5 big earnings reports: Cisco Q2 beat, Shopify guidance disappoints | Pro Recap

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Here is your daily Pro Recap of the biggest earnings headlines you may have missed on InvestingPro since yesterday’s close, including a Q2 beat at Cisco Systems. Start your free 7-day trial to get this news first.

Cisco Systems (NASDAQ:CSCO) shares rose more than 7% after-hours (currently up 3% in pre-market) after reporting strong Q2 results and guidance. EPS came in at $0.88, surpassing the consensus estimate of $0.85. Revenue grew 7% year-over-year to $13.6 billion, with product revenue up 9% and service revenue up 2%. This exceeded the consensus estimate of $13.41B.

For Q3/23, the company anticipates EPS in the range of $0.96 to $0.98, above the consensus estimate of $0.89. Year-over-year, revenue is expected to grow between 11% and 13%. For the full year, the company expects EPS of $3.73 to $3.78, beating the consensus estimate of $3.55. Year-over-year, revenue is anticipated to grow between 9% and 10.5%.

Additionally, Cisco Systems announced a 3% increase in its dividend to $0.39 per common share, payable on April 26, 2023, to all stockholders of record as of the close of business on April 5, 2023.

Following the results announcement, Citi raised the price target on the stock to $46.00 from $44.00 while maintaining a Sell rating. Meanwhile, Morgan Stanley raised its price target to $55.00 from $52.00 while maintaining an Equalweight rating.

Shopify (NYSE:SHOP) shares plunged more than 9% pre-market today after the company unveiled a weaker-than-expected outlook, despite reporting a surprise profit in Q4.

The company anticipates year-on-year revenue growth in the high-teen percentages, worse than the consensus estimate of a 23% year-over-year growth.

Shopify expects a decrease in pandemic-driven e-commerce demand this year, and predicts that customers will rein in spending on big-ticket items due to rising living costs.

However, the company posted Q4 EPS of $0.07, beating the consensus estimate of ($0.01). Gross merchandise value was $61B, up 13% and above the Street expectations. Revenue came in at $1.73B, beating the consensus estimate of $1.65B.

Nestlé (SIX:NESN) (OTC:NSRGY) reported a full-year net profit today as it struggled to pass on higher raw material costs to financially constrained customers, despite hiking prices.

2022 net profit came in at CHF 9.3B ($1 = CHF 0.9225), representing a 45% decline from the prior year, and missing the analysts’ estimate of CHF 11.6B.

Shares in Nestlé fell 0.65% in Zürich on Thursday.

The company’s 2022 sales reached CHF 94.4B, slightly below the CHF 95.02B forecast, with organic growth at 8.3%, weaker than the 8.6% anticipated.

Nevertheless, CEO Mark Schneider expressed confidence in the company’s future, citing expectations for robust organic growth in 2023 and Nestlé’s value creation model for achieving its 2025 targets and delivering sustainable shareholder returns.

The company’s board will propose an increased dividend of CHF 2.95 per share, marking the 28th consecutive annual dividend hike. The company also plans to reduce its share capital by 80 million shares by canceling purchased shares as part of the buyback program.

Roku (NASDAQ:ROKU) shares surged more than 10% pre-market today after the company reported Q4 results and guidance that exceeded expectations, boosted by a rebound in streaming demand and despite a decline in advertising spend.

In Q4, Roku reported a loss of $1.70 per share on revenue of $867.1 million, surpassing estimates for a loss of $1.72 per share on revenue of $802.1M. The quarter saw a 16% rise in active accounts to 70M, while streaming hours increased 23% to 23.9B hours.

However, a slowdown in advertising spend held back the platform revenue growth of 20% year-over-year. Roku acknowledged the company benefited from the advertisers’ shift to TV streaming, but that was offset by the pullback in ad spend. The average revenue per user (ARPU) increased 2% year-over-year to $41.68.

Looking ahead, the company expects Q1 revenue of around $700M, total gross profit of around $310M, and adjusted EBITDA of negative $110M, with analysts predicting about $696.1M in revenue for Q1.

Zillow (NASDAQ:ZG) shares gained more than 10% after-hours (currently up 5% in pre-market) after the company reported its Q4 results, with EPS of $0.21 coming in better than the consensus estimate of $0.04. Revenue was $435M, beating the consensus estimate of $413.63M.