It was a rough night for Airbnb, with shares falling 15% after the bell on a reduction to Q3 guidance, citing a shortening of booking windows around the world. Uber Technologies did the opposite, its shares rising 11% after beating consensus, notably in Delivery margins. Caterpillar achieved an unexpected improvement in margins with steady growth in the US (but weakness in global markets, notably China). Amgen reported earnings in line with expectations, with higher costs offsetting the additional revenue from the acquisition of Horizon. Global Business Travel Group (AMEX) beat forecasts as international corporate travel demand recovers, sending its shares up 17%.
Tonight, we’re watching out for results from Walt Disney, Shopify and Occidental Petroleum.
Amgen
Biotechnology company Amgen’s Q2 EPS fell by 0.6%, largely in line with analyst expectations. This was due to higher expenses, including costs related to development of the experimental obesity drug MariTide, offset a 20% increase in revenue driven by the acquisition in October of rare disease drugmaker Horizon Therapeutics. Shares fell 2% in afterhours trading.
Caterpillar
Caterpillar beat analyst EPS expectations by 8% as higher prices and lower manufacturing costs offset the effects of reduced demand for heavy equipment in key markets outside the US, especially in China but also in Europe. North American sales were up 1%, buoyed by infrastructure investment arising from the Federal Government’s spectacularly misnamed Inflation Reduction Act. Caterpillar increased its full year EPS guidance on the strength of its improved margins. Shares rose 3%.
Uber Technologies
Uber performed well in Q2 with gross bookings up 21% and 1% above consensus; EBITDA up 71% and 4% above consensus; and EPS up 161% and 53% above consensus. Demand trends were stable in Mobility with sales slightly above expectations. Delivery saw steady growth in sales, but 1% below the street, although its profits were higher than forecast. Q3 guidance was in line with current analyst estimates for both bookings and EBITDA.
Airbnb
Airbnb guided to Q3 revenue below analyst expectations, indicating booking windows are shortening around the world, which suggests consumers are leaving it to the last minute to book holidays amid economic uncertainty. This echoes similar comments made by Booking (BKNG.NAS) in July. Airbnb’s Q2 EPS was down 12% and 6% below analyst forecasts. The average cost per night rose 2% to $169.53. Shares fell 15% in afterhours trading.
Global Business Travel Group
A recovery in global travel demand saw EBITDA rise 20%, above analyst expectations and company guidance. The EBITDA margin rose from 18% to 20% driven by lower administrative costs and productivity improvements relating to the use of AI. Transaction growth was 3.8% yoy, with a slowdown in Q2, partly because of the Paris Olympics. Full year guidance was reiterated.
The story so far
76% of results in and the median EPS beat has firmed to +4.1%. The median yoy EPS growth is 9.2%. Most positive share price reactions have been to Global Business Travel Group, Spotify, PayPal and Bristol-Myers Squibb. The most negative have been to Intel, Snap, Ford and Domino’s Pizza.
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