With reporting season upon us, we take a look at some of the high-profile names handing down quarterly earnings updates. This week, Microsoft (NASDAQ: MSFT), Tesla (NASDAQ: TSLA) and Apple (NASDAQ: AAPL) are in focus, so keep on reading to find out how these companies fared. 

Microsoft Cloud Guidance Delights

Shares in Microsoft (NASDAQ: MSFT) leapt higher during the trading session in the US on Wednesday (Thursday AEST), with the tech giant at one stage up more than 6% before late selling was sparked by the Federal Reserve hawkish statement on interest rates. 

With US$51.7 billion in revenue during the final quarter of 2021, up 20% on last year, as well as adjusted earnings per share of US$2.48, Microsoft managed to beat market expectations for both the top and bottom line. 

A key driver of the result was the company cloud services division, Azure, which continues to record strong double-digit growth. In this most-recent quarter, cloud services revenue grew at 46%, which is slightly lower than the preceding four quarters where growth had been tracking around 50%. However, Microsoft guidance steadied the ship on this front.

Management expects the Azure cloud division will see growth accelerate on a constant-currency basis in the coming quarter, dispelling any concerns that growth may be moderating. It was this key point that helped shares in Microsoft reverse course after initially sinking during after-hours trading on Tuesday (Wednesday AEST).

Elsewhere, revenue from Windows licences grew 25% as the company released Windows 11, while security revenue was almost 45% higher than the prior corresponding period. Microsoft gaming division is now gaining more publicity in the wake of the company proposed takeover bid of Activision (NASDAQ: ATVI), which would be the biggest deal in its history and help it further grow revenue in this segment from 11% of overall sales. 

Tesla not immune to supply chain issues

Hot off the press, Tesla (NASDAQ: TSLA) fourth-quarter earnings and revenue both exceeded the average forecast as collated by Refinitiv. Revenue increased 65% versus the prior corresponding quarter to US$17.7 billion, earnings per share came in at US$2.52, while net income soared more than 700% to US$2.3 billion. Of the US$17.7 billion in revenue, US$16 billion was automotive revenue, up 71% versus a year ago.

The electric vehicle maker delivered 936,172 vehicles across the course of the calendar year, which was up 87% on 2020 when just 499,647 vehicles were delivered. During the fourth-quarter itself, Tesla produced a total of 305,840 EVs and reported 308,600 EV deliveries, a record result centred mostly on its Model 3 and Model Y cars.

In a positive sign for the company, gross margins rose from 26.6% in the third-quarter of 2021 to 27.4% in this most-recent quarter, including 30.6% GAAP automotive gross margins. The company believes it boasts the highest operating margin among all volume OEMs within the industry, including combustion car makers. However, Tesla has pointed to a number of supply chain issues that are weighing on production capacity, something that is also forecast to extend through 2022. 

The company expects its new factories in Austin and Berlin to add capacity - it has begun building Model Ys in Austin late last year - while it also plans to maximise output out of Fremont to 600,000 EVs per annum following a record year, as well as Shanghai. Meanwhile, Tesla is also making progress on the industrialisation of Cybertruck, which is currently planned for Austin production subsequent to Model Y.

Apple drives multiple lines of growth

Despite supply chain constraints that have hamstrung a number of electronic goods manufacturers, Apple (NASDAQ: AAPL) announced its largest-ever quarter for sales, up 11% year-on-year to US$123.9 billion. The tech giant headline earnings result was also ahead of consensus expectations according to Refinitiv, with earnings per share up 25% to US$2.10.

With the exception of the iPad category, where sales were down 14% on the prior corresponding period, Apple other divisions were firing on all cylinders with strong sales growth during the fourth-quarter of 2021. That was despite a warning in October from management that supply chain issues could weigh on sales.

The company flagship iPhone smartphone contributed strongly amid the holiday season and the first full quarter of iPhone 13 sales, leading to US$71.6 billion in revenue from this segment, up 9% versus a year ago. 

Elsewhere, services revenue, which includes Apple Music, App store fees and iCloud, grew 24% to US$19.5 billion, with the segment buoying gross margins. Mac revenue grew 25% to US$10.9 billion thanks to Apple new MacBook Pro models featuring its own chips, while revenue from other products like its new AirPods and Apple Watch increased 13% to US$14.7 billion.

Apple CEO Tim Cook expects supply chain issues regarding chip availability to improve during the March quarter. The company is faring well in terms of leading edge chips' - processors in its iPhones - whereas legacy chips' used for other functions remain a constraint. Notwithstanding an expected improvement, Apple withheld providing any formal guidance, but Tim Cook did state the company expects solid year-over-year revenue growth in the March quarter.Stay tuned, next week We'll be profiling Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Meta (NASDAQ: FB).