Consumer sector sees largely positive Q3 show this week, headlined by Tesla
Contributor since / Followers
Baurzhan Ibrashev
This week saw 13 of the 50 S&P 500 consumer discretionary companies report their quarterly numbers, with the majority of them delivering earnings beats. Of the lot, nine posted an earnings beat, three reported a miss, while one had earnings in-line with Wall Street estimates.
Tesla (NASDAQ:TSLA) grabbed the most eyeballs, notching its best reaction day rally in five years on Thursday after its earnings report cheered investors. The automaker, which gained over 20% in the week, reported revenue of $25.18B (+7.8% Y/Y), with earnings per share of $0.72 that exceeded Wall Street estimates. CEO Elon Musk said on the earnings call that the record low costs of producing a car helped boost the company’s margins, and that the Cybertruck finally achieved a positive gross margin.
General Motors (NYSE:GM) achieved both top and bottom-line beats, fueled by the strength of its internal combustion engine (“ICE”) business. The company’s profit improved to $2.96 a share from $2.28 a year ago, beating expectations by $0.56 on a 10.5% increase in revenue to $48.76B, also exceeding expectations.
Las Vegas Sands (NYSE:LVS) fell short of consensus estimates with its Q3 earnings report, which saw a lower-than-expected hold at Marina Bay Sands, disruptions created by renovations at The Londoner, and macroeconomic weakness in Macau weigh on its performance. However, its board authorized $2B in future stock repurchases and announced a $0.20 increase in the recurring common stock dividend for 2025.
Tractor Supply (NASDAQ:TSCO) posted mixed results for Q3, with an EPS beat but revenue that fell short of expectations at $3.47B. Comparable store sales fell slightly and the company decreased its low-end guidance for 2024 sales, comparable sales growth and net income.
Genuine Parts Company (NYSE:GPC) fell by a record 18% the day after it issued disappointing Q3 results and significantly lowered guidance for 2024. Shares reached their lowest level since March 2022, making GPC the worst performing stock in the S&P 500 on Tuesday.
The corresponding Consumer Discretionary Select Sector SPDR Fund ETF (NYSEARCA:XLY) was up ~1.2% this week, while the broader SPDR S&P 500 ETF Trust (NYSEARCA:SPY) (SP500) dipped 0.33%.
For the upcoming week, Amazon (NASDAQ:AMZN), Ford Motor (NYSE:F), Starbucks (NASDAQ:SBUX), McDonald’s (NYSE:MCD) and Chipotle (NYSE:CMG) are among the major stocks set to report their latest quarterly results.