TechBooky

Relevant Tech News from around the world with some emphasis on the African Tech industry

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https://www.techbooky.business/apple-beats-earnings-estimates-faces-challenges-in-china/

Apple Beats Earnings Estimates, Faces Challenges in China

Apple reported fiscal first-quarter earnings that surpassed estimates for both revenue and earnings. However, the company experienced a 13% decline in sales in China, one of its key markets, leading to a more than 4% drop in Apple shares during extended trading. Here’s a breakdown of Apple’s Q1 performance compared to expectations:

  Financial Results:

Earnings per share: $2.18 vs. $2.10 expected

Revenue: $119.58 billion vs. $117.91 billion expected

  Product Line Performance:

iPhone revenue: $69.70 billion vs. $67.82 billion expected

Mac revenue: $7.78 billion vs. $7.73 billion expected

iPad revenue: $7.02 billion vs. $7.33 billion expected

Other Products revenue: $11.95 billion vs. $11.56 billion expected

Services revenue: $23.12 billion vs. $23.35 billion expected

Gross margin: 45.9% vs. 45.3% expected

Apple did not provide guidance for the current quarter ending in March. CFO Luca Maestri indicated that iPhone sales in the March quarter were expected to be similar to last year, and total company revenue would also be comparable to last year after adjusting for the outperformance in iPhone sales. Services were expected to grow at the same rate as in the December quarter, which was 11%.

  Key Insights:

Apple reported 2% sales growth in the December quarter, breaking a streak of four straight quarters with annual revenue declines.

iPhone sales slightly surpassed revised Street expectations, growing nearly 6% to $69.70 billion, driven by the first full quarter of iPhone 15 revenue.

The services business rose 11% to $23.11 billion in revenue but fell slightly short of estimates. Apple has over 1 billion paid subscriptions, including subscriptions through the App Store.

Sales growth was reported in all regions except for Greater China, where sales fell nearly 13% from the same period last year, raising concerns about receding demand and increased competition from local firms.

Mac sales grew less than 1%, showing a recovery from a significant fall in the September quarter.

iPad sales fell 25% during the quarter, with Apple citing a difficult comparison due to the lack of a new iPad model in 2023.

The wearables business, including AirPods and Apple Watch, declined 11% year-over-year to $11.95 billion in sales.

  Apple’s overall financial performance was strong, with growth in key product lines and services. However, challenges in China and specific product categories indicate areas that Apple may need to address to sustain growth. The company’s focus on services, subscriptions, and maintaining high-profit margins contributes to its continued financial success.

[techbooky]

https://www.techbooky.business/samsung-posts-34-57-drop-in-q4-operating-profit/

Samsung Posts 34.57% Drop in Q4 Operating Profit, Falls Short of Estimates

Samsung Electronics reported a 34.57% drop in operating profit for the fourth quarter compared to the same period a year ago, aligning with the guidance issued earlier. Here’s a breakdown of Samsung’s fourth-quarter results versus estimates:

Revenue: 67.78 trillion Korean won (about $51 billion), below the 69.27 trillion Korean won expected by LSEG analysts.

Operating profit: 2.82 trillion Korean won, falling short of the 3.43 trillion Korean won expected by LSEG analysts.

Samsung’s fourth-quarter revenue dropped by 3.8% from the previous year, while operating profit experienced a 34.57% decline. The semiconductor business reported a record loss of 14.88 trillion Korean won for the full year of 2023, compared to a profit of 23.82 trillion Korean won a year earlier, attributed to weak global demand.

Samsung, the world’s largest maker of dynamic random-access memory chips used in devices like smartphones and computers, faced a challenging year in 2023. In the earnings call, Samsung highlighted a recovery in memory chip prices and “continued strength” in sales of premium display products for the improvement in fourth-quarter revenue and operating profit compared to the third quarter.

The company expressed its focus on increasing sales of high-value-added products to enhance profitability. Samsung aims to capture rising demand for advanced products, those targeted at generative AI, and the strengthening of AI functionalities in smartphones and other products.

Despite facing softness in the smartphone business, Samsung expects a moderate improvement in earnings in the first six months of 2024, followed by a more significant improvement in the second half of the year. The company acknowledged a decline in fourth-quarter smartphone sales and profit from the previous quarter, partly due to the fading effects of new models launched in the third quarter.

In 2023, Apple surpassed Samsung as the world’s No. 1 in smartphone shipments, holding a market share of 20%. The shift towards premium smartphones impacted Samsung’s standing, but the company noted an increase in the average selling price of its smartphones.

Samsung anticipates smartphone demand to decline in the first quarter due to seasonality but expects growth in the premium segment compared to the same period last year. The launch of new AI-enabled Galaxy S24 smartphones is intended to boost sales and establish Samsung as a leading brand in the AI smartphone market.

The memory chip industry, hit by declining prices in 2023, is expected to continue recovering in 2024. Samsung plans to meet demand for chips in AI applications, expand into AI-enabled consumer product markets, and strengthen its leadership in premium products and competitiveness in advanced-node semiconductors.

While macroeconomic uncertainties persist, analysts expect further price hikes in the first half of 2024 and a marked rebound in earnings for memory makers in the second half of 2024 and 2025. Daiwa Capital Markets reported that Samsung’s revenue and operating profit estimates were lower than market estimates.

Samsung is currently manufacturing 3-nanometer chips with plans to mass-produce 2-nanometer chips in 2025, aiming for more powerful and efficient chips with a reduction in nanometer size.

[techbooky]

https://www.techbooky.business/meta-surpasses-expectations-announces-dividend-for-first-time-ever/

Meta Surpasses Expectations, Announces Dividend For First Time Ever

Meta, the parent company of Facebook, delivered an impressive fourth-quarter earnings report, beating both earnings and revenue expectations. The stock surged by 14% in extended trading following the announcement. Here are the key figures from Meta’s Q4 report compared to estimates:

Earnings per share: $5.33 vs. $4.96 expected by LSEG (formerly Refinitiv)

Revenue: $40.1 billion vs. $39.18 billion expected by LSEG

Daily active users (DAUs): 2.11 billion vs. 2.08 billion expected

Monthly active users (MAUs): 3.07 billion vs. 3.06 billion expected

Average revenue per user (ARPU): $13.12 vs. $12.81 expected

Meta’s revenue saw a substantial 25% increase in the quarter, reaching $40.1 billion, making it the fastest growth rate since mid-2021. The online advertising market’s continued recovery contributed to this growth. Operating margin more than doubled to 41%, reflecting cost-cutting measures that enhanced profitability. Expenses decreased by 8% year over year to $23.73 billion.

Net income soared over threefold to $14 billion, or $5.33 per share, compared to $4.65 billion, or $1.76 per share, in the same period the previous year. Meta plans to pay a dividend of 50 cents per share on March 26, marking its first-ever dividend payment. Additionally, the company announced a $50 billion share buyback program.

Meta’s Reality Labs unit reported sales surpassing $1 billion in the quarter, although the virtual reality unit recorded losses of $4.65 billion.

The company anticipates first-quarter sales to be in the range of $34.5 billion to $37 billion, surpassing analysts’ expectations of $33.8 billion. Expenses for 2024 are estimated to be between $94 billion and $99 billion.

Meta’s headcount as of December 31 was 67,317, reflecting a 22% year-over-year decrease following layoffs.

Chinese retailers played a role in Meta’s financial recovery, with revenue from China-based advertisers accounting for 10% of sales for the year. Zuckerberg attributed the growth to advances in artificial intelligence, which boosted the ad business.

The earnings report follows a challenging Senate Judiciary Committee hearing where Meta’s CEO Mark Zuckerberg and other social media executives faced tough questions from lawmakers regarding child exploitation concerns and platform safety.

Despite the strong financial results, Zuckerberg highlighted Meta’s commitment to investing in AI and computing infrastructure without significant expansion in headcount. The company aims to maintain a lean structure, with minimal additions to its workforce.

Meta’s robust performance adds to a positive trend in the tech industry, with Amazon and Apple also reporting better-than-expected results, marking the end of the earnings season for major tech companies.

[techbooky]

https://www.techbooky.business/alphabet-falls-6-in-after-hours-trading-on-ad-revenue-miss/

Alphabet Falls 6% in After-Hours Trading on Ad Revenue Miss

Alphabet, the parent company of Google, experienced a more than 6% decline in its shares during extended trading on Tuesday after reporting ad revenue that fell short of analysts’ estimates. Here are the key figures from the report:

Earnings per share: $1.64 vs. $1.59 expected by LSEG (formerly Refinitiv).

Revenue: $86.31 billion vs. $85.33 billion expected by LSEG.

Google Cloud: $9.19 billion vs. $8.94 billion expected (StreetAccount).

YouTube ads: $9.2 billion vs. $9.21 billion expected (StreetAccount).

Traffic acquisition costs: $13.9 billion vs. $14.1 billion (StreetAccount).

While Alphabet reported its fastest quarter for revenue growth since early 2022, with a 13% increase from a year earlier, the ad revenue of $65.52 billion fell short of analysts’ expectations of $65.94 billion. YouTube, a significant contributor to growth, narrowly missed expectations.

Although the results generally exceeded estimates, investors were not satisfied, as Facebook’s ad business is growing at a faster pace, and TikTok poses an ongoing competitive threat. Google Cloud remains a growth engine, with a 26% expansion in the fourth quarter compared to the previous year. Operating income for the cloud business was $864 million, a significant improvement from the year-ago loss of $186 million.

CEO Sundar Pichai continues to emphasize investments in artificial intelligence, embedding new generative AI tools into Google’s key products. However, these investments come at the cost of workforce reductions, with additional layoffs expected following last year’s cut of 12,000 jobs.

Net income for the fourth quarter increased by 52% to $20.7 billion, or $1.64 per share, compared to $13.6 billion, or $1.05 per share, in the same period the previous year. Operating margin expanded to 27% from 24%.

The Other Bets segment, which includes Waymo (self-driving car business) and Verily (life sciences unit), reported revenue of $657 million, up from $226 million the previous year, with a narrowed loss of $863 million compared to $1.24 billion.

Despite the after-hours drop, Alphabet shares have surged 56% in the past year. Shares of Meta and Microsoft have also reached new highs, reflecting continued investor interest in tech stocks.

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https://www.techbooky.business/amazon-surpasses-expectations-plans-continued-investments/

Amazon Surpasses Expectations, Plans Continued Investments

Amazon reported fourth-quarter results that exceeded analysts’ estimates, with strong revenue and earnings per share, leading to an over 8% surge in the stock during extended trading. Here are the key figures from Amazon’s Q4 report compared to estimates:

Earnings per share: $1.00 vs. 80 cents expected by LSEG (formerly Refinitiv)

Revenue: $170 billion vs. $166.2 billion expected by LSEG

Amazon Web Services: $24.2 billion vs. $24.2 billion, according to StreetAccount

Advertising: $14.7 billion vs. $14.2 billion, according to StreetAccount

For the first quarter, Amazon anticipates sales between $138 billion and $143.5 billion, representing an 8% to 13% growth. Analysts had expected revenue of $142.1 billion.

Amazon’s net income surged to $10.6 billion, or $1.00 per share, compared to $278 million, or 3 cents per share, in the same period the previous year. The company’s cost-cutting efforts, including laying off 27,000 employees and discontinuing some unproven ventures, have contributed to improved profitability.

Despite these cost-cutting measures, Amazon plans to maintain a careful approach to new investments. CFO Brian Olsavsky mentioned that while the company would continue to invest in new areas resonating with customers, it doesn’t view 2024 as a year focused solely on efficiency.

The fourth quarter saw a 14% jump in revenue to $170 billion, driven by the holiday shopping season and Amazon’s October Prime Day event, both of which surpassed expectations.

Sales at Amazon Web Services (AWS) increased by 13% in the fourth quarter to $24.2 billion, aligning with Wall Street forecasts. While this marks a slight uptick from the previous quarter’s 12% growth, it represents a deceleration from the year-ago period when sales expanded by 20%. AWS growth had slowed over the past year as businesses reduced their cloud spending, but Amazon sees a pickup in new workloads and increased interest in generative artificial intelligence (AI) products.

The profitable advertising unit reported a 27% year-over-year sales growth to $14.7 billion. Amazon has started displaying ads on Prime Video content, a move expected to generate significant new revenue. Olsavsky noted the company’s cautious approach to ad loads, aiming to keep them low despite witnessing enthusiasm from advertisers.

Overall, Amazon’s robust performance in the fourth quarter and its optimistic outlook for the first quarter showcase its resilience and ability to adapt to changing market dynamics. The company continues to focus on strategic investments while delivering strong financial results.

[techbooky]

https://www.techbooky.business/amd-q4-earnings-meet-expectations-but-q1-forecast-falls-short/

AMD Q4 Earnings Meet Expectations, but Q1 Forecast Falls Short

Advanced Micro Devices (AMD) reported fourth-quarter earnings that aligned with analyst expectations, with the semiconductor company’s revenue surpassing estimates. Despite the positive performance, AMD’s stock declined over 6% in extended trading. Here’s a breakdown of the results compared to consensus estimates from LSEG (formerly Refinitiv) for the quarter ending in December:

EPS: 77 cents per share (adjusted), matching the expected 77 cents per share.

Revenue: $6.17 billion, exceeding the anticipated $6.12 billion.

For the first quarter, AMD projected sales of about $5.4 billion, with a margin of plus or minus $300 million, falling short of analysts’ revenue expectations of $5.73 billion. The company anticipates some major businesses, including PC chips, to decline sequentially during the quarter. While data center revenue is expected to remain flat, the decline in server central processing units (CPUs) will be offset by sales of graphics processing units (GPUs) used in training and deploying generative artificial intelligence models.

CEO Lisa Su provided insights on the 2024 outlook, stating, “For 2024, we expect the demand environment to remain mixed.”

In the fourth quarter, net income was $667 million, or 41 cents per share, compared to $21 million, or 1 cent per share, in the previous year.

Although Nvidia currently dominates the GPU market, AMD believes its new AI chips introduced last year will challenge Nvidia’s H100 GPUs for certain applications. AMD reported a bullish update on its AI chip sales, expecting $3.5 billion in data center GPU sales under its “Instinct” brand in 2024, up from the previous estimate of $2 billion in October.

AMD’s data center business, encompassing server CPUs and AI chips, experienced a 38% annual rise to $2.28 billion in sales, becoming the company’s largest segment. The growth was attributed to strong sales of Instinct graphics processors for AI. The client segment, primarily chips for PCs and laptops, rose 62% year over year to $1.46 billion in sales.

However, sales in AMD’s gaming segment, including “semi-custom” processors for Microsoft Xbox and Sony PlayStation consoles, declined by 17% due to slower console sales. AMD expects semi-custom revenue to experience a “significant” double-digit percentage decline in the current quarter.

The embedded segment, covering chips for networking, reported $1.1 billion in sales, reflecting a 24% annual decrease.

[techbooky]

https://www.techbooky.business/qualcomm-tops-estimates-with-strong-handset-chip-sales-in-q1/

Qualcomm Tops Estimates with Strong Handset Chip Sales in Q1, Shares Dip

Qualcomm reported fiscal first-quarter results that exceeded analysts’ estimates, with a notable surge in sales of handset chips, up 16% from the previous year. While Qualcomm’s performance outpaced expectations, the company’s shares experienced a slight decline of more than 1% in extended trading. Here’s a breakdown of Qualcomm’s first-quarter results versus consensus expectations from LSEG, formerly known as Refinitiv:

Earnings per share: $2.75 adjusted, surpassing the $2.37 expected by analysts.

Revenue: $9.92 billion adjusted, higher than the $9.51 billion expected.

For the current quarter, Qualcomm provided guidance, anticipating adjusted earnings between $1.73 and $1.93 per share on revenue ranging from $8.9 billion to $9.7 billion. The consensus expectations, according to LSEG, were for earnings of $2.25 per share on $9.3 billion of revenue.

Qualcomm’s net income rose by 24% during the quarter to $2.77 billion, or $2.48 per share, compared to $2.24 billion, or $1.98 per share, a year ago. The company, known for producing smartphone chips, including modems and processors for high-end Android devices, has been diversifying its chip technology into markets beyond smartphones, such as PCs, cars, and virtual reality headsets.

Under the leadership of CEO Cristiano Amon, Qualcomm has expanded its focus to markets beyond smartphones, including PCs, cars, and virtual reality headsets. While still a significant smartphone supplier, Qualcomm has been navigating a slumping global market over the past two years.

During the December quarter, Qualcomm shipped $6.69 billion in handset chips, marking a 16% increase year over year—a positive indicator for the smartphone market after two years of declines. The company expressed optimism, expecting global handset sales to be flat year over year.

Qualcomm’s Internet of Things (IoT) business, which includes chips used in Meta’s virtual reality headsets, saw a 32% decline in sales to $1.13 billion. The company is actively pursuing opportunities in selling chips to automakers and car suppliers, with the automotive business within QCT (Qualcomm CDMA Technologies) reporting $589 million in sales, up 31% annually.

QCT, Qualcomm’s chip sales business encompassing automotive, IoT, and handsets, reported $8.42 billion in revenue during the quarter, reflecting a 7% increase year over year. The licensing business, QTL (Qualcomm Technology Licensing), reported $1.46 billion in revenue, experiencing a 4% annual decline.

Qualcomm highlighted its strategic focus on the automotive sector, targeting long-term growth in the segment. The company anticipates challenges in the automotive industry’s lengthy “qualification” cycle due to regulations and industry requirements.

Despite the slight dip in share value in after-hours trading, Qualcomm remains optimistic about its position in various markets and continues to invest in share repurchases and dividends. The company disclosed spending $800 million on share repurchases and $900 million on dividends during the quarter.

[techbooky]

https://www.techbooky.business/microsoft-beats-q2-earnings-estimates-offers-cautious-revenue-outlook/

Microsoft Beats Q2 Earnings Estimates, Offers Cautious Revenue Outlook

Microsoft’s shares experienced a slight dip of up to 2% in extended trading following the release of its fiscal second-quarter results. While the software giant outperformed analysts’ estimates for the quarter ended December 31, 2023, its cautious revenue outlook for the fiscal third quarter contributed to the after-hours dip. Here’s a breakdown of Microsoft’s performance compared to the consensus among analysts polled by LSEG:

Earnings: $2.93 per share vs. $2.78 per share expected

Revenue: $62.02 billion vs. $61.12 billion expected

Microsoft reported a 17.6% year-over-year increase in revenue, reaching $21.87 billion in net income, or $2.93 per share, up from $16.43 billion or $2.20 per share in the previous year. The Intelligent Cloud segment generated $25.88 billion in revenue, a 20% increase, surpassing the $25.29 billion consensus.

Within the Intelligent Cloud segment, revenue from Azure and other cloud services saw a 30% growth, exceeding expectations. Microsoft now boasts 53,000 Azure AI customers, with one-third of them being new additions in the past year. CEO Satya Nadella emphasized the increased commitments to spend over $1 billion on Azure, signalling strong customer confidence in the platform.

The Productivity and Business Processes unit, encompassing Office productivity software, LinkedIn, and Dynamics, delivered $19.25 billion in revenue, a 13% rise and beating the $18.99 billion consensus. The More Personal Computing segment contributed $16.89 billion in revenue, marking a 19% increase and slightly surpassing the $16.79 billion consensus. This segment includes Windows, Surface, Bing, and Xbox.

Microsoft’s acquisition of video game publisher Activision Blizzard, its largest deal ever, was completed during the fiscal second quarter. The company also introduced custom cloud chips and launched the $30 monthly Copilot AI add-on to Microsoft 365 bundles. However, Microsoft executives did not disclose specific details about the adoption or revenue growth related to the Copilot service.

While Microsoft shares experienced a dip in after-hours trading, the overall performance in 2024 has seen a 9% increase, outpacing the S&P 500 index’s 3% gain over the same period. CEO Satya Nadella expressed optimism about Microsoft 365 Copilot’s adoption and revenue potential, while acknowledging ongoing layoffs within the company, including around 700 job cuts at LinkedIn and 1,900 employees in the gaming unit following the Activision deal.

[techbooky]

https://www.techbooky.business/intel-reports-mixed-q4-results/

Intel Reports Mixed Q4 Results, Projects Soft Q1 2024 Outlook

Intel’s shares experienced a more than 10% drop following the release of its fourth-quarter results. While the chipmaker exceeded Wall Street estimates for the latest quarter, its outlook for Q1 2024 fell short of analyst forecasts. Here’s a breakdown of Intel’s performance versus LSEG consensus expectations:

Adjusted Earnings per Share: 54 cents vs. expected 45 cents

Revenue: $15.4 billion vs. expected $15.15 billion

For the first quarter of fiscal 2024, Intel anticipates adjusted earnings per share of 13 cents on sales ranging between $12.2 billion and $13.2 billion, falling short of LSEG expectations of 33 cents per share on $14.15 billion of revenue. The company also projects a fiscal first-quarter net loss of 25 cents per share on a GAAP basis.

Intel CEO Pat Gelsinger acknowledged challenges in subsidiaries like Mobileye and its programmable chip unit, contributing to an overall decline in sales. Despite weakness in certain segments, Gelsinger expressed confidence in the core businesses of PC and server chips, stating, “The core business we see as healthy. We see no areas for market share loss, and the products are getting stronger.”

Intel reported net income of $2.7 billion, or 63 cents per share, marking a significant improvement from a net loss of $700 million, or 16 cents per share, the previous year. The fourth quarter saw a 10% growth in sales, breaking a streak of seven quarters with declining revenue. Intel’s full-year gross margin was 40%, down 2.6 percentage points annually.

The company’s focus on a five-year plan aims to catch up with Taiwan Semiconductor Manufacturing Co. in offering manufacturing services to other companies while enhancing its own branded chips. Despite challenges in the Data Center and AI division, Intel continues to cut costs, spin off business units, and explore new opportunities, such as Intel Foundry Services, which reported $291 million in revenue, a 63% annual increase.

The outlook for Q1 2024 reflects a cautious stance, with Intel expecting a double-digit percentage decline in its Data Center business sequentially. The company remains committed to its transformation and looks to capitalize on emerging opportunities in the semiconductor industry.

[techbooky]

https://www.techbooky.business/nokia-has-announced-a-two-year-600m-euro-share-buyback/

Profit Decline: Nokia Has Announced a Two-year 600m euro Share Buyback Program

Nokia has announced a two-year 600 million euro ($653 million) share buyback program set to commence this quarter, following a challenging 2023 where the company reported a significant decline in profit.

As of 1.48 p.m. London time on Thursday, Nokia shares surged 8.5%.

Despite being one of the world’s largest mobile network equipment manufacturers, Nokia faced a 23% year-on-year decline in net sales, totalling 5.7 billion euros in the fourth quarter. Comparable operating profit also witnessed a 27% year-on-year decrease, amounting to 846 million euros.

CEO Pekka Lundmark attributed the decline to a shift in customer behaviour driven by macro-economic factors and high-interest rates. The industry faced challenges as customers, particularly telecommunications networks, opted for using existing equipment rather than making new purchases—an approach termed as “inventory digestion.”

Lundmark acknowledged the persisting challenges in 2024, with the company forecasting a comparable operating profit ranging from 2.3 billion to 2.9 billion euros in the same year. Analysts expect operating income to hover around 2.4 billion euros in 2024, according to LSEG consensus estimates.

Nokia’s Mobile Networks division, its primary revenue source, saw a 17% year-on-year decline in sales to 2.5 billion euros in Q4. Lundmark cited top-line challenges for 2024, particularly in India, where investment in next-generation mobile networks is slowing down, and the impact of AT&T’s decision to partner with Nokia rival Ericsson for its 5G network.

Despite facing setbacks, Nokia remains optimistic about achieving its comparable operating margin target by 2026, though it has revised the target from at least 14% to at least 13%. This adjustment reflects the current market conditions in Mobile Networks and is deemed a prudent change.

Nokia’s outlook aligns with industry trends, as Ericsson also reported challenges ahead, citing reduced spending by customers and a slowdown in investment in India for 2024.

[techbooky]

https://www.techbooky.business/comcast-exceeds-q4-expectations-raises-dividend/

Comcast Exceeds Q4 Expectations, Raises Dividend

Comcast is the largest cable company and home Internet service provider in the United States.

Comcast has outperformed expectations in the fourth quarter, with adjusted earnings per share reaching 84 cents, beating the anticipated 79 cents. Revenue also surpassed estimates, totalling $31.25 billion against the expected $30.51 billion. Net income rose 7.8% to $3.26 billion, or 81 cents a share, compared to $3.02 billion, or 70 cents a share, in the previous year. The company’s Theme Parks set a record for adjusted EBITDA at $872 million, while its flagship streaming service, Peacock, marked a significant milestone by generating over $1 billion in revenue for the quarter.

Comcast CEO Brian Roberts expressed satisfaction, stating, “For the third consecutive year, we generated the highest revenue, adjusted EBITDA, and adjusted EPS in our company’s history.” The company also announced an 8 cents, or 7%, increase in its annualized dividend to $1.24 per share for 2024. This marks the 16th consecutive year of dividend raises. Additionally, Comcast approved a $15 billion share repurchase program, effective immediately.

Despite a loss of 34,000 domestic broadband subscribers, which was better than the expected 62,000, Comcast’s domestic broadband revenue increased by 3.7% to $6.4 billion. The company added 310,000 wireless subscribers and lost 389,000 video subscribers. Peacock, NBCUniversal’s streaming service, added 3 million subscribers, surpassing $1 billion in revenue for the first time, reaching $1.03 billion. However, Peacock reported an adjusted loss of $825 million, narrowing from $978 million the previous year.

Comcast’s performance in Theme Parks, streaming, and other segments indicates resilience and adaptability in a dynamic market. The company remains optimistic about future subscriber trends and plans for sustained growth in the coming quarters.

[techbooky]

https://www.techbooky.business/ibm-surges-8-in-after-hours-trading/

IBM Surges 8% in After-Hours Trading with Robust Q4 Earnings Beat

IBM witnessed a remarkable surge, soaring up to 8% in extended trading on Wednesday following the announcement of its fourth-quarter results that outperformed Wall Street expectations. Here’s a breakdown of IBM’s stellar performance compared to the consensus among analysts surveyed by LSEG, previously known as Refinitiv:

Key Metrics:

Earnings per share: $3.87 (adjusted) vs. $3.78 expected

Revenue: $17.38 billion vs. $17.30 billion expected

IBM’s Q4 revenue exhibited a notable 4% year-over-year increase, reaching $17.38 billion, as reported in a statement. Net income also saw substantial growth, reaching $3.29 billion, or $3.55 per share, compared to $2.71 billion, or $2.96 per share, in the corresponding quarter of the previous year. Chief Financial Officer James Kavanaugh acknowledged the company’s resilience in navigating a challenging, uncertain, and volatile macroeconomic environment during an interview with CNBC.

Key Highlights:

Free cash flow for the year: $11.2 billion, surpassing the $10.5 billion target

Fourth-quarter gross margin: 59.1%, the widest since 1999

IBM’s software revenue amounted to $7.51 billion, reflecting a 3% increase. However, this fell slightly short of the $7.67 billion consensus among analysts surveyed by StreetAccount. Consulting revenue demonstrated robust growth, reaching $5.05 billion, a 6% increase but slightly below the $5.12 StreetAccount consensus.

Revenue from infrastructure, including mainframe computers, totalled $4.60 billion, marking a 3% increase and surpassing the StreetAccount consensus of $4.28 billion. The distributed infrastructure category, housing servers with IBM’s Power chips, notably accelerated to 8% growth, a significant turnaround from a 4% decline in the third quarter.

IBM’s strategic moves during the quarter included the introduction of a $500 million venture fund targeting enterprise artificial intelligence startups. Additionally, the company announced plans to acquire StreamSets and webMethods, two businesses majority-owned by Software AG, for 2.13 billion euros ($2.32 billion).

CEO Arvind Krishna shared on the conference call that the book of business for generative AI and Watsonx products doubled in size compared to the third quarter. This includes consulting signings and software commitments.

In terms of guidance, IBM projects $12 billion in 2024 free cash flow and mid-single-digit revenue growth at constant currency. Kavanaugh emphasized the importance of assuming the low end of that model, considering the evolving landscape. The company foresees workforce rebalancing consistent with the productivity gains witnessed in 2023.

Despite the after-hours surge, IBM shares have demonstrated resilience, boasting a 7% increase so far in 2024, outperforming the S&P 500 U.S. stock index, which has gained 2% during the same period.”

[techbooky]

https://www.techbooky.business/q4-results-sap-achieves-all-time-high-amid-ai-push-and-job-restructuring-plans/

Q4 Results: SAP Achieves All-Time High Amid AI Push and Job Restructuring Plans

German software giant SAP witnessed a historic surge in its stock, reaching an all-time high in early trades on Wednesday. The boost followed the release of SAP’s latest financial results, showcasing a 5% year-over-year increase in revenues for the fourth quarter of 2023. The stock experienced an exceptional 50% growth throughout the year, marking its most impressive performance since 2012.

Key Highlights:

Revenues: Increased by 5% YoY in Q4 2023

Stock Performance: Jumped over 50% in 2023

SAP’s strategic move towards artificial intelligence (AI) growth is a driving force behind its remarkable financial performance. The company unveiled plans to restructure 8,000 jobs, emphasizing a focus on Business AI and the overall transformation of its operational setup to harness organizational synergies and AI-driven efficiencies.

In a statement, SAP outlined its 2024 restructuring plan, designed to align with future business needs. The voluntary buyouts or support for job changes will impact over 7% of SAP’s 108,000 full-time workforce. However, the company affirmed that its overall headcount will remain consistent by year-end.

Dominik Asam, Chief Financial Officer of SAP, emphasized the company’s commitment to fully capitalize on the next wave of fast-moving technology, particularly in the realm of artificial intelligence. As part of this initiative, SAP plans to reskill its workforce and allocate around $2 billion to these plans over the next two years.

While the majority of affected employees will be reskilled and transferred to new positions, Asam acknowledged the possibility of non-voluntary departures due to the changes. Despite a notable “deceleration” in demand for software services, SAP’s cloud computing business continues to grow, with Asam highlighting its acceleration and the company’s successful transformation into a cloud and growth-focused entity.

As SAP positions itself to seize the next big opportunity in AI, the company’s stock surge reflects investor confidence in its strategic vision and commitment to staying at the forefront of technological advancements.”

[techbooky]

https://www.techbooky.business/tesla-stalls-on-slowing-growth-as-musk-eyes-ai-supremacy/

Tesla Stalls on Slowing Growth as Musk Eyes AI Supremacy

FILE PHOTO: The logo of car manufacturer Tesla is seen at a dealership in London, Britain, May 14, 2021. REUTERS/Matthew Childs/File Photo

Tesla slammed the brakes on its epic growth story Thursday, missing Q4 profit forecasts as vehicle deliveries sputtered. Shares slid nearly 6% after-hours on the report – capping a turbulent start to 2024.

Automotive revenue crawled just 1% higher year-over-year – well below the rip-roaring pace CEO Elon Musk demands. And net income soared mainly thanks to an unusual $5.9 billion tax boost, masking severe margin compression. Excluding special items, earnings came in below expectations at 71 cents per share.

So why the sudden slowdown? Tesla says it is purposefully throttling production as it develops “next-generation” vehicles at its new Texas Gigafactory. As Cybertruck deliveries commence, the company reports being between “two waves” of car-making – temporarily capped by manufacturing complexity.

But the spotlight shone brightest on Elon himself Thursday, who waxed poetic about future world domination in AI and robotics. Drumming up plans for a dramatic 25% Tesla stake to consolidate power against activist investors, Musk claimed the company’s auto expertise will directly translate to humanoid robots like Optimus. He boldly dubbed it the “most sophisticated humanoid robot developed anywhere.”

Yet the iconoclast again declined to provide specifics around production timelines or capabilities for Optimus. He did forecast some units shipping next year – an ambitious target even by Musk’s standards.

It seems clear the CEO’s taste for autonomy extends beyond vehicles. As Tesla progresses deliberately following its breakneck expansion, Musk already envisions the company’s next “value exceeding” chapter. But shareholders may yearn for simpler times – focused purely on sustainable profits over world-changing sci-fi dreams.

[techbooky]

https://www.techbooky.business/netflix-surpasses-subscriber-expectations/

Netflix Surpasses Subscriber Expectations, Shares Surge 11% In Q4

Netflix experienced an impressive surge in its stock price, jumping nearly 11% on Wednesday following the release of its fourth-quarter results. The streaming giant reported the addition of 13.1 million subscribers, surpassing Wall Street’s expectations. Netflix now boasts a record-breaking 260.8 million paid subscribers.

Key Q4 Results:

Earnings: $2.11 per share vs. $2.22 per share expected by LSEG

Revenue: $8.83 billion vs. $8.72 billion expected by LSEG

Total Memberships: 260.8 million vs. 256 million expected

Netflix’s net income for the fourth quarter stood at $937.8 million, or $2.11 per share, a significant increase compared to the prior-year period. The company also reported a substantial rise in revenue, reaching $8.83 billion.

With a focus on profitability, Netflix adjusted its 2024 full-year operating margin forecast to 24%. The company is optimistic about the future, projecting an earnings per share of $4.49 for the fiscal first quarter of 2024, surpassing Wall Street’s expectations of $4.10.

In the competitive streaming landscape, Netflix remains committed to enhancing its entertainment offerings. The company sees value in continuing to invest in its content slate, differentiating itself from competitors who are cutting back on content spend. While competitors may resort to consolidation, Netflix is not interested in acquiring linear assets, emphasizing a commitment to building subscribers through strategic partnerships.

One significant move towards expansion is Netflix’s decision to stream WWE Raw starting next year, marking a substantial step into live entertainment.

Notably, Netflix’s advertising-based plan has shown promise, with more than 23 million global monthly active users reported. Although ads are not the primary revenue driver for 2024, Netflix aims to scale this aspect of its business by making the ads plan more attractive to users and advertisers alike.

Co-CEO Greg Peters highlighted the company’s long-term revenue potential in the advertising space, expressing optimism about the significant opportunity it presents. As Netflix continues its transformation, balancing subscriber growth and profit, the streaming giant remains a major player in the evolving landscape of digital entertainment.”

[techbooky]

https://www.techbooky.business/q4-earnings-ericsson-navigates-challenges-and-anticipates-5g-slowdown/

Q4 Earnings: Ericsson Navigates Challenges and Anticipates 5G Slowdown

Ericsson foresees a continued decline in demand for 5G equipment from mobile operators throughout the year, signalling a challenging landscape despite exceeding fourth-quarter operating profit expectations, primarily fuelled by robust software sales.

Telecom equipment suppliers like Ericsson anticipate a tough 2024 as the sales of 5G equipment, crucial for revenue, slow down in North America. The growth market of India may also experience a deceleration, contributing to the overall industry challenges.

After a period of heightened demand for 5G equipment, telecom providers scaled back their buying activities last year. Consequently, companies like Ericsson and Nokia had to implement substantial cost-saving measures, including workforce reductions.

Carl Mellander, Chief Financial Officer of Ericsson, hinted at potential further cost-cutting measures in 2024, including the possibility of layoffs. He emphasized the company’s commitment to aligning costs with market trends and demand.

Ericsson’s fourth-quarter net sales declined by 16% to 71.9 billion Swedish crowns ($6.89 billion), missing estimates. Despite this, the company’s operating profit (EBIT) excluding restructuring charges surpassed expectations, reaching 7.37 billion crowns, up from the anticipated 6.92 billion.

The improved EBIT margin was attributed to higher-margin software sales and a decrease in the sales of 5G equipment to lower-margin countries like India.

CEO Börje Ekholm acknowledged the prevailing market uncertainties, expecting a further decline in the Radio Access Network (RAN) market outside China. He highlighted customer caution and a normalization of investment pace in India as contributing factors.

Ericsson anticipates a boost in the second half of the year from a $14 billion telecom deal with AT&T, securing an advantage over rival Nokia.

As part of organizational changes, Lars Sandstrom has been appointed as the new Chief Financial Officer, replacing long-time company veteran Carl Mellander. The reshuffling indicates Ericsson’s strategic efforts to navigate the evolving landscape of the telecom industry.

[techbooky]

https://www.techbooky.business/tsmc-surpasses-profit-and-revenue-expectations-in-q4/

TSMC Surpasses Profit and Revenue Expectations in Q4

FILE PHOTO: A logo of Taiwanese chip giant TSMC can be seen in Tainan, Taiwan, Dec. 29, 2022.REUTERS/Ann Wang/File Photo

In a tech landscape shaped by challenges and opportunities, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has defied expectations with its fourth-quarter performance, showcasing resilience in the face of macroeconomic uncertainties.

TSMC reported impressive fourth-quarter results, surpassing LSEG consensus estimates:

Revenue: 625.53 billion New Taiwan dollars ($19.62 billion), exceeding the expected NT$618.31 billion.

Net income: NT$238.71 billion, outperforming the anticipated NT$225.22 billion.

Despite a 1.5% year-over-year decline in revenue and a 19.3% drop in net income, TSMC demonstrated its strength in navigating a challenging semiconductor landscape. The company’s commitment to innovation, particularly its industry-leading 3-nanometer technology, played a pivotal role in supporting a 14.4% sequential revenue increase from the third quarter.

With tech giants like Apple and Nvidia in its client portfolio, TSMC holds a significant position in the production of advanced processors, particularly for Apple’s iPhones. CEO C.C. Wei acknowledged the difficulties faced by the global semiconductor industry in 2023 due to macroeconomic conditions and an inventory adjustment cycle.

Wei remains optimistic about the future, stating that TSMC is well-positioned to seize growth opportunities in high-performance computing, driven by the emerging generative AI applications. Despite the challenges of 2023, the company anticipates a healthy growth year in 2024, propelled by the robust ramp-up of its three-nanometer technologies, strong demand for five-nanometer technologies, and increasing AI-related demand.

While TSMC expects first-quarter revenue to range between $18 billion and $18.8 billion in 2024, Wei cautioned about persisting macroeconomic headwinds that could impact consumer sentiment and market demand.

Analysts, such as Brady Wang from Counterpoint Research, highlight TSMC’s pivotal role in the AI semiconductor landscape. The company’s advancements in three-nanometer and five-nanometer technologies position it as a major player, ready to meet the surge in AI-based PC applications anticipated in 2024.

As TSMC continues to manufacture cutting-edge chips, including plans for 2-nanometer mass production by 2025, the company stands at the forefront of technological innovation, shaping the future of the semiconductor industry.