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Pulling guidance has become a common theme of the first quarter earnings season, with Tesla (TSLA), Walmart (WMT), Delta (DAL), and others among the companies withdrawing their previous outlook. Other companies, like GE Vernova (GEV) and Norfolk Southern (NSC), reaffirmed guidance but acknowledged the cost of tariffs.
Watch the video above to hear more from Julie Hyman and Roundhill Investments CEO Dave Mazza on Market Domination.
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We are on daily tariff comment watch this earnings season. Here are a few of the highlights that we've gotten in the past 24 hours. So it's of course Tesla's on the list. It's become one of the latest companies to pull its guidance, and it comes after the EV maker reported first quarter earnings last night saying, quote, "We will revisit our 2025 guidance in our Q2 update." While no reason was explicitly given, CEO Elon Musk did mention the impact of tariffs on the company. He said, quote, "Tariffs are still tough on a company when margins are still low." It follows the broader theme we're following this earning season. Companies highlighting the impact of tariffs on their outlooks in 2025 for Tesla. In particular, it had an effect on its battery business. And that brings me to GE Vernova, talking about it on its earnings call. CEO Scott Strazik saying he's expecting costs to reach up to $400 million this year. The company didn't break down these costs in terms of what tariffs specifically are affecting them. But Strazik did say on the call that, quote, "The biggest tariff impact to us really sits in the China base." Norfolk Southern expressing similar concerns this morning on its first quarter earnings call, the railroad reiterating its full year guidance. But CEO Mark George also noted on the call that, quote, "There's no clear information on how tariffs may impact our end markets and revenues." And Dave, I want to bring you back in on this, because it comes back to I think what J. Woods, who was on the show yesterday, called the word of the year, right? The theme of the year, uncertainty. And you know, even if these tariffs are going to come down at some point, if you are a business and you're trying to plan, I mean these these comments across these earnings calls make it abundantly clear it's really tough to do.
Well, yeah, I mean we I think about it from an investment point of view, but when you put your feet in sort of the seat of a C CFO, it gets incredibly challenging, right? So when you're modeling out sort of, one, what is our cost space going to be? Um, and then what prices can we charge people for that? Are we willing to pass that on? Can we decrease our margins? These are really hard decisions to make. Uh, coupled with the fact that that could then these tariffs, we talk about them in isolation, but just like we heard a few moments ago, um, they're gonna they can impact the consumer and then will impact employment. So where does that leave you, right? So and or can you again take your operations from China and then start building a plant in the US? That's going to take years. Um, and so it's a really, really challenging time. So I think that word of the year makes a lot of sense.
Yeah, for sure.