Tesla
declined 9.8% after the electric-vehicle maker reported second-quarter profit that missed analysts’ expectations but better-than-anticipated revenue. Adjusted earnings of 52 cents a share came up short of expectations of 61 cents and were down from 91 cents a share a year earlier. Tesla’s profit dropped for a second-straight quarter. The company’s operating profit margin in the period was 6.3%, below estimates of 8%.
Shares of other EV makers also traded lower.
Rivian Automotive
fell 4.3% and
Lucid Group
was down 2.5%.
Alphabet
reported earnings of $1.89 a share in the second quarter, topping analysts’ estimates of $1.85 a share, as revenue of $84.74 billion surpassed estimates of $84.3 billion. For the first time, Alphabet’s cloud revenue exceeded $10 billion in the second quarter, up from $8 billion in the year-earlier period. Ad sales increased 11.1% but slowed from the first quarter’s growth of 13%. The company continued its heavy capital investments in the cloud and artificial-intelligence systems. Capital spending in the second quarter was $13.2 billion, up from $12 billion in the first quarter and less than $7 billion in June 2023. Shares of Alphabet, the parent company of Google and YouTube, were down 4.9%.
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Nvidia
fell 3.2% following Alphabet’s earnings report. While capital spending jumped at Alphabet, particularly for AI, the company tempered expectations by sticking to—rather than raising—its spending guidance for the rest of the year.
AT&T
reported its second-straight quarter of stronger-than-expected net phone subscribers, while overall revenue came up slightly short of Wall Street expectations. The telecommunications company posted 419,000 postpaid phone net adds, above the 349,000 added in the first quarter and well above the 284,800 additions that analysts expected. Shares were rising 3.2%.
Visa
reported fiscal third-quarter adjusted earnings that matched expectations while revenue of $8.9 billion slightly missed. Payments volume rose by 7% in the period, while processed transactions increased 10%, down from 8% growth in overall payments volume in the second quarter and 11% growth in processed transactions. Shares of the credit-card company fell 3.7%.
Texas Instruments
,
the semiconductor company, reported second-quarter earnings of $1.22 a share, including a 5-cent benefit from unexpected items. Excluding the benefit, earnings in the period were roughly in line with Wall Street estimates. Revenue fell 16% to $3.82 billion but matched expectations.
Texas Instruments
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said it expects third-quarter revenue of $3.94 billion to $4.26 billion, while analysts had been looking for $4.12 billion. The stock rose 0.6%.
Seagate Technology
was up 3.2% after the maker of hard drives reported fiscal-fourth quarter earnings and revenue that beat Wall Street expectations. The company said it expects 2025 fiscal first-quarter revenue of $2.1 billion, plus or minus $150 million.
Enphase Energy
‘s second-quarter adjusted earnings missed estimates and revenue of $304 million also came up shy of forecasts. Shares of Enphase, which makes microinverter systems for solar panels, were rising 8.9% as the company said it expects third-quarter revenue of between $370 million and $410 million, compared with estimates of $404 million.
Lamb Weston
sank 22% after the maker of frozen-potato products posted fiscal fourth-quarter earnings that widely missed analysts’ expectations. The company reported adjusted earnings of 78 cents a share, well below forecasts of $1.26. “Our price/mix results were below our expectations, while market share losses and a slowdown in restaurant traffic in the U.S. and many of our key international markets were greater than we expected,” said Tom Werner,
Lamb Weston
’s
president and CEO.
Earnings reports are expected after the closing bell Wednesday from
International Business Machines
,
Chipotle Mexican Grill
,
ServiceNow
,
Ford Motor
,
KLA Corp.
,
and
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Las Vegas Sands
.
IBM was up 0.3% ahead of its second-quarter earnings report scheduled for after the closing bell Wednesday. Wall Street expects IBM to report second-quarter adjusted earnings of $2.18 a share on revenue of $15.62 billion.
Write to Joe Woelfel at joseph.woelfel@barrons.com
