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META Beats Q3 Estimates on Record Quarterly Revenues
TSLA Outpaces Estimates a Day After SPCX Did the Same
IBM and TXN Make It a Clean Sweep This Afternoon
Mag 7 companies are now being heard from in Q3 earnings season. Meta Platforms (META - Free Report) — parent company of Facebook, Instagram, WhatsApp, Messenger and Threads — outpaced estimates on both top and bottom lines after the closing bell today. Earnings of $3.83 per share surpassed the $3.45 analysts were looking for, on revenues of $64.6 billion in the quarter, its highest ever, and up +26% year over year.
Earnings were still well off the pace set in the year-ago quarter, and that’s because Meta was hit with a $10 billion charge (of an $18 billion settlement overall) in a multi-state deal regarding social media addiction in young people. Revenue guidance was increased to a $73-76 billion range for the current quarter, as the company also projects between $135-145 billion in additional capex spending on AI infrastructure.
Finally, the company is rewarding shareholders with a 2-for-1 stock split. META stock is up +3.9% on the news in late trading, adding to its slim +5.67% gains year to date.
Tesla (TSLA - Free Report) also outperformed the Zacks consensus on earnings and revenues, with $0.48 per share coming in 3 cents higher than estimates on revenues of $28.05 billion, beating the $27.78 billion estimate. Auto Gross Margins (minus EV credits) were up +18.1%, better than analysts had projected. Full-Service Driving (ESD) subscriptions rose +67% year over year to 1.74 million in the quarter.The Tesla robotaxi has now clocked 2 million unsupervised miles, and its Optimus robot production has begun at its Fremont, CA auto plant.
It’s been a busy week for Tesla CEO Elon Musk, who saw his SpaceX (SPCX - Free Report) Q3 numbers skyrocket (no pun intended) after Tuesday’s close. He has also been implicated in the Starlink slowdown in Ukraine that hampered the U.S. ally’s ability to conduct its war against Russia. Tesla shares are up +1.4% in late trading, but still down more than -12% year to date.
IBM Corp. (IBM - Free Report) kept the Q3 tech earnings beats alight this afternoon, with earnings of $2.95 per share surpassed the $2.88 in the Zacks consensus on $17.10 billion in revenues, which beat the $16.87 billion forecast. Software and Infrastructure revenues beat consensus estimates, and the tech giant is looking for full-year revenue growth of between 4-5%. IBM shares are up +3.5% in the after-market.
Zacks Rank #2 (Buy)-rated Texas Instruments (TXN - Free Report) came in well ahead of expectations on its Q3 bottom line after today’s close: $2.62 per share versus $2.40 estimated. Revenues of $6.06 billion improved over the $5.93 billion analysts were looking for. Analog revenues and guidance numbers came in better than expected. Investors are selling the news a bit, sending shares down marginally after +64% gains year to date.
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Q3 Earnings Beats for Meta, Tesla, IBM and T.I.
Key Takeaways
Mag 7 companies are now being heard from in Q3 earnings season. Meta Platforms (META - Free Report) — parent company of Facebook, Instagram, WhatsApp, Messenger and Threads — outpaced estimates on both top and bottom lines after the closing bell today. Earnings of $3.83 per share surpassed the $3.45 analysts were looking for, on revenues of $64.6 billion in the quarter, its highest ever, and up +26% year over year.
Earnings were still well off the pace set in the year-ago quarter, and that’s because Meta was hit with a $10 billion charge (of an $18 billion settlement overall) in a multi-state deal regarding social media addiction in young people. Revenue guidance was increased to a $73-76 billion range for the current quarter, as the company also projects between $135-145 billion in additional capex spending on AI infrastructure.
Finally, the company is rewarding shareholders with a 2-for-1 stock split. META stock is up +3.9% on the news in late trading, adding to its slim +5.67% gains year to date.
Tesla (TSLA - Free Report) also outperformed the Zacks consensus on earnings and revenues, with $0.48 per share coming in 3 cents higher than estimates on revenues of $28.05 billion, beating the $27.78 billion estimate. Auto Gross Margins (minus EV credits) were up +18.1%, better than analysts had projected. Full-Service Driving (ESD) subscriptions rose +67% year over year to 1.74 million in the quarter.The Tesla robotaxi has now clocked 2 million unsupervised miles, and its Optimus robot production has begun at its Fremont, CA auto plant.
It’s been a busy week for Tesla CEO Elon Musk, who saw his SpaceX (SPCX - Free Report) Q3 numbers skyrocket (no pun intended) after Tuesday’s close. He has also been implicated in the Starlink slowdown in Ukraine that hampered the U.S. ally’s ability to conduct its war against Russia. Tesla shares are up +1.4% in late trading, but still down more than -12% year to date.
IBM Corp. (IBM - Free Report) kept the Q3 tech earnings beats alight this afternoon, with earnings of $2.95 per share surpassed the $2.88 in the Zacks consensus on $17.10 billion in revenues, which beat the $16.87 billion forecast. Software and Infrastructure revenues beat consensus estimates, and the tech giant is looking for full-year revenue growth of between 4-5%. IBM shares are up +3.5% in the after-market.
Zacks Rank #2 (Buy)-rated Texas Instruments (TXN - Free Report) came in well ahead of expectations on its Q3 bottom line after today’s close: $2.62 per share versus $2.40 estimated. Revenues of $6.06 billion improved over the $5.93 billion analysts were looking for. Analog revenues and guidance numbers came in better than expected. Investors are selling the news a bit, sending shares down marginally after +64% gains year to date.
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