by Tesla fell 8.3% in premarket trading after the electric-vehicle maker reported second-quarter profit that missed analysts’ expectations but revenue that beat expectations. Adjusted earnings of 52 cents per share were below expectations of 61 cents per share and down from 91 cents per share a year earlier. Tesla’s profit fell for the second straight quarter. The company’s operating margin in the period was 6.3%, below estimates of 8%.
Shares of other electric vehicle makers also fell. Rivian Automotive fell 3.8% and Lucid Group fell 3.9%.
Alphabet reported second-quarter earnings of $1.89 per share, beating analysts’ estimates of $1.85 per share, as revenue of $84.74 billion topped estimates of $84.3 billion. For the first time, Alphabet’s cloud revenue topped $10 billion in the second quarter, up from $8 billion in the year-ago period. Advertising sales rose 11.1%, but slowed from 13% growth in the first quarter. The company continued its heavy capital investments in cloud and AI systems. Capital expenditures in the second quarter were $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 3.7%.
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Nvidia fell 1.5% to $120.70 after Alphabet reported results. While capital spending surged at Alphabet, the company tempered expectations by sticking to its spending guidance for the rest of the year, rather than raising it.
AT&T reported a second consecutive quarter of better-than-expected net phone subscribers, while overall revenue fell slightly short of Wall Street expectations. The telecom company reported 419,000 net additions of postpaid phones, above the 349,000 additions in the first quarter and well above the 284,800 additions analysts had expected. Shares are up slightly.
Visa reported adjusted profit for the fiscal third quarter that met expectations, while revenue of $8.9 billion fell slightly short of expectations. Payment volume rose 7% in the period, while transactions processed rose 10%, compared with 8% growth in overall payment volume in the second quarter and 11% growth in transactions processed. Shares of the credit card company fell 3.7%.
Texas Instruments
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The semiconductor company reported second-quarter earnings of $1.22 per share, including a 5-cent gain from unexpected items. Excluding earnings, earnings for 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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The company said it expected third-quarter revenue of $3.94 billion to $4.26 billion, compared with analysts’ expectations of $4.12 billion. Shares rose 1.7 percent.
Seagate Technology Inc. rose 4.9% in premarket trading after the hard-drive maker reported fourth-quarter earnings and revenue that beat Wall Street expectations for its fiscal 2025 fiscal year. The company said it expects first-quarter revenue of $2.1 billion, plus or minus $150 million.
Enphase Energy’s second-quarter adjusted earnings fell short of expectations, and revenue of $304 million also fell short of expectations. Shares of Enphase, which makes microinverter systems for solar panels, rose 2.1% after the company said it expected third-quarter revenue of $370 million to $410 million, compared with estimates of $404 million.
International Business Machines’ financial results are expected after the close on Wednesday.
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Chipotle Mexican Grill
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ServiceNow
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Ford engine
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KLA Corp.
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and Las Vegas Sands
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IBM fell 0.5% ahead of its second-quarter earnings release, scheduled for Wednesday after the close. Wall Street expects IBM to report adjusted second-quarter earnings of $2.18 per share on revenue of $15.62 billion.
Write to Joe Woelfel at joseph.woelfel@barrons.com
