January 25, 2023

Corporate Earnings Reports Move Markets Ahead of Tesla and Boeing Earnings

Stocks opened lower on Wednesday as investors digested corporate earnings reports and news from Microsoft Corporation (NASDAQ:MSFT).[0] The software giant edged past expectations with its fourth-quarter adjusted earnings per share, which fell from last year to reach $2.32, beating estimates by a penny. However, revenue rose just 2% to $52.7 billion – missing projections by $450 million.[1] Microsoft also suffered a network outage for its Azure cloud platform and Teams and Outlook services earlier Wednesday.[1]

Verizon Communications (NYSE:VZ) shares slipped 1.51% after the company posted mixed results for the 2022 fourth quarter.[2] Although the earnings were in accordance with analyst prognostications, the forward earnings did not reach the Refinitiv consensus estimate.[3]

General Electric (NYSE:GE) rose 0.3% after beating Q4 earnings and reporting 7.3% year-over-year revenue growth. For fiscal 2023, however, the company drastically reduced its earnings guidance.[4] For the previous quarter, GE reported earnings per share of $1.24 on total revenue of $21.79 billion. Refinitiv reported that analysts predicted a profit of $1.13 per share on total sales of $21.59 billion.[3]

3M (NYSE:MMM) got blasted with a 4.9% loss after missing Q4 earnings and guiding fiscal 2023 top and bottom lines below analysts’ consensus guidance.[4] The company revealed that it would be eliminating 2,500[4] 3M anticipates that, for 2023, their adjusted sales will decrease by a range of 2-6%, and their adjusted earnings per share will be in the range of $8.50-$9.[5]

Intuitive Surgical (NASDAQ:ISRG) sold off nearly 7% on a decline in fourth-quarter earnings that also missed analyst estimates.[6] The manufacturer of robotic surgical systems was creating a flat base, however, the stock moved below that pattern.[6]

Tesla (NASDAQ:TSLA) shares slipped lower in pre-market trading ahead of the clean energy carmaker’s highly-anticipated fourth quarter earnings after the closing bell.[7] It is predicted that earnings will increase by 33% to a total of $1.13 per share and revenue will grow by 39% to reach $24.67 billion.[6]

Boeing (NYSE:BA) shares edged higher ahead of the planemaker’s fourth quarter earnings prior to the opening bell.[8] The company posted a surprise fourth quarter loss but noted its first positive free-cash flow tally in more than four years, and reaffirmed its full-year profit guidance.

0. “Stock Market News Today: MSFT Earnings Drag Down Stocks at Open” TipRanks, 25 Jan. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-dip-as-corporate-outlooks-weaken

1. “6 stocks to watch on Wednesday: Microsoft, AT&T, Capital One and more (NASDAQ:MSFT)” Seeking Alpha, 25 Jan. 2023, https://seekingalpha.com/news/3927733-6-stocks-to-watch-on-wednesday-microsoft-att-capital-one-and-more

2. “US stock futures slide ahead of the open on corporate caution” ForexLive, 24 Jan. 2023, https://www.forexlive.com/news/us-stock-futures-slide-ahead-of-the-open-on-corporate-caution-20230124/

3. “Dow closes 100 points higher for third consecutive day of gains” CNBC, 24 Jan. 2023, https://www.cnbc.com/2023/01/23/stock-market-news-live-updates-futures-open-to-close.html

4. “Stock Market Spins Wheels Ahead Of Earnings Wave; Why Azure Should Worry Microsoft Bulls” Investor’s Business Daily, 24 Jan. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-lower-ahead-of-big-earnings-why-azure-should-worry-microsoft-bulls

5. “Stock Market Today: Dow Gains After Busy Day of Blue-Chip Earnings” Kiplinger’s Personal Finance, 24 Jan. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-012423-dow-gains-after-busy-day-of-blue-chip-earnings

6. “Nasdaq Slides 2% As Microsoft, Other Earnings Hurt Stock Market” Investor’s Business Daily, 25 Jan. 2023, https://www.investors.com/market-trend/stock-market-today/nasdaq-slides-2-as-microsoft-other-earnings-hurt-stock-market-tesla-ibm-set-to-report

7. “Stocks Move Lower, Microsoft, Tesla, Boeing, Fox In Focus – Five Things To Know” TheStreet, 25 Jan. 2023, https://www.thestreet.com/markets/stocks-move-lower-microsoft-tesla-boeing-fox-5-things-to-know

8. “Stock Market Today: Stocks Slide As Earnings Underwhelm, Microsoft Slumps; Tesla Up Next” TheStreet, 25 Jan. 2023, https://thestreet.com/markets/stock-market-today-stocks-slide-as-earnings-underwhelm-tesla-next

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