Tesla (NASDAQ:TSLA) earnings for the electric car company’s third quarter of 2019 have TSLA stock climbing higher after the markets’ close on Wednesday. This is thanks to its non-GAAP EPS of $1.91 for the quarter. This is a massive surprise over Wall Street’s per-share losses estimate of -42 cents. Revenue of $6.30 million is below analysts’ estimates of $6.33 billion but wasn’t dragging TSLA stock down today.
Let’s take a more comprehensive look at the most recent Tesla earnings report:
- Non-GAAP EPS for the quarter is down 37% YoY from $3.02.
- Revenue comes in 8% lower than the $6.82 billion reported during the same time last year.
- Operating income of $261 million is a 37% drop from $416 million in the third quarter of 2018.
- The Tesla earnings report also has net income coming in at $143 million.
- That’s 54% worse than the company’s net income of $311 million from the same period of the year prior.
- Free cash flow of $371 million during the quarter increased cash on hand to $5.30 billion.
The third-quarter Tesla earnings report includes this statement from the company.
“Despite reductions in the average selling price (ASP) of Model 3 as global mix stabilizes, our gross margins have strengthened. Additionally, operating expenses are at the lowest level since Model 3 production started. As a result, we returned to GAAP profitability in Q3 while generating positive free cash flow. This was possible by removing substantial cost from our business.”
Tesla doesn’t provide specific numbers for its outlook update. However, the company does say that it expects to have positive GAAP net income, with “possible temporary exceptions.”
TSLA stock was up 17.23% after-hours on Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.