S&P 500 technology companies had a moment this week in the quiet phase of first quarter earnings season. Here is a quick recap of earnings for the week ended June 14.
Out of the four tech companies that reported, only Oracle (ORCL) missed on both EPS and revenue. Autodesk (ADSK), Broadcom (AVGO), and Adobe (ADBE) beat on top and bottom lines.
Of the 484 companies that have reported quarter-to-date, about 78.8% of them beat on earnings per share, while about 54.5% of them topped revenue consensus.
On Tuesday, Oracle reported fourth-quarter results that missed expectations. However, the announcement that the company had signed several key artificial intelligence-centric deals offset the impact of a weak earnings report. In a separate release, the company said it signed a deal with OpenAI to use the company’s cloud infrastructure to extend the Microsoft Azure AI Platform. It also signed a deal with Google (GOOG) (GOOGL) to form a multi-cloud partnership.
Tuesday also saw Autodesk’s Q1 results surpass expectations, indicating progress with its generative artificial intelligence 3D shape project. “Autodesk is ahead of its peers in 3D AI and the industry clouds, platforms, and business model evolution that will be needed to deliver 3D AI products and services at scale,” said CEO Andrew Anagnost. “We can already use generative AI to quickly generate functional 3D shapes from a variety of inputs, including 2D images, text, voxels, and point clouds.” The company said it expects Q2 revenue between $1,475 and $1,490 million and non-GAAP EPS between $1.98 and $2.04.
On Wednesday, investors cheered Broadcom’s report after the semiconductor company’s beat estimates on top-and-bottom lines and announced a 10-1 stock split. The company forecasted full-year revenue to be $51 billion, above the $50.58 billion estimate. Adjusted EBITDA was forecasted to be around 61% of full-year revenue.
Adobe shares surged in post-market trading on Thursday after the Photoshop software provider delivered an upbeat forecast for the year on top of a results beat. The company guided total revenue for the year to a range of $21.4B–$21.5B. Analysts were expecting revenue of $21.46 billion. Non-GAAP EPS was forecasted at around $18.00 and $18.20 vs. the consensus of $18.01.
Four S&P 500 companies, namely Accenture (ACN), Kroger (KR), Darden Restaurants (DRI), and Jabil (JBL), are reporting next week on Thursday.
