Tesla Soundly Beats Estimates, Costco’s Solid July, and 3 More Hot Stocks
Tesla Motors (NASDAQ:TSLA): Tesla shares are racing over 13 percent in the wake of surprise beats for both EPS and revenue. The former weighed in at $0.20, beating estimates by a resounding $0.37 — while revenues came in at $405 million, beating by $22 million. The company sold 5,150 Model S vehicles in North America during the quarter as the gross margin leapt to 22 percent. Notably, the company finished off the quarter with no government debt.
Costco Wholesale Corporation (NASDAQ:COST): Costco reported comparable sales gains of 4 percent, which fell below estimates by 80 bps for July. Net sales grew 6.9 percent to $7.87 billion as ”changes in gasoline prices had a positive impact while foreign exchange rates had a negative impact on comparable sales,” the retailer points out.
T-Mobile US (NYSE:TMUS): T-Mobile shares are up over 4 percent as the fourth-largest wireless carrier announces that its revenue increased 27.5 percent, aided significantly by the inclusion of MetroPCS results for the months of May and June this year as well as higher equipment revenues due to record smartphone sales. The carrier picked up 685,000 contract customers in the second quarter against the consensus of 140,000.
Rio Tinto plc (NYSE:RIO): Falling commodity prices resulting in underlying earnings of $4.23 billion, down 18 percent year-over-year. Net profit also suffered — down 71 percent to $1.72 billion, largely because of a $1.85 billion paper loss from the effect of forex fluctuations on the value of the company’s debt. However, Rio Tinto was able to drop its expenses by $1.5 billion, putting it on course to make its targeted savings goal of over $5 billion by the end of next year.
Aviva plc (NYSE:AVA): Aviva shares are racing after the company recorded a operating profit that rose 5 percent — to 1.01 billion pounds ($1.6 billion) above the consensus of 933 million pounds. The value of new business grew 17 percent to 401 million pounds due largely to growth in the U.K., France, and Asia, despite sales slides in Italy and Spain.
Restructuring costs fell 10 percent to 164 million pounds while the company is expecting to complete the sale of its U.S. operations by the end of the year.