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Key Market Developments to Monitor in the Coming Week

Published by MEXEM Technical Analysis

August 21, 2023 4:50 PM
(GMT+2)

Published -August 21st, 2023 @ 3:15 PM (GMT+2 )


As the landscape of the global economy continues to evolve, understanding the latest financial updates is more important than ever. Navigating the complex world of finance can be overwhelming, but keeping up-to-date with the significant market movements can empower investors and businesses to make informed decisions. In the following article, we delve into the top 5 vital financial trends and events that have the potential to shape the markets in the upcoming week. From stock market performances to executive moves, we've covered you with the essential news you need to know.


1. MercadoLibre's Q2 Earnings Soar, Surpassing Estimates

MercadoLibre (NASDAQ:MELI) is an e-commerce giant experiencing significant growth, with its top and bottom lines expanding rapidly.
It has been experiencing robust growth in its earnings and operations, with optimistic projections for the future. The company's performance in the e-commerce sector, especially in the Latin American market, makes it an attractive investment opportunity.

In Q2, the company reported earnings of $5.16 per share, which not only exceeded estimates by 25% but also represented a remarkable 112% growth from the $2.43 per share recorded in the same quarter the previous year.
This growth is further highlighted by their Q2 sales figures, which amounted to $3.41 billion, marking a 31% surge from the $2.59 billion of the preceding year. A significant achievement for the company was its gross merchandise value (GMV) touching the $10 billion threshold, driven predominantly by its robust operations in Brazil and Mexico.

Zacks Research revised their Q3 2023 earnings per share (EPS) estimates for MercadoLibre, anticipating an EPS of $4.17 for the quarter. The company's most recent quarterly earnings report showed an EPS of $5.16, surpassing consensus estimates.

Despite economic obstacles such as inflation, MercadoLibre's expansion remains undeterred, particularly in regions like South America, Mexico, and Spain.Projections for the company's financial future are optimistic, with anticipated earnings for fiscal 2023 to soar by 103% to $19.39 per share. 


2. Schlumberger (SLB) Robust Uptrend Stock

Schlumberger (NYSE:SLB) is witnessing a notable stock performance trend. Despite this, the stock has shown strong uptrend momentum in recent times. A significant highlight for the company is its Q2 earnings, where it reported $5.16 per share, surpassing estimates by 25%. This figure also marks a 112% growth from the previous year's Q2 earnings of $2.43 per share.

The Q2 sales further emphasize this growth, reaching $3.41 billion, a 31% increase from the prior year's $2.59 billion. The company's gross merchandise value (GMV) has achieved a milestone by touching the $10 billion mark, primarily driven by its robust operations in Brazil and Mexico.

Q3 2023 earnings per share (EPS) estimates for Schlumberger, projecting an EPS of $4.17 for the upcoming quarter. This projection comes after the company's recent quarterly earnings report, which showcased an EPS of $5.16, exceeding consensus estimates. The average stock price target for Schlumberger is set at $66.26, suggesting a potential upside from the current price.

3. KB Home's Earnings Beat Estimates; Dividend Rises

KB Home's stock (NYSE:KBH) opened at $49.08 on the date of the report. The company's 52-week range includes a low of $25.31 and a high of $55.37. The company's 50-day moving average is $52.24, and its 200-day moving average stands at $44.51. KB Home boasts a market capitalization of $3.96 billion, a P/E ratio of 5.63.

The construction company reported earnings per share (EPS) of $1.94 for the quarter, which exceeded the consensus estimate of $1.33 by $0.61. The company's revenue for the quarter was $1.77 billion, compared to the consensus estimate of $1.43 billion. 
This revenue marked a 2.6% increase year-over-year. For the same quarter in the previous year, the company reported an EPS of $2.32. Analysts are projecting that KB Home will post an EPS of 6.29 for the entire year.

KB Home also announced a Q3 dividend; Shareholders received a dividend of $0.20 per share, representing an annualized dividend of $0.80 and a yield of 1.63%. This dividend increased from the company's previous quarterly dividend of $0.15.


4. Royal Caribbean's Q3: Rising Demand Boosts Outlook

Royal Caribbean Cruises (NYSE:RCL) reported record figures in its Q2 earnings, with revenue, yields, and earnings all reaching unprecedented levels. The company's CEO, Jason Liberty, attributed this success to "strong and accelerated demand," leading to an increase in full-year earnings expectations by 33%.

The company had previously raised its earnings expectations by 40% earlier in 2023. This optimism was further emphasized when Q2 revenue hit a record $3.5 billion, and net income stood at $458.8 million. The adjusted EBITDA also peaked at $1.2 billion. 

Excluding fuel, Q3 net cruise costs are expected to be 11.2% higher than 2019. For the entire year, a 7% increase in net cruise costs is anticipated compared to 2019, with prices expected to stabilize in the latter half of the year. The company has managed to keep the anticipated rise in expenses to only 7% for the year due to its focus on margin expansion and efficient expense management.

The company forecasts a 13.5% to 14% rise in net yields for Q3 and an 11.5% to 12% growth in net profits for the entire year, driven by onboard solid revenue and elevated ticket prices.

5. Alphabet's Q2&Q3 Earnings Soar: AI, Cloud, and YouTube Fueling Growth

Alphabet (NASDAQ:GOOGL) has established itself as a leader in artificial intelligence (AI) over the years. The tech giant is not only doubling down on its AI initiatives but is also exploring other lucrative avenues, such as cloud computing and its video platform, YouTube.

Alphabet's Q2 performance was commendable, registering a revenue of $74.60 billion, a figure that comfortably beat the consensus estimate of $60.24 billion. The company's earnings per share (EPS) for the same quarter stood at $1.44, outpacing the anticipated $1.32 by $0.12.

Financially, Alphabet's Q2 performance was commendable, registering a revenue of $74.60 billion, a figure that comfortably beat the consensus estimate of $60.24 billion. The company's earnings per share (EPS) for the same quarter stood at $1.44, outpacing the anticipated $1.32 by $0.12. 

Furthermore, Alphabet's ventures into cloud computing are also bearing fruit, with Google Cloud capturing an 11% market share in Q2. With platforms like Google and YouTube under its belt, Alphabet's growth trajectory looks promising for the upcoming quarters, including Q3.


Conclusion:

The financial landscape presented by these companies showcases a promising trajectory for investors. The diverse array of companies highlighted in this article underscores the multifaceted nature of our global economy. From MercadoLibre's dominance in e-commerce to Schlumberger's robust performance in the energy sector, Alphabet's technological advancements, KB Home's resilience in construction, and Royal Caribbean's resurgence in the travel industry, each company offers a unique lens into different economic sectors. Their recent earnings reports reflect their individual strengths and provide insights into broader economic trends, from digital transformation and entertainment to housing and leisure.

Collectively, these stocks present diverse investment opportunities, each with unique strengths and potential for significant returns. Investors should closely monitor these companies as they continue to shape their respective industries and deliver value to shareholders.
For forward-thinking investors, these stocks provide a chance to capitalize on current trends, ensuring a balanced and growth-oriented portfolio in an ever-evolving global economy.


The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.


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