This week in earnings: Netflix jumps on strong subscriptions; Tesla, Humana sink

Investing.com — Here is your Pro Recap of the earnings reports you may have missed this week: Netflix, Tesla, IBM , and Humana.

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Netflix jumps 10% on strong subscriber numbers and guidance

Netflix (NASDAQ:NFLX) experienced a 10% increase in its shares on Wednesday following the announcement of significantly higher subscriber growth in Q4 than analysts had predicted.

The streaming platform gained an impressive 13.12 million users in the quarter, which was a 71% increase from the same period in the previous year, far surpassing the analyst estimates of about 8.9M.

The company's revenue rose by approximately 12% year-over-year to $8.83 billion, exceeding analyst forecasts. In a letter to shareholders, Netflix expressed confidence in its business health, revising its full-year operating margin forecast upwards to 24% from the previous 22%-23% range. It also anticipates "healthy double-digit" growth in annual revenue.

InvestingPro Subscribers can see all the data for Netflix's earnings here.

Tesla stock drop 12% on Q4 miss and lower sales warning

Tesla (NASDAQ:TSLA) shares fell sharply by 12% on Thursday following its Q4 earnings report, which fell short of analyst expectations. The electric vehicle manufacturer reported an EPS of $0.71 for Q4, compared to the analyst estimate of $0.73. Additionally, the reported quarterly revenue of $25.17B was lower than the consensus estimate of $25.61B.

Compounding the market reaction was Tesla's warning of a projected "notably lower" sales growth for 2024 compared to the previous year. This forecast comes amid increasing competition in the electric vehicle sector and stalling demand from cost-conscious car buyers. This comes despite previous price cuts that have impacted profit margins and raised concerns among investors in the world's most valuable automaker.

InvestingPro Subscribers can see all the data for Tesla's earnings here.

IBM shares gain 9% on Q4 beat and strong outlook

International Business Machines (NYSE:IBM) shares saw a significant 9% rise on Thursday following the announcement of better-than-expected Q4 results and full-year outlook, attributed to strong demand for the company's IT software and consultancy services, particularly from businesses integrating AI into their operations.

IBM reported Q4 EPS of $3.87, exceeding the consensus estimate of $3.77. The company's revenue for the quarter was $17.38B, higher than the analyst forecast of $17.23B.

Looking ahead, IBM anticipates a free cash flow of $12B for the entire fiscal year, which is above the consensus estimate of $10.92B. Additionally, IBM projects its revenue growth to be in the range of approximately 4-6% in 2024, beating consensus expectations of around 3%.

InvestingPro Subscribers can see all the data for IBM's earnings here.

Humana shares plunge on Q4 miss and disappointing guidance

Humana's (NYSE:HUM) stock experienced a significant decline of over 11% on Thursday, following the health insurer's announcement of a 2024 profit forecast that falls substantially below market expectations. This downturn is largely attributed to the anticipated continuation of higher costs in its Medicare Advantage plans for older adults into 2024.

For 2024, Humana anticipates an adjusted EPS of approximately $16.00, a figure notably lower than the consensus estimate of $26.09.

In its fourth-quarter earnings report, Humana posted an EPS of ($0.11), which is significantly lower than analysts' expectations of $2.15. However, the company's revenue for the quarter stood at $26.46B, surpassing the anticipated $25.6B consensus estimate.

InvestingPro Subscribers can see all the data for Humana's earnings here.

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