Tesla is set to report fourth-quarter results after the closing bell on Wall Street today after posting record car deliveries.
Tesla's peak revenue for the fourth quarter is expected to be $25.87 billion, up 6.4% year-over-year. Earnings per share are expected to be 73 cents, with adjusted net income of $2.61 billion, down 38% from a year ago.
read more: What to expect from the Magnificent Seven: Tesla, Microsoft, Alphabet, Apple, Meta, Amazon, Nvidia
Tesla's stock price has fallen 14.6% since the beginning of the year, the worst decline among the “Magnificent Seven” due to price wars aimed at boosting sales amid intense competition.
Shares of the Dutch chip equipment maker rose more than 6% after the company announced fourth-quarter profits that beat expectations.
Europe's largest technology company by market capitalization had fourth-quarter sales of €7.2bn and net profit of €2.0bn (£1.7bn/$2.2bn), up 9%.
Fourth-quarter net sales increased 12.5% year over year, and the company reported fourth-quarter gross margin of 51.4%.
The company said it maintains a “conservative view” on this year and expects 2024 sales to be similar to 2023, when ASML reported 27.56 billion euros.
read more: Live: FTSE and European stocks rise despite downward revision to German growth forecasts
This Dutch company builds the machinery needed to make some of the world's most advanced chips.
“ASML looks promising over the next five to eight years, capitalizing on the EUV wave and ongoing trends in fab capacity expansion and construction,” said Third Bridge analyst Albee Amancona. Stated.
Netflix (NFLX)
Netflix gained more than 13 million subscribers in the quarter, compared to Wall Street's expectations of 8.7 million.
Netflix ended 2023 with 12% revenue growth, up from 6% growth in 2022. The company posted revenue of $8.8 billion in the fourth quarter.
The streaming giant said operating profit jumped to $1.5 billion in the quarter from $550 million a year earlier, due to higher revenue and “less than planned” spending.
“Netflix's latest numbers dispel any suggestion that the company is struggling to find new ways to grow. Subscriber numbers are up significantly, and original content is proving popular with consumers. That's proven, with 18 Oscar nominations this week for 10 original content films,” said Russ Mold, investment director at AJ Bell.
In a letter to shareholders, Netflix expects “healthy double-digit revenue growth” and “continued record membership growth” next year.
Overall, Netflix currently has 260 million subscribers worldwide.
Royal Mail (IDS.L)
Shares in Royal Mail's parent company International Distribution Services rose 5% as traders factored in savings from fewer deliveries.
Regulator Ofcom said cutting Royal Mail's six-day weekly letter delivery to five or three days could save between £100m and £650m.
“Bosses at International Distribution Services, which owns Royal Mail, received some cheer after the regulator said the privatized UK Postal Service could reduce delivery days to three a week. “There was,” Mold said.
“While this would significantly reduce costs, such drastic action would likely face trade union opposition and expose the company to significant political pressure,” he said. Probably,” he added.
Royal Mail's Universal Service Obligation (USO) states that it must deliver letters six days a week to all 32 million addresses in the UK for the price of a stamp, no matter where the letter is addressed. .
Watch: Tesla Q4 Earnings Preview: What Investors Expect
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