Stocks moving in after-hours: Microsoft, Alphabet, Chipotle, Visa

These are some of the stocks moving in after-hours trade on Tuesday, April 25, 2023.

Microsoft

Microsoft (MSFT) shares rose after the software giant’s fiscal third quarter earnings per share of $2.45 beat Wall Street estimates of $2.23. Revenue of $52.9 billion came in above expectations of $51.02 billion.

The tech giant reported Azure and other cloud services revenue growth of 27% year-over-year for the quarter. Analysts had been anticipating a slow down in cloud revenue.

“Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI,” CEO Satya Nadella said in a statement.

The company continues to ride the generative AI craze wave. Microsoft made a multi-year, multi-billion dollar investment in ChatGPT developer OpenAI earlier this year, sparking an industry wide appetite for artificial intelligence. The Windows maker has since implemented versions of OpenAI’s technology in its Edge browser, Bing search engine, Microsoft 365 productivity software, and cybersecurity offerings.

Alphabet

Alphabet (GOOGL) (GOOG) shares rose 4% in post market after the tech giant’s Google cloud business turned profitable for the first time. First-quarter revenue for the cloud unit increased to $7.45 billion, up from $5.82 billion year-over-year.

One analyst described the tech giant’s performance last quarter as “an inflection.”

“This is the first quarter they’re showing positive operating income [for cloud]. They reshuffled some costs here and there, that’s a minor yellow flag, but I think on a reported basis, they are positive on margins for the first time on the cloud. So that’s an inflection quarter,” Rohit Kulkarni, managing director at Roth MKM told Yahoo Finance Live

YouTube’s revenue dipped amid an advertising slowdown. Alphabet’s ad sales are closely watched as a barometer for the overall health of the advertising market.

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The tech giant’s overall revenue of $69.7 billion beat Wall Street expectations of $68.96 billion. Earnings per share of $1.17 beat analyst estimates of $1.09.

Alphabet said the board approved $70 billion in stock repurchases.

Visa

Visa (V) shares rose almost 2% after the credit card company posted a beat on the top and bottom line. Earnings per share of $2.09 surpassed Wall Street expectations of $1.98. Sales of $7.99 billion also came in ahead of a consensus estimate of $7.79 billion.

A continued rebound in global travel helped increase cross-border volume payments, which increased 24% year-over-year.

“Visa’s strong fiscal second quarter performance reflects continued focus on our growth levers – consumer payments, new flows and value added services,” CEO Ryan McInerney said in the company’s fiscal second quarter earning release.

The results are a continuation of the previous quarter when the company said it saw “stable payments volume” along with continued cross-border travel recovery.

PacWest Bancorp

PacWest Bancorp (PACW) shares spiked more than 15% post market after the regional bank said deposits have been building in recent weeks.

The lender’s first quarter deposits $28.19 billion came in slightly below Wall Street estimates of $28.53 billion. However PacWest said its deposits increased by about $700 million since the end of its latest quarter.

The bank posted first quarter adjusted earnings per share of 66 cents versus Wall Street estimates of 61 cents.

PacWest shares were down 7% during Tuesday’s trading session as the overall regional bank sector fell in sympathy with First Republic’s stock, which was down nearly 50% following its quarterly results.

Chipotle

Chipotle Mexican Grill (CMG) posted revenue which climbed 17.2% year-over-year to $2.4 billion. The restaurant chain’s adjusted earnings per share of $10.50 beat Wall Street estimates of $8.92.

Comparable sales grew 10.9%, versus a consensus expectation of 8.51%.

The restaurant chain took a pause on raising prices in 2023, after hiking them last year.

“We don’t have any plans to dial the menu price increases back, but we don’t have any plans to raise prices either,” Chipotle CFO Jack Hartung said on Yahoo Finance Live earlier this year.

The company expects to open 255-285 new restaurants this year, versus estimates of 273.

Chipotle shares rose more than 7% in after hours. The stock is up 28% as of Tuesday’s close.

Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre

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