Netflix, ASML and Tesla Earnings
Netflix, Tesla & ASML Earnings Reports
Netflix ($NFLX)
Netflix added 13.1 million subscribers in the final quarter of 2023 and now has 260.8 million paying subscribers, a new record for the platform.
Revenue: $8.83 billion vs. $8.72 billion expected 👍
Earnings per share: $2.11 vs. $2.22 expected 👎
Memberships: 260.8 million vs 256 million expected 👍
Netflix also increased its 2024 full-year operating margin forecast to 24% from 22%. It cited the weakening of the U.S. dollar and a stronger-than-forecast fourth-quarter performance.
Netflix said it doesn’t see its ads based subscriptions as a primary driver of growth in 2024 but it still wants to grow it.
Netflix’s Full Earnings Report
ASML ($ASML)
Dutch based ASML is the most important semiconductor equipment company in the world. Its Q4 earnings beat on both top line and bottom line expectations and the stock was up 6% after the announcement yesterday.
Revenue: $7.82 billion vs $7.5 billion expected 👍
Net income: $2.23 billion vs $2.02 billion expected 👍
Revenue for the quarter was up 12.5% year on year and gross margins in the quarter were 51.4%.
ASML expects 2024 revenue to be similar to 2023 and that this year will be more focussed on preparing “for the significant growth that we expect for 2025”.
Tesla ($TSLA)
Tesla shares are down 6% pre-market today after the company missed analyst expectations on both revenue and earnings. Whilst total revenue was up 3%, revenue from vehicles increased just 1% compared to a year earlier. It also said its expansion could be “notably lower” due to slowing demand and high-interest rates.
Revenue: $25.17 billion vs $25.8 billion estimated 👎
Earnings per share: $0.71 vs $0.74 estimated 👎
On a brighter note, Tesla’s net income was $7.9 billion in the quarter, up from $3.7 billion a year earlier and it now has $29.1 billion in cash. The Model Y also became the best-selling vehicle in the world.
During the call, Elon Musk said he thinks that Tesla’s Optimus robot is “something that I think has the potential to far exceed the value of everything else combined” and that it’s “by far the most sophisticated humanoid robot that’s being developed anywhere in the world.”
He better hope it’s successful if Tesla is to justify its lofty valuation.
Although this earnings call might not have been as good as many hoped for in terms of revenue and earnings growth, there were many highlights in other areas. Cash flow was great, it still has the best margins in the auto industry (17.6%) and the company plans to release its cheapest ever vehicle next year with a price of about $25,000.
