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Tesla Up +7% After Q1 Misses, TXN, Visa Beat on Top & Bottom

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Tuesday, April 23rd, 2024

Two sessions into the trading week, things are looking up. Since bottoming out Friday afternoon, down as much as -4% in just a couple days, we’re now in the green for three of four major indices as of Tuesday’s close. The Dow picked up +263 points, +0.69%, while the S&P 500 almost doubled that performance, +1.20%. The Nasdaq, the only of these indices still in the red over the past week, gained +245 points today, +1.59%. And the small-cap Russell 2000 outperformed the field for the session, +1.79%.

Tesla (TSLA - Free Report) , so far having a crummy 2024, is up +7% following the release of its Q1 results after today’s close. Earnings of 45 cents per share missed the Zacks consensus by a penny, while $21.03 billion in quarterly revenues came up short of expectations of $22.15 billion. Guidance for auto deliveries in 2024 are “notably lower” than they were last year, which was hinted at in its deliveries report a couple weeks ago. So why are shares climbing so nicely on such lousy quarterly numbers?

The answer, as it often is with Tesla, is this: the future. Noted in Tesla’s letter to investors today was the +130% growth in A.I. training, which pertains directly to its “robo-taxi” program — self-driving cars. There is an August 8th event pending on just this topic, which may be just the salve this beaten-down stock needs at this point. The company reported negative free cash flow and more EV competition than ever before. The company also plans to accelerate its development of lower-priced vehicles.

Visa (V - Free Report) , on the other hand, beat estimates on both top and bottom lines for its fiscal Q2 this afternoon. Earnings of $2.51 per share outpaced the $2.43 expected (and nicely above the $2.09 per share from the year-ago quarter), with revenues in the quarter of $8.78 billion shooting past the $8.60 billion analysts were looking for. Visa called consumer spending “stable,” with volume +8% and processed transactions +11%. Shares are up +2.5% in late-session trading.

Texas Instruments (TXN - Free Report) shares are also up nicely — +5.5% at this hour — on Q1 top and bottom-line beats. Earnings of $1.20 per share easily surpassed the $1.06 in the Zacks consensus, while revenues came in at $3.66 billion, bettering the $3.61 billion anticipated (though still down -16% year over year). Two quarters ago, T.I. posted its first negative earnings surprise in five years. Guidance remained in-line with previous estimates across the board.

Tomorrow brings us more Q1 earnings reports. In the morning, we’ll get Boeing’s (BA - Free Report) quarterly performance numbers, with Meta Platforms (META - Free Report) , Chipotle (CMG - Free Report) , Ford (F - Free Report) and IBM (IBM - Free Report) all reporting after the bell. We’ll also see Durable Goods Orders for March. Today’s economic prints were mixed: S&P flash PMIs for Services and Manufacturing in April came in lower than expected and below previous-month levels, while New Home Sales notably outperformed expectations.

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