The US stock market closed higher on Tuesday as the investors waited for the batch of corporate earnings reports scheduled for release after the markets closed. Some of the major companies that released their earnings after market close include Google’s parent firm Alphabet, Starbucks, Novartis, PayPal, General Motors and Gilead.
The Dow Jones was up 0.78% at close with Boeing rising 4.05%. The Nasdaq 100 was up 0.6% as Netflix stock jumped by 7.02% while the S&P 500 advanced by 0.68% with shares of shipping company UPS jumping by 13.99% as the trading session finished.
At the same time, the US Bureau of Labor Statistics announced that the number of job openings in the United States came in at 10.9 million in December, up 150,000 from the figure documented in November. The job openings rate was unchanged at 6.8%.
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Stock Market Earnings Report
Alphabet $GOOG
Google’s parent firm Alphabet Inc. on Tuesday said that its revenues for the entire fiscal 2021 rose by 41% to $257.6 billion.
Net income for the period was up 89% to $76 billion while diluted earnings per share rose 91% to $112.2. Income from operations also soared 91% to $78.7 billion.
The company’s video platform Youtube brought in $8.6 billion in advertising revenue in the fourth quarter and $28.8 billion for the full year.
Alphabet Inc. also announced that its board of directors had authorized and declared a 20-for-one stock split “in the form of a one-time special stock dividend on each share of the Company’s Class A, Class B, and Class C stock.”
The decision will now await stockholder approval, Google LLC’s parent company explained.
If the move wins shareholder approval, each person holding company stock at the close of business on July 1, 2022, “will receive, after the close of business on July 15, 2022, a dividend of 19 additional shares of the same class of stock for every share held” as of July 1.
PayPal
PayPal Holdings Inc. said its net revenue in the fourth quarter of 2021 increased by 13% to $6.9 billion. Its total payment volume (TPV) was up 23% in comparison to the same period the year before to $339.5 billion.
Its operating income went up by 9% year-on-year to $1.1 billion. On the other hand, its diluted earnings per share (EPS) declined by 49% annually to $0.68.
“2021 was one of the strongest years in PayPal’s history. We reached $1.25 trillion in TPV and launched more products and experiences than ever before.” PayPal’s President and Chief Executive Officer (CEO) Dan Schulman commented on the results.
Following the release of the report, the company’s shares sank by 11.62% in after-hours trading.
Starbucks
Starbucks Corporation announced on Tuesday that its total net revenues for the first quarter of the fiscal year 2022 came in at $8.05 billion, marking a 19.3% jump from the same period in 2021.
In the first trimester of 2022, operating income was up 28.9% to $1.18 billion, diluted net earnings per common share grew 30.2% to $0.69, and net earnings attributable to Starbucks were 31.1% higher to reach $815.9 million.
Novartis
Novartis International AG fourth-quarter net sales annually increased by 6% to reach $13.23 billion. The company’s operating income was unchanged at $2.56 billion while its net income soared to $16.31 billion.
Commenting about the 2022 outlook, Novartis revealed that group sales and core operating income are expected to grow mid-single digit, with sales set to expand mid-single digit. Core operating income is also expected to grow mid to high single-digit, ahead of sales, the firm said in a statement.
General Motors
General Motors Corp. fourth-quarter revenue fell by 11$ to $38 billion compared to the same period in 2020. Diluted earnings per share (EPS) dropped by 40% to $1.16 as net income fell by 39% to $1.7 billion.
For the full year 2021, revenue increased 3.7% to $127 billion compared to 2020, the EPS jumped 55% to $4.33, while net income added 67% to $10 billion.
Gilead Sciences Inc
Gilead Sciences Inc. said on Tuesday that its total revenues yearly declined by 2.38% to $7.24 billion in the trimester, while the full-year revenues expanded by 10.6% compared to 2020 to reach $27.3 billion.
Net income amounted to $382 million in the final three-month period of the year, and to $6.2 billion in the entire 2021.
United Parcel Service Inc
United Parcel Service Inc. (UPS) said on Tuesday that in 2021, consolidated revenue rose by 15% to reach $97.3 billion. Consolidated operating profit stood at $12.8 billion, and diluted earnings per share came to $14.68
Its consolidated revenue for the fourth quarter of the 2021 fiscal year reached $27.8 billion, an increase of 11.5% against the same period last year.
The company noted that its consolidated operating profit saw a 91% yearly rise jumping to $3.9 billion for the same three-month period. Meanwhile, its diluted earnings per share climbed to $3.52, while its net income reached $3.1 billion.
Exxon Mobil Corp
Exxon Mobil Corp. said on Tuesday that its total revenues rose by 81% to $85 billion while net income stood at $8.9 billion compared to a loss of $21 billion a year ago.
The company’s cash flow from operating activities reached the highest level since 2012 and stood at $48 billion.
For the full year 2021, the EPS was $5.39 as opposed to a loss of $5.25 in 2020, revenue was at $286 billion, rising 57% year-on-year, while net income was posted at $23 billion, up from a loss of $22 billion in 2020.
READ; US Stock Market Closes Week Higher with earnings in spotlight
