Earnings: Semiconductors and telemedicine killing it, buying online exploding

Trader Talk

Jason Gorevic, CEO, Teladoc

Scott Mlyn | CNBC

Earnings reports are coming in fast and furiously, and with a large percentage of companies declining to provide guidance, reporters and analysts are combing through corporate press releases and earnings calls for signs of how business is doing. 

Semiconductors continue to be the all-round winner

Equipment maker Lam Research highlighted the explosion in work-from-home, e-learning, telehealth, online gaming, and streaming that is driving demand for semiconductors. CEO Timothy Archer: “While COVID-19 has created volatility for the semiconductor industry, in a larger sense, it has underscored the rapidly growing reliance of individuals and businesses on semiconductors and the products and technologies they enable. “

Telemedicine is really killing it

Teladoc Health CEO Jason Gorevic says they are raising guidance: “We provided approximately 2.8 million visits in the second quarter, representing growth of over 200% compared to the second quarter of 2019.”

Buying online has exploded

Paypal CEO Daniel H. Schulman said this was the strongest quarter the company has had since going public: “I think it’s clear that we’ve tipped into a digital-first economy.”

They’re selling a lot more doors, locks and cabinets

Fortune Brands Home & Security CEO: “Our home products market was clearly stronger than many other industries. The very nature of the pandemic and the shelter-at-home orders have led to a resurgence of interest in housing.”

Same with At Home, where comparable store sales were up 42%. CEO Lewis Bird: “[C]onsumers are spending more time at home, they’re also spending more money on decorating their homes, creating a home workspace and organizing their kitchens. As a home decor category killer, we are in the sweet spot.” 

Restaurant traffic is uneven

But Dine Brands (Applebee’s, IHOP), said sales were slowly improving. CEO Stephen Joyce: “[B]oth Applebee’s and IHOP posted steady improvement in weekly comp sales and traffic during the quarter. Our off-premise business continued to deliver substantial growth as guests became more familiar with the to-go service.”

 More beer

If you want a good example of the bad-but-getting better story, look at Anheuser Bush Inbev. April volumes were down 32%, May down 21%, June up 0.7%. That’s what the Street wants to hear. The second quarter was likely the bottom, and it may be uneven but it’s slowly getting better.

 - Transcripts provided by Sentieo

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