For immediate release
Chicago, IL – July 21, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Tesla TSLA, United Airlines UAL and Las Vegas Sands LVS.
Here are highlights from Wednesday’s analyst blog:
Markets slightly higher on relief rally; Tesla, United, Sands mixed in the second quarter
Well look here – another trading session closing in the green on Wednesday. If we didn’t know better, we might assume that market participants are looking beyond a near-term recession to stronger economic conditions ahead: Dow Jones is +0.16%, S&P 500 + 0.59% – both up in three of the last four trades. days – and the Nasdaq +1.58%, for its fourth bull session in the last five.
But, of course, we know better. It’s good that more money is being invested in quality stocks – a huge change from a month ago when nowhere was safe – but we still have a long job of destroying demand, higher interest rates trying to reduce 40-year-high inflation and the second quarter earnings season, although overall better than expected, is just beginning; there are still plenty of ugly things to discover over the past three months.
Earlier yesterday we saw Sales of existing houses reached its slowest pace in two years: 5.12 million seasonally adjusted and annualized units sold in the month of June, down -5.4% month-over-month and -14.2% From one year to another. The median sale price of an existing home reached $416,000, a new all-time high and +13.4% compared to a year ago. And, of course, this data is based on the closes, which is before mortgage rates hit 6%+. In short, housing valuations are even more painful.
You’re here announced its second-quarter results after the closing bell on Wednesday, posting $2.27 a share on $16.93 billion in sales — a beat on the bottom line but a miss on the top. Gross margins slipped to 27.9% from 28.2% and 30% expected last quarter, 26.2% subtracting regulatory credits. This is obviously going in the wrong direction, but it still represents gross margins not seen anywhere else in the automotive industry.
We’ve already seen Tesla deliver 255,000 vehicles in the reported quarter. The company also reportedly converted 75% of its vast Bitcoin holdings during the quarter, which converted to $936 million. Shares initially gained +4.5% on the news, but traded flat soon after.
United Airlines also posted a mixed Q2, albeit in reverse: Earnings of $1.43 per share missed the expected $1.86, while $12.11 billion in revenue topped $12.03 billion dollars from the Zacks Consensus. It’s the major airline’s first profitable quarter without wage subsidies since pre-pandemic times. Total revenue per seat mile increased by +24% compared to the same quarter in 2019, somewhat offset by higher fuel and labor costs.
Las Vegas Sands also missed earnings but beat sales in its second-quarter report after yesterday’s bell, -34 cents per share to $1.05 billion, as its Singapore business more than doubled expectations in the quarter . Difficulties with Macau shutdowns on Covid restrictions, but the good news is that Adjusted Real Estate EBITDA is 45% above consensus. Shares rose +2.5% after the news.
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