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Highlights from the past week

Market / Macro Economic Summary

As we settle into the Catholic season of Lent, it reminds me of a Mardi Gras saying… “laissez les bon temps rouler!” which translates to “let the good times roll.”  Markets had a great month of February with the S&P500 leading the charge at a 5% rise on the month, the fifth best February since 1980.  The Nasdaq closed 1.1% higher on the week and the Russell 2000 jumped 3% on the week and notched a two-year high. Earnings season has remained strong and reassures the “animal spirits” that new highs are in the cards. Of the 90% of the S&P500 that have reported, revenues are growing by an average of 3.8% and earnings per share jumping an impressive 7.5%.

Company Specific / Macro Economic Summary

Berkshire Hathaway (BRK.B)

Shares were little moved on quarterly results that were impressive, but guidance was uninspiring. Earnings of $3.92 per share on profits of $8.41 billion both topped expectations of $1.78 per share and $6.625 billion a year ago.  Warren Buffett beat consensus estimates by 120.22% while revenue grew 19.46% on a year-over-year basis.

Lowe’s (LOW)

Shares rose 1.8% as management delivered a top and bottom-line beat.  Earnings per share of $1.77 exceeded calls of $1.68.  Revenue of $18.60 billion for the fiscal fourth quarter was also higher than the estimates of $18.35 billion. Guidance for the upcoming year came in at $12.00 to $12.30 per share on revenue of $84.0 billion to $85.0 billion. The current consensus earnings estimates were $12.81 per share on revenue of $85.27 billion for the year ending January 31, 2025.

Salesforce (CRM)

Shares rose 2.61% on the day as CEO Mark Benioff delivered a great quarter.  Earnings of $2.29 per share topped the estimates of $2.26.  Revenue of $9.29 billion was also ahead of the calls for $9.23 billion. Management also declared its first ever dividend as it will be making a 40 cent per share dividend, which is typically a bullish sign for a mature company to start paying shareholders back via dividends.

Zscaler (ZS)

Shares of the cyber security giant fell 9% despite a top and bottom-line beat.  Earnings of $0.76 per share came in stronger than the $0.58 analysts were looking for. Revenue of $525.00 million for the fiscal second quarter also beat the calls for $506.63 million.  Management beat expectations by 26.67% while revenue grew 35.45% on a year-over-year basis. I believe the market reaction here was just plain wrong.

Okta (OKTA)

Shares for the cyber security provider surged 20% as the company reported its first ever quarterly profit.  Earnings per share of $0.63 on revenue of $605.00 million beat calls for $0.51 per share on revenue of $586.25 million, respectively. The company beat expectations by 16.67% while revenue grew 18.63% on a year-over-year basis

Parting Thoughts

We welcome an opportunity to discuss the above detail and wish you much success in the rest of your week!

Regards,

E.Palacios Erick J.  Palacios, MBA

Plan to Prosper Wealth Management’s clients & employees will from time-to-time hold securities mentioned above. Commentary is not endorsements or recommendations of any securities.