For Immediate Release
Chicago, IL – July 20, 2022 – Zacks.com announced the list of stocks featured on the Analyst Blog. Every day Zacks Equity Research analysts discuss the latest news and events affecting stocks and financial markets. Stocks recently featured on the blog include: Chevron Corp. CVX, Adobe Inc. ADBE, Advanced Micro Devices, Inc. AMD, ServiceNow, Inc. NOW at Dominion Energy, Inc. D.
Here are the highlights from Tuesday’s Analyst Blog:
Earnings Season Scorecard and New Analyst Reports for Chevron, Adobe and Others
Zacks Research Daily presents the best research results of our analyst team. Today’s Research Daily features real-time updates on Q2 season earnings and new research reports on 16 major stocks, including Chevron Corp., Adobe Inc. and Advanced Micro Devices, Inc. These research reports were selected from approximately 70 reports published by our analyst team today.
You can do it view all research reports today here >>>
Q2 Season Earnings Scorecard
With all the results this morning, we now have Q2 earnings reports from 48 members of the S&P 500. Total revenue for these companies is down -13% from the same period last year to +5.9 % higher revenues, with 72.9% beating EPS estimates and 62.5% beating earnings estimates.
A unique feature at this accepted early stage in the Q2 reporting cycle is the inability of companies to consensus estimates. The 72.9% EPS beats percentage is the lowest since the first quarter of 2020 for this group of 48 index members and the third lowest in the previous 20 quarters. The revenue beats percentage is also in the lower part.
A major reason for the -13% year-over-year decline in revenues for the 48 members of the index who reported at this period was the poor comparisons for the Financial sector as revenues in Q2 fell. of -28% from the previous year’s level.
Excluding the drag of the Financial sector, Q2 earnings for the other index companies that reported actually rose +12.1% from the same period last year.
For more details on Q2 season earnings, please see our weekly Earnings Preview report >>>>> Breaking JPMorgan, Citi and Big Bank Revenue
Today’s Featured Analyst Reports
Chevron shares outperformed the Zacks Oil and Gas – Integrated – International industry in the past year ( +53.2% vs. +41.7%). Driving Chevron’s recent outperformance, which Zacks analysts see as sustainable going forward is the company’s greater oil price leverage compared to other super major and favorable production growth profiles.
The current project pipeline of No. 2 America’s energy companies are among the best in the industry, thanks to its leading position in the profitable Permian Basin. However, Chevron has not been immune to falling commodity prices in 2020, forcing it to reduce spending significantly. The high sensitivity of the company’s oil price is also a concern.
Moreover, the supermajor’s 10-year reserve replacement ratio of 100% indicates its inability to replace the amount of oil and gas produced. Finally, Chevron became the laggard to jump on the net-zero bandwagon.
(You can do it read the full Chevron research report here >>>)
Adobe shares fell -33.2% on year -to -date basis against Zacks Computer -The software industry’s decline of -26.6%. The company’s lower end-market demand and high procurement costs remain major overhangs. However, Creative Cloud, Document Cloud, and Adobe Experience Cloud Adobe products help it drive top-line growth.
Additionally, rising subscription revenue and solid momentum in mobile apps remain major positives. Moreover, growth in emerging markets, robust demand for online video production, strong use of Acrobat, and improving average revenue per user remain tailwind.
Zacks Analyst remains optimistic about Adobe’s market position, compelling product lines, continuous innovation, and robust use of Creative Cloud and Adobe marketing cloud. Moreover, the firm balance of the company remains another positive.
(You can do it read the full Adobe research report here >>>)
AMD shares fell -4.8% last year against a -4.5% decline of Zacks Electronics -Semiconductor industry. The company faces stiff competition from NVIDIA and Intel is a concern. However, AMD is taking advantage of the strong demand for its Ryzen and EPYC server processors, due to the growing proliferation of Artificial Intelligence (AI) and Machine Learning (ML) in industries such as cloud, gaming and data centers.
The growing power of 7 nanometer (nm) vertical data center products, driven by work-from-home and online learning trends, is a major catalyst. AMD has provided strong guidance in 2022 for revenues supported by steady growth across all businesses.
Higher server and client processor revenue is likely to lead to successive increases. The Xilinx and Pensando acquisition will strengthen AMD’s data center business. Alliances with Amazon, Microsoft, Baidu and JD.com are boosting business prospects
(You can do it read the full AMD research report here >>>)
Other notable reports we feature today include ServiceNow, Inc. at Dominion Energy, Inc.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Dominion Energy Inc. (D): Free Stock Analysis Report
Adobe Inc. (ADBE): Free Stock Analysis Report
ServiceNow, Inc. (NOW): Free Stock Analysis Report
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