David Prince Gets You Prepped for META MSFT TSLA Earnings
Wednesday is arguably one of the biggest days of this earnings season.
Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA) are all scheduled to report after the market close.
And with the unexpected addition of the DeepSeek AI drama this week, these names are especially in focus as they've all spent big on AI.
Let's take a look at each stock individually and what the market is focused on when it comes to earnings.
Starting with…
Microsoft – which will be releasing FY2025 Q2 results.
The company typically releases results right after the market close and is scheduled to hold its press conference at 5:30 p.m. ET.
As of Tuesday, the expected move on this name is +/- $17.50 or right around 4%.
Trader Insight from David Prince:
“Microsoft trades at an elevated P/E and has lagged its peers like Meta and Apple until recently. The market is focused on whether Azure can maintain or, better yet, increase its growth rates.”
Here's what the market is expecting MSFT to report:
- Revenue: $68.8 billion, +4.91% from Q1
- EPS: $3.12, -5.5% from Q1
Current analyst ratings on MSFT:
- 53 Buy, 5 Hold, 0 Sell
- $509.04 Average Price Target
MSFT has beat both revenue and earnings expectations for the past 4 quarters in a row.
But that hasn't always resulted in the stock moving higher in the next session.
In fact, the 1-day move after earnings has been lower for 3 out of 4 quarters.
Take a look:
Data: Koyfin
And here's a look at how the stock has moved since the company last reported earnings on October 30, 2024:
Now, let's breakdown Meta Platforms (META) which will be reporting FY2024 Q4 results.
The company usually releases its revenue and EPS numbers quickly after the market close with the conference call scheduled for 5:00 p.m. ET.
As of Tuesday, Meta's expected move is +/- $47.66 or about 7%.
Trader Insight from David Prince:
“CapEx is already out of the way which is good news as Meta reported plans to spend up to $65 billion on AI this year vs $51 billion the market was expecting. Now the market definitely wants to hear Zuckerberg's thoughts on DeepSeek and if it changes any of those spending plans. The stock is flying now as one of the main bullish plays off of DeepSeek. As we know, earnings moves are mainly about where a stock is trading pre the print and this one is ripping. The pressure is on for advertising guidance as some are worried about a slowdown without election ads.”
Here's what the market is expecting META to report:
- Revenue: $46.99 billion, +15.8% from Q3
- EPS: $6.74, +11.8% from Q3
Current analyst ratings on META:
- 59 Buy, 8 Hold, 2 Sell
- $671.23 Average Price Target
META has beat both revenue and earnings expectations for the past 4 quarters in a row.
But, like MSFT, that hasn't always resulted in the stock moving higher the next day.
The 1-day move after earnings has been lower for 2 out of 4 quarters.
Take a look:
Data: Koyfin
And here's a look at how the stock has moved since the company last reported earnings on October 30, 2024:
And finally, we have Tesla (TSLA), which will be reporting FY2024 Q4 results.
The company releases its revenue and EPS numbers just after the market close and the conference call is scheduled for 5:30 p.m. ET.
As of Tuesday, Tesla's expected move is +/- $33.89 or about 8.5%.
Trader Insight from David Prince:
“The market is willing to look past slow car sales if Tesla can make the case for catalysts with a great TAM. For the market right now, that focus is on Full Self Driving and Optimus. Optimus has still felt like a pie in the sky future idea for Tesla, can they make the case for it to be real sooner? We'll see. FSD seems like the project that has the best potential in the short-term. Like Zuckerberg, the market is dying to hear Elon's thoughts on DeepSeek and if it changes expectations for how much Tesla will be spending on AI.”
Here's what the market is expecting TSLA to report:
- Revenue: $27.14 billion, +7.8% from Q3
- EPS: $0.77, +6.9% from Q3
Current analyst ratings on TSLA:
- 20 Buy, 15 Hold, 12 Sell
- $318.47 Average Price Target
TSLA has a history of reporting mixed results. For the past 4 quarters Tesla has:
- Missed on both revenue + EPS
- Missed on both revenue + EPS
- Beat revenue + missed EPS
- Missed revenue + beat EPS
The 1-day move after earnings has been higher for 2 out of 4 quarters.
Take a look:
Data: Koyfin
And here's a look at how the stock has moved since the company last reported earnings on October 23, 2024:
Good luck out there with these earnings reports! We'll be reacting to them in real-time in the Inner Circle tomorrow.
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