5 big earnings reports: Microsoft slips on sluggish revenue

By Davit Kirakosyan

Investing.com -- Microsoft shares are slumping this morning after the software giant reported its slowest sales growth in six years. Here are the 5 biggest earnings reports yesterday, all first covered on InvestingPro.

Microsoft under pressure

While Microsoft (NASDAQ:MSFT) reported an EPS of $2.32, beating the consensus of $2.30, revenues of $52.7 billion - up only 2% year-over-year - came in worse than the consensus of $53.12B.

The key Intelligent Cloud revenue figure was up 24% year-on-year in constant currencies in the quarter, but Microsoft sees it edging up to around $21.85B in the current quarter, an implicit annualized growth rate of only 6.6%, according to Investing.com calculations. Analysts had expected around $22.14B.

Shares were recently trading 2.2% lower pre-market.

Texas Instruments' lackluster guidance

Texas Instruments (NASDAQ:TXN) reported better-than-expected Q4 results but issued low guidance.

EPS was $2.02, ex-items, better than the consensus of $2.00. Revenue fell 3% year-over-year to $4.67B, compared to the consensus of $4.65B, reflecting weaker demand in all end markets with the exception of automotive.

For Q1/23, the company expects EPS in the range of $1.64-$1.90, compared to the consensus of $1.87, and revenue in the range of $4.17B - $4.53B, compared to the consensus of $4.41B.

Shares were off fractionally in the pre-market.

Intuitive Surgical and 3M slide on misses

Intuitive Surgical (NASDAQ:ISRG) shares are down more than 7% pre-market after the company reported worse-than-expected Q4 results. EPS came in at $1.23, compared to the consensus of $1.26, and revenue was $1.66B, compared to the consensus of $1.68B. Worldwide da Vinci procedures grew approximately 18% compared with Q4/21.

3M (NYSE:MMM) reported a Q4 EPS miss, hurt by write-offs related to its exit from the business of producing so-called "forever chemicals". EPS was $2.28, worse than the consensus of $2.37. Revenue came in at $8.1B, compared to the consensus of $8.06B.

The company announced it will cut 2,500 jobs this year and take a restructuring charge of $75M - $100M in Q1, as demand for some of its core products weakens.

For fiscal 2023, the company expects EPS in the range of $8.50-$9.00, worse than the consensus of $10.22. Adjusted total sales growth is expected in the range of (6%)-(2%).

Shares plunged more than 6% yesterday.

Verizon in line

Verizon Communications (NYSE:VZ) reported its Q4 results, with EPS of $1.19 coming in line with expectations. Revenue was $35.3B, compared to the consensus of $35.11B.

For fiscal 2023, the company expects EPS in the range of $4.55-$4.85, missing the consensus of $4.97.

Geoffrey Smith contributed to this report.

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