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.
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).
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).
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.
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.
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.
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.
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.
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%.
Great overview of this week's earnings and thank you very much for the mention!!