Science

Stocks in action: Caterpillar, BP, Activision Blizzard, Uber

Here is a selection of ads that moved (or moved) the prices of these companies:

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Exchange rate and supply issues hit Caterpillar in Q2

U.S. group Caterpillar (CAT) reported lower-than-expected second-quarter turnover on Tuesday, seeing it hit by fluctuating exchange rates and supply chain disruptions.

“Our second quarter results reflect healthy demand in most of our markets,” said group CEO Jim Umpleby, quoted in the earnings report, noting, however, “persistent challenges in the supply chain.”

Revenue increased 11% QoQ 2021 to $14.2 billion (B$US). But this disappointed the market, which was expecting $14.35 billion.

Revenue growth was driven by higher prices as well as higher sales volume “driven by services partially offset by lower equipment sales”.

Caterpillar also reported “an adverse exchange rate impact, primarily related to the euro, Australian dollar and Japanese yen.”

Group net income rose to US$1.7 billion.

And adjusted earnings per share, excluding exceptional items, Wall Street’s benchmark rose to $3.18 (USD), beating analysts’ expectations of $3.01.

The Group is considered a barometer of the health of the global economy as its machinery, materials, equipment and services are used in many business sectors depending on the economic situation.

The construction division recorded the weakest turnover growth (+7%), far from the +40% recorded last year at the same time. At the time, the split was driven by the good condition of the real estate market and the demand for new construction, especially in North America and Latin America.

On Wall Street, Caterpillar shares fell nearly 5% to $185.69 in early trading.

BP, in turn, announces a sharp increase in quarterly earnings

Following other major oil companies that made huge profits in the second quarter due to the growth of hydrocarbon reserves, the British giant BP (BP) announced on Tuesday that it tripled its profits for this period.

Thus, the group’s net profit amounted to 9.26 billion US dollars (billion US dollars) in the second quarter. According to the press release, the company will take the opportunity to increase dividends paid to its shareholders by 10% for the reporting period and launch a new share buyback program.

On the other hand, in the first six months of the year, BP posted a net loss of $11.13 billion as the group incurred an after-tax expense of $24.4 billion in the first quarter after exiting Russia’s Rosneft in the aftermath of the Russian invasion. to Ukraine.

Hydrocarbon prices have been rising for months, and gas prices, which fell from peaks reached in March shortly after the conflict began, are rising again after a reduction in supplies from Russia. In particular, on Saturday the Russian gas giant Gazprom announced the suspension of gas supplies to Latvia.

BP expects oil prices to remain high in the third quarter “due to ongoing supply disruptions from Russia” and inventory levels “well below the five-year average,” it warned in a press release.

Activision Blizzard is crashing on PC and consoles, but the market expected the worst

Activision Blizzard (ATVI), the American video game publisher that is poised to acquire Microsoft, reported a sharp drop in revenue and profit in the second quarter, but better than Wall Street expected amid the economic crisis.

The Santa Monica (California) group of companies achieved sales of $1.6 billion, down 28% year-on-year. This is the third consecutive quarter that its earnings have declined, and the company said in a press release that this trend will continue into the second half of the year.

Its net income was $280 million, a fraction of $876 million in the second quarter of 2021.

Its sales on consoles and PC halved but rose slightly on mobile, up 5%, to US$831 million, thanks in part to Candy Crush.

Activision Blizzard notes that players have spent less time on Call of Duty, one of its successful franchises. The company hopes that the release of the new part in October will revive interest in the shooter.

These results left the market unmoved as analysts expected weaker earnings.

Big loss for Uber in 2Q, but turnover better than expected

Uber (UBER) on Tuesday reported a net loss of $2.6 billion in the second quarter, but its revenue of $8.1 billion surged and far exceeded market forecasts.

On Wall Street, shares of the car-rental and RV giant rose more than 12% to $27.58 in electronic trading ahead of the stock exchange.

“We continue to benefit from increased demand for the transportation of people and things, as well as from the transition from the in-store spending model to the service spending model,” said Uber CEO Dara Khosrowshahi.

“We intend to continue to use these favorable factors for our growth,” he added.

The company said the group’s quarterly revenue, which more than doubled year-over-year, was boosted in part by recalculating UK racing revenue.

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