On this episode of Stock Movers:
- Tesla (TSLA) third-quarter profit fell short of Wall Street’s expectations despite record electric-vehicle sales, a sign of the pressure automakers are facing from shifting federal policies and rising costs. Adjusted earnings were 50 cents per share in the period, the company said Wednesday in a statement. Analysts had expected 54 cents on average in estimates compiled by Bloomberg. Revenue was $28.1 billion, outpacing expectations. The shares slipped in extended trading in New York.
- IBM (IBM) reported disappointing revenue in its closely watched Red Hat unit, sparking concerns among investors who see the software business as among the keys to the company’s growth. Third-quarter sales in the hybrid cloud unit that includes Red Hat increased 14%, a slowdown from the previous period and below analysts’ average estimate of 16%. The shares declined about 5% in extended trading after closing at $287.51 in New York. The stock had gained 31% this year through the close.
- Southwest Airlines (LUV) posted a surprise adjusted profit in the third quarter, boosted by fees from its new policy of charging passengers for bags and expected record operating revenue in the final months of the year. The Dallas, Texas-based carrier earned 11 cents per share in the quarter, the company said on Wednesday. Analysts, on average, estimated a loss of 3 cents, according to Bloomberg-compiled data. Shares rose in postmarket trading. Southwest’s stock is up fractionally for the year through Wednesday’s close.
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