Tesla’s revenue has fallen to its lowest level since 2012 due to production issues, waning consumer demand, and supply chain disruptions. Despite these challenges, the company plans to accelerate the launch of new models and make them more affordable. Tesla also announced its intention to continue investing in its AI training infrastructure, charging networks, and new EV fleets.
Tesla, the leading electric vehicle manufacturer, reported a 9% decline in revenue for the first quarter of 2024, the company’s largest revenue drop since 2012. The decline has been attributed to a combination of falling sales and increasing competition in the EV market. In response to these challenges, Tesla has implemented several measures, including reducing the prices of three of its most popular models and cutting 10% of its workforce. The company’s stock price has fallen significantly since the start of the year, but it showed signs of recovery in after-hours trading on Tuesday following the announcement of accelerated production plans for new and more affordable models.
United Parcel Service, Inc. (UPS) reported disappointing first-quarter results on Tuesday, reflecting a significant slowdown in the shipping industry. Revenue declined by 5.3% year-over-year, while operating profit dropped by 31.5% after adjusting for inflation. The steep decline in operating profit was attributed to recent salary negotiations with the Teamsters, resulting in a $170,000 salary guarantee for delivery truck drivers over the next five years. Despite the overall decline, UPS shares gained 2.4% on Tuesday as quarterly profit exceeded analyst expectations. The company also announced a new contract with the United States Postal Service (USPS) to provide air cargo services, which is expected to contribute to revenue growth and align with UPS’s strategy to expand its B2B business.
Luxury giant Kering forecasts a significant drop in operating profits and a decline in Gucci’s revenue in the first half of 2024. Amidst a challenging market environment, particularly in Asia-Pacific, Gucci’s organic revenue witnessed an 18% slide. Despite these declines, Bottega Veneta registered a 2% growth.
Kering, a global luxury goods conglomerate, reported a decline in its first quarter revenue, attributed to a challenging macro environment, weak retail traffic, and currency headwinds. The company’s revenue on a reported basis fell 11%, while on a comparable basis it declined by 10%, compared to the Bloomberg consensus of a 10.2% slide. The decline was particularly impacted by the performance of its Gucci brand, which saw a 18% decline on a comparable basis. However, this was slightly better than the Bloomberg consensus of a 19.4% decline.
Zions Bancorporation reported a decline in first-quarter revenue, but adjusted earnings per share (EPS) surpassed analyst expectations. Despite the revenue miss, the company saw improvement in its net interest margin and loan growth. Analysts made adjustments to their price targets on Zions Bancorporation following the earnings announcement, with RBC Capital raising its target to $47 and UBS lowering its target to $45.
JetBlue Airways reported a non-GAAP EPS of -$0.43 in Q1, beating estimates by $0.09. However, revenue declined by 5.6% year-over-year to $2.2 billion. Operating expenses surged by 14.0% to $2.9 billion, driven by higher fuel costs and other expenses. Excluding special items, operating expenses decreased by 3.7% to $2.4 billion.
Truist Financial Corporation (TFC) reported adjusted EPS of 90 cents in Q1, exceeding the consensus estimate of 80 cents but falling short of $1.05 a year ago. Revenue declined to $4.87 billion from $5.34 billion a year earlier, missing the consensus forecast of $5.7 billion. Key factors contributing to the results include a decline in net interest income due to lower earning assets and higher funding costs, as well as an increase in noninterest income driven by investment banking and trading activities.
