Q3 Earnings Report Recap; TSLA, NFLX, JNJ, PG

Q3 earning season is currently underway, and most high-profile companies are delivering revenue beats. Yet, Q3 revenue is not the only thing investors are watching. Investors are interested in revenue growth, customer acquisition, and pace of growth alongside the balance sheet. Inflationary and supply chain pressures that may affect the outlook of reporting companies are an additional concern for investors.

 

TESLA (NASDAQ: TSLA)

Reported: Wednesday, after trading

Revenue: $13.8 billion

Earnings per share: $1.86 profit per share (Non-GAAP)

Tesla’s Q3, 2021 earnings were, once again, record-setting for the Company. The Company is increasing sales and has stated it is on track to “achieve 50% average annual growth in vehicle deliveries” at a time when chip shortages are hampering other automakers ability to do so. Improving gross margins (up to 30.5%) was also a significant factor in Tesla performance in Q3.

TSLA shares since earnings report:

Netflix (NASDAQ: NFLX)

Reported: Tuesday, after trading

Revenue: $7.5 billion

Earnings per share: $3.19

The popularity of Netflix’s series Squid Game hadn’t completely filtered into the Company’s finances at the time of its Q3, 2021 earnings report. Yet, Netflix delivered a favourable report, with revenue coming in on par and subscriber growth beating expectations. Squid Game IP is estimated to be worth $900 million to Netflix and should help boost its Q4 earnings, which typically get a seasonal bump anyway.

NFLX shares since earnings report:

Johnson & Johnson (NYSE: JNJ)

Reported: Tuesday, before trading

Revenue: $23.3 billion

Earnings per share: $2.60

Johnson & Johnson’s Q3 earnings-per-share beat expectations, with revenue climbing 10.7% from the previous corresponding period. J&J increased its (bottom-end) revenue guidance for the full year from $93.8 billion – $94.6 billion to $94.1 billion to $94.6 billion. J&J noted that its Covid vaccine would be responsible for $2.5 billion at years end and $502 million of its Q3 revenue.

JNJ shares since earnings report:

Proctor and Gamble (NYSE: PG)

Reported: Tuesday, before trading

Revenue: $20.3 billion

Earnings per share: $1.61

PG beat revenue estimates, increasing sales revenue by 5% over the last quarter, but expects to fall short of 2020 revenue. The consumer goods Company also noted that rising producer costs, particularly as it relates to shipping and raw commodity prices, has already had and is going to continue to have a larger-than-anticipated effect on its earnings. In response, PG has begun raising the prices of some of its premium products as a quick remedy to help offset its rising costs.

PG shares since earnings report:

Earning Seasons continues next week:

There are plenty more juicy earning reports due next week.

Facebook, after the bell Monday

Microsoft, Alphabet, Visa, Texas Instruments, and AMD, after the bell Tuesday

Thermo Fisher Scientific, Coca-Cola, McDonald’s, and Boeing, before the bell Wednesday

Ford, after the bell Wednesday

Shopify, before the bell Thursday

 Apple, Amazon, and Starbucks after the bell Thursday