These large-cap tech stocks released quarterly earnings results on Thursday.
Shares of Adobe Inc. (NASDAQ:ADBE) fell 2.51% to $260.98 in after-hours trading on Thursday after beating consensus estimates on non-GAAP earnings for the first quarter of fiscal 2019 by 9 cents, having posted $1.71 per share or a 10.3% increase from the prior-year quarter.
Instead, GAAP earnings of $1.36 per share rose 16.2% year-over-year.
Revenue grew 25% from the same quarter of fiscal 2018 to $2.6 billion, beating expectations by $50 million.
Per business segment, first-quarter revenue was shared as follows. Revenue from the digital media segment was $1.78 billion, revenue from the digital experience segment was $743.3 million and revenue from publishing totaled $81 million. Thanks to a quarter-over-quarter increase of $357 million reported in the first trimester, digital media annualized recurring revenue went up to $7.07 billion.
Despite a 13% year over year increase in non-GAAP operating income, the non-GAAP operating income margin of total revenue fell 4 percentage points to 37.9% in the first quarter of fiscal 2019 from 41.9% in the first quarter of fiscal 2018.
In addition, cash flow from operations increased 2.4% to $1.01 billion, and the deferred revenue item in the liabilities section of Adobe’s balance sheet was $3.22 billion as of March 1, 2019, compared to $3.05 billion as of Nov. 30, 2018.
The balance sheet had $3.23 billion in cash and short-term securities, $4.13 billion in total debt and $9.87 billion of total stockholders’ equity as of March 1.
For the second quarter of fiscal 2019, the San Jose, California-based computer software provider guided for revenue of roughly $2.7 billion versus consensus of $2.72 billion and non-GAAP earnings of $1.77 per share versus consensus for $1.88 per share. For full fiscal 2019, the company forecasts non-GAAP earnings of $7.8 per share dropping from total revenue of $11.15 billion. Analysts expect non-GAAP earnings of $7.77 per share and total revenue of $11.16 billion.
The stock closed at $267.7 per share on Thursday for a market capitalization of about $130.93 billion. The share price is above the 200-, 100- and 50-day simple moving average lines. The 52-week range is $204.95 to $277.61.
The share price of Oracle Corp. (NYSE:ORCL) fell 3.15% to $51.38 in after-hours trading on Thursday after beating consensus estimates for third-quarter fiscal 2019 non-GAAP earnings by 3 cents per share. Oracle posted non-GAAP earnings of 87 cents per share, which was 8% higher than the prior-year quarter.
GAAP earnings of 76 cents per diluted share compared to a loss of 98 cents in the third quarter of fiscal 2018.
Revenue totaled $9.61 billion, which was 0.6% lower but beat consensus estimates by $20 million. The revenue was shared among cloud services and license support at $6.66 billion, cloud license and on-premise license at $1.25 billion, hardware at $915 million and services at $786 million.
Thanks to 2% upside in the non-GAAP operating income, the non-GAAP operating income margin jumped 1.1 percentage points to about 44.7% of total revenues.
The balance sheet had approximately $40 billion in cash and short-term securities, $56.16 billion in total borrowings, $8 billion in deferred revenues and $24.24 billion of equity as of Feb. 28.
In addition, the Redwood City, California-based computer technology corporation hiked its quarterly dividend by 26.3% to 24 cents per common share. On April 25, Oracle will pay the cash quarterly dividend to its shareholders of record April 11. The ex-dividend date is scheduled for April 10. Based on the share price at close Thursday, the quarterly distribution of free cash flow leads to a forward dividend yield of 1.81% versus an industry median of 1.79%. The company has paid dividends since 2009.
The share price was $53 at close on Thursday for a market capitalization of about $190.39 billion. The share price is above the 200-, 100- and 50-day simple moving average lines. The 52-week range is $42.40 to $53.47.
Shares of Broadcom Inc. (NASDAQ:AVGO) soared 4.83% to $281.15 in after-hours trading on Thursday after beating consensus estimates on non-GAAP earnings by 32 cents per diluted share for first quarter of fiscal 2019. The company posted non-GAAP earnings of $5.55 per diluted share, reflecting an 8.4% increase from the prior-year quarter.
The San Jose, California-based provider of semiconductor and infrastructure software solutions also posted GAAP earnings of $1.12 per diluted share, marking a sharp 92.3% fall from the prior-year quarter.
First-quarter revenue jumped 8.6% to $5.79 billion, missing expectations by $40 million.
The revenue was shared amid semiconductor solutions at $4.37 billion, infrastructure software at $1.4 billion and intellectual property licensing at $12 million.
Compared to the prior-year quarter, Broadcom recorded an increase of 660 basis points in gross margin to 71.4% and a 4.3% increase in net income to $2.45 billion.
Further, the operating cash flow soared 26.5% to $2.13 billion in the first quarter of fiscal 2019 from $1.69 in the first quarter of fiscal 2018.
Looking ahead to full 2019, Broadcom has guided for net revenue of $24.5 billion versus consensus estimates of $24.31 billion, GAAP operating margin of 17.6% and non-GAAP operating margin of 51%.
The balance sheet had $5.09 billion in cash and equivalents, $37.64 billion in total debt and $23.22 billion of total stockholders’ equity as of Feb. 3.
In addition, on March 29, Broadcom will pay $2.65 cash quarterly dividend per common share to its shareholders of record March 21. The ex-dividend date is scheduled for March 20. Based on the share price of $268.2 at close on Thursday, the quarterly distribution of free cash flow leads to a forward dividend yield of 3.95% compared to an industry median of 2.03%.
The stock has a market capitalization of about $106.24 billion. The share price at close on Thursday is slightly above the 50-day simple moving average line and plainly above the 200- and 100-day SMA lines. The 52-week range is $197.46 to $286.63.
Disclosure: I have no position in any securities mentioned.
About the author:
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”
Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.