U.S. Movers: American Express, Boston Beer, Intuitive Surgical, Schlumberger, Seagate, Snap, Twitter

Barry Adams
22 Jul, 2022
New York City

Benchmark indexes on Wall Street traded lower led by a decline in tech and advertising stocks after weak results from Snap and Twitter. 

The S&P 500 index fell 0.6% to 3,973.73 and the Nasdaq Composite index declined 1.5% to 11,881.88. 

Better-than-expected earnings from Netflix and Tesla lifted tech stocks in the week but the market rally halted after Snap reported wider loss and Twitter said revenues fell last quarter. 

The two popular indexes are still set to close higher for the week and are hovering near the five-week high. 

Futures of crude oil increased $1.63 to $94.78 a barrel and natural gas advanced 37 cents to $8.30 a unit. 

The yield on 10-year Treasury notes declined 11 ticks to 2.79% and the euro inched higher to $1.0218 and the dollar eased against the Japanese yen to 136.14. 

American Express rose 2.3% to $153.49 after the financial services company said total purchase volume on its network jumped 25% to $394 billion and revenues net of interest surged 31% to $13.4 billion.. 

Net income in the quarter declined to 14% to $1.96 billion or $2.57 a diluted share from $2.28 billion or $2.80 a diluted share. 

Boston Beer fell 3.9% to $394.70 after the craft brewery said second quarter net revenues increased 2.2% to $616 million. 

Net income decreased to $53.3 million or $4.31 per diluted share from $59.2 million or $4.75 per diluted share a year ago. 

The revised guidance is based on the lowered estimate for the shipment and inventories held by distributors. 

Boston Beer estimated depletions and shipments decrease of between 2% and 8% a change from the previous estimate of an increase of between 4% and 10%. 

The revision is reflecting a change in expectations in the Company's Truly hard seltzer business and the launch timing of Hard Mountain Dew. 

The company sharply lowered its estimate for full-year earnings and said non-GAAP earnings are estimated between $6.0 and $11.0 a share from the previous estimate between $11.0 and $16.0 a share. 

Intuitive Surgical declined 5.7% to $211.85 after the surgical systems maker said second quarter revenues increased 4% to $1.52 billion. 

Net income in the quarter fell to $308 million or $0.85 per diluted share compared to $517 million or $1.42 per diluted share a year ago. 

In the second quarter, Intuitive repurchased $500 million of its own share and expanded its share repurchase program to $3.5 billion. 

Seagate Technology declined 7.9% to $76.97 after the disk drive maker said fiscal fourth quarter revenues declined to $2.6 billion from $3.01 billion a year ago. 

Net income fell to $276 million or $!.27 a diluted share from $482 million or $2.07 a share. 

The disk drive maker also offered weaker-than-expected revenues outlook for the fiscal first quarter 2023 of $2.5 billion with a band of $150 million and non-GAAP diluted earnings per share of $1.40 with a band of 20 cents. 

Schlumberger NV rose 4.2% to $35.08 after the oil field services company said second quarter revenues increased 20% to $6.8 billion and net income jumped 123% to $959 million from $431 million a year ago. 

Diluted earnings per share jumped  to 67 cents from 30 cents a year ago. 

The company also lifted its annual revenues growth to be in "high teens" translating full-year revenues of at least $27 billion.  

The company announced a quarterly cash dividend of 17.5 cents a share payable on October 13 to shareholders on record of September 7.  

Snap Inc plunged 38.95% to $10.05 after the online chat platform reported slowest revenue growth since going public and sharply wider quarterly loss. 

Snap was downgraded by a number of analysts after the weak quarterly results. 

Twitter Inc declined 1.1% to $39.10 after the social media platform operator said second quarter revenues declined 1% to $1.18 billion. 

Net loss in the quarter was $270 million or a loss of 35 cents a diluted share compared to net income of $66 million or 8 cents a diluted share.