Earnings playbook: Palantir and Advanced Micro Devices usher in the next week of reports
The first quarter earnings season continues in earnest next week, with 121 companies in the S & P 500 , or approximately a quarter of the index, on the docket to share their latest results. The two stocks that are also in the Dow Jones Industrial Average — Walt Disney and McDonald’s — will be the week’s headliners, highlighting a big showing from media companies, restaurant chains and gig economy platforms. The corporate reporting period has been strong so far. Of the 63% of S & P 500 members that have so far issued results, 84% have topped analysts’ earnings expectations, according to data from FactSet. All times ET. Monday Palantir Technologies is set to report earnings after the closing bell. A conference call with analysts will follow at 5 p.m. Last quarter: PLTR posted a beat on earnings thanks to strong AI and defense demand. This quarter: Analysts polled by LSEG expect the AI tech company to see earnings more than double from the year-earlier period. What to watch: Loop Capital’s Mark Schappel sees a strong report ahead. “Our recent work — including upbeat management meetings in March, positive field checks, and our expert call — points to continued AI momentum and another strong beat and raise versus our estimates,” the analyst wrote in a report last week. What history shows: Data from Bespoke Investment Group shows Palantir tops earnings estimates 90% of the time, and its stock averages a 1.1% gain on earnings days. Tuesday Pfizer is set to report earnings before the market opens. Management will hold a conference call at 10 a.m. Last quarter: PFE reported earnings and revenue that topped analysts’ estimates despite dwindling demand for its Covid products. This quarter: The pharmaceutical giant is expected to post a double-digit earnings decline compared with the same period a year ago, according to LSEG. What to watch: The Food and Drug Administration on Friday approved Veppanu, a breast cancer drug from Pfizer and Arvinas . Wedbush analyst Robert Driscoll said that the drug’s tolerability profile looked “compelling.” Arvinas CEO Randy Teel told Reuters that the company expects more clarity on pricing for Veppanu after it announces a commercialization deal in the coming weeks. What history shows: Pfizer tops earnings estimates 88% of the time, according to data from Bespoke Investment Group. Advanced Micro Devices is set to report earnings after the market closes, followed by a conference call at 5 p.m. Last quarter: AMD ‘s fourth-quarter earnings topped expectations, and the company provided a stronger-than-expected forecast. This quarter: The chipmaker’s earnings and revenue are expected to grow by double digits compared to a year ago, LSEG data shows. What to watch: Deutsche Bank expects a strong report and guidance. “Overall, the combination of secular/cyclical revenue tailwinds and [operating margin] leverage supports rev/EPS upside potential [Deutsche Bank estimate slightly above] Street. While we applaud this fundamental upside potential, we also believe it to be largely reflected in AMD’s share price following the recent significant appreciation. Consequently, maintain Hold rating,” wrote analyst Ross Seymore. What history shows: Bespoke data shows AMD tops earnings estimates 62% of the time. But despite earnings and revenue topping estimates last quarter, shares fell 17%. Wednesday Uber Technologies is set to report earnings before the market’s opening bell. Management holds a conference call with analysts at 8 a.m. Last quarter: UBER revenue surpassed Street estimates , but it issued soft profit guidance. This quarter: Analysts expect double-digit declines in the ride hailing platform’s earnings but double-digit revenue growth against the year-earlier period, according to LSEG. What to watch: Barclays expects solid demand, although higher gas prices and bad weather pose cost pressures. “UBER has enough breadth to manage these near-term dynamics, and while robotaxi risk continues to weigh on the story, the risk/reward remains attractive,” analyst Ross Sandler said. What history shows: Uber earnings beat estimates 61% of the time, Bespoke says. Walt Disney is set to report earnings before the market open. Management will then hold a call with analysts at 8:30 a.m. Last quarter: DIS topped analyst estimates for both earnings and revenue . This quarter: LSEG data shows analysts see slight rises in year-over-year earnings and revenue for the movie studio and theme park operator. What to watch: Disney’s first earnings report under new CEO Josh D’Amaro means investors won’t focus solely on financials, Citigroup said: “We expect investors will be assess two things: 1) financial trends and 2) any potential shift in the firm’s strategy,” wrote analyst Jason Bazinet. What history shows: Walt Disney tops earnings expectations 79% of the time, according to Bespoke. Shares fell after the company posted its last three quarterly reports. Thursday McDonald’s is set to report earnings before the opening bell. A call will then take place at 8:30 a.m. Last quarter: MCD reported quarterly earnings and revenue that both beat analyst estimates. This quarter: Analysts polled by LSEG expect single-digit earnings and revenue growth. What to watch: Rothschild & Co. Redburn upgraded the fast food chain to neutral from sell last week. “McDonald’s has executed the most comprehensive value reset since the Dollar Menu era. U.S. traffic returned to growth and the two-year stacked same-store sales trend inflected from negative to positive. GLP-1 remains a risk, though we demonstrate that cost continues to gate penetration among the low-income households,” analyst Chris Luyckx said. What history shows: Bespoke data shows McDonald’s beats earnings expectations 57% of the time. The stock has gained after its last three earnings reports.
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