Shares of Tesla are trading down 3% to $214 from $222 following earnings.The company reported $21.45 billion in revenue compared to $21.96 billion exp
Shares of Tesla are trading down 3% to $214 from $222 following earnings.
The company reported $21.45 billion in revenue compared to $21.96 billion expected while earnings of $1.05 beat the $1.00 consensus. Tesla had pre-reported soft deliveries so estimates were guided lower.
As for the macro picture, Tesla isn’t a strong indicator. It has a captive base of buyers but a rich valuation (although less so than at the start of the year with shares down 50%).
A better bellwether is aluminum giant Alcoa. The company’s shares fell 14% to $34.10 from $37.62 as adjusted EBITDA was $210m compared to $255.7m expected. The company lost 33-cents per share compared to a 2.6 cent gain forecast. They also took a large loss on a pension adjustment.
The company lowered guidance for bauxite and alumina shipments while citing high costs for energy and raw materials as drags, citing two refineries in Europe. Both of which have been curtailed.
The company didn’t offer any macro commentary.
The final earnings report I’m looking for today will be Steel Dynamics. That sector enjoyed a boom through the pandemic but prices have fallen recently and any comments on demand for steel will be instructive. At the same time, the company has high exposure to drill pipe and could offer some insight into the ability of oil companies to improve capex.
Update: Steel Dynamics shares are up about 1.5% after earnings
Earnings
A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation’s operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share prices, while unexpectedly bad earnings can risk declines in share prices. Using Earnings to Better Inform Investment DecisionsMany analysts also use other measures such as earnings per share (EPS) as a way to compare the earnings of multiple companies.EPS is calculated by the remaining earnings leftover for shareholders, divided by the number of shares outstanding. This is a more fine-tuned measure for investors and analysts given each company has a different number of shares owned by the public.Only comparing companies’ existing earnings does not accurately indicate how much money each company has for each of its shares over a specific period.As a result, EPS is routinely used to make better-informed comparisons and forecasts.In the US, all companies are obligated to report quarterly earnings to the public, which informs on the state of any publicly traded company. These events are very monitored and important, especially for large corporations.In addition, several companies are used as barometers for the state of the overall market or US economy, lending further weight to these metrics.Ultimately, earnings are an integral element of the US stock market and ensure companies disclose their financials in ways that do not leave investors or the public in the dark.
A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation’s operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share prices, while unexpectedly bad earnings can risk declines in share prices. Using Earnings to Better Inform Investment DecisionsMany analysts also use other measures such as earnings per share (EPS) as a way to compare the earnings of multiple companies.EPS is calculated by the remaining earnings leftover for shareholders, divided by the number of shares outstanding. This is a more fine-tuned measure for investors and analysts given each company has a different number of shares owned by the public.Only comparing companies’ existing earnings does not accurately indicate how much money each company has for each of its shares over a specific period.As a result, EPS is routinely used to make better-informed comparisons and forecasts.In the US, all companies are obligated to report quarterly earnings to the public, which informs on the state of any publicly traded company. These events are very monitored and important, especially for large corporations.In addition, several companies are used as barometers for the state of the overall market or US economy, lending further weight to these metrics.Ultimately, earnings are an integral element of the US stock market and ensure companies disclose their financials in ways that do not leave investors or the public in the dark. Read this Term and commentary from CEO Mark Millett was positive.
“Customer order entry
Entry
In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typically executes this by clicking on a buy or sell button on their broker’s platform, which displays the bid or ask price.The other two types of entries are pending orders, known as a stop entry order, where the trader buys above or sells below the current price, and a limit entry order, where the trader buys below or sells above the current price. Understanding Entries With regards to a stop entry order, there are two types, known as a buy stop entry order, and a sell stop entry order. A buy stop order is a pending order that is pre-set by the trader on a broker platform, which is a command to automatically buy an asset at a specific price above the current market price, should the price of that asset reach that point. A sell stop order is a command to automatically sell an asset at a specific price below the current market price, should the price of that asset reach that point. Concerning a limit entry order, again there are two types. First, a buy limit order is a pending order pre-set by the trader on a broker platform. This command automatically buys an asset at a specific price lower than the current market price, should the price of that asset reach that point. A sell limit order is a command to automatically sell an asset at a specific price higher than the current market price, should the price of that asset reach that point.With all pending entry orders, if price does not happen to reach the specified price, the orders are not executed. Some traders also apply a time limit for pending entry orders, so that if the price doesn’t reach a specified price within a certain time period, the order is cancelled after that time period expires. Pending entry orders are useful since a trader cannot be at one’s trading terminal at all times, so they are executed automatically in the trader’s absence. However, the disadvantage is that because the trader isn’t monitoring the market, there could be a nasty surprise upon arrival.TBC
In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typically executes this by clicking on a buy or sell button on their broker’s platform, which displays the bid or ask price.The other two types of entries are pending orders, known as a stop entry order, where the trader buys above or sells below the current price, and a limit entry order, where the trader buys below or sells above the current price. Understanding Entries With regards to a stop entry order, there are two types, known as a buy stop entry order, and a sell stop entry order. A buy stop order is a pending order that is pre-set by the trader on a broker platform, which is a command to automatically buy an asset at a specific price above the current market price, should the price of that asset reach that point. A sell stop order is a command to automatically sell an asset at a specific price below the current market price, should the price of that asset reach that point. Concerning a limit entry order, again there are two types. First, a buy limit order is a pending order pre-set by the trader on a broker platform. This command automatically buys an asset at a specific price lower than the current market price, should the price of that asset reach that point. A sell limit order is a command to automatically sell an asset at a specific price higher than the current market price, should the price of that asset reach that point.With all pending entry orders, if price does not happen to reach the specified price, the orders are not executed. Some traders also apply a time limit for pending entry orders, so that if the price doesn’t reach a specified price within a certain time period, the order is cancelled after that time period expires. Pending entry orders are useful since a trader cannot be at one’s trading terminal at all times, so they are executed automatically in the trader’s absence. However, the disadvantage is that because the trader isn’t monitoring the market, there could be a nasty surprise upon arrival.TBC Read this Term activity continues to be healthy across our businesses, with expectations for seasonally moderated volume for our steel and metals recycling operations in the coming months,” said Millett. “Despite weaker flat rolled steel pricing, our order activity and backlogs remain solid. We believe North American steel consumption will remain steady, and that demand for lower-carbon, U.S. produced steel products coupled with lower imports will support steel pricing. Our steel fabrication operations order backlog also remains historically high based on volume and forward pricing levels. This, in combination with our existing and recently announced expansion initiatives, are firm drivers for our continued growth in the coming years.”
