Tag: profits
The Lloyds share price falls despite soaring profits. Time to buy?
Higher interest rates are pushing up profits but the Lloyds share price is falling. Is it time to start being greedy where others are fearful?
The post The Lloyds share price falls despite soaring profits. Time to buy? appeared first on The Motley Fool UK.
HSBC announces £10.3billion profits and BP records £4bn boost amid cost of living crisis
Ford Q1 earnings rebound as trucks and fleet sales drive profits
Ford reported its first-quarter 2023 earnings Tuesday after the bell, and it marks the first time the legacy automaker will break down earnings by its three new business units: Ford Blue for the iconic gas and hybrid vehicles, Ford Model e for electric vehicles and Ford Pro for commercial products and services. The automaker reported […]
Ford Q1 earnings rebound as trucks and fleet sales drive profits by Rebecca Bellan originally published on TechCrunch
Cloud Profits May Be Slowing at Microsoft and Amazon
For years, demand for cloud-computing services has steadily driven growth at both Microsoft and Amazon… Microsoft’s Intelligent Cloud unit, which is home to its Azure cloud-services business, accounted for 38% of its revenue and 39% of operating income in 2022. Amazon Web Services was the fastest-growing of the Seattle-based company’s major businesses last year and generated $22.8 billion in operating income. The rest of Amazon’s businesses combined posted a $10.6 billion operating loss.
For both companies, cracks are starting to appear. In the first three months of 2023, growth for Microsoft’s Azure unit and Amazon Web Services is expected to fall to 31% and 14%, respectively, excluding currency fluctuations, according to the average of analyst estimates compiled by Bloomberg. A year ago, Azure sales expanded 49% and Amazon Web Services 37%.
In a shareholder letter released last week, Amazon said AWS “faces short-term head winds” related to the economic backdrop that will “soften” the growth rate. This echoed what it said in its most recent results. Microsoft also warned of a slowdown in cloud software sales last quarter. Wall Street has been getting more cautious. UBS lowered growth estimates for Azure last week, warning “customer efforts to optimize/trim their cloud spend will be deeper and last longer than most think….” Jefferies [financial services company] sees slowing cloud demand as “a key concern” for Amazon. Analyst Brent Thill said that because AWS generates so much of Amazon’s operating income, “a stabilization in cloud is crucial for shares to outperform.”
For Alec Young, chief investment strategist at MAPsignals, Microsoft and Amazon remain attractive despite the slowdown, which he expects to be a temporary pause before growth re-accelerates. “There’s still a lot of runway ahead for cloud computing, so I don’t think investors should obsess too much over the level of growth over a couple quarters,” he said.
Read more of this story at Slashdot.
Tesla Q1 income falls 24% as EV price cuts squeeze profits
Tesla reported Wednesday net income of $2.51 billion in the first quarter, a 24% drop from the same period last year as the company’s EV price-cutting strategy cut into profits. Tesla has repeatedly reduced the price of its four EVs — the Model S, Model X, Model Y and Model 3 — in the United […]
Tesla Q1 income falls 24% as EV price cuts squeeze profits by Kirsten Korosec originally published on TechCrunch
Tesla’s rampant price cutting is taking a toll on its profits
Tesla published its first quarter earnings report in which the company said it earned $2.9 billion in net income on $23.3 billion in revenue. That represents a 24 percent increase year over year compared to $18.7 billion in revenue in Q1 2022.
Most importantly, the company’s gross margins fell to 19.3 percent, a sign that its rampant price cutting was starting to take a toll on its bottom line. Gross margins were down 18.9 percent quarter-over-quarter, and 33 percent year-over-year.
Some analysts were dour about Tesla’s future in reaction to the earnings report. “Tesla’s underwhelming quarter is the latest sign that growing macroeconomic uncertainty is having some impact on demand for its electric vehicles,” Jesse Cohen, senior analyst…
Profits, dividend, growth! Is this the penny stock for me?
Christopher Ruane considers some attractions and downsides of adding a well-known UK penny stock to his portfolio after it announced record revenues.
The post Profits, dividend, growth! Is this the penny stock for me? appeared first on The Motley Fool UK.