Tesla, Boeing, UPS Set to Release Q3 Results

Q3 2024 earnings season is set to continue this week with firms from a variety of sectors expected to release their latest results to the public over the coming days. Let’s take a look at what the third quarter may have looked like for Tesla, Boeing, and UPS:

Tesla Plugs In?

Tesla (TSLA) is set to release its third-quarter 2024 earnings report on 23 October after the ring of the closing bell. Market estimates are that the electric vehicle pioneer's earnings per share (EPS) figure is to come in at around 58 cents on revenues of $25.57 billion. While Tesla’s Q2 results saw an unexpected decline from 2023's figures, analysts seem to be looking toward Wednesday's earnings call with a mixed outlook.

Tesla’s vehicle deliveries for the third quarter totalled over 460,000 units worldwide, showing a modest annualised increase. However, these deliveries slightly missed forecasts, which could weigh on the overall automotive revenue growth. Despite an anticipated 13% year-over-year increase in automotive revenues, the company’s aggressive pricing and higher costs are likely to shrink potential profit margins.

On the other hand, Tesla’s Energy Generation and Storage division is expected to shine, with projected revenues of $2.17 billion, a nearly 40% rise year-over-year. The strong demand for products like Megapack and Powerwall has significantly bolstered this segment’s performance, potentially offsetting automotive pressures. However, it is anyone's guess whether the 11% drop in share value Tesla has seen so far this year will be sustained after this week's results are revealed.

Boeing May Stay Grounded

Venerable aviation firm Boeing (BA) is also set to report its third-quarter 2024 earnings on 23 October, in the face of some unique challenges. As of the time of writing, a union-led strike of machinists and production line issues may be casting a shadow over market sentiment towards Boeing as its scheduled earnings call nears. Predictions are for revenue growth to incline slightly over Q3 2023's numbers to $18.22 billion. In contrast, the company is expected to post a net loss of over $5 billion, more than three times the figure by which Boeing was in the red a year ago. Preliminary results already indicate revenue falling short of expectations at $17.8 billion, with a larger-than-expected loss per share of $9.97. These results are weighed down by work stoppages and charges in the company’s commercial and defense segments.

Boeing is also grappling with the financial strain of halted production, which Jefferies analysts estimate is costing the company $1.3 billion per month. To address this, Boeing has announced plans to terminate one out of every ten employees on its payrolls and launched a fundraising effort, including plans to raise $25 billion through stock and debt sales. Additionally, the outcome of a vote by striking workers on a new contract proposal, to be conducted on the same day as the firm's report release, could be critical for the company’s recovery. This report will be CEO Kelly Ortberg’s first since taking over in August 2024, and his leadership will be under scrutiny as Boeing navigates these multiple crises. With Boeing shares having dropped by over 40% since the beginning of the year, it is as yet unclear whether Wednesday's earnings call and Ortberg’s accompanying guidance will push traders toward a shift in outlook toward the company in the near future.

UPS’ Thursday Delivery

UPS, the world’s largest package delivery company, is scheduled to release its Q3 results on 24 October ahead of trading. Analysts are forecasting a profit of $1.64 per share, a noted increase from the $1.57 reported for 2023's third quarter. Although UPS has a history of surpassing earnings estimates in three of the last four quarters, it missed expectations in its most recent report, with earnings of $1.79 per share - a drop of nearly 30% year-over-year.

The company has faced challenges, with second-quarter revenue falling 1.1% to $21.8 billion, driven by declines in business both stateside and abroad. Looking ahead, market experts project adjusted earnings per share for fiscal 2024 to decrease by over 15% year-over-year. However, recovery could be in the cards for 2025, with earnings forecasted to grow by 18.8%. However, next year's potential upturn still leaves unanswered the question of whether UPS' 13% stock price drop can be mitigated in the final months of 2024. (Source: Nasdaq)

Conclusion

All in all, the last earnings season of the year could still have surprises in store for traders and investors alike this week. With macroeconomic factors affecting industries from electric vehicle manufacturing to aviation and parcel delivery in diverse ways, markets will have to wait and see how it all plays out in the days ahead.