Technology

IBM Delivers on Two Key Metrics in ‘Solid’ Q1 Despite Revenue Miss, RBC Says

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International Business Machines (IBM) delivered on free cash flow and Red Hat sales in Q1 for a “solid” start to the year despite trailing estimates on total revenue, RBC Capital Markets said Thursday in a report. “The highlight from our perspective was the performance of our two focal metrics” with free cash flow of $1.9 billion topping RBC’s $1.7 billion estimate and Red Hat revenue in line with expectations, according to the report. IBM on Wednesday reported Q1 adjusted earnings rose to $1.68 a share from $1.36 a year earlier, topping the Capital IQ consensus of $1.59. Revenue rose to $14.46 billion, trailing the consensus of $14.54 billion. “The biggest negative surprise was around the consulting space where IBM’s resiliency relative to the broader market over the past year showed some signs of softening,” RBC said. On Wednesday, IBM also agreed to buy multi-cloud infrastructure automation company HashiCorp (HCP) for […]

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Microsoft Q3 Shines Light On ‘AI Innovation Cycle’: Analysts See ‘Plenty Of Runway For Growth’

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Technology giant Microsoft Corporation (NASDAQ:MSFT) reported third-quarter financial results that saw revenue and earnings per share beat estimates from analysts. Analysts are praising the company’s growth of artificial intelligence platforms. The MSFT Analysts: Oppenheimer analyst Timothy Horan has an Outperform rating and price target of $450. Raymond James analyst Andrew Marok has an Outperform rating and raises the price target from $450 to $480. Goldman Sachs analyst Kash Rangan has a Buy rating and raises the price target from $450 to $515. Morgan Stanley analyst Keith Weiss has an Overweight rating and price target of $520. Wedbush analyst Daniel Ives has an Outperform rating and price target of $500. Bank of America analyst Brad Sills has a Buy rating and price target of $480. JPMorgan analyst Mark Murphy has an Overweight rating and raises the price target from $440 to $470. BMO Capital analyst Keith Bachman has an Outperform rating and price

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Microsoft Delivers Another Strong Quarter With Impressive Results, Wedbush Says

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Microsoft (MSFT) latest Q3 results showcased yet another strong quarter with impressive outcomes across the board, Wedbush said in a report Friday. Microsoft Azure’s growth soared at 31%, surpassing both the Wall Street’s estimate of 29% and the company’s own guidance of 28%, driven by strong demand for their updated tech stack. “Copilot conversions continue exploding with partners/customers lining up for further Copilot deployments to increase efficiencies and profitable growth with more use cases seen across the product portfolio as the AI Revolution heats up,” Wedbush said. In Q3, Microsoft’s total revenues reached $61.86 billion, surpassing estimates, driven by successful AI integration, the firm said. Looking ahead, Microsoft anticipates solid revenue growth for Q4, “as more customers see increased use cases with MSFT’s AI technology stack to further expand profitable growth” while generating greater efficiencies across operations despite increasing investments, Wedbush said. Microsoft also issued robust guidance for 2025, anticipating

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CFRA Maintains Buy Recommendation On Shares Of Kla Corporation

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our price target by $23 to $778, 25x our CY 2025 EPS view ($31.13), near peers and above KLAC’s three-year average (~18x) on growing confidence that the semi industry is exiting a downcycle, driven by AI. KLAC posted Mar-Q sales of $2.36B (-3% Y/Y) and EPS of $5.26 (-4%), above consensus, including a -$0.40 impact to EPS from its March decision to exit the flat panel business. We raise our FY 2024 (Jun.) EPS view by $0.06 to $23.36, lift FY 2025’s by $1.27 to $28.56, and raise FY 2026’s by $0.70 to $33.40. We expect CY 2024 growth to be led by foundry/logic activity (64% of Mar-Q process control sales) as customers move at a faster pace toward gate-all-around and 2-nm, while advanced DRAM

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Alphabet’s Blockbuster Results Highlight Its Transition From AI Laggard To Going ‘On The Offensive’: 11 Analysts Revise Forecasts After Q1 Results

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Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) shares were climbing on Friday after the company reported its first-quarter results amid a lot of hype around the AI revolution. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. Goldman Sachs On Alphabet Analyst Eric Sheridan reiterated a Buy rating while raising the price target from $185 to $195. Alphabet’s first-quarter results reflected higher-than-expected revenues from Search and YouTube, “as Google’s broader ad ecosystem benefited from a strong end demand environment and continued to demonstrate product innovation with Performance Max and YT Shorts,” Sheridan wrote in a note. “AI innovation continues to build scale in the advertising business (conversions, Performance Max and search generative experience),” he added. “Alphabet struck a multi-sided theme of investing for the long-term (highlighted by Q1 capex levels that would be sustained throughout 2024), upside in both Services and Cloud operating income margins as prior period

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Alphabet’s Google Properties Likely to Grow by $20 Billion in 2024, UBS Says

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Alphabet’s (GOOG) Google properties are expected to grow by around $20 billion in 2024 as Search monetization steps up and YouTube recovers, UBS said Friday in a note to clients. The Search franchise is on track to accelerate and add $16 billion in revenue, while YouTube is set to recover and grow $5 billion in revenue this year, UBS said. “Overall, our revenue estimates march higher as we factor in quick acceleration in YouTube (where YouTube TV is gaining budgets from linear TV and seeing better YouTube Shorts monetization) and take off some of the conservatism in Search,” UBS said. UBS estimates 2024 Google Search revenue of $190.5 billion, versus the previous estimate of $187.2 billion, and YouTube Ads revenue of $36.6 billion, up from $35.3 billion. UBS raised Alphabet’s price target to $173 from $166 and maintained its neutral rating. Alphabet shares rose 9.4% in recent Friday trading.

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CFRA Reiterates Strong Buy Opinion On Shares Of Servicenow Inc.

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We drop our target price to $841 from $852 on a P/E of 60x our NTM EPS view of $14.02, above its 1-year average as NOW consolidates share in ITOM/ITSM and builds Gen AI momentum. We lift our 2024 EPS forecast to $13.54 from $13.10, but trim our 2025 EPS view to $16.15 from $16.35. NOW posted Q1 sales of $2.6B, above consensus by $10M, while non-GAAP EPS of $3.41 beat by $0.28. Sales rose 24.2% Y/Y, led by Subscription growth of 24.5%, slightly lower than expected, from fewer transactions with ACVs above $1M (-10.6% Y/Y). FX also contributed to a 50 bps headwind to subscription sales and RPO growth (+26.4% Y/Y). NOW raised the midpoint of its full-year subscription sales guide marginally ($3M), which includes a

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ServiceNow Q1 Results ‘Relatively Uneventful,’ Morgan Stanley Says

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ServiceNow (NOW) posted “relatively uneventful” Q1 results, with the company’s upcoming analyst day and the potential for better current remaining performance obligations, or cRPO, growth in the second half of the year seen as its next catalysts, Morgan Stanley said Thursday. Late Wednesday, the company reported Q1 constant-currency cRPO growth of 21%, which Morgan Stanley said was 100 basis points better than outlook. ServiceNow’s Q2 constant-currency cRPO growth guidance of roughly 21% topped the consensus for 20% increase, the brokerage said. Morgan Stanley raised its price target on the ServiceNow stock to $830 from $814. The firm maintained its overweight rating on the stock, with the company’s potential next catalysts being its May 6 analyst day and second-half results, “where we see more upside to estimates and the potential for better [constant-currency] cRPO growth,” according to the note. The company’s shares were down over 5% in recent trading.

ServiceNow Q1 Results ‘Relatively Uneventful,’ Morgan Stanley Says Read Post »

Meta Platforms’ AI Investments Likely to Drive More Durable Growth, Morgan Stanley Says

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Meta Platforms’ (META) accelerated artificial intelligence investments are expected to drive more durable engagement and revenue growth, Morgan Stanley said in a note to clients Thursday. The company said late Wednesday that it expects full-year 2024 capital expenditures to be in the range of $35 billion to $40 billion, compared with $30 billion to $37 billion previously, as it continues to accelerate its AI infrastructure investments. “We agree with higher investment to come as Meta continues to accelerate AI infrastructure investments for more durable engagement and revenue growth,” Morgan Stanley said. The $39 billion top end of Meta’s Q2 revenue guidance was 1% ahead of Morgan Stanley’s expectations and the company’s Q1 revenue of $36.5 billion was also roughly in line with the firm’s forecast, according to the note. Morgan Stanley maintained its overweight rating and $550 price target on Meta. Meta’s shares were down 11.7% in recent trading Thursday.

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Intel Reports First-Quarter 2024 Financial Results

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Intel Reports First-Quarter 2024 Financial Results NEWS SUMMARY — First-quarter revenue of $12.7 billion, up 9% year over year (YoY). — First-quarter GAAP earnings (loss) per share (EPS) attributable to Intel was $(0.09); non-GAAP EPS attributable to Intel was $0.18. — Forecasting second-quarter 2024 revenue of $12.5 billion to $13.5 billion; expecting second-quarter EPS of $(0.05); non-GAAP EPS of $0.10. SANTA CLARA, Calif.–(BUSINESS WIRE)–April 25, 2024– Intel Corporation today reported first-quarter 2024 financial results. “We are making steady progress against our priorities and delivered a solid quarter,” said Pat Gelsinger, Intel CEO. “Strong innovation across our client, edge and data center portfolios drove double-digit revenue growth in Intel Products. With Intel 3 in high-volume production, leading-edge semiconductors are being manufactured in the U.S. for the first time in almost a decade and we are on track to regain process leadership next year as we grow Intel Foundry. We are confident

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Alphabet Q1 2024 GAAP EPS $1.89 Beats $1.51 Estimate, Sales $80.539B Beat $78.594B Estimate

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Alphabet (NASDAQ:GOOG) reported quarterly earnings of $1.89 per share which beat the analyst consensus estimate of $1.51 by 25.17 percent. The company reported quarterly sales of $80.539 billion which beat the analystAlphabet (NASDAQ:GOOG) reported quarterly earnings of $1.89 per share which beat the analyst consensus estimate of $1.51 by 25.17 percent. The company reported quarterly sales of $80.539 billion which beat the analyst consensus estimate of $78.594 billion by 2.47 percent. This is a 15.41 percent increase over sales of $69.787 billion the same period last year.

Alphabet Q1 2024 GAAP EPS $1.89 Beats $1.51 Estimate, Sales $80.539B Beat $78.594B Estimate Read Post »

Intel Sees Q2 EPS $0.10 Vs $0.24 Est.; Revenue $12.5B-$13.5B Vs $12.68B Est.

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Business Outlook Intel’s guidance for the second quarter of 2024 includes both GAAP and non-GAAP estimates. Reconciliations between GAAP and non-GAAP financial measures are included below. Q2 2024 GAAP Non-GAAP Revenue $12.5-13.5 billion Gross Margin 40.2% 43.5% Tax Rate 61% 13% Earnings (Loss) Per Share Attributable to Intel—Diluted $(0.05) $0.10 Actual results may differ materially from Intel’s business outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below. The gross margin and EPS outlook are based on the mid-point of the revenue range.

Intel Sees Q2 EPS $0.10 Vs $0.24 Est.; Revenue $12.5B-$13.5B Vs $12.68B Est. Read Post »

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