Earnings after the close include Meta, Microsoft and Tesla. What is expected?

Microsoft

• Last quarter, revenue was $65.59B (up 16% YoY), beating expectations by 1.6%.
• Revenue Expectation: Analysts expect revenue this quarter to grow 10.9% YoY to $68.87B, compared to a 17.6% increase in the same quarter last year.
• Earnings Expectations: Adjusted EPS is expected at $3.11 per share. That is down from last quarters $3.30, but up from $2.93 last year (up 6.13%)

Meta:

• Earnings Expectations: EPS of $6.76. Last quarter EPS came in at $6.03. A year ago, EPS was at $5.33, up 26.8%
• Revenue Expectations: revenue of $47.00B. Revenues last quarter were at $40.59B. A year ago, revenues came in at $40.11B, up 17.11%

Other details:

• 2025 CapEx Plans: CEO Mark Zuckerberg announced $60B–$65B in AI-related capital expenditures, which boosted Meta shares to a record high.
• AI Spending: Analysts view AI investments as critical for Meta to remain competitive, despite high costs and emerging competition like China’s DeepSeek.
• Q4 CapEx Estimate: Wall Street expects Q4 capital expenditures of $15.33B.
• TikTok’s Impact: Investors are watching how TikTok’s removal from U.S. app stores has benefited Meta, with the company offering deals to creators and testing ads on Threads.
• Ad Strategy: Meta is leveraging TikTok’s volatility to attract advertisers but faces potential concerns over relaxed content moderation policies.

Tesla

• Earnings Estimate: EPS of $0.77. Last quarter was $0.62. A year ago, the company earned $0.71. Down -8.4%
• Revenue estimate: Revenue of $27.26B.. Last quarter $25.18. A year ago, the company had revenues of $25.17, up 8.3%.

Other details:

• Stock Performance: Tesla’s stock is up 58% since November, partially tied to Elon Musk’s perceived influence under Trump’s administration.
• Q4 Deliveries: 495,570 vehicles; full-year deliveries totaled 1.8M, marking Tesla’s first annual decline.
• Discounts: Tesla offered inventory and referral discounts in North America and cut prices for the Model Y in China before launching the refreshed Model Y Juniper.
• Margins and Guidance: Margins are expected to be a key focus due to vehicle discounts, alongside 2025 guidance for Tesla’s automotive and energy divisions.
• Energy Business: Tesla deployed 31.4 GWh of battery energy storage systems in 2024, with 11 GWh in Q4, driven by sales of its home, business, and utility-scale backup batteries.

This article was written by Greg Michalowski at www.forexlive.com.