5 big earnings reports: Disney surging, Credit Suisse in the red

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By Davit Kirakosyan

Investing.com -- Walt Disney posted an earnings beat and said it will cut 7,000 jobs. And here are all 5 of the biggest earnings reports you may have missed on InvestingPro since yesterday's market close. Sign up for a free trial for real-time earnings coverage.

Walt Disney surges on cost cuts & Q2 beat

Walt Disney (NYSE:DIS) shares gained more than 6% pre-market today following the company’s job-cut announcement and better-than-expected Q1 results as returning CEO Bob Iger tries to cut costs and satisfy investors.

The company's goal is to save $5.5B through the consolidation of its original content, ESPN sports, and theme park businesses. Despite this, Iger said he will ask the board to restart dividend payments by the end of the year.

The company is facing pressure from activist investor Nelson Peltz's Trian Partners, which holds a $1 billion stake in Disney and is pushing for cost reduction. Trian's request for a board seat was denied last month, and the firm is engaged in a battle for a seat in the upcoming April 3 annual meeting. Trian Fund Management sent a new letter to shareholders following the quarterly results, urging them to vote for Peltz to replace current board member Michael Froman.

Q1 EPS came in at $0.99, better than the consensus of $0.79. Revenue was $23.51B, beating the consensus estimate of $23.43B, driven by a surprise increase of 21% in parks revenue to $8.74B.

Following the results, Wells Fargo raised Disney's price target to $141.00 from $125.00 and KeyBanc raised its price target to $130.00 from $119.00, while reiterating their Overweight ratings.

Credit Suisse losses continue due to significant outflows

Credit Suisse Group (SIX:CSGN) Zurich shares lost more than 6% intra-day today after it reported a Q4 miss, with EPS of (CHF 0.46) (CHF1 = $1.0881) coming in worse than the consensus estimate of (CHF 0.29). Revenue was CHF 3.06B, missing the consensus estimate of CHF 3.36B.

Credit Suisse reported a yearly loss of CHF 7.29B, its worst since the 2008 financial crisis and second consecutive yearly loss. The Zurich-based lender attributed the loss to challenging economy, significant deposit and net asset outflows, and strategic actions. Despite being in line with analyst expectations, chair Axel Lehmann has referred to 2022 as a "horrifying" time for the company.

Credit Suisse has warned that its challenging trading conditions from last year will persist into 2023 despite implementing comprehensive measures to improve client engagement, recover deposits, and reduce costs.

New York shares (NYSE:CS) were off more than 9% pre-market.

Affirm shares plunge on Q4 miss, announces job cut

Affirm Holdings (NASDAQ:AFRM) shares plummeted 18% pre-market today after the company said it will cut 19% of its jobs and reported quarterly results that fell short of expectations and provided a gloomier-than-expected outlook.

Q2 EPS was ($1.10), worse than the consensus estimate of ($1.00). Revenue came in at $400M, missing the consensus estimate of $416.49M.

For Q3/23, the company expects revenue in the range of $360-380M, compared to the consensus of $418M. Full-year revenue is expected in the range of $1.475-1.55B, compared to the consensus of $1.64B.

Following the results, RBC Capital downgraded the stock to Sector Perform from Outperform with a price target of $17.00.

Robinhood gains on Q4 beat

Robinhood (NASDAQ:HOOD) shares were trading more than 5% higher pre-market today after the company’s reported Q4 results, with EPS of ($0.11) coming in better than the consensus estimate of ($0.15).

Revenue was up 5% quarter-over-quarter to $380M, falling short of the consensus estimate of $394.33M.

Transaction-Based Revenues were $186M, down 11% sequentially, with Option revenues of $124M (flat), Crypto revenues of $39M (down 24%), and Equities revenues of $21M (down 32%).

Q4 Monthly Active Users (MAU) declined to 11.4M from 12.2M in the previous quarter as customers continue to navigate the volatile macro environment.

Following the results, several analysts raised their price targets on the stock, including Goldman Sachs with a new price target of $9.50 (from $9.00), Deutsche Bank with a new price target of $11.00 (from $9.00), and JPMorgan with a new price target of $11.00 (from $9.00).

Unilever posts a slight miss in Q4 revenues

Unilever (LON:ULVR) (NYSE:UL) reported only slightly lower-than-expected sales growth in Q4 per analysts polled by Bloomberg, as higher prices partially compensated for weaker customer demand and increased expenses due to inflation. Annual revenue was €60.1B, topping the consensus estimate of €59.52B.

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