The tech sector has seen a surge in earnings this week. Apple and Amazon reported their quarterly results on Monday, while Microsoft released its report yesterday. Despite the lower-than-expected numbers, investors are still optimistic about these companies as they continue to grow year over year.
The “top stock earnings next week” is a weekly report of the top companies in the world. This week, Apple, Amazon, and Microsoft all have some exciting news to share with investors.
Overall, about a third of the S&P 500 and nearly half of the Dow Jones Industrial Average are expected to provide their quarterly updates during the week starting Monday, according to FactSet.
Meta Platforms Inc., the parent company of Facebook, is down 2.11 percent. Next week, Alphabet Inc. GOOG -4.26 percent and Twitter Inc. will report profits. Industrial companies such as GE and 3M, food heavyweights Mondelez International Inc. and McDonald’s Corp. MCD -1.99 percent, and other major names in manufacturing and medicines are also scheduled to offer quarterly updates.
At Singapore’s airport, there’s an Apple Store. The iPhone manufacturer is expected to earn a little smaller profit, according to analysts.
Photo courtesy of Bloomberg News’ Lauryn Ishak.
Supply-chain concerns relating to Covid-19 remain a problem, and the Russian invasion of Ukraine is posing additional challenges for companies. Investors are interested in how firms are dealing with these issues as well as how they are operating in a macroeconomic environment typified by rising inflation.
“Inflation is more than we expected,” United Airlines Holdings Inc. CEO Scott Kirby said on Thursday. “We factored in significant inflation over a year ago, thinking we were being prudent, but I believe everyone has been astonished by how high inflation has been.”
After profiting from the pandemic’s limitations and public-health worries, which kept many Americans at home, tech businesses now confront a changing environment as consumer spending swings toward in-person products and services.
Netflix Inc. has already sounded the alarm by disclosing that it has lost members for the first time in more than ten years, with losses expected to worsen in the current quarter.
According to Brian Belski, chief financial strategist at BMO Capital Markets, “many firms are anticipated to refer to the harsh public-health restrictions in Shanghai and elsewhere in China that have disrupted supply chains” when they report profits for the just concluded quarter.
“Technology businesses are getting a free ride right now since the industry is down,” Mr. Belski said, adding that CEOs would cite supply-chain concerns with China to temper expectations. “This does not imply that the profits will be bad. It just means that now is their chance to set the bar even lower by promising less and delivering more.”
So far, about 20% of S&P 500 companies have reported earnings for the recently ended quarter, according to FactSet. Earnings are on track to rise 6.6% year-over-year for the quarter, based on actual results and estimates for companies that have yet to report, FactSet said. That would be the lowest earnings-growth rate reported by FactSet’s index since the fourth quarter of 2020. Revenue for the recent period is poised to rise 11.1% year-over-year, FactSet said.
According to FactSet, Microsoft is anticipated to announce a roughly 18 percent increase in sales in its fiscal third quarter, driven by sustained cloud expansion. Investors will also be interested in learning more about the company’s $75 billion all-cash acquisition of videogame developer Activision Blizzard Inc., which reports quarterly earnings on Monday.
According to FactSet, Apple’s second-quarter profit is likely to drop slightly to $23.33 billion from the prior-year period’s pandemic-boosted figures. According to FactSet projections, analysts anticipate Amazon to announce a nearly 46 percent drop in quarterly earnings to $4.39 billion after a pandemic-era boom.
According to FactSet, Meta, which reports first-quarter earnings on Wednesday, is projected to generate a quarterly profit of $7.17 billion as the firm continues to invest in its metaverse efforts. Analysts will be listening for further information on the company’s metaverse vision and possible grounds to reverse the stock’s 45 percent year-to-date fall.
Analysts predict Alphabet’s earnings to dip somewhat as a result of the difficult year-ago comparisons. On Tuesday, Google’s parent company will release its first-quarter profits.
Twitter, the social media company that is now evaluating a buyout bid from Tesla Inc. CEO Elon Musk, is set to disclose first-quarter results on Thursday.
Aside from tech, several large corporations will report their earnings this week. The Las Vegas Sands Corp. is due to report on Wednesday afternoon, and it will most likely include information on the condition of travel demand. Before the bell on Thursday, McDonald’s will report, with hints of customer strength in general.
3M, a major N95 mask producer, will release its findings on Tuesday, followed by GE and Caterpillar Inc. on Friday morning.
Coca-Cola Co., Visa Inc., Boeing Co., MasterCard Inc., and Colgate-Palmolive Co. are among the notables expected to report on Monday, Tuesday, Wednesday, and Thursday, respectively.
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Will Feuer can be reached at [email protected]
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The “morningstar earnings calendar” is a list of companies that have reported their quarterly and annual earnings. The companies on the list are Apple, Amazon, Microsoft and more.
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