Earnings To Watch: Tesla (TSLA) Reports Q3 Results Tomorrow

Electric vehicle pioneer Tesla (NASDAQ:TSLA) will be reporting results tomorrow after market close. Here’s what investors should know.

Tesla beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $25.5 billion, up 2.3% year on year. It was a mixed quarter for the company: Tesla's revenue exceeded Wall Street's expectations, with Services and Energy beating while Automotive was roughly in line. The good news stops there, as the company missed operating profit even when removing the impact of a one-time restructuring charge. This also bled down to an EPS and free cash flow miss.

Is Tesla a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Tesla’s revenue to grow 10% year on year to $25.67 billion, improving from the 8.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 12 downward revisions over the last 30 days (we track 28 analysts). Tesla has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Tesla's peers in the industrials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. General Motors delivered year-on-year revenue growth of 10.5%, exceeding analysts’ expectations by 9.9%. The stock traded up 2.9% on the results. 

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.