Tesla, AT&T, Coca-Cola see big third quarter
Yahoo Finance's Julie Hyman and Adam Shapiro break down the latest earnings reports from Tesla, AT&T and Coca-Cola.
Video Transcript
ADAM SHAPIRO: Tesla and some other earnings we've gotten, the shares are up about 1% right now after they reported after the bell yesterday. They topped expectations. They've doubled down, as Julie said, on their guidance, hoping by the end of the year to produce and deliver 500,000 vehicles this year. Third quarter revenue, $8.7, almost $8.8 billion. That beat what was expected, but they're going to need to deliver more than 180,000 vehicles in the fourth quarter in order to achieve that target.
Here's what the company said. It's a quote-- achieving this target depends primarily on quarter-over-quarter increases in the Model Y and Shanghai production, as well as further improvements in logistics and delivery efficiency at higher volume levels. Remember, they've cut the price in China, and they cut the price of the Model S here in the United States, to try and get people to buy the vehicles. Also, production at the Berlin factory, that's on target to begin in 2021.
JULIE HYMAN: We're also watching AT&T today, Adam. Those shares are up more than 6%. That's because, even though a lot of people are cutting the cord, AT&T is making up for that in various other ways, including just with people getting phone subscriptions-- 645,000 post-paid phone subscriptions over the course of last quarter, even as paid TV subs fell by 627,000. About 8 and 1/2 million folks signed up for HBO Max, so that's something to continue to watch as well.
Overall, revenue at AT&T was down 5% to $42.3 billion. The company did attribute 2 and 1/2%-- $2 and 1/2 billion, excuse me-- of that dropped to COVID-19 because of weakness at Warner Brothers. Remember, of course, theaters have been closed, so it did not have the same kind of movie revenues it typically does. And also, fewer wireless roaming fees because people are not going anywhere, or they're not going anywhere in the same level as they once were. That revenue, though, even though it did fall, did come in ahead of estimates, Adam.
ADAM SHAPIRO: All right, have a Coke and a smile. If you're an investor, shares are up about 1% right now. The sales for the quarter fell 6%, but the company says demand is improving, specifically juice, dairy, and plant-based drinks. They saw volume shrink by about 6%. Revenue, $8.7 billion. That was down 9%. Cash flow, though-- year-to-date, cash from operations, $6.2 billion is down 20%. Free cash flow, $5.5 billion, down 17%. Also, remember, they're streamlining some of the product portfolio.
Tab, the diet drink? Maybe you don't. This will jog your memory. The New Seekers were the music group that sang that famous song, I'd Like to Teach the World to Sing, way back in the day, when everyone would sing that about Coke and Tab, which is going to be Gandhi. It's out of here. Julie.
