Earnings Roundup: Tesla, Microsoft, Meta, Apple, and More

We had one of the busiest week's of earnings this season with Apple, Microsoft, Meta, Tesla, and a bunch more on deck. The results were mixed but mostly positive.

Here's a brief recap of the most important reports from the past week.

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Apple

The iPhone maker beat overall revenue and earnings expectations in its fiscal Q1, although iPhone revenue fell short. China sales declined 11%. Services, Mac, and iPad revenue all came in above expectations.

Tim Cook also highlighted that iPhone sales did better in regions where Apple Intelligence has been launched. China is one of the countries where Apple needs a local partner to be allowed to launch its AI features.

• EPS: $2.40 vs $2.35 expected
• Revenue: $124.30 billion vs $124.12 billion expected
• iPhone revenue: $69.14 billion vs $71.03 billion expected
• Mac revenue: $8.99 billion vs. $7.96 billion expected
• iPad revenue: $8.09 billion vs. $7.32 billion expected
• Services revenue: $26.34 billion vs. $26.09 billion expected
• Gross margin: 46.9% vs. 46.5% expected

Investors initially sent shares up by 4% on Friday after the report but the move faded throughout the day. Apple closed down 0.67% but still gained 5.93% for the week.

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‍Microsoft

‍Microsoft delivered an earnings and revenue beat but gave disappointing guidance. The company now expects fiscal Q3 revenue between $67.7 and $68.7 billion compared with the $69.78 billion LSEG consensus.

• EPS: $3.23 vs $3.11 expected
• Revenue: $69.63 billion vs $68.78 billion expected

Microsoft shares fell 6.18% on Thursday after the report and are now exactly unchanged from 12 months ago while the Nasdaq Composite is up 26%.

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‍Meta

‍Meta earnings came in at $8.02 per share, significantly higher than the $6.77 estimate. Revenue landed at $48.39 billion vs $47.04 billion expected. Q4 sales jumped 21% year-over-year while net income grew 49% to $20.8 billion.

The Meta AI chatbot surpassed 700 million monthly active users. Meta CEO Mark Zuckerberg spoke very positively about the new US administration and was clearly optimistic about the future.

• EPS: $8.02 vs $6.77 expected
• Revenue: $48.39 billion vs $47.04 billion expected

One slight miss came in the form of Q1 revenue guidance which is now $39.5 to $41.8 billion. The midpoint is well below analysts’ $41.73 billion estimate. The stock rose 1.55% after the report on Thursday but closed well off of its intraday high. This was still a new record high of $687 though.

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‍Tesla

‍Tesla undoubtedly reported the most obvious Q4 miss on both the top and bottom lines. Revenue increased just 2% year-over-year while automotive revenue fell 8% from the same quarter a year earlier. Operating income declined 23% to $1.6 billion.

• EPS: 73 cents adjusted vs 76 cents expected
• Revenue: $25.71 billion vs $27.26 billion expected

With those numbers, it wasn’t a surprise to see Tesla shares down immediately after the release. What was a surprise, however, was that the stock quickly turned around and soared well into positive territory in the aftermarket. The gains held up in Thursday’s trading session where Tesla finished the day 2.87% higher.

Critics will point to this as confirmation that Tesla is trading more like a meme stock based on the cult of Elon Musk. Believers highlight that Tesla is set up to be way more than a car company and that the real drivers of growth will come in the form of robotaxis, AI, and infrastructure. Musk himself spoke very enthusiastically about these areas, pointing to 2026 and 2027 as the years where Tesla will really begin delivering on its promises. Time will tell.

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More earnings

• Starbucks revenue and earnings topped estimates, coming in at $9.4 billion and 69 cents per share respectively. However, same-store sales declined for the fourth straight quarter. The stock jumped more than 8% after the report on Wednesday, hitting its highest level since May 2023.
• IBM soared 12.96% to a new record high after reporting a big earnings beat on Thursday.
• Intel beat Q4 expectations but gave somewhat disappointing guidance.
• Visa revenue beat expectations while earnings fell short.
• Mastercard delivered a strong Q4 report with EPS of $3.82 vs $3.70 expected. Revenue came in at $7.5 billion vs $7.4 billion expected. Shares popped 3.14% to a new record high after the report.
• Dutch semiconductor maker ASML beat expectations for both net sales and net profit. Shares rallied 5.55% on Wednesday after the report, recovering most of Monday’s 7% drop caused by the DeepSeek situation.
• Boeing confirmed its pre-announced earnings on Tuesday but also provided some more context. Investors mostly liked what they heard, initially sending shares up by 7.5% on Tuesday. They closed just 1.48% higher after a volatile session and were basically flat for the week.
• General Motors delivered a solid revenue beat of $47.7 billion vs $43.93 billion expected. Earnings were slightly better than forecast as well. Even guidance met or exceeded most analysts’ expectations. And yet, the stock plummeted almost 9% after the report on Tuesday.
• Atlassian reported a big earnings beat, making 96 cents per share vs 76 cents expected. Shares rallied almost 15% after the report on Friday.
• Comcast’s earnings per share came in at 96 cents adjusted vs 86 cents expected. Revenue also topped estimates. However, the company also reported larger-than-expected broadband subscriber losses and stagnating paid subscribers for its streaming service, Peacock. Shares fell 11% after the report to a 2-year low.
• Lockheed Martin beat earnings expectations despite a slight year-over-year revenue decrease. The stock dropped by 10% in the aftermarket on Friday.
• RTX reported adjusted earnings of $1.54 per share Friday after the close, beating estimates of $1.38. Revenue hit $21.62, also higher than the forecast of $20.53.
• Shell reported adjusted earnings of $23.72 billion for 2024, below the LSEG consensus of $24.71 billion. It was also down from $28.25 billion a year earlier.
• Deutsche Bank reported weaker-than-expected profit and a big decline in Q4. Legal provisions hurt the bottom line. Shares dropped sharply on the news but ended the day down just 1.9%.