a certain period of time. Usually, these reports are released four times a year (quarterly reports) and have a significant impact on the market. These announcements are typically taken into consideration when making predictions.

Microsoft: mixed results

Microsoft reported earnings results Tuesday; with EPS at 2.32 and revenues at $52.75 billion, these results are mixed compared to a consensus of 2.27 Earnings Per Share and $52.96 billion revenue. Since the release of its earnings report, Microsoft lost 0.81%.

Though in the midst of a 4 day uptrend, gaining a total of 3.74%, ($10.11), the prevailing bullish trend is beginning to fade following yesterday's downbeat session. After ending Tuesday at $242.04, Microsoft dropped to $230.9 early in yesterday's session and closed at $240.61. In total, it lost 0.59%.

Microsoft hit a significant low of $214.25 around 2 months ago, but has since recovered 12.97%. So far this year, it has been doing worse than the Nasdaq by 7.14%. The company is currently trading with a market cap of $1.79 trillion with an average daily trading volume of 29.19 million shares.

Verizon: mixed results

Verizon reported earnings results Tuesday, with EPS at 1.19 and revenues at $35.25 billion; these results are mixed when compared to a consensus of 1.2 Earnings Per Share and $35 billion revenue. Since the release of its earnings report, Verizon gained 1.77%.

Slightly down but mostly flat: Verizon ranged between $39.91 and $41.09 before closing at $40.33. Daily trading volume (26.53 million shares) increased, making up 111% of the 21-day average (23.84 million).

TI: better than estimations

TI was down, even though its quarterly earnings released on Tuesday beat the analysts’ estimates. The reported earnings of 2.13 per share on revenue of $4.67 billion, topping estimates of 1.96 per share on revenue of $4.62 billion.

Though in the midst of a 4 day uptrend, gaining a total of 2.4%, ($6.11), yesterday's session suggests run might be coming to an end — after ending Tuesday at $177.04, TI declined to $171.64 yesterday before closing at $175.04, thereby losing 1.13% in total. TI's recent uptrend could be petering out after the company eclipsed its average daily volume of 5 million by 126% today.

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