Can Market Sustain Upward Momentum In Tech-Heavy Earnings Week? Apple, Amazon, AMD, Alphabet, Ford Amongst Key Quarterly Reports To Watch

With a full week of earnings behind us, it’s time to take stock of the fourth-quarter reporting season thus far. Overall, the news flow has been mixed, although tech earnings have grossly dissatisfied.

A number of the big tech names that fell short are Intel Corp. (NASDAQ:INTC) and Texas Instruments, Inc. (NASDAQ:TXN). Chip-equipment manufacturers KLA Corp. (NASDAQ:KLAC) and Lam Research, Inc. (NASDAQ:LCRX) issued sub-par guidance, portending more pain ahead for the semiconductor industry and the broader tech sector.

However, Tesla, Inc.’s (NASDAQ:TSLA) earnings got here as a welcome relief, triggering a robust two-day rally within the stock.

Expectations Drop Further: Blended earnings of S&P 500 corporations are expected to dip 5%, steeper than the 4.6% decline forecast within the week ended Jan. twentieth, estimates by financial data provider FactSet showed.

This could mark the primary decline for the reason that third quarter of 2020 when S&P 500 earnings fell 5.7%.

Out of the 29% of the S&P 500 corporations which have reported earnings thus far, 69% have posted better-than-expected bottom-line results and a more modest 60% reported better-than-expected revenue. The typical upside percentage for corporations reporting earnings beats is 1.5%, below the one-year average of 4.5% and the five-year average of 8.6%.

Waiting for the long run, analysts expect earnings to say no in the primary half of the 12 months before turning positive within the second half, FactSet said. The primary and second quarters of 2023 are expected to see earnings declines of three.7% and 10.3%, respectively. Growth would rebound sharply within the second half, leading to a positive 3.4% growth for the total 12 months.

The S&P 500 has gained a bit over 6% year-to-date. Whether the market can sustain the rally is determined by the earnings news flow, especially the forward commentary and the Fed decision scheduled to be announced Wednesday.

Major corporations reporting earnings within the week of Jan. 30 are:

Monday

1. NXP Semiconductors N.V. (NASDAQ:NXPI) (after the market close)

EPS Estimate: $3.60 Vs. $3.20 Yr-Ago
Revenue Estimate: $3.3 billion Vs. $3.04 billion Last Yr

2. Whirlpool Corp. (NYSE:WHR) (after the market close)

EPS Estimate: $3.25 Vs. $6.14 Yr-Ago
Revenue Estimate: $5.09 billion Vs. $5.82 billion Last Yr

GE Healthcare Technologies, Inc. (NASDAQ:GEHC), which has been spun-off from General Electric, Inc. (NYSE:GE), is scheduled to report ahead of the market open.

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Tuesday

1. Caterpillar, Inc. (NYSE:CAT) (before the market open)

EPS Estimate: $4.02 Vs. $2.69 Yr-Ago
Revenue Estimate: $16.11 billion Vs. $13.8 billion Last Yr

2. Exxon Mobil, Inc. (NYSE:XOM) (before the market open)

EPS Estimate: $3.31 Vs. $2.05 Yr-Ago
Revenue Estimate: $94.67 billion Vs. $84.97 billion Last Yr

3. General Motors Corp. (NYSE:GM) (before the market open)

EPS Estimate: $1.69 Vs. $1.35 Yr-Ago
Revenue Estimate: $40.65 billion Vs. $33.58 billion Last Yr

4. McDonald’s Inc. (NYSE:MCD) (before the market open)

EPS Estimate: $2.45 Vs. $2.23 Yr-Ago
Revenue Estimate: $5.67 billion Vs. $6.01 billion Last Yr

5. Pfizer, Inc. (NYSE:PFE) (before the market open)

EPS Estimate: $1.06 Vs. $1.08 Yr-Ago
Revenue Estimate: $24.47 billion Vs. $23.84 billion Last Yr

6. Spotify Technology SA (NYSE: SPOT (before the market open)

EPS Estimate: (-$1.39) Vs. (-$0.23) Yr-Ago
Revenue Estimate: $3.44 billion Vs. $2.74 billion Last Yr

7. United Parcel Service, Inc. (NYSE:UPS) (before the market open)

EPS Estimate: $3.59, Flat With Yr-Ago
Revenue Estimate: $28.09 billion Vs. $27.77 billion Last Yr

8. Advanced Micro Devices, Inc. (NASDAQ:AMD) (after the close)

EPS Estimate: $0.67 Vs. $0.92 Last Yr
Revenue Estimate: $5.5 billion Vs. $4.83 billion Last Yr

9. Snap, Inc. (NYSE:SNAP) (after the close)

EPS Estimate: $0.11 Vs. $0.22 Last Yr
Revenue Estimate: $1.3 billion, nearly flat with Last Yr

10. Amgen, Inc. (NASDAQ:AMGN) (after the close)

EPS Estimate: $4.08 Vs. $4.36 Last Yr
Revenue Estimate: $6.76 billion Vs. $6.85 billion Last Yr

Electronics Arts, Inc. (NASDAQ:EA) and Western Digital Corp. (NASDAQ:WDC) are among the many other notable names reporting after the market close.

4 Dow components, namely Caterpillar, McDonald’s, Pfizer and Amgen are scheduled to report their quarterly reports on Tuesday. The industrials sector saw the second-biggest earnings growth amongst corporations reporting last week, helped by strong performances by Boeing (NYSE:BA) and airlines. Caterpillar and GM could help keep the sector’s strength intact this week.

Exxon’s results will follow peer Chevron Corp. (NYSE:CVX), which reported record full-year profits last week. Its fourth-quarter earnings per share missed estimates, but revenue topped expectations.

AMD’s results could also stir anxiety amongst investors following rival Intel’s fourth-quarter miss. Snap is coming off a string of weak quarterly performances, and it stays to be seen if the Snapchat parent has turned the corner.

Wednesday

1. Humana, Inc. (NYSE:HUM) (before the market open)

EPS Estimate: $1.46 Vs. $1.24 Yr-Ago
Revenue Estimate: $22.50 billion Vs. $21.20 billion Last Yr

2. Novartis, Inc. (NYSE:NVS) (before the market open)

EPS Estimate: $1.43 Vs. $1.40 Yr-Ago
Revenue Estimate: $13.13 billion Vs. $13.23 billion Last Yr

3. Meta Platforms, Inc. (NASDAQ:META) (after the close)

EPS Estimate: $2.21 Vs. $3.67 Last Yr
Revenue Estimate: $31.49 billion Vs. $33.67 billion Last Yr

4. eBay, Inc. (NASDAQ:EBAY) (after the close)

EPS Estimate: $1.06 Vs. $1.05 Last Yr
Revenue Estimate: $2.46 billion Vs. $2.61 billion Last Yr

Boston Scientific, Corp. (NYSE BSX), T-Mobile US, Inc. (NASDAQ:TMUS) and Qorvo, Inc. (NASDAQ:QRVO) are among the many other noteworthy corporations reporting on Wednesday.

Thursday

1. ConocoPhillips (NYSE:COP) (before the market open)

EPS Estimate: $2.82 Vs. $2.27 Last Yr
Revenue Estimate: $18.03 billion Vs. $15.96 billion Last Yr

2. Cardinal Health, Inc. (NYSE:CAH) (before the market open)

EPS Estimate: $1.14 Vs. $1.27 Last Yr
Revenue Estimate: $50.61 billion Vs. $45.46 billion Last Yr

3. Alibaba Group Holding Limited (NYSE:BABA) (before the market open)

EPS Estimate: $2.40 Vs. $2.59 Last Yr
Revenue Estimate: $36.26 billion Vs. $33.71 billion Last Yr

4. Apple, Inc. (NASDAQ:AAPL) (after the close)

EPS Estimate: $1.94 Vs. $2.10 Last Yr
Revenue Estimate: $121.67 billion Vs. $123.94 billion Last Yr

5. Amazon, Inc. (NASDAQ:AMZN) (after the close)

EPS Estimate: $0.17 Vs. $1.39 Last Yr
Revenue Estimate: $145.37 billion Vs. $137.41 billion Last Yr

6. Qualcomm, Inc. (NASDAQ:QCOM) (after the close)

EPS Estimate: $2.35 Vs. $3.23 Last Yr
Revenue Estimate: $9.60 billion Vs. $10.70 billion Last Yr

7. Ford Motor Company (NYSE:F) (after the close)

EPS Estimate: $0.62 Vs. $0.26 Last Yr
Revenue Estimate: $40.37 billion Vs. $35.26 billion Last Yr

8. Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) (after the close)

EPS Estimate: $1.19 Vs. $1.53 Last Yr
Revenue Estimate: $76.16 billion Vs. $75.33 billion Last Yr

Big pharma corporations Bristol-Myers Squibb Co. (NYSE:BMY), Merck & Co., Inc. (NYSE:MRK) and Eli Lilly & Co. (NYSE:LLY) are all scheduled to report their fourth-quarter results ahead of the market open. Beazer Homes USA, Inc. (NYSE:BZH) and Gilead, Inc. (NASDAQ:GILD) are amongst those reporting after the close.

Apple’s earnings and CEO Tim Cook’s commentary could provide cues concerning the outlook for the tech sector. Given the tough demand and supply-side situation that prevailed in Apple’s fiscal 12 months first quarter, investors will likely be keen to listen to how the tech giant weathered the crises.

Amazon doesn’t evince much confidence, given its core e-commerce business can have suffered from a slowdown in consumer spending. The corporate has seen its growth taper from the COVID-19 boom years. Microsoft, Inc.’s (NASDAQ:MSFT) quarterly results that showed softening cloud growth triggered fears concerning an analogous predicament at Amazon’s AWS Cloud business. AWS is among the many high-margin businesses of the corporate, and any drastic slowdown could impact the profitability of the e-commerce giant.

Friday

1. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) (before the market open)

EPS Estimate: $10.11 Vs. $21.32 Yr-Ago
Revenue Estimate: $3.14 billion Vs. $4.95 billion Last Yr

2. Cigna, Inc. (NYSE:CI) (before the market open)

EPS Estimate: $4.86 Vs. $4.77 Yr-Ago
Revenue Estimate: $45.71 billion Vs. $45.68 billion Last Yr

3. Sanofi (NASDAQ:SNY) (before the market open)

EPS Estimate: $0.90 Vs. $0.79 Yr-Ago
Revenue Estimate: $12.01 billion Vs. $11.42 billion Last Yr

Read next: Fed Must Do 2 Things To Maintain S&P 500 Rally Or ‘No Way That Stocks Are Going to Make It’: Jeremy Siegel

Photo: RosieTulips on flickr

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