Good morning investors!

Every weekend we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover.

Earnings season is winding down but three of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• Taiwan Semiconductor, Johnson & Johnson, Netflix, Abbott Labs, Prologis, and Domino’s Pizza

Let’s dive in.

Taiwan Semiconductor (TSM)

Taiwan Semiconductor (TSMC) exceeded expectations for revenue and profit in the second quarter, driven by strong demand for advanced AI chips.

The company reported a 40.1% increase in net revenue to $20.82 billion and a 36% rise in net income to $7.7 billion, or $1.48 per share, compared to the previous year.

With chip demand surging, TSMC is spending $65 billion on three plants in Arizona and has other new factories in operation or planning stages in Japan and Germany.

For the third quarter, Taiwan Semi forecasts revenue between $22.4 billion and $23.2 billion, up from $17.3 billion a year ago. TSMC also adjusted its annual capital budget to $30 billion-$32 billion, with 70%-80% allocated to advanced technologies.

TSM shares -8.9% so far this week.

Johnson & Johnson (JNJ)

Johnson & Johnson reported mixed second-quarter results, missing profit estimates due to one-time costs but exceeding sales expectations. 

Sales rose over 4% to $22.45 billion, surpassing analysts' expectations of $22.38 billion. The company reported $4.69 billion in net income, below the expected $5.66 billion. However, after accounting for one-time expenses, adjusted net income was $6.84 billion, or $2.82 per share, exceeding the anticipated $6.59 billion and $2.71 per share. 

In the US, reported sales surged by 7.8% to $12.5 billion compared to $11.6 billion last year, while worldwide sales experienced a 4.3% increase to $22.4 billion.

Johnson & Johnson raised its full-year sales projections to $89.2 billion-$89.6 billion but lowered its adjusted EPS forecast to $9.97-$10.07 from the previous $10.57-$10.72.

JNJ shares are +3.5% so far this week.

Netflix (NFLX)

Netflix reported strong second-quarter earnings that exceeded analyst expectations, but its outlook was not quite up to par for investors.

The company reported revenue of approximately $9.6 billion, up 17% from the previous year, driven by increased average paid memberships. Net income rose 44% to $2.1 billion, or $4.88 per share, surpassing estimates of $4.74 per share.

Global paid memberships grew 16.5% to 278 million. This is one of the last quarters Netflix will be providing membership data.

Netflix now projects full-year revenue growth of 14% to 15%, up from the initial 13% to 15%. However, the company's Q3 revenue forecast of $9.7 billion fell short of estimates, though expected earnings of $5.10 per share were above estimates.

NFLX shares are +0.2% so far this week.

Abbott Labs (ABT)

Abbott Labs reported second-quarter earnings that slightly surpassed Wall Street estimates.

The company’s sales rose 4% from a year ago to $10.38 billion, just above the $10.37 billion estimate. Adjusted quarterly profit per share was $1.14, beating the $1.10 estimate.

Medical devices sales increased by 10.2% to $4.73 billion, surpassing the $4.66 billion estimate, driven by a rise in heart procedure devices. FreeStyle Libre sales rose 18% to $1.6 billion, with expectations of $10 billion in sales by 2028.

However, nutrition business sales were $2.15 billion, slightly missing the $2.16 billion estimate, and diagnostics sales fell 5% to $2.20 billion, below the $2.21 billion estimate.

Abbott forecasts a full-year profit of $4.61 to $4.71 per share, up from the previous $4.55 to $4.70 estimate.

ABT shares are -3.7% so far this week.

Prologis (PLD)

Prologis reported strong second-quarter results, surpassing Wall Street estimates.

The company reported core funds from operations (FFO) of $1.34 per share, 1 cent above expectations. Rental revenue grew 12% year-over-year to $1.85 billion, but consolidated revenue fell 18% to $2 billion due to an 80% drop in strategic capital revenue.

Despite an uncertain macroeconomic environment, demand is improving. Prologis commenced leases covering 46.6 million square feet, an 8% increase year-over-year. Portfolio occupancy was 96.1%, down 140 basis points from last year and 70 basis points from the previous quarter.

The company reaffirmed its full-year occupancy guidance of 95.75% to 96.75% and raised the lower end of its full-year 2024 FFO guidance by 2 cents to a range of $5.39 to $5.47.

PLD shares are +2.1% so far this week.

Domino’s Pizza (DPZ)

Domino’s Pizza reported a better-than-expected second-quarter profit but missed revenue estimates.

The company’s net income rose to $141.9 million, or $4.03 per share, from $109.4 million, or $3.08 per share, a year ago. Revenue increased to $1.098 billion from $1.025 billion.

U.S. same-store sales grew by 4.8%, exceeding the 3.1% expected, and global retail sales grew by 7.2%.

The company added 175 new stores in the quarter, bringing its total to over 20,000 worldwide.

Domino’s expects annual global retail sales growth of over 7% and income from operations to grow by more than 8%. The company plans to open more than 175 stores annually in the U.S. from 2024 to 2028 but expects international openings to fall 175 to 275 stores short of its 2024 goal of over 925 new stores due to challenges faced by Domino’s Pizza Enterprises.

DPZ shares are -16.6% so far this week.

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Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.