Monday was a decent day for the U.S. stock markets, led primarily by a strong move by big U.S. tech companies, including Apple Inc. (NASDAQ:AAPL) and Twitter Inc (NYSE:TWTR). The S&P 500 Index edged 0.2% higher, the Dow Jones Industrial Average fell 0.1% and the Nasdaq Composite had the biggest move of the day, gaining 0.7%.
The full earnings slate continued to move stocks Tuesday morning, with Advanced Micro Devices, Inc. (NASDAQ:AMD), CVS Health Corp (NYSE:CVS) wiggling after their latest announcements, and Shopify Inc (US) (NYSE:SHOP) trying to extend its monster 80% year-to-date run.
Here’s what you need to know heading into Tuesday’s action.
Advanced Micro Devices, Inc. (AMD)
AMD shares are suffering a double-digit loss this morning thanks to a pretty disappointing first-quarter report.
Advanced Micro offered up a Q1 loss of 8 cents per share — narrower than the year-ago quarter’s 12-cent loss, but twice as wide as analyst expectations for a 4-cent loss.
Meanwhile, revenues jumped 18% to $984 million, driven by a 28% bump in Computing and Graphics sales. (Sales from the new Ryzen CPU weren’t specifically broken out.) However, the top line still was just shy of Wall Street’s estimates for $984.4 million.
On the guidance front, AMD offered this up: “For the second quarter of 2017, AMD expects revenue to increase approximately 17 percent sequentially, plus or minus 3 percent. The midpoint of guidance would result in second quarter 2017 revenue increasing approximately 12 percent year-over-year.”
AMD stock is off by about 12% in Tuesday’s premarket trade, which means it will soundly reject both its 20- and 50-day moving averages. The latter had acted as strong support for months, but now is acting as resistance after shares plunged through the level in early April.
CVS Health Corp (CVS)
CVS shares are dipping slightly this morning despite a Street beating fiscal first quarter, as investors instead focused on weak guidance.
CVS Health reported a first-quarter profit of $953 million (92 cents per share). While that was off 11% year-over-year, it did filter down to an adjusted profit of $1.17 that was 7 cents better than analysts’ estimates.
Revenues of $44.5 billion were up 3% year-over-year and enough to top expectations for $4.2 billion. That was helped by a nearly 9% improvement in pharmacy services.
It wasn’t all roses, however. Retail revenue dropped nearly 4% on same-store sales that dropped 4.7%. Comps were a problem for the pharmacy division, too, which dropped 4.7% year-over-year. The company blamed this on new generic drugs, among other issue.
Looking ahead, the company sees second-quarter adjusted earnings coming in a range of $1.29 to $1.33, shy of Wall Street expectations. Meanwhile, the company sees full-year adjusted EPS coming in a range of $5.77 to $5.93.
Still, CVS shares are off marginally this morning, continuing to bounce off resistance at its 200-day moving average, as well as working off overbought Relative Strength Index (RSI) readings.
Shopify Inc (US) (SHOP)
SHOP investors have plenty of reason to push shares higher on Tuesday after a strong first-quarter result, but much of the good news might have already been baked in.
Shopify drove a 75% increase in first-quarter revenues to $127.4 million, easily besting Wall Street’s expectations for $121.6 million. This was largely powered by a 92% increase in Merchant Solutions revenues, as well as a 60% increase in subscription revenues largely driven by a record number of merchants joining that platform.
Meanwhile, the company posted an adjusted net loss of just 4 cents per share — narrower than the year-ago period’s 6-cent loss, and much better than the 10-cent loss expected by Wall Street.
The company expects a host of new technologies to be available in the second quarter, including a point-of-sale card reader, Shopify Pay (saving shipping and credit card information) and Wholesale Channel for Shopify Plus merchants.
The company expects revenues of $615 million to $630 million for full-year 2017, which should filter down to an adjusted operating loss of $14 million to $18 million.
SHOP shares were inching higher Tuesday morning, trying to continue what has been an 80% year-to-date gain for the stock.
