Update: 23 October
Netflix released its results for the quarter 3 of 2023 on October 18, 2023. The results beat analyst expectations, with earnings per share of $3.73 on revenue of $8.54 billion. Netflix also added 8.76 million net subscriber additions, ahead of the FactSet consensus of 6.1 million.
The company’s strong performance was attributed to some factors, including the release of popular new shows and movies, such as Stranger Things Season 4, The Crown Season 5, and Squid Game, and the shift from traditional TV to streaming video.
Netflix is now the leading streaming video service in the world, with over 247 million paid subscribers. The company is facing increasing competition from other streaming services, such as Disney+, HBO Max, and Amazon Prime Video. However, Netflix remains confident in its ability to maintain its leadership position in the market.
Pick n Pay Stores Ltd. (JSE: PIK)
Pick n Pay (PIK) released results for the 26 weeks ended August 27, 2023, on October 18, 2023. The results showed a significant decline in earnings, with a loss per share of 125.72 cents, compared to a profit per share of 44.85 cents in the previous year. The decline in revenues was attributed to a number of factors, including:
- High inflation;
- Rising interest rates;
- Load shedding and
- Incremental abnormal costs related to employee restructuring, energy costs, and the Eastport distribution centre transition.
Despite the challenging operating environment, the Group’s revenue grew by 5.1% to R52.0 billion. This was driven by a 16.1% increase in sales at Boxer, the Group’s discount retail chain.
The Group’s new leadership team is beginning to implement its turnaround strategy, which focuses on the following key areas: Improving the customer experience, reducing costs, and improving operational efficiency; growing the Boxer discount retail chain; and expanding the Group’s financial services business.
The Group expects the turnaround strategy to take time to implement, but it is confident that it will lead to improved performance in the long term.
Tesla Inc (NSDQ: TSLA)
Tesla reported earnings per share of $1.85 for the third quarter of 2023, which was below analyst expectations of $1.87. However, the company’s revenue beat expectations, coming in at $23.35 billion compared to expectations of $23.28 billion.
Despite the earnings miss, Tesla shares initially rose after the earnings report, as investors were focused on the company’s positive revenue growth and its continued leadership in the electric vehicle market. However, shares later fell after Musk said on a conference call with analysts that the Cybertruck would take 18 months to turn into a cash flow contributor. Musk said that this was due to the challenges of ramping up production of the Cybertruck, which is a more complex vehicle than Tesla’s other models. He also said that Tesla faced higher raw materials and components costs.
Analysts were mixed on Tesla’s earnings report and Musk’s comments about the Cybertruck. Some analysts said that the earnings miss was a sign that Tesla is facing some challenges, while others said the company is still well-positioned for long-term growth.
Sources: Business Day; Bloomberg; Reuters; ShareNet; Netflix Investor Relations
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