Earnings Week January 23 - January 27

Microsoft, Tesla, Intel, Visa, AT&T, and more.

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U.S. GDP

• Q4 GDP (initial estimate) +2.9% vs. +2.7% expected and +3.2% in Q3.

• PCE price index: +3.2% vs. +4.3% prior.

• Core PCE price index: +3.9% vs. +4.00% expected and +4.7% prior.

• Personal consumption expenditures: +2.1% vs. +2.3% in Q3.

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Microsoft

For the transcript and press release click HERE

Giuliano wrote a nice write-up on his Substack

• Revenue up 2% Y/Y to $52.7B ($450M miss).

• Gross margin 67% (-10pp Y/Y)

• Operating margin 39% (-10pp Y/Y).

• Operating cash flow margin 21% (-7pp Y/Y).

• EPS $2.32 ($0.01 beat).

• Azure +31% Y/Y (+38% fx neutral).

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Tesla

For the transcript and press release click HERE

I’ve also covered the highlights on my channel and Commonstock.

• Q4 Non-GAAP EPS of $1.19 beats by $0.08.

• Revenue of $24.32B (+37.2% Y/Y) in-line.

• Automotive gross margin: 25.9% vs $27.9% in the prior quarter.

• FSD revenue recognized of $324M and $467M in regulatory credits.

• In January, Tesla has seen the strongest orders YTD ever. Orders are coming in almost 2x the rate of production.

• FCF: $1.42B (-48.9%) Y/Y;

• The company announced record deliveries of 405,278 in Q4.

• In 2023, Tesla expects to remain ahead of the long-term 50% CAGR with around 1.8M for the year (Elon during the call couldn’t help himself so he said 2M).

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Intel

For the transcript and press release click HERE

I’ve also covered it on my channel.

• Q4 Non-GAAP EPS of $0.10 misses by $0.10.

• Revenue of $14B (-28.2% Y/Y) misses by $490M.

• Client Computing Group: $6.6B (-34.7%) Y/Y

• Datacenter and AI Group: $4.3B (-41.1%) Y/Y

• Network and Edge Group: $2.1B (-1%) Y/Y

• Q1 Guidance:
  Revenue: $10.5-11.5B vs $14.02B consensus.
  Non-GAAP EPS: -$0.15 vs $0.25 consensus.

Mobileye

• Q4 Non-GAAP EPS of $0.27 beats by $0.10.

• Revenue of $565M beats by $29.7M.

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Texas Instruments

For the transcript and press release click HERE

You can also find a great conversation on the company on the #1 Semi Podcast

• Q4 GAAP EPS of $2.13 beats by $0.15.

• Revenue of $4.67B (-3.3% Y/Y) beats by $40M.

• Cash flow from operations of $8.7 billion for the year.

• Free cash flow for the year was $5.9 billion and 30% of revenue.

• Over the past 12 months, the company invested $3.4 billion in R&D and SG&A, invested $2.8 billion in capital expenditures and returned $7.9 billion to owners.

• First quarter outlook is for revenue in the range of $4.17 billion to $4.53 billion vs. consensus of $4.42B and EPS between $1.64 and $1.90 vs. consensus of $1.87.

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ASML

For the transcript and press release click HERE

• Q4 GAAP EPS of €4.60 beats by €0.27.

• Revenue of €6.4B (+28.5% Y/Y) beats by €50M.

• Gross margin of 51.5%.

• Quarterly net bookings in Q4 of €6.3B of which €3.4B is EUV.

• Outlook: ASML expects 2023 net sales to grow over 25% compared to 2022 and a slight improvement in gross margin, relative to 2022.

• ASML expects Q1 2023 net sales between €6.1 billion and €6.5 billion and a gross margin between 49% and 50%.

• ASML expects R&D costs of around €965M and SG&A costs of around €285M.

• ASML declares €1.37/share interim dividend.

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ServiceNow

For the transcript and press release click HERE

• Q4 Non-GAAP EPS of $2.28 beats by $0.26.

• Revenue of $1.94B (+20.2% Y/Y) in-line.

• Subscription revenue of $1.86B (+22% Y/Y).

• Current remaining performance obligations of $6.94B as of Q4 (+22% Y/Y).

• The Company now has 1,637 total customers with more than $1M in annual contract revenue.

• Sees Q1 2023 GAAP subscription revenue of $1.99B to $2.00B.

• Sees FY 2023 GAAP subscription revenue of $8.44B to $8.50B.

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Visa

For the press release click HERE

• Q1 Non-GAAP EPS of $2.18 beats by $0.17.

• Revenue of $7.9B (+11.9% Y/Y) beats by $200M.

  • driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenues increased 15% on a constant-dollar basis.

• Payments volume for the three months ended December 31, 2022, increased 7% over the prior year on a constant-dollar basis.

• Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, increased 31% on a constant-dollar basis for the three months ended December 31, 2022.

• Total cross-border volume on a constant dollar basis increased 22% in the quarter.

• Total processed transactions, which represent transactions processed by Visa, for the three months ended December 31, 2022, were 52.5 billion, a 10% increase over the prior year.

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AT&T

For the press release click HERE

• Q4 Non-GAAP EPS of $0.61 beats by $0.04.

• GAAP EPS of -$3.20 may not be comparable (due to non-cash charges) to consensus of $0.57.

• Revenue of $31.3B (+0.7% Y/Y) misses by $70M.

• Mobility business unit: Reported a net gain of 6.4 million wireless subscribers.

• Consumer Wireline had approximately 13.8 million broadband connections.

• Broadband subscribers net losses were 43,000, with fiber broadband net adds of 280,000.

• Total broadband and DSL connections were 14.0 million compared to 14.2 million at the end of 2021.

• For the full year AT&T expects:

  • Wireless service revenue growth of 4% or higher

  • Broadband revenue growth of 5% or higher

  • Adjusted EBITDA growth of 3% or higher

  • Capital investment of about $24 billion, consistent with 2022 levels

  • Free cash flow of $16 billion or better, up $2 billion from 2022

  • Adjusted EPS of $2.35 to $2.45 vs $2.56 consensus, which includes an expected ($0.25) of impacts from higher non-cash pension costs related to higher interest rates, lower capitalized interest and impacts from an expected higher effective tax rate of 23% to 24%.

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