All the U.S. megacap stocks released their financial earnings after the market closed on Feb.2. Meta soared 23.28% on Thursday after its strong financial result; Tesla surged over 40% in January as its earnings beat on both earnings and revenues. Netflix posted mixed results on January 19 and also rose over 16% since then, while Apple, Microsoft, Amazon and Alphabet underperformed.
Apple missed expectations for revenue, profit, and sales for many of its lines of business. Revenue was $117.15 billion and earnings per share were $1.88, while Wall Street expected revenue to be $121.1 billion and earnings per share to be $1.94.
It doesn’t provide guidance for the current quarter ending in March and hasn’t provided guidance since 2020, at first citing uncertainty caused by the pandemic. Analysts expect the company to guide to about $98 billion in sales in the company’s fiscal second quarter.
Microsoft issued a disappointing revenue forecast for the current quarter. Revenue was $52.75 billion in the quarter ending Dec. 31 and earnings per share were $2.32, while Wall Street expected revenue to be $52.94 billion and earnings per share to be $2.29.
It called for $50.5 billion to $51.5 billion in fiscal Q3 revenue, which works out to 3% implied growth, while analysts polled by Refinitiv had expected $52.43 billion.
Amazon issued Q1 guidance that came in light of estimates, overshadowing better-than-expected Q4 revenue. Revenue was $149.2 billion and earnings per share were $0.03, while Wall Street expected revenue to be $145.8 billion and earnings per share to be $0.17.
It expects to post Q1 revenue of between $121 billion and $126 billion, representing year-over-year growth of 4% to 8%. Analysts were expecting sales to come in at $125.1 billion.
Alphabet missed on both top and bottom lines when it reported Q4 earnings. Revenue was $76.05 billion and earnings per share were $1.05, while Wall Street expected revenue to be $76.53 billion and earnings per share to be $1.18.
It would take a charge of between $1.9 billion and $2.3 billion, mostly in Q1 2023, related to the layoffs of 12,000 employees it announced in January. It also expects to incur costs of about $500 million related to reduced office space in Q1, and warned that other real-estate charges are possible going forward.
Tesla reported Q4 financial results that beat estimates, revenue was $24.32 billion and earnings per share were $1.19, while Wall Street expected revenue to be $24.07 billion and earnings per share to be$1.12.
For 2023, it expects to remain ahead of the long-term 50% CAGR (compound annual growth rate) with around 1.8M cars.
Meta reported Q4 revenue of $32.17 billion that topped the estimate of $31.53 billion, and earnings per share were $1.76.(Note: It reported restructuring charges for its Family of Apps segment and Reality Labs unit of $3.76 billion and $440 million, respectively in Q4. Because of those charges, it’s difficult to compare the company’s earnings per share to analyst estimates of $2.22 per share.)
It expects Q1 revenue of between $26 billion and $28.5 billion. Analysts were expecting sales of $27.1 billion, according to Refinitv.
Netflix reported Q4 financial results that were mixed, quarterly net additions grew by 7.66 million, above company guidance of 4.5 million; revenue was$7.85 billion and earnings per share were $0.12, while Wall Street expected revenue to be $7.86 billion and earnings per share to be $0.58.
For the current quarter, Netflix expects revenues will total $8.17 billion with earnings per share forecast to total $2.82. 2023 free cash flow is estimated to hit at least $3 billion.
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