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Robust Earnings, Revenue Numbers from Alphabet, Apple, Microsoft After-Bell Fail to Turn NASDAQ Futures Green

The major U.S. stock index futures are trading lower following the release of earnings numbers from Google-parent Alphabet, Microsoft and Apple after the bell. The trio of tech heavyweights had been pressured during the cash market session, declining about 1% each ahead of their numbers.

In the futures markets at 20:00 GMT, the September E-mini S&P 500 Index was trading 4394.75. At 20:36 GMT, they were trading 4389.75.

At 20:00 GMT, the September E-mini Dow Jones Industrial Average was trading 34952. At 20:36 GMT, it was trading 34886 and at 20:00 GMT, the September E-min NASDAQ-100 Index was trading 14950.50. At 20:37 GMT, it was at 14911.00.

In the cash market on Tuesday, the benchmark S&P 500 Index settled at 4396.48, down 25.82 or -0.58%, the blue chip Dow Jones Industrial Average finished at 35047.32, down 96.99 or -0.28% and the tech-driven NASDAQ Composite closed at 14638.77, down 201.94 or -1.36%.

The earnings are out and here are the numbers.

Alphabet Jumps 3% in After-Hours Trade After Earnings Beat

Alphabet Earnings per share (EPS) was reported at $27.26 versus $19.34 per share, according to Refinitiv estimates. Revenue was $61.88 billion versus $56.16 billion, according to Refinitiv.

YouTube advertising revenue was $7.00 billion versus $6.37 billion expected, according to StreetAccount estimates. Google Cloud revenue was $4.63 billion versus $4.40 billion expected, according to Street Account estimates.

Traffic acquisition costs (TAC) revenue came in at $10.93 billion versus $9.74 billion expected, according to Street Account estimates.

Microsoft Beat Expectations on the Top and Bottom Lines

Microsoft shares fell 3% in extended trading on Tuesday after the software and hardware company reported fiscal fourth-quarter earnings.

The report showed earnings of $2.17 per share, adjusted, vs $1.92 per share as expected by analysts, according to Refinitiv. Revenue was $46.15 billion, versus $44.24 billion as expected by analysts, according to Refinitiv.

Revenue rose 21% year over year in the quarter, which ended June 30, according to a statement. In the previous quarter revenue had increased by 19%.

Apple Earnings Blow Away Forecasts

Apple reported strong fiscal third-quarter earnings on Tuesday, demolishing Wall Street expectations, according to CNBC. Additionally, every one of Apple’s major product lines grew over 12% on an annual basis.

Overall, Apple’s sales were up 36% from the June quarter last year. iPhones sales increased nearly 50% on an annual basis.

Apple’s Earnings per Share (EPS) came in at $1.30 versus $1.01 estimated. Revenue was $81.40 billion versus $73.30 billion estimated.

Starbucks Credits Strong Cold Beverage Sales in U.S. for Fueling Earnings Beat

In other non-tech-related earnings news, Starbucks topped Wall Street’s estimates for its fiscal third-quarter earnings and revenue. The company also tightened its forecast for fiscal 2021 same-store sales growth.

Starbucks on Tuesday reported soaring cold drink sales in the United States, fueling an earnings and revenue beat for the company. The company also narrowed its forecast for same-store sales growth for rascal 2021.

Here’s a comparison between the company’s numbers and Wall Street analyst expectations.

Earnings per share was $1.01 adjusted versus 78 cents expected. Revenue came in at $7.50 billion versus $7.29 billion expected.

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Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.