4 big earnings hits: Tesla beats but shares sink; Netflix takes a slide

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Investing.com — Here is your Pro Recap of the biggest earnings reports you may have missed this week and how analysts responded: numbers out of Tesla, Netflix, IBM, and Goldman Sachs.

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Tesla (NASDAQ:TSLA) late Wednesday reported earnings of $0.91 per share — surpassing the $0.79 Wall Street consensus — on better-than-expected revenue of $24.93, and margins were also less bad than feared.

Still, shares sank 9.7% in Thursday trading.

Excluding regulatory credits, gross margins — which have been closely watched following recent price cuts on Tesla's electric vehicles — fell 6.8% to 18.2% in Q2 from the prior year, better than analysts' estimates of 16.9%.

The price cuts helped the EV giant boost its installed base and rake in new customers, with vehicle deliveries surging 86% to 466,140 EVs in Q2, marking a record quarter for the company.

Wedbush called the move a «smart strategy,» saying after the report that the price cuts «have been in a homerun success in China, Europe, and the US… In a nutshell, we view Tesla where Apple was in the 2008/2009 period as Cupertino was just starting to monetize its services and golden ecosystem with the Street not seeing the broader golden vision at the time.»

Needham and Company reiterated its Hold rating due to valuation, adding that it leans «more bullish when thinking about TSLA's positioning vs legacy [original equipment manufacturer] peers.»

Goldman Sachs said the report was «solid» but that headwinds remain, reiterating its Neutral rating on the stock. Bofa also reiterated Neutral given risks from price cuts, increasing competition, and near-term macro considerations — while also noting the