Advanced Micro, Starbucks, Visa Inc, and eBay reported earning update

With about 171 S&P 500 companies scheduled to report their earnings update, this week has been a very busy one. Although there was almost no submission on Monday, on Tuesday, Advanced Micro, Starbucks, Visa Inc, and eBay are among the numerous companies that submitted their H1 earning report. 

Following the outbreak of the coronavirus in March and the resulting economic impact of the outbreak, most business activities have been greatly affected and many company's stocks have plunged significantly. As such, most companies that have submitted their earning report recorded loss. In fact, the Nasdaq shed 1.27%, or 134 points, to 10,402; the Dow lost 205 points, -0.77%, to 26,379 and the S&P 500 fell 21 points, or -0.65%, to 3218. However, reports revealed that Advanced Micro, Starbucks, Visa Inc, and eBay did exceedingly well in their report submitted yesterday. 

• Advanced Micro Devices (AMD) Q2 2020 Earning Report

According to Refinitiv, AMD (AMD stock price), the semiconductor company, recorded an earning report of 18 cents per share excluding some items on revenue of $1.93 billion. This is a surprising increase in the estimated earnings of 16cents per share on revenue of $1.86 billion. After the company posted the result on Tuesday evening, the company's stock increased by 10%. 

• Starbucks (SBUX) Q2 2020 Earning Report.

One of the companies worst hit by the ongoing ravaging pandemic is Starbucks. The coffee giants suffered a huge drop in patronage due to the social distancing measure put in place to control the spread of the virus. However, while many investors, including analysts, were expecting that the company's earnings report would show the extent it has been affected by the outbreak, the report showed that the company has been faring pretty well. 

Starbucks (SBUX) report showed a quarter loss of -46 cents as opposed to the estimated  -64. Also, the company reported a revenue of $4.22 billion, exceeding the estimated revenue of $4.11 billion. Considering how bad the company has been affected by the pandemic, this report is a very good one. 

However, same-store sales plummeted 40% due to the economic impact of the coronavirus pandemic. Reports on same-stores include Global -40%, U.S. -41%, and China -19%. After the report on Tuesday, the company's stock rose by 5%.

• Visa Inc

Since its IPO in 2008, Visa (V) has been known as one of the all-time earning all-stars. This is because the company has never missed a consensus earnings estimate. In the earning report submitted yesterday, the company shows that it has once again beat the bottom line estimate. Visa Inc earning report is $1.07 per share and revenue is $4.85 billion. The company beat the estimated value of $1.02 earning per share and $4.81 revenue. 

However, despite the success, the company's report is almost 17% decreased in its last quarterly report. In addition to this, the company's total payment was down 10% year over year, and the total processing down 13% to 30 billion. Also, the company withdrew its full-year guidance as a way to increase profitability. After the report, the Visa Inc stock fell by 2% 

• eBay

One of the most popular e-commerce services, eBay also recorded a great result in its second-quarter earnings report. eBay reported an earning of $1.08 per share as opposed to the estimated $1.05. It also reported a revenue of $2.87 billion as opposed to the $2.80 billion. 

However, after the report, the company shares experienced a 5.5% decrease. This is because the company is known as one of the beneficiaries of the outbreak. In fact, the company's situation after the outbreak of the pandemic is considered opposite to that of Starbucks. Three months after the outbreak of the virus in March, eBay has risen more than 45%.

From the report so far, there is no point hiding the fact that Q2 earning season would be a rough one. Meanwhile, yesterday's report revealed that most companies have been able to keep their business afloat despite the ravaging pandemic and the huge economic impact. This is attributed to the company's good company leadership. Since most big companies are yet to submit their report, one cannot give a final judgment yet. But no doubt that this season has been tough on most companies.