Top Earnings Reports for October 24, 2019 – TSLA, TWTR, MMM

Some of the top earnings reports to be aware of include:

Tesla Inc. (TSLA)

Tesla was back in black for the third quarter.

The company said it earned $143 million in the third quarter, or 80 cents a share compared with $311 million, or $1.82 a year earlier.  Adjusted, Tesla earned $342 million, or $1.91 a share, compared with adjusted EPS of $3.02 last year.

Revenue fell to $6.3 billion from $6.82 billion year over year.  Analysts were only looking for an adjusted loss of 46 cents on sales of $6.43 billion.  As a result, in after-hours trading on Wednesday, Tesla is up nearly 21%, or $52.92 a share.

However, “We think questions remain regarding the sustainability of these results, particularly as EV competition ramps up and its tax credit goes away,” SAID Garrett Nelson, an analyst with CFRA, as quoted by MarketWatch.

There’s also a reason to worry about sustainability, too.

Analysts at RBC Capital Markets have already noted that third quarter Model 3 sales just in the U.S. slipped 31% from a year earlier.  While current earnings are giving bulls a reason to cheer, the long-term may not be as great, some say.

Twitter (TWTR)

Twitter managed to stink up the Street this morning with shares down 16% in pre-market.

All after the company cited major revenue headwinds and missed on the top and bottom line.  EPS came in at 17 cents, as compared to expectations for 20 cents. Revenue of $823.7 million missed estimates for $874 million.  

The company warned in its shareholder letter that headwinds felt during the third quarter will “continue to weigh on the overall performance of our advertising business in the near term,” as quoted by CNBC.  

“In Q3 we discovered, and took steps to remediate, bugs that primarily affected our legacy Mobile Application Promotion (MAP) product, impacting our ability to target ads and share data with measurement and ad partners,” the company said in its shareholder letter,” as also highlighted by CNBC.  “We also discovered that certain personalization and data settings were not operating as expected. We believe that, in aggregate, these issues reduced year-over-year revenue growth by 3 or more points in Q3.”

3M (MMM)

Shares are down slightly this morning after the company’s sales fell, and after it cut its outlook.  

Sales slipped to $7.99 billion from $8.15 billion a year earlier.  Analysts were looking for $8.17 billion. ESP of $2.72 a share was slightly above the $2.58 posted year over year.  Analysts were looking for EPS of $2.51 a share.  

Going forward, 3M expects a profit of between $8.20 and $8.30 a share, as compared to previous guidance of $8.25 to $8.75 a share.