Tesla Motors Inc (NASDAQ:TSLA) and Cisco Systems, Inc. (NASDAQ:CSCO) are set to report quarterly earnings after the markets close today. On Tesla side, the automaker will be reporting results for 4Q2015 and fiscal 2015. On its part, Cisco will be reporting results for its F2Q2016. Trefis analysts have highlighted areas of great interest that investors should keep their eyes on when Tesla and Cisco post earnings.
Tesla: eyes on revenue and margins
Tesla Motors Inc (NASDAQ:TSLA) initially promised to deliver 55,000 vehicles in 2015 and later revised the target to a range of 50,000 to 55,000. According to Trefis, it would require Tesla to increase 4Q deliveries by at least 12% to reach the lower-end of its vehicle delivery target. Overall, Trefis believes that Tesla’s 2015 targets look to ambitious to be met, but the firm also cites positive trend in Tesla’s delivery figures in the recent times. For example, deliveries of 17,400 vehicles in 4Q (according to preannouncement) rose 50% QoQ and 75% YoY.
When it comes to revenues, Trefis notes that vehicle sales contribute majority of revenue. However, the company has also been diversifying its revenue streams, expanding into power back solutions market and it is also building a battery manufacturing facility that it calls Gigafactory. Battery cells from the Gigafactory will be used in Tesla’s vehicles and could be sold to other electric vehicle manufacturers.
Because vehicle continues to investment in charging stations for its vehicles, margins are expected to remain under pressure.
Therefore, in Tesla Motors Inc (NASDAQ:TSLA)’s upcoming report, investors should keep a close eye on updates on vehicle production and delivery, launch of Model 3 and impact of Gigafactory and charging stations on margins.
Will Cisco Systems, Inc. (NASDAQ:CSCO) outperform its guidance?
Cisco Systems, Inc. (NASDAQ:CSCO) guided softly for the quarter that will be reported today. The company cited unfavorable macroeconomic factors as the reasons behind its weak guidance of F2Q2016. However, Trefis believes Cisco could post better results than the guidance, partly because deferred revenue rose strongly in F1Q2016.
In the coming report, investors should pay attention to not only what Cisco Systems, Inc. (NASDAQ:CSCO) reports as revenue and earnings, but also update on carrier-themed equipment sales.