Third Quarter Earnings: Artificial Intelligence and Big Companies

As the third quarter earnings season continues with full speed, many artificial intelligence companies are announcing their results this week. Palantir (PLTR), AMD (AMD), and Supermicro (SMCI) are critical indicators of earnings for investors.

So far, the third quarter earnings season has made a positive start. According to FactSet data, as of October 31, S&P 500 companies have reported results for 64% of the companies. Analysts expect a 10.7% increase in earnings per share this quarter. If this figure is achieved, it would mark the fourth consecutive quarter of double-digit earnings growth, but this indicates a slowdown compared to the 12% growth reported in the second quarter of this year.

Prior to the third quarter, expectations were somewhat lower; analysts had predicted a 7.9% increase in the earnings of S&P 500 companies.

This week, Palantir, AMD, Supermicro, Constellation Energy (CEG), Qualcomm (QCOM), and Arm Holdings (ARM) will share their quarterly updates as well.

Other notable results will come from important companies such as Shopify (SHOP), Uber (UBER), Pfizer (PFE), Spotify (SPOT), Marriott International (MAR), Toyota (TM), novo Nordisk (NVO), McDonald's (MCD), AppLovin (APP), Robinhood (HOOD), DoorDash (DASH), Snap (SNAP), AstraZeneca (AZN), ConocoPhillips (COP), Airbnb (ABNB), Warner Bros. Discovery (WBD), Block (XYZ), Duke Energy (DUK), and Wendy's (WEN).

Palantir (PLTR) shares rose 2.6% after the publication of a fourth-quarter earnings report that exceeded Wall Street forecasts. The company reported an adjusted earnings per share of $0.21, which is above the analysts' prediction of $0.17. Additionally, this figure is more than double the $0.10 earnings reported in the third quarter of 2024.

The revenue forecast for the fourth quarter was also above expectations.

Uber (UBER) released its third-quarter earnings on Wednesday and did not fully impress investors. Shares fell 4% in pre-market trading.

Spotify (SPOT) shares saw a 3% increase on Wednesday. The company managed to exceed analyst expectations in terms of revenue and profit margin in its third-quarter results.

Hims & Hers (HIMS) surpassed expectations in its third-quarter revenues, but profits remained below analysts’ predictions. ON Semiconductor (ON) showed a similar trend, with third-quarter revenues and earnings coming in above expectations, and share value increased by 4%.

On the other hand, Beyond Meat (BYND) announced that it would release its third-quarter earnings on November 11, leading to a 8% drop in its shares. The company indicated that it was facing some financial issues.

Berkshire Hathaway (BRK-B, BRK-A) shares increased by 1% following its third-quarter earnings. Warren Buffett’s company saw profits rise by 17% due to a modest hurricane season and increasing investment gains.

Apple (AAPL) managed to please investors with its fourth-quarter earnings, but iPhone sales were below analyst expectations.