Tesla Becomes a Top 3 Technology Company Winner this Earnings Season

Eva Fox by Eva Fox August 04, 2021

Tesla Becomes a Top 3 Technology Company Winner this Earnings Season

Tesla entered the list of the top 20 US technology companies that are operating at full capacity, improving sales, gross margins, and operating margins, coming in third. This demonstrates the strength of the manufacturer and its ability to quickly and successfully develop in the sector.

The list of earnings-season winners is derived from the 74 companies in the S&P 500 SPX information technology sector, plus six tech players in the communications sector, and three videogame developers, along with two in the consumer discretionary sector, for a total of 82 “tech” companies, according to MarketWatch. This listing has a lot of power, as investors always want to see a company's sales grow and keep a close eye on operating profit.

62 companies from the list presented financial results for the fiscal quarters ending April 30 or later, August 3. Among the 62 companies, 49 increased sales from a year earlier while also improving their gross margins and operating margins. Below are the top 20 tech companies from the S&P 500 that have increased their quarterly sales more than a year earlier, and also improved their gross and net profit:

Source: MarketWatch

Outlook through 2023
Long-term investors might be interested in seeing how much more sales growth is expected for these companies, based on consensus estimates among analysts polled by FactSet going out another couple of years. Leaving the group in the same order, here are expected compound annual growth rates (CAGR) for sales through 2023, with 2020 as the baseline:

Source: MarketWatch

Tesla is performing well, maintaining profitability for eight consecutive quarters. The company's products are in high demand and the manufacturer has an impressive roadmap.

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Article edited by @SmokeyShorts, you can follow him on Twitter

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