This is the results of a script that complies news articles discussing stocks with earnings this week. I scrapped articles analysing the last earnings report, and asked ChatGPT to summarise key new information and how market reacted to the new release.

Here are the results for this week biggest earnings.

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LMT: Lockheed Martin Corp

Lockheed Martin's Q1 results exceeded analysts' expectations, leading to a record high stock surge. Revenue rose by less than 1% to over $15 billion, but the company expects revenue to decline this year due to supply chain constraints. Lockheed saw a decline of 2% in its aeronautics revenue, primarily due to a backlog of F-35 fighter jets. However, the company gained a boost in contracts related to the war in Ukraine, expected to generate $1.5 billion in sales this year and up to $6 billion by 2027. The Chinese government has banned senior executives from Lockheed and Raytheon from entering, working, or residing in China, along with imports and exports related to China.

Lockheed Martin's stock rose by almost 2.5% on the day, and it is up by more than 3% year-to-date, showing that Wall Street is taking notice of the company. Investors are concerned about the China issue and the potential for decoupling from Chinese suppliers, leading to dependency on other sources. The next presidential election may focus on this issue, as both sides of the political spectrum agree that the US needs to decrease its dependence on China. Many industries, including technology, chips, and production, are dependent on China, and this issue is likely to resurface repeatedly in the near future.

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GS: Goldman Sachs Group Inc

Goldman Sachs (GS) reported a drop in quarterly profit year-over-year, leading to a 2% decrease in share price on April 18, 2023. While they beat earnings expectations, the company missed on top-line revenue. Despite this, the drop was not significant compared to previous months in bank stocks. In the earnings call, CEO David Solomon discussed the new deposit channel provided by the bank's recent partnership with Apple to offer savings accounts to holders of the Apple Card. The move into the deposit space is seen as an attempt to keep up with the trend of online high-yield savings accounts offering upward of 4%.

The bank saw a drop of 17% to $3.93 billion in fixed income trading revenue and posted a loss of $470 million on the partial sale of its $4 billion Marcus loans portfolio. Retail banking, which has a smaller role in Goldman, saw deposits down by about 3.1% quarter-over-quarter and year-over-year. The bank's CEO, David Solomon, said that the events of the first quarter demonstrated the resilience of Goldman Sachs and the largest financial institutions in the country.

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NFLX: Netflix Inc

Netflix Inc. (NFLX) reported its Q1 2023 earnings with mixed results, posting 1.75 million new subscribers, well below the expected 2.3 million. The company also announced an updated timeline for its password sharing crackdown, with the United States expected to receive the update in Q2. Despite the missed subscriber numbers and the stock decline, Netflix still added at least 1 million new subscribers in the Asia-Pacific region for the past five quarters. The company also said farewell to its mail-order DVD business that has been operating for 25 years.

The market reaction to the earnings release was negative, and the company's shares fell nearly 3% on Wednesday. The weaker-than-expected subscriber growth and the delay in the password-sharing crackdown contributed to the decline in stock price. Investors are skeptical about the possible benefits of password sharing crackdown and are waiting to see how the restriction will play out. They also want to see more traction and more established markets, where monetisation initiatives like advertising can drive growth. Analysts believe that it's still very early innings in building out the ad tech stack and that the paid-sharing product cycle is more skewed towards Q3 or Q4.

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TSLA: Tesla Inc

Tesla (TSLA) reported weaker-than-expected Q1 earnings, which weighed on other electric vehicle (EV) stocks, including GM and Rivian. The company had previously cut prices at the beginning of the year, which led to a shrinking profitability in Q1. However, Tesla CEO, Elon Musk, said the company will likely launch full self-drive technology this year and generate significant profits, which could offset some of the margin pressure it’s facing due to aggressive price cuts. Despite the weaker Q1 earnings, Tesla’s EVs are still completely sold out at the moment, which has helped alleviate some of the pricing pressures felt by Ford since rival Tesla started cutting prices this year.

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T: AT&T Inc

AT&T Inc reported a slowdown in growth in postpaid phone subscribers for Q1 2023, but the number still beat estimates. Free cash flow fell short of expectations but was reaffirmed by the company's CFO. The business is still growing, and the overall industry is also seeing growth. AT&T's wireless service revenue growth for the quarter is over 5%, and the business grew profits by 8%.

The market reacted negatively to the news, and AT&T shares fell after the earnings release. Although the growth in subscribers still beat estimates, the slowdown is a cause for concern. Free cash flow also fell short of expectations, but the company's CFO reaffirmed the outlook for free cash flow, stating that it would progressively get better as the year went on. The health of the consumer is relatively stable, and the delinquency patterns remain consistent with those seen in the second half of 2022. The business is relatively resilient, but the lower-income cohorts are more challenged.

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PM: Philip Morris International Inc

Philip Morris International Inc reported adjusted earnings per share of $1.38, exceeding analysts' consensus of $1.34 per share for the first quarter of 2023. However, the company's revenues fell short of expectations. While Philip Morris is facing ongoing headwinds, its long-term smoke-free goals remain on track. Favorable pricing variance has been an upside for the company, although earnings declined year over year..

The markets reacted negatively to the news, with Philip Morris International falling in Thursday trading. The decline followed the announcement that the company's revenue missed expectations.

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TSM: Taiwan Semiconductor Manufacturing Co Ltd

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker and a major Apple supplier, announced a revenue slowdown in Q2 due to the weak global economy and high energy prices weighing on demand. The company’s CFO, Wendell Huang, stated that TSMC is expecting further inventory adjustments to continue impacting its business in Q2 2023, and the company forecasts a Q2 revenue of between $15.2 billion and $16 billion, down from $18.16 billion a year earlier. The chipmaker’s Q1 earnings rose and beat expectations, but it was the smallest quarterly earnings growth in almost four years. Despite the revenue forecast, TSMC reaffirmed its target for capital spending this year, and its shares rose about 4% after earlier being down.

TSMC’s Q2 revenue forecast highlights the inventory glut consumers are facing, while a weakening global economy clouds the demand outlook. However, the fact that TSMC reaffirmed its target for capital spending this year despite the revenue forecast provides some optimism. TSMC is an important supplier to Apple and a bellwether for the rest of the chip industry. Despite the worse-than-expected Q2 revenue forecast, the company’s shares rose around 4%, indicating that investors have already factored in the expected slowdown.