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I’ll stop wasting your time now and get right into the companies.
Tuesday, 18 October
Netflix
Revenue grew 16% YOY to $7.5 billion
EPS $3.19 vs est $2.56
Operating Income rose 33% to $1.8 billion.
Netflix added 4.4m paid net adds (vs. 2.2m in Q3’20 and beating their own guidance of 3.5m) to end the quarter with 214m paid memberships.
For Q4’21, we forecast paid net adds of 8.5m, consistent with Q4’20 paid net additions. For the full year 2021, we forecast an operating margin of 20% or slightly better.
This means that Q4’21 operating margin will be approximately 6.5% compared with 14% in Q4’20.
Net cash generated by operating activities in Q3 was $82 million vs. $1.3 billion in the prior-year period FCF for the quarter was -$106 million vs. $1.1 billion in Q3‘20.
FCF in last year’s Q3 was helped by COVID-related production shutdowns. YTD FCF is $410m.
Nothing new regarding games.
Squid Game is their best ever show (more on that in the video)
Growth story is FAR from over.
Stock ended the week up 5.17%
Wednesday, 19 October
ASML
Full report here
Q3 net sales of €5.2 billion up 30% YOY misses by €30 million
Gross margin of 51.7%, net income of €1.7 billion
Q3 net bookings of €6.2 billion
ASML expects Q4 2021 net sales between €4.9 billion and €5.2 billion and a gross margin between 51% and 52%
EPS of €4.27
Notes from the call I thought were important.
EUV revenue growth of around 35% year-on-year, an increase from the 30% expected last quarter.
Total backlog to €17.5 billion (EUV €10.9 billion).
ASP was stronger than the previous quarter.
Stock ended the week up 3.4%
Tesla
Full report here and Tesla Daily video
Automotive sales came in at $12.05 billion growing 58% YOY (yeah I guess Tesla isn’t growing anymore…).
Energy sales came in at $806 million growing 39% YOY
Services & others came in at $894 million, growing 54% YOY.
Total sales = $13.57 billion, growing 57% YOY.
Automotive GM = 30.8% (excl. credits)
EPS of $1.86 up 145% YOY
FCF of $1.32 billion
Production & Deliveries
Stock ended the week up 6.8% (officially a +20 bagger for me!)
Thursday, 20 October
Snap Inc.
Full report here
“The red fruit from the tree is the one who did most of the damage”- Aristotle
Reasons for the miss.
Apple
Supply chain
Apple
Q3 EPS $0.17 vs est. $0.08
Revenue increased 57% YOY to $1.067B v est. $1.1B
DAUs were 306 million in Q3 2021, an increase of 57 million, or 23%, YoY
Year-over-year growth in DAUs has exceeded 20% for four consecutive quarters
Adjusted EBITDA improved 209% to $174 million.
Outlook for Q4 2021 - revenue to be between $1.17-1.21B vs est. $1.36B
Stock ended the week down 29.85% (oops)
Intel
I go over most of it in the video + some indications of how they plan on taking on AMD and Nvidia.
The company reported EPS of $1.71, an increase of 59% year over year, which beat its own guidance by $0.61.
Revenue came short at $18.1 billion, growing 5% YOY but missing estimates by $0.1 billion.
Gross margin was 57.8%, 2.8 percentage points above guidance, and up 1.3 percentage points YOY.
In the third quarter, the company generated $9.9 billion in cash from operations and paid dividends of $1.4 billion.
The Client Computing Group (CCG) was down due to lower notebook volumes due to industry-wide component shortages, and on lower adjacent revenue, partially offset by higher average selling prices (ASPs) and strength in desktop (and probably AMD taking some market share).
But the big reason the stock fell close to 10% (besides the small miss on revenue) is that the company expects gross margins to be lower for the next two or three years as it continues to invest heavily (something they already announced last Q).
Full-year revenue outlook remains unchanged at $73.5 billion, and Intel expects EPS to be $5.28, up 4% YOY and an increase of $0.48 from prior guidance.
Stock ended the week down 8.7%
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