Twitter's Earnings: "The Best Thing Ever To Happen To Twitter Is Donald Trump"

Posted: Apr 23, 2019 10:16 AM
Twitter's Earnings: "The Best Thing Ever To Happen To Twitter Is Donald Trump"

Source: AP Photo/Richard Drew

Yesterday, existing home sales for March missed expectations, coming in 4.9% lower than February (which showed a surge in sales), at an annual adjusted rate of 5.21 million. Year over year, sales are down 5.4%.  

According to Lawrence Yun, NAR’s chief economist, “It is not surprising to see a retreat after a powerful surge in sales in the prior month. Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized.”

Existing Home Units

The median price of a home sold in March was was up 3.8% to $259,000, with a 3.9 month supply, which is significantly below the 6 month average supply.  Sales declined across all the regions.

  • Northeast -2.9%
  • South - 3.4%
  • West -6%
  • Midwest -7.9%

The lower end of the market was hot, while the higher end continued to cool.  First-time buyers accounted for 33% of all transactions, up from 32% in the prior month and 30% in the previous year.

On the home front, homebuilder PulteGroup (PHM) reported earnings this morning.   PHM beat on both the top and bottom line.  Revenues rose 1.4% year over year to $2 billion as average selling prices increased to $421,000.  New orders, however, fell 6%, with net new orders of 6,463 in the first quarter.

Ryan Marshall, President and CEO of PulteGroup said, "Helped by the recent decline in mortgage rates, homebuyers have been steadily returning to the market after a period of slowing demand that began in the second half of 2018. " He added, "In addition to the strong financial results PulteGroup delivered in the quarter, we view the significant increase in consumer traffic into our communities as an important indicator of the overall health of the housing industry."

"Given the very positive macroeconomic backdrop, we continue to maintain a constructive view on the overall housing cycle and are pleased with our competitive position in the markets in which we operate,” Marshall stated.

Earnings Parade

The parade continues with several big names reporting, including 4 Dow components. For the most part, results are coming in  better than expected. 

  • Coca-Cola (KO) beat on EPS of $0.48, beat on revenues of $8 billion, and reaffirmed its guidance.
  • Hasbro (HAS) beat on the top and bottom line with EPS of $0.21 and revenues up 2.3% year over year to $732.51 million. 
  • Lockheed Martin (LMT) beat on EPS of $5.99, beat on revenues of $14.34 billion, and raised guidance.
  • Nucor (NUE) beat on EPS of $0.04, revenues in line at $6.10 billion. Guidance was flat.
  • Procter and Gamble (PG) beat on EPS of $1.06, revenues were inline at $16.46 billion, and it maintained its guidance.
  • Sherwin Williams (SHW) missed on the top and bottom line, EPS $3.66, revenues $4.04 billion, and reaffirmed its FY19 guidance.
  • United Technology (UTX) beat on EPS of $0.19, beat on revenues of $18.36, up 20.5% year over year, and raised FY19 guidance.
  • Verizon (VZ) beat on EPS of $1.20, revenues inline at $32.12 billion, and guided higher.
  • Whirlpool (WHR) beat on EPS of $3.11, missed on revenues of $4.76 billion, which were down 3.1% year over year, and maintained its FY19 guidance.


Harley Davidson (HOG) also reported this morning. The company beat on the top and bottom line and reaffirmed its full year guidance. Revenues however fell 10.1% year over year and Profits were down about 27%.  In the first quarter, worldwide retail sales worldwide were down 3.8%.  International sales were down 3.3%, while U.S. sales declined 4.2%.  Weak industry sales and limited supply of Street bikes from the recall announced in January impacted sales. 

The company has been in the crosshair of the Trump administration after HOG’s decision to move some production overseas.  This morning, President Trump again took to Twitter:

“Harley Davidson has struggled with Tariffs with the EU, currently paying 31%. They’ve had to move production overseas to try and offset some of that Tariff that they’ve been hit with which will rise to 66% in June of 2021.” @MariaBartiromo So unfair to U.S. We will Reciprocate!

Speaking of Twitter (TWTR), the company also reported earnings this morning, beating on EPS, $0.37 vs $0.15 and beating on Revenues $787 million vs $776.1 million.  Monthly active users were 330 million vs 318 million, and monetized daily active users (mDAUs) were 134 million for 1st quarter vs 120 million in prior year period. mDAU is the new metrics that the firm is focused on.  The stock is up about 8% on the news.  President Trump took to Twitter to talk about TWTR’s results.

“The best thing ever to happen to Twitter is Donald Trump.” @MariaBartiromo

 So true, but they don’t treat me well as a Republican. Very discriminatory, hard for people to sign on. Constantly taking people off list. Big complaints from many people. Different names-over 100 M. But should be much higher than that if Twitter wasn’t playing their political games. No wonder Congress wants to get involved - and they should. Must be more, and fairer, companies to get out the WORD!


Beyond Meat is seeking to raise $183.8 million in its IP), and expects to price between $19 and $21 per share. This could mean $1.2 billion value.  The offering could mean a sweet deal for its big-name backers, including ex-McDonald's chief Don Thompson and Microsoft’s Bill Gates.

Portfolio Approach

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The major indices are pointing to a higher open on the back of overall better than expected earnings results.