Markets are calm following 3 stocks releasing earnings

Published: January 26 2023, 07:10 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 — after dropping 0.18%, Nasdaq closed at 11,300. S&P 500 closed 4,016.22 after a stable 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 inconclusive earnings results Tuesday, with revenue at $52.75 billion, compared to a consensus of $52.96 billion. 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%.

The software giant has recovered 12.97% since descending to a significant low of $214.25 around 2 months ago. So far this year, it has been doing worse than the Nasdaq by 7.74%. The software giant's market cap currently stands at $1.79 trillion with an average daily 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: rises above expectations

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 — early in yesterday's session, TI dropped to $171.64 from $177.04 at the end of Tuesday, before closing at $175.04. During the session, it lost 1.13%.

This year has been a bright one for the semiconductors, electronics designer and manufacturer after trading as low as $148.34 and going on to appreciate by 8.47% year to date. So far this year, it has performed better than the Nasdaq by 0.3%. Currently, the embedded processing and electronics company has a market capitalization of $158.86 billion with an average daily trading volume of 5 million shares.

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