Earnings playbook: Five of the ‘Magnificent Seven’ set to report in busiest week of season
It’s the busiest week of the earnings season, with five “Magnificent Seven” members likely to set the tone for the rest of the market. Meta Platforms, Apple, Amazon, Alphabet and Microsoft are among the more than 160 S & P 500 companies due to post results this week. Some non-Big Tech companies slated to release results include General Motors and Robinhood. So far, the corporate reporting period has been strong. Of the roughly 140 S & P 500 members that have issued results, 82% have topped expectations, according to FactSet data. All times ET. Tuesday Coca-Cola is set to report earnings before the bell. Management will hold a conference call at 8:30 a.m. Last quarter: KO forecast modest growth . This quarter: Analysts polled by LSEG expect year-over-year earnings grew by 11%. What to watch: JPMorgan’s Andrea Teixeira thinks Coca-Cola’s results will reflect its status as a “port in the storm” during market volatility. “While KO is not immune to macroeconomic conditions, we believe the company has shown impressive agility to navigate the dynamic operating environment over time,” wrote Teixeira, who has an overweight rating on the soft drink maker. What history shows: Coca-Cola tops first-quarter earnings nearly 80% of the time, according to data from Bespoke Investment Group. General Motors is set to report premarket earnings, followed by a conference call at 8:30 a.m. Last quarter: GM topped expectations. It also raised its dividend by 20% and authorized a $6 billion stock buyback . This quarter: LSEG data shows analysts see slight declines in year-over-year earnings and revenue. What to watch: Deutsche Bank upgraded GM ahead of earnings to buy from neutral. “Undoubtedly, the near-term volatility can be attributed to geopolitical developments, but our thesis is built on GM’s operational resilience which it has demonstrated multiple times in recent years,” wrote analyst Edison Yu . What history shows: Bespoke data shows GM tops earnings estimates 89% of the time. The stock saw strong gains following the last two releases. Robinhood is set to report earnings after the bell. Management holds a conference call with analysts at 5 p.m. Last quarter: HOOD earnings beat estimates, but revenue was below analyst estimates. This quarter: The online brokerage is expected to report double-digit earnings growth compared with the same period a year ago, according to LSEG. What to watch: Analysts and investors will watch for updates on Robinhood’s push into prediction markets. “We see an asymmetric upside potential in HOOD driven by recovery in crypto markets and breakout revenue growth in prediction markets,” Bernstein analyst Gautam Chhugani wrote. What history shows: Robinhood shares fell after its last four quarterly releases, including a 10.8% slide on one occasion. Wednesday Alphabet is set to report earnings after the close. Management will then hold a call at 4:30 p.m. Last quarter: GOOGL topped expectations on revenue and projected a big increase in AI spending . This quarter: Earnings for the Google- and YouTube parent are expected to have fallen, though revenue is forecast to have grown nearly 20%, according to LSEG. What to watch: “1Q positives could include: Search upside from accelerating AI usage and improving monetization, relative [Google Cloud Platform] outperformance vs Azure/AWS (Gemini 3.0 and [Tensor Processing Unit] traction), and AI-driven efficiency gains driving Opex leverage. Risks: inline Search results vs expectations for a beat, commentary suggesting increasing future margin headwinds on capacity build, increase in capex outlook and 1x cost surprises,” BofA analyst Justin Post wrote. What history shows: Alphabet stock averages a 1.3% advance on earnings days, per Bespoke. Ford Motor is set to report earnings after the bell. A call will then take place at 5 p.m. Last quarter: F reported its biggest quarterly earnings miss in four years . This quarter: The maker of F-150 pickup trucks is expected to report year-on-year earnings growth of more than 30%, per LSEG. What to watch: UBS turned bullish on Ford heading into earnings, upgrading the stock to buy earlier this month. “Investors have been very focused on the impact of aluminum prices for Ford. However, we believe concerns are overblown,” analyst Joseph Spak wrote . Ford is down 5.6% year to date. Will this upcoming report mark the start of a turnaround for the stock? What history shows: Ford has posted gains on four straight earnings days, including a 12% advance on a Q3 beat. Amazon is set to report earnings following the close, with a call slated for 5:30 p.m. Last quarter: AMZN fell 8% after issuing a $200 billion spending forecast and posting an earnings miss. This quarter: The e-commerce giant is expected to report a slight year-on-year earnings increase, according to LSEG. What to watch: “We remain bullish ahead of 1Q results … with AMZN shares now starting to reflect the improving outlook for [Amazon Web Services] after annual CEO letter,” wrote Jason Helfstein of Oppenheimer last week. What history shows: Amazon fell after posting four of its last five quarterly reports. Meta Platforms is set to report earnings after the bell. Management will then hold a call at 5:30 p.m. Last quarter: META jumped on a stronger-than-expected revenue forecast. This quarter: The Facebook parent’s top line is expected to see strong revenue growth from the year-earlier period, per LSEG. What to watch: Meta’s report follows the company unveiling its Muse Spark AI model. “Now that Meta has released Muse Spark, its first significant project from its newly created Meta Superintelligence Labs, the questions now turn to what … will it do with it?” wrote Michael Nathanson of MoffettNathanson. What history shows: Meta earnings have topped expectations in every quarter for the past three years. Microsoft is set to report earnings following the close. A call between analysts and management will then take place at 5:30 p.m. Last quarter: MSFT fell on slowing cloud growth and light margin guidance. This quarter: The Windows and XBox owner is expected to post double-digit earnings and revenue growth compared to a year ago, LSEG data shows. What to watch: Microsoft has been riding high of late, rising 19% since March 30 as the stock market recovers and excitement around AI revives after the release of the Claude Mythos model. Investors will look for signs that this momentum can continue. What history shows: Bespoke data shows Microsoft beats earnings expectations 82% of the time. But the stock averages only a 0.2% advance on earnings days. Thursday Apple is set to report earnings after the bell. A call with management is scheduled for 5 p.m. Last quarter: AAPL reported surging sales on strong iPhone demand . This quarter: The iPhone maker is expected to report earnings growth of nearly 20% from the year-earlier period, according to LSEG. What to watch: This will be Apple’s first quarterly release since the company said John Tenrus would replace Tim Cook as CEO. JPMorgan’s Samik Chatterjee said the focus will be on “proof around Apple’s positioning to navigate the memory cycle related cost headwinds, with investors already aware of the company’s position in securing supply to deliver better outcomes on revenue through share gains relative to other hardware OEMs, as well as the (potential) implications on strategic direction.” What history shows: Apple beats earnings expectations 90% of the time, per Bespoke. But the stock has fallen after five of the past six releases .
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