Yahoo Finance Full Slate of Q2 Earnings: TSLA, NFLX, IBM, UAL & More
Welcome to the most eventful afternoon of Q2 earnings season so far. We have a wide swath of earnings reports across a variety of industries after today’s closing bell, and leading into it we got another up-day in the markets on the major indices across the board. The Dow put up another +111 points, +0.32%, while the S&P 500 gained +0.23%. The Nasdaq was the laggard, sliding into the close, +0.02%, while the small-cap Russell 2000 outperformed yet again, +0.43% on the session.
Tesla TSLA has outperformed estimates on both top and bottom lines in its Q2 report after today’s close, earning 91 cents per share — 8 cents higher than the Zacks consensus, and nicely beyond the 76 cents per share in the year-ago quarter — on revenues of $24.93 billion, better than the $24.88 billion expected. The EV leader kept full-year delivery guidance in-line with expectations, and gross margins, ex-zero-emissions credits came in up +18.2%, an improvement on the +16.9% estimated. This is lower than the +19.3% reported the previous quarter, which may be due to lowered price points for sold vehicles.
This, however, is considered the trough for gross margins minus credits; both the company and analysts expect this number to continue growing from here. Operating margins overall came in at +9.6%. This is the 10th straight earnings beat for CEO Elon Musk’s industry leader, and Tesla has kept full-year revenue guidance in-line with earlier estimates. Shares have been bouncing around on the news, from below $285 per share for a short time and over $295 moments later. Tesla remains one of the best-performing stocks of 2023 so far.
Netflix NFLX is also out with new Q2 results, which were mixed: earnings of $3.29 per share marked a positive beat of 46 cents, and positive year over year, while its top line narrowly missed expectations to $8.19 billion in the quarter. Net add subscribers more than doubled analyst consensus — 5.89 million versus roughly 2 million expected — but the revenue miss also carries to full-year guidance, which has been lowered to $8.52 billion from the Zacks consensus $8.63 billion.
That said, next-quarter earnings guidance has been bumped up to $3.52 per share, as Netflix shows good results from its preliminary “paid sharing” program, which is essentially a crackdown on prevalent password-sharing Netflix had been dealing with for years. This plan is expected to fetch $9 billion in revenues through 2025. The company also recently announced it is ending its $10 basic subscription plan. Shares are down more than -3% on this news; Netflix’s high profile likely set investors up for expecting a big beat that did not come.
IBM IBM also reported Q2 earnings this Hump Day afternoon, beating solidly on the bottom line — earnings of $2.18 per share amounts to an 18-cent outperformance — while revenues missed expectations for the second-straight quarter: $15.48 billion versus $15.54 billion our analysts were anticipating. Currency accounted for an 80 basis-point hit, according to the company’s statement, while its Red Hat software segment grew by +11%, outperforming other software developers of late. Shares have ebbed back to -0.87% in the after-market, and shares are still in the red year to date.
United Airlines UAL put up perhaps the most impressive quarterly numbers so far this earnings season, trouncing estimates on its bottom line — earnings of $5.03 per share is far beyond the $3.99 expected, on sales of $14.17 billion for the quarter, nicely ahead of the $13.93 billion in the Zacks consensus +17% year over year. Passenger per Seat Mile was +2.2% in the quarter, while Cost per Seat Mile also rose, +2%. Guidance is up for both earnings and revenues next quarter, and this is the airline’s fourth-straight earnings beat. Shares are +3.5% in late trading.
Las Vegas Sands LVS also outperformed on both top and bottom lines: earnings of 46 cents per share bettered estimates by a penny while revenues of $2.54 billion is well beyond the $2.36 billion expected. The international gaming entertainment major also announced it is issuing its first quarterly dividend since prior to the pandemic: 20 cents per share. Property EBITDA in its Macau and Singapore locations was up to $973 million in the quarter — now 82% of 2019 capacity (the last appropriate comparison). Shares are off their late-session lows, but still down -2.7% this afternoon.
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