3 Stocks to Watch on Friday: Intel Corporation (INTC), Starbucks Corporation (SBUX) and Amazon.com, Inc. (AMZN)

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AMZN - 3 Stocks to Watch on Friday: Intel Corporation (INTC), Starbucks Corporation (SBUX) and Amazon.com, Inc. (AMZN)

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U.S. markets went through a mixed day Thursday following a sudden intraday reversal in technology stocks. The S&P 500 Index lost 0.1% and the tech-heavy Nasdaq Composite fell 0.4%, but the Dow Jones Industrial Average gained 0.6%.

3-stocks-to-watch-on-friday-intel-corporation-intc-starbucks-corporation-sbux-and-amazon-com-inc-amznAs we head into Friday, several companies are on the move following their quarterly earnings releases. Sitting in the spotlight this morning are Amazon.com, Inc. (NASDAQ:AMZN), Intel Corporation (NASDAQ:INTC) and Starbucks Corporation (NASDAQ:SBUX).

Here’s a look at what you should be watching as we enter the final trading day of the week.

Intel Corporation (INTC)

INTC is getting a favorable reaction following its second-quarter results, revealed Thursday.

The cloud technology company earned 72 cents per share on an adjusted basis, ahead of Wall Street’s projection of 68 cents per share. The figure was a 9% improvement-year-over-year. Intel’s revenue came in at $14.8 billion, also stronger than expectations of $14.41 billion. Sales in the year-ago quarter were 3% lower.

Intel CEO Brian Krzanich said the positive period was aided by the company’s launch of a new Intel Core, Xeon and other memory products that will improve the digital storage industry. He added that the company was been gaining momentum with customers in AI and autonomous driving.

“With industry-leading products and strong first-half results, we’re on a clear path to another record year,” he added.

The company hopes to improve operating margins throughout the year.

For its third quarter, Intel expects revenue of $15.7 billion and earnings of 80 cents per share. The company’s full-year earnings projection is $3 per share, while revenue is slated to come in at $61.3 billion.

INTC stock is up about 1% on Friday morning.

Starbucks Corporation (SBUX)

Starbucks is headed rapidly lower following a disappointing fiscal third-quarter report and news that it’s giving up on what essentially turned into a five-year experiment.

The coffee maker earned 55 cents per share in its third quarter, in line with Wall Street’s projection of 55 cents per share. The figure was 12.24% higher than the year-ago period. Revenue came to $5.66 billion, which missed analysts prediction of $5.75 billion, according to Thomson Reuters. Sales were higher 8.02% year-over-year.

Same-store sales rose 4% year-over-year globally, which was below the 4.9% improvement that analysts predicted.

“The slowdown included a lower-than-expected lift in non-discounted Frappuccino beverages following Happy Hour as well as somewhat lower-than-expected sales of other core beverages during the period,” the company said.

Starbucks now expects its earnings to be between $2.05 to $2.06 per share for its fiscal year 2017, which is lower than the $2.08 to $2.12 per share that it previously expected. Additionally, revenue will be on the lower end of its outlook of an 8% to 10% rise year-over-year.

Lastly, Starbucks says it will be closing all 379 of its Tevana locations by spring of next year. The announcement comes roughly five years after Starbucks bought the chain for $620 million.

SBUX shares are off more than 6% this morning.

Amazon.com Inc. (AMZN)

Lastly, AMZN’s big 2017 move is hitting a speed bump on Friday following the company’s quarterly earnings announcement Thursday night.

Amazon reported a big miss on the bottom line last night, posting earnings of 40 cents per share, versus analyst expectations of $1.42 per share. Profits were off more than 77% year-over-year.

There were several things to like in this report. Revenues, for one, came to $37.96 billion — 25% better year-over-year, and better than Wall Street’s outlook of $37.18 billion. That was led by 42% growth in the Amazon Web Services (AWS) cloud business, which reached $4.1 billion in sales to eke out a beat over the analyst consensus.

But margins took a tumble as Amazon invested heavily in growth, including its expansion into new global markets.

For its upcoming quarter, Amazon predicts it will bring in between $39.25 billion and $41.75 billion in revenue, in line with analysts’ outlook of $39.97 billion. However, again, profits were problematic in the Q3 earnings outlook, with AMZN estimating a range between a $1-per-share loss and a $1-per-share profit. Wall Street wants to see earnings of $1.13 per share.

“Third quarter certainly has a healthy amount of investments and we’ll continue to grow those areas,” Amazon CFO Brian Olsavsky said in a press call on Thursday.

AMZN stock is off nearly 3% this morning, putting a dent into the company’s roughly 40% gains for the year-to-date.


Article printed from InvestorPlace Media, https://investorplace.com/2017/07/3-stocks-to-watch-on-friday-intel-corporation-intc-starbucks-corporation-sbux-and-amazon-com-inc-amzn/.

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