Both Tesla and Netflix are providing new quarterly numbers this week.
Wall Street is in its second week of results season. Last week, the major banks started everything with much better results than expected.
So far, eight percent of companies included in the broad S&P 500 have reported for the third quarter, and of those companies, 80 percent have done better than expected, according to the research agency. facts.
The S&P 500 is made up of the 500 largest listed US companies. More than 80 of those are reporting previous quarter results this week.
Including companies that turned in, analysts now expect, on average, that profits will increase 30 percent in the third quarter, compared to the same period last year. Revenue growth is expected to reach 15.1%.
If the companies perform as expected, this will be the third strongest net profit growth since the third quarter of 2010, only surpassed in the first and second quarters of the year. Revenue growth may be the second strongest growth the research agency has ever measured.
This week, investors will get a taste of how things went with tech companies, which make up about a quarter of the S&P 500.
In addition, results from companies in areas such as aviation, health, finance and energy are presented.
South Korean Netflix success
Netflix is the first among tech companies this week when results will be released after closing time on Tuesday. The energy giant has seen adventurous growth since closing in March 2020, and the stock price has soared more than 70 percent in the same period.
However, growth in the number of new subscribers has slowed so far in 2021, and for the second quarter report, the company estimated that it would gain 3.5 million new subscribers in the third quarter. It was much lower than analysts had expected.
Now, however, investors are bullish ahead of Tuesday’s report, thanks in large part to the South Korean series “The Squid Game.”
Since its launch in September, the series has been watched by more than 100 million people around the world, making it the best Netlfix launch ever. Since then, the stock price has also increased by about 7 percent.
Since the series launched at the end of the third quarter, most of the growth will likely come in the fourth quarter. Thus, it can be interesting to see what the company has to say about the future.
Here’s what analysts, on average, expect, according to a Bloomberg survey:
- 3.72 million new subscribers
- $7.48 billion in revenue – up from $6.44 billion at the same time last year
- Earnings per share were $2.56 – up from $1.74 per share last year
Tesla’s optimism after the record
Tesla’s share has made a strong comeback after the pandemic journey, and the price is up more than 50 percent since this year’s low in March.
Analysts now expect revenue to grow nearly 60 percent from the same period last year – to 116 billion kroner at today’s exchange rate.
The share has been rising steadily recently, after strong results in the first and second quarters and a record number of deliveries in the third quarter.
Tesla delivered 241,300 vehicles in the quarter, well above expectations. Of these, 228,882 were in the Model 3 or Y, while nearly 9,000 were in the Model S and X.
Earlier this year, the company had difficulty in production due to a shortage of semiconductors. However, Tesla CEO Elon Musk described the global chip crisis as a “short-term problem”. Tesla has also handled the crisis better than traditional automakers, and it’s one of the few analysts to raise in the last month, according to Bloomberg.
Here’s what third-quarter analysts expect:
- $13.86 billion in revenue – up from $8.77 billion last year
- Adjusted earnings per share of $1.65 – up from $0.76 per share last year
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