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Good evening investors!

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

Earnings season was in full force this week as thirteen of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• Monday 10/28: Waste Management

• Tuesday 10/29: Alphabet, Visa, AMD, McDonald’s, American Tower, PayPal, and Chipotle

• Wednesday 10/30: Microsoft, Meta, Eli Lilly, AbbVie, Caterpillar, and Coinbase

• Thursday 10/31: Apple, Amazon, Mastercard, Merck, Uber, Starbucks, Intel, and VICI Properties

• Friday 11/1: Exxon Mobil, Chevron, and Enbridge

Let’s dive in.

Apple (AAPL)

Apple reported strong quarterly earnings, beating revenue and EPS estimates despite some mixed performance across segments.

The company achieved net income of $14.7 billion and total revenue of $94.93 billion, reflecting a 6% increase in revenue YoY but a 36% decrease in net income.

iPhone revenue reached $46.22 billion, up 6% YoY, surpassing the $45.04 billion estimate, while Services generated $25 billion, growing by 12% YoY but falling short of expectations. Operating income rose to $29.6 billion, up 10% YoY, and operating cash flow increased by 7% to $118.3 billion, demonstrating Apple's robust cash generation capability.

Mac revenue was flat at $7.74 billion, matching estimates, while iPad sales showed positive growth at $7 billion, up 8% YoY. Accessories revenue declined by 3% YoY to $9 billion, contributing to mixed product segment outcomes. Apple executed significant share buybacks worth $95 billion in the quarter.

Apple did not provide forward guidance for the upcoming fiscal year.

AAPL shares are -3.7% so far this week.

Microsoft (MSFT)

Microsoft reported robust fiscal first-quarter earnings, beating expectations on both revenue and EPS, yet shares fell due to concerns over future growth forecasts.

The company posted net income of $24.7 billion, up 11% YoY, with revenue reaching $65.6 billion, marking a 16% increase from the same quarter last year.

Key highlights included a 33% growth in Azure and cloud services revenue, driven in part by AI services contributing 12 percentage points to the increase. The productivity and business processes segment rose by 12%, generating $28.3 billion, surpassing analyst estimates. The intelligent cloud segment, including Azure and related services, generated $24.1 billion in revenue, a 20% YoY increase, while the personal computing segment saw a 17% increase to $13.2 billion.

Looking ahead, Microsoft projected Q2 revenue between $68.1 billion and $69.1 billion, reflecting slower growth at around 10.6%, and below the $69.7 billion analysts' estimate. Azure sales growth is anticipated to be between 31% and 32%. The company anticipates continued challenges in data center infrastructure supply but expects the situation to improve in the fiscal year's latter half.

The company also expects revenue from the More Personal Computing segment to range from $13.85 billion to $14.25 billion, lower than the $16.40 billion estimated. The Intelligent Cloud segment is projected to bring in between $25.55 billion and $25.85 billion, below the $28.48 billion forecast. The Productivity & Business Processes segment is expected to generate $28.7 billion to $29.0 billion in revenue.

MSFT shares are -4.3% so far this week.

Alphabet (GOOG)

Alphabet reported third-quarter earnings that beat expectations on both revenue and earnings per share, driven by substantial growth in its cloud division and strong contributions from its core search and YouTube advertising businesses.

The company reported net income of $26.3 billion, or $2.12 per share, up from $19.7 billion, or $1.55 per share, in the prior year. Revenue rose 15% year-over-year to $88.27 billion, exceeding analyst estimates of $86.40 billion.

Key highlights include Google Cloud revenue reaching $11.4 billion, a 35% YoY increase attributed to demand for AI-driven services, and YouTube advertising revenue hitting $8.9 billion, up 12% YoY. Google Search remains the largest revenue contributor at $49.4 billion, reflecting a 12% annual growth, while advertising revenue grew to $65.85 billion amid rising competition.

For FY 2024, Alphabet provided no formal guidance but emphasized plans to leverage AI to drive future growth across Google Search, Clo

GOOG shares are +3.7% so far this week.

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Amazon (AMZN)

Amazon reported strong Q3 earnings, surpassing both revenue and EPS expectations due to robust growth across key segments.

The company posted a net income of $15.3 billion, up 55% YoY, on total revenue of $158.88 billion, representing an 11% YoY increase.

Key highlights included North America revenue climbing 9% YoY to $95.5 billion and AWS revenue growing 19% YoY to $27.5 billion, showcasing the continued expansion of its cloud business. Operating income surged 56% YoY to $17.4 billion, while operating cash flow saw a significant boost of 57% YoY to $112.7 billion, demonstrating strong financial momentum.

For Q4 2024, Amazon provided guidance for revenue between $181.5 billion and $188.5 billion (+9% YoY) and projected operating income in the range of $16.0 billion to $20.0 billion, indicating expected growth of up to 36% YoY.

AMZN shares are +6.0% so far this week.

Meta Platforms (META)

Meta reported a strong Q3 2024, with earnings and revenue surpassing expectations, yet the market remains cautious due to warnings of future expense increases.

The company posted total revenue of $40.59 billion, up 19% year-over-year. Net income surged 35% to $15.7 billion from $11.6 billion a year ago, and earnings per share of $6.03, beating the expected $5.25.

Key highlights include advertising revenue reaching $38.9 billion, a 19% increase YoY, and Reality Labs revenue growing by 29% YoY to $270 million, despite significant operating losses in the unit. Daily active users grew 5% YoY to 3.29 billion, although slightly below analyst forecasts. Meta's investments in AI continue to bolster its ad capabilities and infrastructure development, with over one million advertisers utilizing its generative AI ad tools.

Guidance for Q4 projects revenue between $45 billion and $48 billion, surpassing analyst expectations. However, the company also flagged a substantial rise in infrastructure spending for 2025, driven by AI and data center expansions, signaling future cost pressures despite strong financial performance in the present.

META shares are -1.1% so far this week.

Eli Lilly (LLY)

Eli Lilly reported third-quarter earnings and revenue that missed expectations, impacted by lower-than-expected sales of its key drugs Zepbound and Mounjaro.

The company posted net income of $970 million, or $1.07 per share, compared to a net loss of $57 million in the prior year. Adjusted earnings were $1.18 per share on revenue of $11.44 billion, which grew 20% year-over-year but missed the $12.22 billion estimate.

Key highlights include Mounjaro revenue of $3.1 billion, which, while more than doubling year-over-year, fell short of expectations, as did Zepbound with $1.26 billion in sales. Trulicity revenue declined 22% YoY to $1.3 billion, while Verzenio saw strong growth, rising 32% YoY to $1.4 billion.

Eli Lilly revised its full-year guidance, lowering adjusted EPS to a range of $13.02 to $13.52 from its previous $16.10 to $16.60 range, and reducing its revenue outlook to $45.4 billion to $46 billion.

LLY shares are -7.5% so far this week.

Visa (V)

Visa reported strong fourth-quarter fiscal 2024 earnings, surpassing estimates due to robust growth in payment volumes and processed transactions.

The company posted net income of $2.71 per share, up 16% year over year, with net revenues increasing 12% to $9.6 billion, beating consensus expectations.

Visa saw an 8% year-over-year increase in payment volume on a constant-dollar basis, and processed transactions rose 10% to 61.5 billion. Cross-border volume grew by 13%, contributing to the revenue boost, though operating expenses increased 11% due to higher marketing and personnel costs.

Shareholder returns were significant, with $6.8 billion distributed via share buybacks and dividends, and a 59-cent per share dividend was announced for December.

For fiscal 2025, Visa expects high single-digit to low double-digit growth in net revenues and EPS, despite continued investment in operating expenses.

V shares are +2.3% so far this week.

Exxon Mobil (XOM)

Exxon Mobil reported mixed third-quarter 2024 earnings, with revenue missing expectations and earnings per share exceeding forecasts.

The company posted a net income of $8.6 billion, a 5% decline year-over-year, on revenue of $90.02 billion, which represented a 1% decrease compared to Q3 2023.

Key highlights include a 10% increase in upstream revenue to $18.9 billion, while energy revenue dropped significantly by 60% to $3.6 billion. Operating income fell by 5% year-over-year to $13.0 billion, with operating expenses remaining flat at $77.0 billion.

Operating cash flow showed strong growth, rising by 66% to $17.6 billion. Exxon Mobil also continued to reward shareholders with $13.8 billion in share buybacks year-to-date and announced a 4% increase in its dividend.

Looking ahead, Exxon Mobil maintains its full-year 2024 capital expenditure guidance at $28.0 billion and continues to focus on structural cost savings, with a target of $15 billion in cumulative savings by 2027.

XOM shares are -1.3% so far this week.

Mastercard (MA)

Mastercard reported a strong third quarter, with revenue and earnings surpassing analysts' expectations, supported by robust consumer spending and cross-border transaction growth.

The company posted net income of $3.3 billion, or $3.53 per share, up from $3.2 billion, or $3.39 per share, in the same period last year, while adjusted EPS was $3.89, exceeding the $3.74 consensus. Revenue grew by 13% year over year, totaling $7.37 billion, driven by a 10% increase in payment network revenue and a 9% rise in gross dollar volume to $2.5 trillion.

Key highlights include a significant 18% growth in services revenue and continuous expansion in cross-border volume, which reached 17% year-over-year growth in Q3. The U.S. switched volume showed improvement, rising 8% in October.

Operating cash flow surged 26% year over year to $9.9 billion, despite operating expenses climbing 25%. Mastercard's share buyback program returned $2.9 billion to shareholders, reinforcing its commitment to shareholder value.

Looking forward, Mastercard projects low double-digit revenue growth for Q4 and fiscal 2025, citing strong consumer spending and a resilient macroeconomic environment, albeit with caution regarding inflation variability across regions.

MA shares are -0.3% so far this week.

AbbVie (ABBV)

AbbVie reported strong Q3 earnings, exceeding both revenue and EPS estimates driven by robust performance in key product segments.

The company recorded total revenue of $14.46 billion, a 4% increase year-over-year, while net income was $1.6 billion, reflecting a 12% decline YoY.

Key highlights include a significant 51% YoY growth in Skyrizi revenue to $3.2 billion and a 45% YoY increase in Rinvoq revenue to $1.6 billion. Humira revenue, however, saw a notable 37% YoY decline to $3.5 billion.

Operating income surged 68% YoY to $3.8 billion, while operating expenses decreased 9% to $11.7 billion, contributing to an operating margin of 26.5%.

For its FY 2024 outlook, AbbVie raised its EPS guidance to a range of $10.90-$10.94, up from its prior guidance of $10.71-$10.91, showcasing its confidence in continued strong performance.

ABBV shares are +8.4% so far this week.

Chevron (CVX)

Chevron's Q3 earnings report showed a decline in profitability but maintained a strong operational focus with significant cash returns to shareholders.

CVX shares are +3.1% so far this week.

Merck (MRK)

Merck reported mixed third-quarter earnings with revenue beating estimates but EPS declining significantly year-over-year.

MRK shares are -1.7% so far this week.

Advanced Micro Devices (AMD)

AMD reported third-quarter earnings in line with expectations and slightly beat on revenue, driven by explosive growth in its data center segment.

AMD shares are -8.4% so far this week.

McDonald’s (MCD)

McDonald's reported third-quarter earnings and revenue that slightly surpassed expectations, highlighting steady growth amid cautious consumer spending.

MCD shares are +0.9% so far this week.

Caterpillar (CAT)

Caterpillar reported mixed Q3 earnings, missing estimates for both revenue and EPS due to softer-than-expected results across certain segments.

CAT shares are -1.9% so far this week.

Uber Technologies (UBER)

Uber reported strong third-quarter earnings, surpassing revenue and earnings per share expectations due to robust growth across its business segments, though gross bookings were slightly below estimates.

UBER shares are -6.0% so far this week.

Starbucks (SBUX)

Starbucks reported weaker-than-expected Q4 earnings and revenue, reflecting operational challenges and a decline in comparable sales.

SBUX shares are +1.3% so far this week.

American Tower (AMT)

American Tower reported mixed Q3 results, missing revenue and FFO estimates amid challenges in international operations.

AMT shares are -3.6% so far this week.

Intel (INTC)

Intel's Q3 earnings report reflected mixed results, with revenues beating estimates but substantial losses impacting overall performance.

INTC shares are +1.1% so far this week.

Waste Management (WM)

Waste Management reported strong Q3 earnings, surpassing both revenue and EPS estimates due to growth in recycling and core collection services.

WM shares are +4.4% so far this week.

PayPal (PYPL)

PayPal's Q3 earnings report showed mixed results, with earnings per share exceeding expectations while revenue slightly missed estimates.

PYPL shares are -5.5% so far this week.

Chipotle (CMG)

Chipotle reported a mixed Q3 earnings result, with earnings per share exceeding expectations but revenue slightly missing forecasts.

CMG shares are -3.3% so far this week.

Coinbase (COIN)

Coinbase reported mixed Q3 results, with revenue and earnings missing estimates despite significant growth in transaction and subscription revenue.

COIN shares are -10.1% so far this week.

VICI Properties (VICI)

VICI Properties reported solid Q3 2024 results, surpassing revenue and AFFO expectations driven by growth in its leasing segments.

VICI shares are flat so far this week.

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The Investor’s Edge

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.