The third-quarter earnings 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
- Reported: Wednesday, after trading
- Revenue: $13.8 billion
- Earnings per share: $1.86 profit per share (Non-GAAP)
Tesla's (NASDAQ:TSLA) 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 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's performance in Q3.
Netflix
- Reported: Tuesday, after trading
- Revenue: $7.5 billion
- Earnings per share: $3.19
The popularity of Netflix (NASDAQ:NFLX) 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 favorable 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.
Johnson & Johnson
- Reported: Tuesday, before trading
- Revenue: $23.3 billion
- Earnings per share: $2.60
Johnson & Johnson's (NYSE:JNJ) Q3 earnings reported that its EPS beat expectations, with revenue climbing 10.7% from the previous corresponding period. J&J increased its (bottom-end) revenue guidance for the entire year from $93.8 billion – $94.6 billion to $94.1 billion to $94.6 billion. The company noted that its COVID vaccine would be responsible for $2.5 billion at year's end and $502 million of its Q3 revenue.
Proctor and Gamble
- Reported: Tuesday, before trading
- Revenue: $20.3 billion
- Earnings per share: $1.61
Procter & Gamble Company (NYSE:PG) beat revenue estimates in their earnings report, 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, have 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.
Earnings Reports Next Week
There are plenty more juicy earning reports due next week:
- Facebook (NASDAQ:FB) will report after the bell Monday.
- Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Visa (NYSE:V), Texas Instruments (NASDAQ:TXN), and AMD, after the bell Tuesday.
- Thermo Fisher Scientific (NYSE:TMO), Coca-Cola (NYSE:KO), McDonald's (NYSE:MCD), and Boeing (NYSE:BA), before the bell Wednesday
- Ford Motor Company (NYSE:F), after the bell Wednesday.
- Shopify (NYSE:SHOP), before the bell Thursday.
- Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Starbucks (NASDAQ:SBUX) after the bell Thursday.