Fast Money Blog- 4/29/22
This past week these 5 companies reported earnings, and although extremely positive, they are still off their 52-week highs.
On Tuesday, April 26th, both Microsoft Corporation (MSFT) and Visa, Inc. (V) released outstanding earnings reports.
Microsoft’s Q3 2022 revenue came in at $49.4 billion, a rise of 18% year-over-year.
Their total earnings are broken into several divisions, the most important being:
1. The Intelligent Cloud segment, the company’s largest segment, which brought in revenue of $19.1 billion, up 26% year-over-year.
This segment includes their Azure public cloud service, which grew 46% year over year. However, this growth was flat compared to last quarter.
2. The Productivity and Business Processes unit, which includes Dynamics, LinkedIn and Office, and contributed $15.8 billion in revenue, up 17% year-over-year.
3. The More Personal Computing segment (primarily revenue from Windows, search and news advertising, gaming, and Surface) whose revenue grew 11% year-over-year to $14.5 billion.
Visa’s Q2 2022 earnings report posted top-line revenue of $7.2 billion, an increase of 25% year-over-year, driven by growth in payments volume and transactions, as well as more lucrative cross-border transactions.
Payment volume (the total dollar amount of purchases made with Visa issued cards) for Q2 2022 increased 17% over the prior year.
Total processed transactions for the quarter were $44.8 billion, a 19% increase year-over-year.
Additionally, International volume grew 48% year-over-over to $2.2 billion.
Historically, these 2 Dow components have grown their businesses and increased their top-line revenue over the last decade. They are both spectacular short and long-term Wealthy Investor dates.
On Wednesday, April 27th, Mastercard Corporation (MA) and Pinterest, Inc. (PINS) released their Q1 2022 earnings.
Mastercard posted spectacular earnings with revenue of $5.2 billion, up 23.8% year-over-year. With cross-border travel above 2019 levels for the first time since the pandemic began, the company’s key business drivers all grew substantially over the prior year.
The company saw gross dollar volume up 17% to $1.9 trillion and purchase volume up 27%, year-over-year, respectively. More importantly, cross-border volume growth was up 53%. (Cross-border spending occurs between parties originating in different countries from one another.)
As of Mar. 31st, 2022, Mastercard’s customers had issued 2.9 billion Mastercard and Mastercard branded cards.
During the first quarter of 2022, Mastercard repurchased 6.8 million shares at a cost of $2.4 billion and paid $479 million in dividends.
Pinterest reported Q1 2022 top-line revenue of $575 million, up 18% year-over-year. For the first time, the company broke its revenue out into geographic categories:
U.S. and Canada - $470 million, up 15% year-over-year
Europe- $87 million, up 27% year-over-year
Rest of the World- $17 million, up 152% year-over-year
The company said its global monthly active users (MAUs) - a key metric that shows engagement - declined 9% to 433 million. However, its mobile app MAUs, the group that represents most of Pinterest's revenue, grew by mid-single digits.
Although this was another consecutive quarter with a rise in revenue, Wall Street is still not rewarding Pinterest stock, due to its loss in active users.
On Thursday, April 28th, Apple, Inc. (AAPL) posted its Q2 2022 earnings with top-line revenue of $97.2 billion, an increase of 9% year over year. (This marks the first time in the past six quarters that Apple hasn’t produced double-digit gains in year-over-year revenue.)
Here’s the full revenue breakdown for the quarter
iPhone- $50.5 billion (up 5.5% YOY)
Mac - $10.4 billion (Up 14.7% YOY)
Wearables, Home, and Accessories, which includes AirPods and Apple Watch - $8.8 billion (Up 13% YOY)
iPad: $7.6 billion, down from $7.8 billion in the year-ago quarter.
Services, which includes iCloud and Apple Music fees- $19.8 billion (Up 8.5% YOY)
Apple also announced that its board of directors authorized $90 billion in share buybacks.
All in all, Mastercard and Apple remain great dates for the Wealthy Investor program.
Tyrone Jackson
The Wealthy Investor