U.S. Movers: American Airlines, Alaska Air, Boeing, IBM, Tesla

Scott Peters
25 Jan, 2024
New York City

Tesla declined 8% to $191.10 after the company reported quarterly results and issued a weak 2024 unit sales outlook.

Revenue in the fourth quarter increased 3% to $25.2 billion from $24.3 billion, net income soared 115% to $7.9 billion from $3.7 billion, and diluted earnings per share advanced to $2.27 from $1.07 a year ago.

The latest quarterly income included a one-time non-cash tax benefit of $5.9 billion.

Free cash flow in the quarter increased to $2.0 billion from $1.4 billion a year ago.

In 2023, total revenues soared 19% to $96.7 billion, net income attributable to shareholders jumped 19% to $15 billion, and diluted earnings per share advanced 19% to $4.30.

Vehicles delivered in 2023 increased by 38% to 1.8 million from a year ago, and supercharger stations soared by 27% to 5,952 from a year ago, respectively.

The company said the vehicle volume growth rate in 2024 may be notably lower than the growth rate achieved in 2023 as the company prepares to launch the next-generation vehicle built at its factory in Texas.

Boeing declined 4.2% to $205.11 after the Federal Aviation Authority halted the company's plan to expand its production of 737 Max jets but also approved the company's plan to bring the Max 9 back into service.

IBM increased 7.3% to $186.59 after the technology company reported better-than-expected quarterly results.

Revenue in the fourth quarter increased 4% to $17.4 billion from $16.7 billion, net income soared 3% to $3.3 billion from $2.7 billion, and diluted earnings per share jumped to $3.55 from $2.96 a year ago.

In the year 2023, revenue increased 2% to $61.9 billion, net income jumped to $7.5 billion from $1.6 billion, and diluted earnings per share advanced to $8.14 from $1.80 a year ago.

The technology company forecasted 2024 revenue to increase "mid-single-digit" and free cash flow to be around $12 billion.

American Airlines increased 4.3% to $14.53 after the international carrier reported quarterly results.

Total operating revenue in the fourth quarter decreased 1% to $13.0 billion from $13.2 billion, net income plunged to $19 million from $803 million, and diluted earnings per share dropped to 3 cents from $1.14 a year ago.

Full-year revenue surged 7.8% to record $52.8 billion from $48.9 billion, net income jumped to $822 million from $127 million, and diluted earnings per share advanced to $1.21 from 19 cents a year ago.

Passenger load factor in the quarter edged slightly lower to 83.6% from 83.9%, but total revenue per available seat mile declined 6.4% to 17.21 cents from 18.39 cents a year ago, respectively.

Alaska Air increased by 0.5% to $36.02 after the regional airline reported mixed quarterly results.

Revenue in the fourth quarter increased 3% to $2.6 billion from $2.5 billion, net income swung to a loss of $2 million from a profit of $22 million, and diluted earnings per share were (0.02) cents compared to 17 cents a year ago.

Alaska Air said the grounding of the Boeing 737 Max 9 will cost the company $150 million after a door panel blew off midair on January 5.

Alaska said it would resume service using a Boeing 737 Max 9 as early as Friday after the FAA approved the inspection instructions for the aircraft prior to placing it into operation.