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Earnings season is set to peak next week, with a wide range of companies across various sectors reporting their financial results. The focus will be on the mega-cap tech giants, but many other companies from a wide variety of sectors will announce their results, including of the basic consumer, industrial, automotive, aviation and energy segments.
Facebook main goal (NASDAQ:META), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) are ready to publish their quarterly results.
The list of reporting companies also includes major automaker General Motors (New York Stock Exchange:GM) and Ford (New York Stock Exchange:F), consumer staples makers Coca-Cola (New York Stock Exchange:KO), and Colgate Palmolive (New York Stock Exchange:CL), defense leaders Boeing (BA), L3Harris Technologies (LHX), Raytheon Technologies (RTX), General Dynamics (GD) and Northrop Grumman (NOC), energy sector giants ExxonMobil (New York Stock Exchange:XOM) and Chevron (New York Stock Exchange:CVX), Visa payment processors (New York Stock Exchange:V) and Mastercard (New York Stock Exchange:MA) and major airline Southwest Airlines (New York Stock Exchange:LUV).
Below is a summary of the main quarterly updates planned for the week of October 23-27:
Monday October 23
Cleveland-Cliffs (New York Stock Exchange:CLF)
Cleveland-Cliffs (CLF) is scheduled to announce third-quarter earnings results on Monday after the market closes. Analysts expect profits to rise more than 50%, while revenue is expected to decline slightly.
The stock earns a Hold rating from Looking Alpha’s Quant Rating system, a more cautious view than the consensus Buy rating from Wall Street analysts.
“Cleveland-Cliffs is well positioned to obtain good results over time, thanks to its strong position in supplying automotive companies and the advantages in energy costs compared to competitors in markets such as Europe,” says the leader of the investment group Jonathan Weber. .
- Consensus EPS Estimates: $0.44
- Consensus revenue estimates: $5.53 billion
- Earnings Outlook: The company has surpassed EPS expectations in 3 of the last 8 quarters and revenue expectations in 5 of those reports.
Also reporting: Logitech International SA (LOGI), Koninklijke Philips NV (PHG), Packaging Corporation of America (PKG) and more.
Tuesday October 24
Alphabet (GOOG) (GOOGL)
Alphabet (GOOG) (GOOGL) will announce its third-quarter results during Tuesday’s post-market session. The search engine giant has outperformed the broader market index with a 55% growth rate this year, surpassing the S&P 500’s 12%.
Following the tech giant’s upbeat second-quarter results, investment firm Bank of America said it expects “favorable” headlines, due in part to the strength of YouTube, search and artificial intelligence.
Just days before the earnings report, Seeking Alpha’s Quant Rating system changed its view from Strong Buy to Hold, while Wall Street analysts maintained a bullish view on the stock, giving it a Strong Buy rating.
- Consensus EPS Estimates: $1.45
- Consensus revenue estimates: $75.73 billion
- Earnings Outlook: Google has surpassed EPS expectations in 4 of the last 8 quarters, beating revenue estimates in 5 of those reports.
Microsoft (MSFT)
Joining Alphabet on Tuesday, Microsoft (MSFT) will also report its fourth-quarter performance after the closing bell.
Seeking Alpha’s Quant Rating system turned bullish on the stock just days before earnings by upgrading its view to Strong Buy from Hold. Meanwhile, Wall Street analysts remain optimistic on the stock with a Strong Buy rating.
After more than a year of rigorous scrutiny by antitrust investigators around the world, Microsoft has just completed its $69 billion acquisition of Activision Blizzard, the largest deal in video game history. Its benefits, however, will not be reflected in the company’s financial report.
- Consensus EPS Estimates: $2.65
- Consensus revenue estimates: $54.54 billion
- Earnings Outlook: Microsoft has surpassed EPS estimates in 7 of the last 8 quarters and revenue estimates in 6 of those quarters.
Also reporting: General Electricity Company (New York Stock Exchange: GE), Verizon Communications (VZ), Visa Inc. (V), The Coca-Cola Company (KO), 3M Company (MMM), General Motors Company (GM), Raytheon Technologies Corporation (RTX), Teladoc Health, Inc. ( TDOC), Dow (DOW), Snap (SNAP), Texas Instruments Incorporated (TXN), Halliburton Company (HAL), Corning Incorporated (GLW), Novartis AG (NVS), Waste Management (WM), Spotify technology SA (SPOT) , Kimberly-Clark (KMB) and more.
Wednesday, October 25
Metaplatforms (META)
Facebook parent Meta Platforms (META) is scheduled to announce its third-quarter results after the close on Wednesday. After beating expectations in the second quarter, the social media giant forecast third-quarter revenue in the range of $32 billion to $34.5 billion.
SA contributor Dair Sansyzbayev, who is extremely bullish on the company’s near-term prospects, says: “Meta Platforms shares remain undervalued even though its price has tripled since November 2022. Quarterly earnings show a revenue growth, profitability and strong cash flow, while expansion and a large user base present potential revenue streams.”
Meta’s cost-cutting actions and a rebound in advertising revenue have boosted the stock’s performance this year, which is up about 150%. The stock has been rated a Strong Buy by sell-side analysts and Seeking Alpha’s Quant Rating system.
Recently, Alphabet unit Google (GOOG) (GOOGL), Meta Platforms (META), and Apple (AAPL) received approval from US regulators to roll out the new suite of mobile AR/VR devices, including headsets and car docks.
- Consensus EPS Estimates: $3.60
- Consensus revenue estimates: $33.43 billion
- Earnings Outlook: Meta has surpassed EPS expectations in 4 of the last 8 quarters, topping revenue estimates in 5 of those reports.
Boeing (BA)
Boeing (BA) is preparing to report third-quarter results after the closing bell on Wednesday. Shares of the industrial and defense giant, now based in Virginia, have fallen more than 7% in the past 6 months, drawing a cautious Hold view from Search Alpha’s Quant Rating system, pointing to concerns about the valuation. Meanwhile, Wall Street analysts rate the stock a Buy.
During the third quarter, Boeing and its supplier Spirit AeroSystems (SPR) determined that the rear pressure bulkhead of many Boeing 737 MAX aircraft had mistakenly drilled retaining holes. At the 2023 Industry Conference, Chief Financial Officer Brian West said the current issue will affect 75% of the 220 aircraft in inventory, or 165 aircraft. Despite persistent 737 manufacturing problems, the company reiterated its ambitions to increase 787 production from three to four per month by the end of 2023.
The company delivered 27 commercial aircraft to customers in September, bringing its annual total to 371 aircraft.
- Consensus EPS Estimates: $-2.53
- Consensus revenue estimates: $18.37 billion
- Earnings Insight: Boeing has surpassed EPS expectations just once in the last 8 quarters and revenue just twice in that span.
Also reporting: International Business Machines (IBM), QuantumScape Corporation (QS), ServiceNow (NOW), General Dynamics (GD), Automatic Data Processing (ADP), Baker Hughes Company (BKR), KLA Corporation (KLAC) and more.
Thursday October 26
Amazon (AMZN)
E-commerce and cloud giant Amazon (AMZN) will release its third-quarter results on Thursday after the market closes. The quarter will focus on Amazon’s cost-reduction initiatives, supply chain management, and implementation of artificial intelligence products as potential positive factors to attract stock investments amid the current market environments.
Wall Street analysts have a consensus Strong Buy rating, but Seeking Alpha Quant Ratings rates the company as a Hold. So far this year, Amazon shares have increased in value by almost 50%.
“AMZN’s cost-cutting and margin-improving initiatives make it a solid buying opportunity, despite concerns like the FTC lawsuit and the weakening economy.” writes SA Investing Group leader Danie Jones, with a bullish stance on the stock. Meanwhile, investment group leader Sensor Unlimited expects the stock to remain range-bound in the near term due to key challenges in its operating margins, competition in key growth areas and valuation risks.
- Consensus EPS Estimates: $0.60
- Consensus revenue estimates: $141,621 million
- Earnings Outlook: Amazon has surpassed revenue and earnings per share expectations in half of the last 8 quarters.
Also informing: Kenvue (KVUE), Intel (INTC), Ford Motor Company (F), Altria Group (MO), Merck & Co. (MRK), Bristol-Myers Squibb (BMY), Mastercard (MA), Southwest Airlines (LUV) , Newmont Corporation (NEM), United Parcel Service (UPS), Comcast Corporation (CMCSA), Honeywell International (HON), Chipotle Mexican Grill (CMG), United States Steel Corporation (X), Royal Caribbean Cruises (RCL), Northrop Grumman Corporation (NOC), International Paper Company (IP), Boston Scientific Corporation (BSX), Capital One Financial (COF), L3Harris Technologies (LHX), Peabody Energy (BTU), Hertz Global Holdings (HTZ), The Hershey Company (HSY ), PG&E Corporation (PCG), Hasbro (HAS), FirstEnergy (FE), Harley-Davidson (HOG), WW Grainger (GWW), and more.
Friday October 27
Oil giants Chevron (CVX) and Exxon Mobil (XOM) will announce their third-quarter earnings before the market opens on Friday. Even though both stocks trail the broader market index, Seeking Alpha’s Quant Rating system has approached them with caution, assigning them a Hold rating. On the contrary, Wall Street analysts express optimism and give both stocks a Buy rating.
Given the prevailing market conditions and the upward trend in crude oil prices, analysts anticipate year-over-year growth in earnings per share and revenue for CVX, while they expect a decline for XOM.
Also reporting: Wisdom Tree (WT), AbbVie (New York Stock Exchange: ABBV), Phillips 66 (PSX), Colgate-Palmolive Company (CL), Sanofi (SNY), T. Rowe Price Group (TROW), Stanley Black & Decker (SWK), Charter Communications (CHTR), Newell Brands (NWL), Xcel Energy (XEL), Aon (AON), AutoNation (AN), CBRE Group (CBRE) and more.
