Apple, Amazon, Microsoft Headline Busy Earnings Week

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 in the week beginning Monday, according to FactSet.

Facebook Parent Meta Platforms Inc.,

FB -2.11%

Google owner Alphabet Inc.

GOOG -4.26%

and Twitter Inc.

have income on tap next week. Industrial conglomerates like General Electric are also expected to provide quarterly updates Co.

and 3M Co.

† food heavyweights Mondelez International Inc.

and McDonald’s Corp.

MCD -1.99%

† and other big names in manufacturing and pharmaceuticals.

The Apple Store at Singapore Airport. Analysts expect the iPhone maker to post slightly lower profits.


Photo:

Lauryn Ishak/Bloomberg News

Covid-19-related problems in the supply chain remain an issue, and the Russian invasion of Ukraine creates new obstacles for businesses. Investors are curious to see how companies are tackling these topics and maneuvering in a macroeconomic environment characterized by high inflation.

“Inflation is higher than we thought,” said Scott Kirby, CEO of United Airlines Holdings Inc.,

said Thursday. “We built up high inflation over a year ago and we thought we were conservative, but I think everyone is surprised by the high inflation.”

Tech companies, after taking advantage of the pandemic when many Americans were confined to their homes by restrictions and public health problems, now face an evolving landscape as consumer spending shifts to personal goods and services.

Netflix Inc.

has already issued a warning, reporting that it has lost subscribers for the first time in more than 10 years and expects those losses to increase in the current quarter.

As other companies report gains for the recently completed quarter, many are expected to point to severe public health restrictions in Shanghai and elsewhere in China that have disrupted supply chains, said Brian Belski, chief investment strategist at BMO Capital Markets.

“Tech companies now have free passage because the sector is down,” said Mr. Belski, adding that CEOs will use supply chain issues related to China to lower expectations. “It doesn’t mean revenues will suck. It just means this is their chance to really lower the bar and promise and exceed.”

According to FactSet, about 20% of S&P 500 companies have reported profits for the recently closed quarter so far. Earnings are on track to grow 6.6% year-over-year for the quarter, based on actual results and estimates for companies yet to report, according to FactSet. That would be the lowest earnings growth rate reported by the FactSet index since the fourth quarter of 2020. Revenues for the recent period are expected to rise 11.1% year-on-year, FactSet said.

Microsoft, which will report its fiscal third quarter results Tuesday afternoon, is expected to report a nearly 18% increase in revenue, according to FactSet, driven by continued cloud growth. Investors will also likely be looking for more insight into the $75 billion cash deal to buy video game maker Activision Blizzard Inc.,

which will publish its quarterly results on Monday.

Apple, which will report its second quarter results Thursday afternoon, is expected to see its profit decline slightly to $23.33 billion from last year’s pandemic-enhanced results, according to FactSet. Analysts expect Amazon, which will also report Thursday, will show its quarterly profits plunge nearly 46% to $4.39 billion after a pandemic-era outbreak, according to FactSet estimates.

Meta, which will publish its first quarter results Wednesday, is expected to report quarterly profits have fallen to $7.17 billion as the company continues to invest in its metaverse initiatives, according to FactSet. Analysts will listen to more about the company’s metaverse vision and reasons to reverse the stock’s 45% decline so far.

Analysts expect Alphabet’s earnings to also decline slightly due to tough comparisons from last year. Google’s parent company will announce its first quarter results on Tuesday.

Twitter, the social media company now assessing a Tesla takeover offer Inc.

CEO Elon Musk will announce the results for the first quarter on Thursday.

In addition to technology, other major companies will also announce their results in the coming week. Las Vegas Sands Corp.

will report on Wednesday afternoon, which is likely to provide insight into the state of travel demand. McDonald’s follows before the bell on Thursday, with indications of consumer strength in general.

3M, a major manufacturer of N95 masks, will announce its results on Tuesday, as will GE, followed by Caterpillar Inc.

on Friday morning.

Other notables to report include Coca-Cola Co.

on Monday; Visa Inc.

on Tuesday; Boeing Co.

on Wednesday; MasterCard Inc.

on Thursday; and Colgate-Palmolive Co.

on Friday.

How the largest companies perform

write to Will Feuer at will.feuer@wsj.com

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