#earnings-miss

#earnings-miss

Shares of Tesla Inc. (NASDAQ:TSLA) lost 6.36% over the past five trading sessions after losing 1.93% the five prior. A rally that began in early summer has finally pushed the stock into the green on the year with a gain of 8.38%, but the market's recent sell-off has affected TSLA since late October. Since hitting its all-time high on Dec. 17, 2024, the stock has fallen more than 14%.

What makes the miss particularly jarring is the underlying business strength visible through June. Revenue reached $218.7 million in Q2, up 13.6% year over year. Net income hit $37.0 million with a 15.2% profit margin. Operating margin stood at a healthy 16.3%. The company was printing money. Something shifted between the end of Q2 and the close of Q3, but management commentary on the miss has not yet been fully detailed.

Revenue reached $1.63 billion, beating the $1.59 billion consensus by 2.8% and climbing 25.1% year over year. Gross profit jumped 34.2% to $432 million, and the company added approximately 7,500 net new locations to reach 156,000 globally. Annual recurring revenue (ARR) surpassed $2.0 billion, up 30% from the prior year. The operational metrics paint a picture of a business firing on most cylinders.

Revenue climbed 71% year over year, and loan originations surged 80% to $2.9B. The company returned to GAAP profitability with net income of $31.81M, compared to a $6.76M loss in Q3 2024. Adjusted EBITDA expanded dramatically to $71.16M from $1.41M, representing a 26% margin. Fee revenue, a key metric for the platform's core lending operations, grew 54% year over year to $259M. Over 90% of loans processed through the platform are now fully automated, reflecting the maturation of Upstart's AI credit decisioning model.

Waste Management ( NYSE: WM) missed on both earnings and revenue in Q3, posting adjusted EPS of $1.49 against expectations of $2.08 and revenue of $6.44B versus $6.70B estimated. The stock fell 2.35% in after-hours trading, though the decline was modest given the magnitude of the misses. The real pressure comes from guidance. Management now expects full-year revenue at the low end of its prior range, citing declining recycled commodity prices and softer healthcare solutions revenue.

Shares are down 13% in the last month, with the majority of that coming in the last two days after the company reported weak earnings that missed expectations. Though, Royal Caribbean revenue was up to $5.14 billion, a 5.2% increase over the prior period, this fell short of the $5.17 billion retail investors and Wall St were expecting. And things look worse the deeper you dig.