US earnings season update >>>
Double beats are being rewarded by less than the historical average while double misses are being punished by more than usual. Source: BofA
Projected Q1 earnings for the S&P 500 ex-Mag 7 (left-hand chart) vs. Projected Q1 earnings for the Mag 7...
Source: Bloomberg
72% EPS beat rate so far
6.6% EPS growth SPX ex-Fins & Energy Source: Mike Zaccardi, BofA
BREAKING: Google parent company Alphabet GOOGL soars over 12% in extended trading
after the company reported results that topped analysts’ estimates, showed soaring profits in its cloud division and announced its first dividend. The company reported revenue of $93.5 billion and EPS of $$1.89. Google also declared a $0.20 dividend for the first time in history and issued a $70 billion stock buyback. In a nutshell: $GOOG Alphabet Q1 FY24: • Revenue +15% Y/Y to $80.5B ($1.8B beat). • Operating margin 32% (+7pp Y/Y). • EPS $1.89 ($0.38 beat). ☁️ Google Cloud: • Revenue +28% Y/Y to $9.6B. • Operating margin 9% (+7pp Y/Y). ▶️ YouTube ads +21% to $8.1B. Source: The Kobeissi Letter, App Economy Insights
"The solid sales growth in the first quarter reflects the loyalty of our clients worldwide"
- Axel Dumas, Executive Chairman of Hermès $RMS Q1 2024 revenue growth by business line: Source: Quartr
BREAKING: Tesla stock, $TSLA, surges over 8% after releasing Q1 2024 earnings results despite missing by nearly $1B on the top line and missing on EPS
Tesla Q1 revenues fell 8.7% over the last year, the biggest decline since 2012. Net Income fell 55% YoY to $1.1 billion. Gross margins moved down to 17.4% in Q1 from 19.3% a year ago and 29.1% two years ago The company said in the deck that it’s accelerating the launch of “new vehicles, including more affordable models,” that will “be able to be produced on the same manufacturing lines” as Tesla’s current lineup. Tesla is aiming to “fully utilize” its current production capacity and to achieve “more than 50% growth over 2023 production” before investing in new manufacturing lines. NB: The company also revealed that NONE of their Bitcoin was sold despite recent speculation. Source: The Kobeissi Letter, CNBC
This week is a big one for earnings with Microsoft, Alphabet and Meta all reporting their Q1 numbers.
Note that ex-Nvidia, profit growth for the Mag7 narrows in Q1 and is expected to shrink in 2024 Source: Bloomberg
Consensus earnings estimates are projecting +3% YoY EPS Growth for the $SPX in Q1.
Last quarter, Wall Street was also modelling +3% EPS Growth and the realized number came in at +8%. Source: David Marlin, Goldman Sachs
