Earnings: Meta, Boeing, etc. / SEC approves new rules / Intel's Mobileye debuts on the Nasdaq

Plus, prices for Halloween candy are up more than 30%.

Inside.com Part of   Network October 26, 2022

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Meta Platforms released its Q3 results after market close on Wednesday, missing on earnings expectations but slightly beating revenue expectations. The Facebook and Instagram parent posted its second quarterly revenue decline and said it expected another drop in revenue for Q4. More: Meta generated $27.71B in revenue, down 4% YoY. The company’s operating income fell 46% to $5.66B; Meta’s costs and expenses were $22.05B, up 19% YoY. Net income came in at $4.4B, or $1.64 per share, down 52% YoY. Meta’s Reality Labs unit, which houses its VR products and services, has lost $9B this year. Meta shares fell more than 10% in extended trading; the social media giant is down more than 60% YTD.

The SEC approved new rules requiring companies that restate their financials due to compliance slips to take back bonus compensation paid to their executives. The rules were initially mandated by Congress following the 2007-09 financial crisis but were abandoned in 2015. More: Last year, current SEC Chair Gary Gensler revived the mandate as part of a broader effort to crack down on corporate misdeeds. SEC commissioners voted 3-2 in favor of the new rules. The two Republican commissioners voted against the proposal, while the two Democratic commissioners voted for it along with Gensler. The rules would apply to public companies of all sizes and to any executive who performs policymaking decisions and has received incentive compensation, including stock options. The rules would apply to compensation paid in the three years following the restatement.

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Boeing released its Q3 earnings on Wednesday, missing expectations on revenue and profits. The airplane maker posted $15.96B in revenue, up 4% YoY. It reported a net loss of $3.3B, or $5.49 per share, compared to a net loss of $132M posted same period last year. More: Boeing reported $3.2B in operating cash flow and expects positive free cash flow for 2022. Boeing previously said it had more than $1B in losses related to modifying two 747 jumbo jets to serve as Air Force One. Earlier this year, CEO Dave Calhoun expressed regret over the negotiated contract for the jets. The contract was negotiated under former President Donald Trump. Calhoun noted that the biggest issue with the Air Force One deal was it was based on a fixed-price contract and didn’t consider rising inflation and other complexities. Boeing shares closed at $133.79 on Wednesday, down nearly 9% for the day. The company is down ~36% YTD.

Shares of Intel’s self-driving car business Mobileye rose nearly 30% during its IPO, giving it a valuation of more than $21B. Mobileye is listed on the Nasdaq trading under the ticker MBLY. Intel initially priced the stock at $21 a share. More: Mobileye’s performance places it as one of the largest IPOs this year. According to Dealogic, U.S. IPOs have raised only $7.4B this year. Mobileye expects to raise more than $800M from its IPO. Mobileye was founded in 1999 by Amnon Shashua and had its first IPO in 2014 at a $5B valuation. Intel acquired the company in 2018 for $15.3B, aiming to get a foothold in the growing computer-assisted driving market. Last year Intel announced it would spin off Mobileye and was aiming for a valuation of around $50B.

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Ford released its Q3 earnings on Wednesday, reporting an $827M net loss for the quarter. The automaker posted $39.4B in revenue, slightly beating analysts’ expectations, a 10% increase YoY. Adjusted earnings were $1.8B, down 40% YoY. More: Ford raised its full-year adjusted free cash flow guidance, now expecting between $9.5B and $10B, up from $5.5B to $6.5B. The automaker posted a $2.7B non-cash, pretax charge on its investment in Argo AI. Last month, Ford said parts shortages impacted about 40,000 to 50,000 vehicles in its inventory. The company also noted an extra $1B in unexpected supply chain costs. CEO John Lawler said Ford still expects to complete those vehicles and have them shipped to dealers by the end of the year. Ford shares dipped ~1% in extended trading on Wednesday; the company is down ~41% YTD.

Warner Bros Discovery expects to write off up to $2.5B related to canceled content. The recently merged company said its canceled content would make up a significant part of its estimated $3.2B to $4.3B in charges related to its financial restructuring. More: CEO David Zaslav told investors he would realize $3B in post-merger savings. In a recent regulatory filing, the company outlined how it plans to achieve the cost cuts, noting they would be completed by the end of 2024. Warner Bros Discovery expects to post a pretax charge of $1.3B to $1.6B in Q3, primarily due to its removal of 36 titles from the HBO Max streaming service. Warner Bros Discovery expects $800M to $1B in costs related to layoffs throughout the company and an additional $400M to $700M from consolidating its facilities.

Quick Hits Get ahead of the holiday madness and gear up your influencer and affiliate strategy for success.* Elon Musk visited Twitter’s San Francisco headquarters on Wednesday. The Tesla and SpaceX CEO is set to address Twitter employees on Friday. Musk will take ownership of Twitter by 5 p.m. ET on Friday. The prices of Halloween candy are up more than 30% compared to last year. According to Datasembly, Mars’ Starburst and Skittles had the largest price increases at 35% and 42%, respectively.  U.S. authorities have charged two Chinese intelligence officers with seeking to obstruct the criminal prosecution of Huawei. The Justice Department alleges two Chinese citizens paid a U.S. law enforcement officer $61,000 in Bitcoin to obtain information on the trial and probe against Huawei. U.S. new home sales are down ~11% compared to last year. There were 462,000 new homes for sale as of the end of the month, the most since 2008. *This is a sponsored post.

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Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring.  Connect with her on Twitter @VanessaOmeo or on LinkedIn. Editor Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords.

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