Top US stocks to watch before the bell: Boeing, Spotify and Tesla

Boeing’s loss narrows as deliveries improve, Spotify beats expectations but disappoints with its guidance, Tesla’s bitcoin rises in value, Microsoft and Alphabet both report strong growth, Shopify’s revenue quite doubles, and Starbucks and Yum Brands eye a recovery this year.
Aircraft maker Boeing reported a significantly narrower quarterly loss as deliveries of its 737 MAX jets improved and airlines prepare to stage a recovery this summer.

The company reported an operating loss of $353 million within the half-moon compared to a $1.7 billion loss the year before. Revenue fell to $15.2 billion from $16.9 billion.

Boeing’s 737 MAX planes were cleared to resume flying last year after two fatal accidents and deliveries restarted in late March, which should cause better results going forward. However, further doubt was cast when it revealed a replacement electrical problem on some planes earlier this month.

Spotify revealed it acquired more paid subscribers than expected during the primary quarter of 2021, boosted by growth in both new and existing markets.

The music streaming service said premium subscribers, which drive the majority of its revenue, jumped 21% year-on-year to 158 million. That was before the 157.5 million expected by analysts. Total monthly active users jumped 24% to 356 million. Revenue rose to EUR2.15 billion from EUR1.85 billion and came in slightly better than expected.

Spotify said growth within the US, Mexico, Russia and India offset less than expected growth in Latin America and Europe. It also launched a replacement podcast subscription service following an identical launch by Apple. However, its outlook disappointed because it forecast it’ll report 162 to 166 million premium subscribers at the top of the second quarter was below the 166.1 million forecast by analysts.

Tesla has revealed that its bitcoin was valued at $2.48 billion at the top of March, suggesting it’s already made a $1 billion profit on its original investment.

The electric carmaker said it bought around $1.5 billion worth of bitcoin during the primary quarter of 2021 and earlier this month said it had sold about 10% of its holding for gross proceeds of around $272 million and a net income of $101 million.

Tesla surprised the market by buying bitcoin but the corporate has said it doesn’t shall do that regularly. Chief executive Elon Musk said the corporate had bought and sold bitcoin as how to ‘prove liquidity of bitcoin as an alternate to holding cash on [the] balance sheet’.

Alphabet, the parent company of Google, reported record profits within the half-moon of 2021 on Tuesday, prompting it to launch a replacement $50 billion share buyback.

Overall revenue rose 34% to $55.3 billion, considerably better than the 26% growth expected by analysts. Quarterly profit of $26.29 per share beat expectations for $15.88. It continues to profit from people living more of their lives online during the pandemic, but it warned that the rise in usage and ad sales could unwind as people return to their normal lives.

The new share buyback programme are going to be on top of the $25 billion buyback launched in 2019 that’s still ongoing .

Microsoft posted strong growth in revenue and earnings during the primary three months of the year after taking advantage of variety of one-off tax and currency tailwinds.

Revenue of $41.7 billion was better than the $41.03 billion expected, while adjusted earnings of $1.95 per share was better than the $1.78 forecast by analysts. net was up 44% year-on-year to $15.5 billion. Its range of products and services – including its gaming, cloud-computing, LinkedIn social media platform and its Teams collaboration app – have all seen increased demand during the pandemic.

However, shares weren’t spurred higher once the results were released because of one-off benefits from tax and currency tailwinds flattering its results.

General Dynamics
General Dynamics said an improvement in its aerospace unit and continued growth from its more resilient defence division resulted in 7% revenue growth within the first three months of the year.

The company said it delivered 28 Gulfstream jets within the period compared to only 23 the year before, but this was less than the 40 shipped within the fourth quarter of 2020. Aerospace revenue improved to $1.89 billion from $1.69 billion.

Overall revenue rose to $9.39 billion from $8.75 billion while net earnings inched up to $708 million from $706 million, boosted by its more resilient defence division.

Yum Brands
Yum Brands, the owner of KFC, Taco Bell and Pizza Hut, marginally beat expectations within the first three months of the year as more customers return to its restaurants and therefore the US economy reopens.

The company said the easing of dining room capacity restrictions had led to more people eating out. Comparable sales rose 9% year-on-year, beating expectations for 8.6% growth. net rose to $326 million from $83 million the year before.

Shopify said revenue quite doubled within the half-moon because it continues to profit from the shift to online shopping during the pandemic.

Revenue rose 110% to $988.6 million, coming in well before the $865.5 million forecast by analysts. Gross merchandise value was up 114% to $37.3 billion and beat expectations of $34.38 billion, representing a minimum of the sixth consecutive quarter it’s topped estimates.

Advanced Micro Devices
Advanced Micro Devices raised its revenue guidance for the complete year after beating expectations within the half-moon because it remains confident it can source the chips it needs despite a worldwide shortage in supplies.

Revenue within the first three months of the year jumped 93% to $3.45 billion and came in well before the $3.21 billion expected by analysts. Earnings per share excluding items of 52 cents was also better than the 44-cent forecast.

AMD said it expects annual revenue this year to rise 50%, faster than its previous 39% growth target.

Amgen reported lower revenue and profits within the half-moon thanks to lower drug prices, increased competition, and since the pandemic continues to discourage people from visiting their doctor for other healthcare needs.

Adjusted EPS fell 12% to $3.70 and missed the $4.04 expected by analysts. Amgen warned that it expects net selling prices to say no this year thanks to more competition entering the market, including from generic drugs.

Amgen reiterated its target to deliver revenue of between $25.8 billion to $26.6 billion and adjusted EPS of $16 to $18 in 2021, but lowered its net EPS target to a variety of $9.11 to $10.71 from $12.12 to $13.17 previously.

Pinterest reported stronger revenue growth than expected within the half-moon and said it expects this to accelerate further within the second despite reporting slower growth in user numbers.

The company said revenue was up 78% within the quarter at $485 million, before the $473.7 million forecast by analysts. It said it expects to report a 105% year-on-year lift in revenue during the second quarter, which was also quite analysts had expected.

Still, Pinterest said monthly active users grew by 30% year-on-year within the quarter to 478 million, representing a slowdown from the 37% growth delivered within the previous quarter.

Starbucks on Tuesday reported worse than expected sales figures within the second quarter of its fiscal year because it continues to struggle during the pandemic, but raised its full year guidance on hopes more people will return to purchasing coffee because the economy reopens.

Revenue rose 11% within the quarter to $6.67 billion but missed expectations of $6.82 billion.

Starbucks said it now expects annual revenue within the current fiscal year to return in between $28.5 billion and $29.3 billion, up from $28.0 to $29.0 billion, and for adjusted EPS of $2.90 to $3.00 compared to its previous firing range of $2.70 to $2.90.

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