After the close of trading on Wednesday, several large companies released third-quarter financial results, with mixed overall performance.Tesla's profits exceeded expectations, but revenue fell slightly;IBM's software division performed strongly, but other divisions faced challenges; and performance updates from companies such as T-Mobile and Mattel also caused investors to reassess the prospects of key industries.

Tesla's profits beat expectations

Tesla's earnings report showed adjusted earnings per share of $0.72, exceeding Wall Street's expectations of $0.58.However, the company's revenue was slightly below expectations, recording $25.18 billion, compared with market expectations of $25.37 billion.

Although revenue fell short of expectations, Tesla shares rose nearly 5% in after-hours trading as third-quarter profit margins exceeded expectations.Tesla is maintaining profit margins by shifting from sharp price cuts to providing financial incentives, such as lower financing costs.In addition, the company's delivery volume in the third quarter increased by more than 6% year-on-year, reversing the downward trend in sales in the first half of 2024.Falling raw material costs have also provided some relief to the company, although Tesla expects this cost advantage to gradually diminish.

Tesla continues to focus on future growth, launching new products such as the "Cybercab" driverless taxi and the 20-seat driverless robot taxi to further promote the development of autonomous driving technology.Analysts are optimistic about Tesla's ability to control costs and expand into new markets, but remain concerned about its future profit margins.

IBM's Software Division Leads Growth

International Business Machines (IBM) also exceeded expectations, with adjusted earnings per share of $2.30, above expectations of $2.23.The main driver of the company's results came from its software division, where revenue rose nearly 10% year-on-year to US$6.52 billion, the largest increase in three years.As companies continue to invest in cloud infrastructure and artificial intelligence (AI) technology, especially IBM's Watsonx platform, the software business is performing well.

However, IBM's overall revenue was US$14.97 billion, lower than expectations of US$15.07 billion.Weakness in the consulting and infrastructure division dragged down the company's overall sales, with consulting revenue falling 0.5%, as many customers postponed short-term projects and instead prioritized long-term AI-driven projects that take time to be reflected in IBM's results.

IBM's artificial intelligence business grew significantly, with customer orders increasing by $1 billion from the previous quarter, reflecting long-term market demand for AI solutions.However, IBM still faces challenges posed by economic uncertainty in the short term, such as rising interest rates and inflation, which may affect investment progress.

Earnings performance of other companies:

• T-Mobile exceeded expectations, adding 865,000 postpaid mobile phone users, far exceeding the expected 727,500.The telecommunications giant relies on its powerful 5G services and bundled sales with premium services such as Netflix to drive demand at competitive prices.T-Mobile also raised its forecast for new customers throughout the year, further consolidating its market position.
  

• Mattel lowered its full-year sales forecast due to weak demand for toys entering the holiday season.Barbie's parent company's third-quarter net sales fell 4% year-on-year, and sales in 2024 are expected to be the same as last year or decline slightly.Despite the challenges, Mattel has implemented aggressive cost-cutting measures and raised profit margin expectations, which will provide a cushion for the company in a difficult market environment.
  

Industry Divergence: Tech Companies Strong, Consumer Goods Weak

Overall, Wednesday's earnings report showed comparative performance in different areas.

Tesla and IBM reported profits that exceeded expectations but faced future margin pressures and economic challenges;T-Mobile's strong subscriber growth provided positive signals to the telecommunications industry, while Mattel faced continued headwinds in the toy market.

The overall market outlook remains complex, with technology-driven companies performing strongly and sentiment in the consumer goods sector being more cautious.