The after-hours trading session brings new insights into how major companies fared in their latest financial reports. Investors often react strongly to earnings announcements, and this batch of results from some iconic global players showcases a mix of surprising successes and anticipated disappointments.
International Business Machines (IBM) has managed to attract significant investor attention with its recent quarterly results, showing a remarkable 9% rise in share prices. The tech titan reported adjusted earnings of $3.92 per share on a revenue of $17.55 billion, slightly surpassing analysts’ expectations of $3.75 per share and $17.54 billion in revenue, according to insights from LSEG. CEO Arvind Krishna pointed to the company’s impressive generative artificial intelligence segment, which has witnessed a staggering $2 billion growth from the previous quarter. This indicates that IBM is not only continuing its legacy but is also making significant inroads into future technologies that are likely to drive further growth.
Meta Platforms also unveiled positive fourth-quarter results, with its shares increasing approximately 5%. The company reported earnings of $8.02 per share and revenue of $48.39 billion, surpassing consensus estimates of $6.77 for earnings and $47.04 billion in sales. However, the headlines took a different turn when reports surfaced about the company’s need to settle a lawsuit tied to a 2021 incident, which will see them paying around $25 million. This looming legal hurdle contrasts sharply with its robust financial performance, leaving investors to weigh the company’s strong earnings against potential reputational risks.
Microsoft’s earnings report elicited a mixed response from investors. Although the software powerhouse experienced a 31% rise in its Azure cloud services, this growth figure narrowly missed the expected 31.1%. Despite top and bottom-line outcomes beating Wall Street predictions, Microsoft’s shares dipped around 2%. Meanwhile, Tesla, the electric vehicle giant, experienced a different scenario. Though its shares rose more than 2%, the company’s earnings of 73 cents per share fell short of the expected 76 cents. Revenue also missed projections, coming in at $25.71 billion compared to the expected $27.27 billion.
In a stark contrast to the positive developments seen with IBM and Meta, ServiceNow’s shares plummeted by over 7%. Although the company posted earnings of $3.67 per share and revenue of $2.96 billion—meeting analysts’ expectations—investors were evidently looking for more. Meanwhile, Whirlpool faced an even more pressing challenge as its shares sank by 12%. Their reported net sales of $4.14 billion not only fell short of the projected $4.24 billion but also indicated a dire trend of revenue decline coupled with the company’s plans to cut costs significantly in the coming years.
Conversely, Wolfspeed’s stock displayed optimism, nudging up slightly after reporting an adjusted loss of 95 cents per share yet managing to exceed revenue expectations of $180.5 million. This underlines a resilience that analysts may find encouraging. Similarly, Lam Research’s stock surged nearly 6% as the semiconductor company showcased adjusted earnings of 91 cents per share, surpassing the expected 88 cents—though revenue figures failed to meet analysts’ projections.
On a less promising note, Western Digital’s shares dipped nearly 2% after revealing second-quarter earnings that did not meet analyst expectations of $1.78 per share, focusing the spotlight on a downturn for the tech manufacturer. Levi Strauss also faced backlash as shares dropped by 7% post-analysis of their disappointing full-year guidance, despite showing strong fourth-quarter results that hinted at potential resilience. Their projected 2025 earnings of $1.20 to $1.25 per share undershot the consensus estimate of $1.37.
In another notable development, Nvidia’s shares rebounded over 1% after a volatile trading week, reflecting investors’ considerations of the broader AI landscape shaped by competitive pressures. Meanwhile, Las Vegas Sands experienced a significant surge of over 9% despite mixed quarterly results. With earnings of 54 cents per share and revenue of $2.9 billion slightly missing expectations, this rise suggests strong investor confidence in the long-term potential of the casino operator.
Overall, the after-hours trading landscape presents a nuanced picture of corporate performance, where unexpected successes coexist with cautious reactions to guidance and legal issues. As companies navigate their respective challenges and growth opportunities, the insights gleaned from these reports will shape market dynamics in the near future.