The earnings reports of last week were a mixed bag, with some Tesla, Inc. TSLA, Alphabet, Inc. GOOGL GOOG and STMicroelectronics N.V. STM, among companies disappointing to the downside. As the focus shifts to the unfolding week, more tech companies are lined up to disclose their quarterly results, potentially offering cues regarding the health of the sector.
The Week That Was: Most on Wall Street viewed Tesla’s earnings as lacking quality because a significant portion of them came from one-time regulatory credits. On the other hand, Google-parent Alphabet alienated investors by flagging higher capex that will likely weigh down on margins and in turn the bottom line.
Franco-Italian chipmaker, which is a key supplier to the automotive market, cut its full-year guidance. But not all tech tidings were received with pessimism. International Business Machines Co. IBM rose as investors cheered the company’s strong artificial intelligence bookings.
Healthy Trend: Data from financial data analytics company FactSet showed that about 14% of the S&P 500 companies have reported their quarterly results so far. The percentage of S&P 500 names that reported upside earnings surprise is 80%, above the one-year average (78%), five-year average (77%), and 10-year average (74%). But the percentage of upside was sub-part at 5.5%, below the one-year average (+6.5%), five-year average (+8.6%), and 10-year average (+6.8%).
The blended earnings of S&P 500 companies are expected to grow by 9.7%, the fastest pace since the fourth quarter of 2021. Eight of the 11 S&P 500 companies are on track to report year-over-year earnings growth for the June quarter, with communication Services, healthcare, IT, and financials likely reporting double-digit growth.
On the other hand, the materials space is expected to witness the steepest earnings decline.
See Also: Best Tech Stocks Right Now
The Week Ahead: According to FactSet, this week will feature earnings reports from 138 S&P 500 companies, including seven components of the Dow 30. Some heavily-weighted companies such as Apple, Inc. AAPL, Microsoft Corp. MSFT and Meta Platforms, Inc. META are all in the mix.
Meta is expected to be the largest contributor to earnings per share growth, given the consensus models nearly 60% increase.
After last week’s brutal tech sell-off, a bullish analyst is optimistic concerning the the sector, its prospects and the stock trajectory. “We believe the tech sell-off seen last week will be short-lived as the Street better digests results and commentary from the broader tech sector over the coming weeks during 2Q earnings season,” Wedbush’s Daniel Ives said in a note published Sunday.
“This is the start….not the end of this tech bull run we expect the next few years,” he said, adding that companies, utilities,
governments will spend over $1 trillion combined in AI capex over the coming years fueling this AI Revolution.
The analyst said investors will likely look for clues around the pace of AI revolution from the earnings reports of Microsoft, Amazon, Inc. AMZN, Meta and Apple and others.
Tech stocks extended their weekly declines in the week ended July 26 amid the disappointment from early tech reporters. The Invesco QQQ Trust QQQ, an index that tracks the performance of the Nasdaq 100 Index, ended Friday’s session down 1.03% to $462.97, according to Benzinga Pro data. The ETF is trading off its record close of $502.96 reached on July 10. The SPDR S&P 500 ETF Trust SPY climbed 1.12% on Friday before closing at $5544.44. The QQQ and SPY climbed 0.48% and 0.25%, respectively, in premarket trading Monday.
Notable among the companies reporting this week are:
Monday
Before market open:
- McDonald’s Corporation MCD
- ON Semiconductor Corporation ON
After close:
- F5, Inc. FFIV
- Rambus Inc. RMBS
- Lattice Semiconductor Corporation LSCC
- Chesapeake Energy Corporation CHK
- Sanmina Corporation SANM
- Tilray Brands, Inc. TLRY
Tuesday
Before market open:
- American Electric Power Company, Inc. AEP
- Archer-Daniels-Midland Company ADM
- BP p.l.c. BP
- Illinois Tool Works Inc. ITW
- JetBlue Airways Corporation JBLU
- LGI Homes, Inc. LGIH
- Logitech International S.A. LOGI
- Merck & Co., Inc. MRK
- PayPal Holdings, Inc. PYPL
- Pfizer Inc. PFE
- Procter & Gamble Company PG
- Restaurant Brands International Inc. QSR
- SoFi Technologies, Inc. SOFI
After close:
- Advanced Micro Devices, Inc. AMD
- Arista Networks, Inc. ANET
- Caesars Entertainment, Inc. CZR
- DoubleVerify Holdings, Inc. DV
- Electronic Arts Inc. EA
- First Solar, Inc. FSLR
- Freshworks Inc. FRSH
- Live Nation Entertainment, Inc. LYV
- Match Group, Inc. MTCH
- Microsoft
- Mondelez International, Inc. MDLZ
- Pinterest, Inc. PINS
- Skyworks Solutions, Inc. SWKS
- Starbucks Corporation SBUX
- Qorvo, Inc. QRVO
Wednesday
Before market open:
- Altria Group, Inc. MO
- AutoNation, Inc. AN
- Barrick Gold Corporation GOLD
- Bausch + Lomb Corporation BLCO
- Boeing Company BA
- DuPont de Nemours, Inc. DD
- Garmin Ltd. GRMN
- GSK plc GSK
- Humana Inc. HUM
- KKR & Co. Inc. KKR
- Kraft Heinz Company KHC
- Oshkosh Corporation OSK
- Teva Pharmaceutical Industries Limited TEVA
- Marriott International, Inc. MAR
- Wingstop Inc. WING
- T-Mobile US, Inc. TMUS
- Norwegian Cruise Line Holdings Ltd. NCLH
After close:
- Albemarle Corporation ALB
- American International Group, Inc. AIG
- Arm Holdings plc ARM
- C.H. Robinson Worldwide, Inc. CHRW
- Carvana Co. CVNA
- eBay Inc. EBAY
- Etsy, Inc. ETSY
- Host Hotels & Resorts, Inc. HST
- Lam Research Corporation LRCX
- Meta
- MGM Resorts International MGM
- NETGEAR, Inc. NTGR
- QUALCOMM Incorporated QCOM
- Teladoc Health, Inc. TDOC
- Western Union Company WU
Thursday
Before market open:
- Anheuser-Busch InBev SA/NV BUD
- Bausch Health Companies Inc. BHC
- Biogen Inc. BIIB
- ConocoPhillips COP
- Dominion Energy, Inc. D
- EVgo, Inc. EVGO
- Hershey Company HSY
- Hertz Global Holdings, Inc. HTZ
- Mobileye Global Inc. MBLY
- Regeneron Pharmaceuticals, Inc. REGN
- Sirius XM Holdings Inc. SIRI
- Cigna Group CI
- Wayfair Inc. W
After close:
- Amazon
- Apple
- Beazer Homes USA, Inc. BZH
- BigBear.ai Holdings, Inc. BBAI
- Block, Inc. SQ
- Booking Holdings Inc. BKNG
- Cloudflare, Inc. NET
- Clorox Company CLX
- Coinbase Global, Inc. COIN
- DraftKings Inc. DKNG
- Intel Corporation INTC
- Microchip Technology Incorporated MCHP
- MicroStrategy Incorporated MSTR
- Opendoor Technologies Inc. OPEN
- RingCentral, Inc. RNG
- Roku, Inc. ROKU
- Vertex Pharmaceuticals Incorporated VRTX
- Twilio Inc. TWLO
- United States Steel Corporation X
Friday
Before market open:
- Chevron Corporation CVX
- Exxon Mobil Corporation XOM
- Magna International Inc. MGA
- Cinemark Holdings, Inc. CNK
- Fluor Corporation FLR
After close:
- AMC Entertainment Holdings, Inc. AMC
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