This week, quarterly reports were submitted by large companies such as Apple, Tesla, Microsoft, and IBM. What were the results of these companies in the last quarter of calendar 2021, and how did their shares react to the quarterly statistics? Find the answers in the article.

IBM report: quarterly profit grows 72%

On Monday, 24 January 2022., IBM published the report for its Q4 2021 and the whole of last year. The October-December 2021 results exceeded analysts' expectations. Revenue from cloud services demonstrated the most prominent growth in the last decade.

The income of the software department increased 8.2% to $7.27 billion compared to the results of 2020. As for the revenue of the consulting department, it went up 13.1% to $4.75 billion.

ImImportant report details

Revenue$16.7 billion (+6.5%)$57.35 billion (+3.9%)
EPS$2.57 (+70.2%)$6.35 (+1.9%)
Net profit$2.3 billion (+72%)$5.74 billion (+2.7%)

The reaction of IBM shares

On 25 January 2022, the following day after the report was published, the share price of International Business Machines Corporation (NYSE: IBM), supported by good statistics, rose 5.65% to $136.1. Over 2021, IBM shares grew by 6.7% in total, while this month they only saw a 0.5% increase.

Microsoft report: Azure revenue grows 46%

On Tuesday, 25 January, Microsoft presented its results for Q2, financial 2022. Analysts and investors mostly noticed the revenue generated by the IT giant's cloud computing division.

In October-December, the income from cloud computing increased 25.5% to $18.33 billion, compared to the statistics of the same months last year. Azure cloud service revenue, which is incorporated in the division, grew 46%.

The Productivity and Business Processes department brought the company $15.9 billion, which was 19% more than in the same months of the previous financial year. This growth was fueled by the revenue generated from several commercial products of Office, LinkedIn, and Dynamics.

Important report details

  • Revenue - $51.7 billion, +20%, forecast - $50.88 billion.
  • EPS - $2.48, +22%, forecast - $2.31.
  • Net profit - $18.8 billion, +21%.

The reaction of Microsoft shares

The statistics of the tech corporation did not make investors too excited. On 26 January 2022, Microsoft Corporation (NASDAQ: MSFT) stock grew 2.85% to $296.71. The positive dynamics continued on the next trading day. Over 2021, the shares saw a 51.2% rise but started 2022 with a 9.3% loss in January.

Tesla report: positive and negative news

When the trading session closed on Wednesday, 26 January 2022, Tesla published its report for Q4 and the whole of 2021. The positive news is that the company had record sales of 936,222 cars. Compared to 2020, this is 87% growth.

A total of 308,650 cars were sold in the period October to December alone, which is 71% more than last year. Over the quarter, 305,840 electric cars (+70%) were manufactured, while the total production of the whole year was 930, 422 electric cars (+83%).

Now to the negative news: Elon Musk announced that Tesla would not produce any new car models this year. The launch of Cybertruck electric pickup, Roadster supercar, and Semi truck is postponed due to issues with chips and semiconductors.

Important report details

Revenue$17.72 billion (+65%)$53.82 billion (+71%)
EPS$2.05 (+754%)$4.9 (+666%)
Net profit$2.32 billion (+760%)$5.52 billion (+665%)

RThe reaction of Tesla shares

The increase in sales, production, revenue, and profit did not make up for the postponement of the launch of the new car models, which annoyed investors. On 27 January 2022, Tesla Inc. (NASDAQ: TSLA) stock dropped 11.55% to $829.1.

Over this month, the shares of the car manufacturer saw a 21.6% loss. As for 2021, they grew 49.8%.

Apple report: all-time high quarterly revenue

On Thursday, 27 January 2022, Apple presented the report for Q1, financial 2022. The results of October-December 2021 exceeded analysts' expectations, and the revenue set a record.

iPhone sales reached $71.63 billion, growing 9.2% compared to the statistics of the same quarter of financial 2021. Mac products were sold for $10.85 billion (+25.1%); sales of portable and home electronics alongside accessories amounted to $14.7 billion (+13.3%), and services to $19.5 billion (+23.8%).

Sales shrunk only in the tablet category. Apple iPads were sold for $7.25 billion over the quarter, which is 14.1% less than in Q1, financial 2021.

Important report details

  • Revenue - $123.9 billion, +11%, forecast - $118.49 billion.
  • EPS - $2.1, +25%, forecast - $1.89.
  • Net profit - $34.6 billion, +20%.

The reaction of Apple shares

On 27 January 2022, Apple Inc. (NASDAQ: AAPL) stock closed the trading session with a decline of 0.29% to $159.22. This was the eighth session in a row ending with the stock falling. The shares lost 8% in total.

Over January 2022, the shares have lost 10.3%, after seeing a 33.8% growth in 2021.

Summing up

IBM reported an increase of the quarterly profit by 72%, and the highest revenue made by the cloud services division over the last decade. The shares reacted with a growth of almost 6%.

Microsoft also shared strong financial statistics but this did not bring noticeable growth to its stock price – the increase was less than by 3%.

Tesla's net profit growth by 3-digit numbers over a quarter and the whole of last year did not inspire investors. The news about Musk's decision to postpone production of the new car models pulled Tesla's stock prices down by more than 11%.

Although Apple reported an all-time high quarterly revenue and growth of all its main parameters, its shares continued their 8-days decline.

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