Google parent Alphabet reported Q3 earnings, which beat on top and bottom lines.
The company’s shares rose 4% on the results. Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year. The company reported blow-out cloud revenue at $11.35 billion — up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to their AI offerings, which includes subscriptions for enterprise customers. $GOOG Alphabet Q3 FY24: • Revenue +15% Y/Y to $88.3B ($2.0B beat). • Operating margin 32% (+4pp Y/Y). • EPS $2.12 ($0.27 beat). Google Cloud: • Revenue +35% Y/Y to $11.4B. • Operating margin 17% (+14pp Y/Y). YouTube ads +12% to $8.9B. Source: App Economy Insights
🥉 Swiss bank UBS smashes third-quarter expectations with $1.4 billion in profit (vs. $667.5 million expected)
👉 Group revenue was $12.33 billion, above analyst expectations near $11.78 billion. Q3 highlights included: - Operating profit before tax of $1.93 billion, up from a loss of 184 million in the same quarter last year. - Return on tangible equity hit 7.3%, compared with 5.9% over the second quarter. - CET 1 capital ratio, a measure of bank solvency, was 14.3%, down from 14.9% in the second quarter. The lender said it expects to complete its planned $1 billion share buyback program in the fourth quarter and intends to continue repurchases in 2025. 💪 UBS Sees Uninterrupted Client Momentum: Switzerland's largest bank reports strong transactional activity in its core business and expects to achieve its objective of $100 billion in net new assets by the end of the year. Source: CNBC
𝗧𝗲𝘀𝗹𝗮 𝗤𝟯 𝟮𝟬𝟮𝟰 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀 $TSLA
EPS: $0.72 vs $0.60 est. (beat) Revenue: $25.18B vs $25.67B est. (miss) Gross margin: 19.6% vs 16.8% est. (beat) Free Cash Flow: $2.74B vs $1.61B est. (beat) Outlook 2024: - Slight growth in vehicle deliveries - Doubling of energy storage Outlook 2025: - New vehicles start production with more affordable models leveraging current and next-gen platforms - Over 50% growth in vehicle production compared to 2023 Shares: +6.6% after hours Source: App Economy Insights, The Future Investors
😱 The shocking chart of the day >>> S&P 500 COMPANIES EARNINGS GROWTH DOES NOT EXIST WITHOUT MAGNIFICENT 7😱
In 5 out of the last 6 quarters, the S&P 500 excluding Magnificent 7 profit growth has been negative. It is estimated the Mag 7 net income will grow by 18% in Q3 2024 while the other 493 firms by 1%. Note however 2 changes in trend: 1) The Mag 7 eps growth is slowing down (from a high base); The non-Mag 7 EPS growth is picking up (and turning slightly positive) from a low base. Sometimes the second derivative is more important than the absolute number. Time will tell... Source: The Global Markets Investor
BofA: “today the average EPS growth rate among AI ETF constituents has fallen from 18% to just 5%, below the S&P 500.”
Source: Mike Zaccardi, CFA, CMT @MikeZaccardi via @dailychartbook
Yen's strength pressures earnings
Source: Bloomberg
EBITDA is NOT Free Cash Flow
Source: Brian Feroldi
Is the US regional bank crisis worsening?
Summit State Bank's Q2 Earnings Plummet. Q2 2024 Net Income: $928,000 Drops -67% from Q2 2023 Net Income $2,985,000. Earnings Decline: 69%. Stock Drop: -15%. $SSBI. Source: The Coastal Journal
