Recap of the earnings reports
Netflix
Netflix rises 10% on excellent subscriber figures and guidance.
After reporting greater Q4 subscriber growth than experts expected, Netflix (NASDAQ:NFLX) shares rose 10% on Wednesday.
The streaming platform added 13.12 million subscribers in the quarter, a 71% rise from the previous year and considerably exceeding analyst projections of 8.9M.
Analysts were surprised by the company’s 12% revenue growth to $8.83 billion. Netflix raised its full-year operating margin target to 24% from 22%-23% in a shareholder letter, expressing confidence in its business health. Annual sales growth is expected to be “healthy double-digit”.
Tesla falls 12% after Q4 shortfall and weaker sales warning.
Tesla (NASDAQ:TSLA) shares plunged 12% on Thursday after its Q4 earnings report below analyst estimates. Electric vehicle manufacturer announced Q4 EPS of $0.71, compared to consensus estimate of $0.73. The quarterly revenue of $25.17B was below the consensus expectation of $25.61B.
Tesla’s forecast for “notably lower” sales growth in 2024 exacerbated the market reaction. This estimate comes amid rising electric vehicle competition and falling demand from budget-conscious automobile purchasers. This despite prior price cuts that hurt profit margins and worried investors in the world’s most valuable automaker.
IBM shares rise 9% after Q4 beat and positive outlook.
International Business Machines (NYSE:IBM) shares rose 9% on Thursday after the company reported better-than-expected Q4 results and full-year outlook due to strong demand for its IT software and consultancy services, particularly from AI-integrated businesses.
IBM beat the average estimate of $3.77 with Q4 EPS of $3.87. The quarter’s sales was $17.38B, exceeding the consensus projection of $17.23B.
IBM expects a $12B fiscal year free cash flow, above the average expectation of $10.92B. IBM expects revenue growth of 4-6% in 2024, exceeding consensus projections of 3%.
Humana shares fall after Q4 shortfall and poor forecast.
Humana’s (NYSE:HUM) stock fell nearly 11% on Thursday after the health insurer announced a 2024 profit outlook below market forecasts. Due to rising Medicare Advantage expenses for older persons in 2024, this slump is expected to continue.
Humana expects adjusted EPS of $16.00 in 2024, below the consensus expectation of $26.09.
Humana reported EPS of ($0.11) in its fourth quarter, below analysts’ forecasts of $2.15. The company’s quarterly sales was $26.46B, exceeding the consensus expectation of $25.6B.
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Airbnb suffers as a result of KeyBanc’s downgrade
Airbnb (NASDAQ:ABNB) shares were down nearly 3% in premarket trading Tuesday after KeyBanc downgraded the business from Overweight to Sector Weight.
Following the split, WK Kellogg began at Sell.
Following the conclusion of Kellogg Company’s (NYSE:K) spinoff of its North American cereal division into the WK Kellogg standalone entity, Goldman Sachs commenced coverage on WK Kellogg (NYSE:KLG) with a Sell rating and a price target of $11.00.
WK Kellogg’s stock dropped significantly on the first day after the spinoff, closing more than 9% down on Monday.
Nortfolk Southern and Bread Financial have been downgraded.
Norfolk Southern (NYSE:NSC) shares fell more than 2% on Monday after BofA Securities downgraded the firm to Neutral from Buy and reduced its price objective to $215.00 from $266.00, citing operational difficulties and excessive costs.
Bread Financial (NYSE:BFH) has been downgraded to Sell from Neutral by Goldman Sachs, with a $32 price target. As a result, shares dropped about 2% on Monday.
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ell suffers as a result of a downgrade by Barclays.
Dell Technologies (NYSE:DELL) shares tumbled 3% before the bell on Thursday after Barclays downgraded the firm to Underweight from Equalweight, with a $53.00 price target.
Cloudflare began at Underperform.
Cloudflare (NYSE:NET) has been added to BofA Securities’ coverage with an Underperform rating and a $52.00 price objective.
Crocs (NASDAQ:CROX) shares were down more than 2% in pre-market trading today after B.Riley downgraded the firm to Neutral from Buy and reduced its price objective to $101.00 from $125.00.
Verint Systems (NASDAQ:VRNT) was downgraded from Outperform to Perform by Oppenheimer.
Following the company’s announced Q2 EPS and sales misses, as well as dismal full-year forecasts, shares fell more than 17% pre-market today.