Earnings reports season is bringing out a lot of good and bad news for business. Airlines are beating earnings forecasts and missing revenue forecasts, while many companies have slashed their Q2 and Q3 outlooks.
Three stocks to keep an eye on this quarter are:
1. Delta Air Lines Inc. (DAL)
The airline giant kicked off the earnings season with impressive earnings and lower-than-expected revenue. First-quarter earnings for the airline were $1.32 a share, beating estimates by $0.02 – $0.03.
Earnings doubled on the back of lower fuel costs,
Operating revenue reached $9.2 billion, declining 1.5% year-on-year. Adverse foreign movements caused a dip in revenue. Cargo revenue dipped 25.3% and passenger revenue dipped 2% on the quarter. Fuel was down to $1.33 a gallon, over 54% lower year-over-year.
Rising fuel prices will make the latter portion of the year interesting for Delta as the company’s positive earnings rode on the back of slumping oil prices.
2. Seagate Technology Public Limited Company (STX)
Seagate stock is on the down trend today after the company announced weaker demand projections. The company’s stock fell 6% in after-hours trading and is down 18.69% on the day. Revenue forecasts have been revised down to $2.6 billion from $2.7 billion.
Non-GAAP has also been adjusted down to 23%, down from 25.6%.
Reduced demand for the company’s HDD enterprise products are to blame. Seagate also noted lower demand for systems, silicon products and desktop client products in China. Seagate’s absence for the notebook market is also noted.
3. PNC Financial Services Group, Inc. (PNC)
PNC has posted positive earnings for four straight quarters, and surprised investors with lower earnings in Q1. The company’s bottom line was 4% lower compared to Q1 2015 and earnings per share missed the mark by one cent, hitting $1.68.
PNC’s stock has not been drastically affected by the report and is only down 0.08%.