Thursday's Headlines: Get Ready For Earnings
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
iRobot (IRBT) +27.5%
GoPro (GPRO) +7.1%
Ericsson (ERIC) +6.4%
Stitch Fix (SFIX) +6.1%
Tripadvisor (TRIP) +3.8%
Moving Down ⬇️
Baozun (BZUN) -10.4%
Zillow (Z) -8.5%
Evolent Health (EVH) -7.4%
RH (RH) -7.4%
1. It was a busy evening of earnings, but the big winner appeared to be Apple (AAPL), which delivered its largest-ever quarter by revenue. The iPhone maker crossed the symbolic $100 billion mark to deliver revenue of $111.44 billion and earnings per share (EPS) of $1.68 versus $1.41 estimated. Even though iPhone revenue did rise 17% year-over-year (YoY), Apple’s results for the quarter weren’t just driven by the 5G wave. Sales for every product category rose by double-digit percentage points, which helped its overall gross margins improve to a whopping 39.8%. It’s a great start to the year for the world’s most valuable company. Read the official press release here.
2. Things were a bit more mixed for everyone’s favorite hype-stock, Tesla (TSLA), which missed analysts’ estimates on earnings but notched another profitable quarter. The electric vehicle maker revealed EPS of $0.80 versus $1.03 expected, while revenue came in at $10.74 billion versus $10.4 billion expected. There was still a lot to celebrate as CEO Elon Musk unveiled the much-requested new version of the popular Model S sedan and, more importantly, that the company almost doubled its cash-flow positivity YoY to $2.79 billion. With two more factories expected to come online in 2021, Tesla is expecting 50% growth this year as it continues to dominate the EV market. Read the official press release here.
3. We could have a dark horse in the running for 2021’s Big Tech firm of the year after Facebook (FB) reported an impressive earnings beat on Wednesday. The controversial social media giant boasted EPS of $3.88 on revenue $28.07 billion, while daily active users (DAUs) grew to 1.84 billion. The most impressive takeaway for investors though was the fact that Facebook’s average revenue per user increased from $7.89 in Q3 to $10.14 in Q4, proving that this business monetizes users better than anyone. For the ethical investors out there, CEO Mark Zuckerberg also revealed that Facebook plans to permanently stop recommending civic and political groups to users around the world — an issue that led directly to the Capitol riots earlier this month. Read the official press release here.
Some more earnings from last night:
You’d be forgiven for forgetting about ServiceNow’s earnings this week, but the digital workflow leader managed to increase its earnings, with revenue growing 32% YoY to $1.18 billion. According to CEO Bill McDermot, “the secular tailwinds of digital transformation, cloud computing, and business model innovation have all intersected at the perfect moment in time for growth.” Read the full press release here.
There are 4 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.