Profits soar as Airbnb, Intel, Live Nation trounce forecasts

Stock to buy

On the surface, Airbnb Inc. (NASDAQ: ABNB), Intel Corp. (NASDAQ: INTC) and Live Nation Entertainment Inc. (NYSE: LYV) don’t seem to have much in common. However, all three recently trounced profit views, despite facing vastly different industry situations.

When a company tops earnings views, it signals that its financial health is strong, perhaps even stronger than the market believed.

It can also instill confidence on the part of investors, potentially boosting the company's stock price. 

Finally, an earnings beat may indicate that the company's industry is in a good position, or that market conditions favor the company. 

Airbnb jumped high threshold 

Before reporting its most recent quarter on November 1, Airbnb had been growing earnings at double-digit rates in the past several quarters. You can track that progression using MarketBeat’s Airbnb earnings data. 

Analysts expected the vacation rental company to earn $2.15 per share, which would have been strong year-over-year growth of 20%. 

Instead, the company blew right past estimates and delivered earnings of $6.63 per share, beating views by 270%. 

Revenge travel was apparently still a theme in the quarter, as revenue grew by 18% to $3.397 billion. 

Analysts recently increased their 2023 earnings forecast, but there’s a fly in the ointment: The company warned that travel spending could slow in the current quarter. It forecast revenue of $2.15 billion, below analysts’ expectations of $2.18 billion.

MarketBeat’s Airbnb analyst forecasts show that six analysts lowered their forecasts after that warning.  

Nonetheless, a look at the Airbnb chart shows the stock holding above its October 27 low, with a sequence of higher lows. That kind of trend line suggests consistent demand and potential support levels. 

Intel outperforming tech sector

Intel shares are up 49.49% year-to-date, outperforming the Technology Select Sector SPDR Fund (NYSEARCA: XLK) and the iShares Semiconductor ETF (NASDAQ: SOXX)

MarketBeat’s Intel earnings data show the chipmaker earning 41 cents a share, well ahead of expectations for 21 cents per share. That represented year-over-year growth of 11%.

Revenue of $14.20 billion also came in ahead of views. Year-over-year sales were down 8%, but sales declines have been narrowing in each of the past two quarters.  

In the post-earnings analysts’ call, Intel CEO Pat Gelsinger said the company was on track to slash costs by approximately $3 billion.

Until fairly recently, Intel was a laggard in the chip industry, compared to S&P 500 chip stocks like Nvidia Corp. (NASDAQ: NVDA), Advanced Micro Devices Inc. (NASDAQ: AMD), Broadcom Inc. (NASDAQ: AVGO) and Lam Research Corp. (NASDAQ: LRCX)

Intel’s year-to-date return puts it in the top 30 S&P gainers this year. The Intel chart shows the stock forming a choppy nine-week consolidation below a buy point of $40.07. 

Live Nation puts on stellar earnings show 

Shareholders of the live entertainment powerhouse can thank Beyoncé and Taylor Swift for their help in the company’s best revenue quarter ever. 

Those two blowout concert tours contributed to a total of $6.97 billion in merchandising sales and live-events production revenue. The company raked in $833 million in ticket sales. 

Live Nation earnings came in at $1.02 per share, up 28% over the year-earlier quarter, and topping views of 57 cents per share. Revenue grew by 32% to  $8.152 billion. That was ahead of forecasts for $4.95 billion. 

The company said it’s sold 140 million concert tickets so far this year, its best year ever. That’s already ahead of the 121 million-plus tickets sold last year. 

The Beyoncé and Swift tours together brought in billions not only for Live Nation, but also for the wider economy, as concert-goers spent on airfare, hotels and restaurant meals as they traveled to see the shows. 

Live Nation’s analyst forecasts show a consensus view of “moderate buy,” with a price target of $105.17, an upside of 20.45%.

The Live Nation chart shows a 16-week consolidation below a July high of $101.74. 

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