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Today is one of the busier days over the course of the Q3 earnings season as several S&P 500 constituents reported their results. While the highlight of the day is later, when Apple is due to report its quarterly performance, several companies that captured attention include Shell, Starbucks, Palantir, Moderna, and Shopify. 

Shell, Palantir, Starbucks, and Shopify Report Positive Q3

Shell (LON: SHEL) shares rose over 3% on Thursday after the oil and gas giant reported results for the third quarter. The company delivered a strong performance in the upstream and oil products trading segments.

Shell reported an adjusted profit of $6.22 billion, a 34% decrease compared to the previous year and in line with analyst expectations. Adjusted EPS was 93 cents, in line with expectations. Revenue reached $76.35 billion, missing the expected $83.13 billion. However, cash flow from operations, an important metric for energy companies, was $12.33 billion, easily ahead of the expected $11.43 billion.

Moreover, Shell announced a share buyback program of $3.5 billion, expected to be completed by the fourth-quarter 2023 results announcement.

In the meantime, aerospace and defense company Palantir (NYSE: PLTR) delivered remarkable third-quarter results. The updated outlook suggests the company is witnessing robust demand for AI-focused defense products. The firm posted a profit per share of 7 cents, topping the consensus by 1 cent. Revenue rose 17% year-over-year to $558.2 million, just ahead of the expectations for an increase to $555.8 million. Shares rallied as much as 21%.

For this quarter, the company sees adjusted income between $184 and $188 million on revenue of $599-603 million. The Street was looking for an adjusted income of $178.4 million on revenue of $599.2 million. 

Palantir raised its full-year revenue outlook to $2.22 billion, up from $2.21 billion. Full-year adjusted operating profit is seen as between $607 million and $611 million, up from the prior $576 million. 

E-commerce giant Shopify (NYSE: SHOP) also saw its stock rally over 20% after the e-commerce business posted earnings that topped analyst expectations. Revenue jumped 25% to $1.71 billion, while adjusted earnings per share were 24 cents. Analysts were looking for $1.67 billion and 14 cents, respectively. Subscription revenue was $486 million, up 29% YoY and ahead of analyst expectations. GMV was $56.2 billion, ahead of what the Street was looking for. 

The company’s gross payment volume reached $32.8 billion, with a 31% annual increase, exceeding the consensus of $31.33 billion.

Coffeehouse chain operator Starbucks (Nasdaq: SBUX) also unveiled better-than-expected earnings and revenue, driven by growing demand for more expensive drinks. The stock jumped over 10% at the market open after the company posted EPS of $1.06, while analysts were looking for 97 cents. Revenue reached $9.37 billion, surpassing the estimated $9.29 billion.

Moderna fails to deliver amid Covid-19 vaccine demand decline

Meanwhile, Moderna’s (Nasdaq: MRNA) third-quarter numbers indicated that the slump in Covid-19 vaccine demand is not yet over. The company’s shares declined by 9% after reporting a larger-than-expected loss per share for the quarter, compared to the average analyst estimate. 

Moderna reported a $3.6 billion loss, including a $3.1 billion charge due to Covid-related write-downs. This forced the company to report a loss per share of $9.53 on revenue of $1.83 billion.

The company is now expecting to report sales of at least $6 billion for the year, representing the lower end of the range it had previously projected for 2023. Looking ahead to 2024, it anticipates approximately $4 billion in sales, with the majority expected in the second half of the year. 

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