Earnings Season Highlights: Meta, Ford, Caterpillar, And McDonald’s

Key Takeaways

  • Earnings reports offer real insight into a company’s real world performance.
  • Comparing the current earnings to previous earnings is a must.

When investing in the stock of a particular company, there are plenty of financial metrics to consider. Perhaps the most important metric of a company’s financial situation is its earnings.

Earnings indicate the company’s profits during a given quarter or year. In other words, this is the company’s bottom line.

Many investors watch the earnings reports carefully. After all, a company’s profits have a big impact on investment outcomes. If a company’s earnings are higher than expected, that’s great news to investors. When companies miss the mark of expected earnings, it can be a red flag to investors.

With the current state of economic uncertainty, many investors are watching this quarter’s earnings reports carefully. Below, we will explore the third-quarter earnings of several top companies.

Meta Earnings

Meta, the parent company of Facebook, released its third-quarter financial report last week.

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In the quarter ending on September 30, 2022, Meta reported that revenue was $27.71 billion, which represents a decrease of 4% from this time last year. In terms of earnings per share (EPS), the company posted $1.64. That’s 13.20% less than expected based on analyst estimates.

Meta’s EBITDA (earnings before interest, taxes, depreciation, and amortization) for the past 12 months was $43.455 billion, which represents a 20.64% year-over-year decline. As investors absorb this news, Meta’s CEO, Mark Zuckerberg, said in a press release, “While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company.”

Ford Earnings

Ford Motor Company reported quarterly revenue of $39.4 billion. That’s up 10% from a year ago, but the company still posted a net loss of $827 million for the quarter.

Ford’s EBITDA for the previous twelve months was $11.763 billion, which represents a 56.51% year over year decline. Additionally, the company’s EBITDA for the quarter was $2.131 billion, representing a 25.54% year-over-year decline.

After surpassing the EPS estimates by 11.10%, the company is optimistic about its fourth-quarter prospects. It is aiming for a full-year EBIT (earnings before interest and taxes) projection of $11.5 billion.

Caterpillar Earnings

Caterpillar’s earnings came as a pleasant surprise to investors. The company reported EPS at $3.96, which was 25.30% higher than expected based on a collection of analyst reports. Additionally, the company’s quarterly revenue of $14.994 billion is a 20.95% increase from last year.

The company’s EBITDA was $3.127 billion for the quarter ending on September 30, 2022. With that, its EBITDA has seen a 5.02% year-over-year increase. When looking at the last twelve months, Caterpillar reported an EBITDA of $9.803 billion for a 10.68% year-over-year increase.

McDonald’s Earnings

The golden arches are an iconic symbol across America, and most of the world, but investors will worry based on the most recent earnings report.

For the quarter ending on September 30, 2022, the company’s revenue was $5.872 billion for a 5.31% decline from last year. Although revenue is down, the company beat analyst EPS estimates by 3.9%.

McDonald’s EBITDA was $2.174 billion for the last quarter, which is a 31.08% year-over-year decline. However, looking at the EBITDA for the previous twelve months of $11.301 billion, it’s only a 1.42% year-over-year decline.

ServiceNow Earnings

ServiceNow, a software company that helps other companies optimize digital workflows, has seen significant revenue growth in the last year. As of the third-quarter report, total revenues for the company were $1.831 billion, which is a 21.1% year-over-year increase. With increasing revenue, the company surprised analysts with EPS 6.50% higher than expected.

ServiceNow’s EBITDA for the third quarter was $0.292 billion, which is a year-over-year increase of 6.57%. The company’s EBITDA for the last 12 months was also on the rise, with a tally of $1.027 billion, representing a year-over-year increase of 5.33%

Honeywell Earnings

Honeywell, a major multinational corporation with many lines of business, saw revenue grow by 5.64% from this time last year for a total of $8.951 billion. However, the revenue of the previous 12 months, $34.937 billion, only represents a 0.87% year-over-year increase.

Honeywell also saw an 8.44% year-over-year increase for EBITDA during the third quarter, with a result of $2.042 billion. But when looking at the past twelve months, the EBITDA numbers are less impressive. In a year-over-year comparison of the past twelve months, Honeywell’s EBITDA has fallen by 2.89% to $7.327 billion.

The company’s EPS for the quarter, $2.25, beat the analyst estimates by 4.20%. With this good news, the company is planning to increase its fourth-quarter dividend by $1.03 per share. In a press release, the company’s CEO, Darius Adamczyk, said, “Our robust balance sheet, diligent cost management and focus on sustainable, profitable growth will allow us to continue creating value for our shareholders.”

Mastercard Earnings

Mastercard posted impressive numbers for the third quarter. Its revenue for Q3 was $5.756 billion, which is a 15.47% year-over-year increase. When looking at the revenue over the last twelve months, the company posted revenue of $21.635 billion, which is a 21.63% year-over-year increase.

The company pushed past EPS estimates and came out above the estimates by 4.70%. Mastercard’s EBITA for the third quarter was $3.682 billion, which is a 13.33% year-over-year increase. When looking at the last twelve months, the company’s EBITDA was $14.235, which represents a 25.77% year-over-year increase.

In the company’s earnings release, CEO Micheal Miebach said, “We will continue to monitor impacts related to elevated inflation and other macroeconomic and geopolitical risks. Our diversified business model and ability to modulate expenses position us well to navigate through periods of uncertainty while maintaining focus on our strategic objectives.”

Bottom Line

As an investor, staying on top of company earnings is one aspect of maintaining a healthy stock portfolio. With the details in these earnings reports, you might decide to buy or sell stocks accordingly. Seasoned investors will do a deeper dive.

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