Here’s your Investing Action Plan: what you need to know as an investor for the coming week. Technology giants like Apple, Alphabet and Microsoft are due to report their quarterly profits. What tech earnings say will determine if recent run-ups in the stocks are justified by fundamentals. Meanwhile, chipmakers are on deck to report, too. That will show whether Intel’s (INTC) weakness is company-specific or more widespread in the industry.
Stocks To Watch
Heading into the busiest week for earnings season, here are five stocks in buy range that have already reported quarterly results, taking a big risk off the table. Goldman Sachs (GS), Cleveland-Cliffs (CLF) and Crocs (CROX) have moved above their 50-day lines, offering early entries. UnitedHealth (UNH) and CSX (CSX) cleared traditional buy points. Many of these stocks are in groups that are showing strength.
Apple Earnings Seen Rising 70%
Consumer electronics giant Apple (AAPL) plans to report its fiscal Q4 results Thursday. Analysts expect Apple earnings of $1.24 a share on sales of $85 billion in the September quarter. That would translate to year-over-year growth of 70% in earnings and 31% in sales. The quarter includes just two weeks of sales of Apple’s iPhone 13 handsets. Much investor focus will be on the December quarter, given news reports of production limitations due to component shortages.
Microsoft Cloud Biz In Focus
Software giant Microsoft (MSFT) will post its fiscal Q1 results Tuesday. Wall Street is modeling Microsoft earnings of $2.08 a share on sales of $43.9 billion in the September quarter. That would translate to year-over-year growth of 14% in earnings and 18% in sales. Investors will key on the company’s fast-growing cloud computing businesses, including Azure infrastructure services and Office 365 productivity software.
Amazon To Show Mixed Results
Amazon.com (AMZN) is expected to report a nearly 28% decline in adjusted Q3 EPS of $8.96 on Thursday. Revenue, though, is seen rising more than 16% to $111.66 billion.
Alphabet To Spell Out Profit
Google-parent Alphabet (GOOGL) reports Q3 earnings Tuesday. Analysts estimate adjusted EPS of $23.22 per share, up nearly 42% from a year earlier, with gross revenue jumping 37% to $63.5 billion. Cloud computing and YouTube advertising revenue growth are key financial metrics.
Facebook Reports Amid Social Confusion
Social media giant Facebook (FB), Monday, is seen delivering Q3 EPS of 3.17, up more than 32%. Revenue is expected to rise 37.5% to $29.51 billion. Questions remain if changes to privacy setting made by Apple will hurt Facebook.
Top Chipmakers To Report
A slew of top-ranked semiconductor stocks will deliver Q3 earnings in the week ahead. Advanced Micro Devices (AMD) will deliver its report Tuesday. Analysts expect AMD to earn 66 cents a share, up 61%, on sales of $4.11 billion, up 47%, in the September quarter. MaxLinear (MXL) reports results Wednesday followed on Thursday by Allegro MicroSystems (ALGM), Monolithic Power Systems (MPWR) and Power Integrations (POWI). Elsewhere in the semiconductor sector, chip-gear maker Entegris (ENTG) will post its Q3 results on early Tuesday.
Key Software Reports Incoming
Atlassian (TEAM) reports fiscal Q1 earnings on Thursday. Analysts expect EPS to climb 33% to 40 cents a share with revenue growing 32% to $584 million. Atlassian has been shifting to a cloud computing platform from selling on-premise software. Enterprise software maker ServiceNow (NOW) reports earnings Wednesday. Analysts project EPS of $1.39, up about 15% from a year earlier. Revenue will climb nearly 29% to $1.48 billion, analysts estimate. A subscription billings beat or miss could move the stock. Analysts estimate Q3 billings of $1.33 billion.
GM And Ford Hit Pothole
Wednesday, General Motors (GM) should see Q3 earnings crumble 70% to 93 cents per share, with revenue falling 13% to $30.75 billion, says FactSet. Late Wednesday, Ford (F) is likely to post a 60% EPS drop to 27 cents on a 0.4% sales gain to $37.66 billion. Both companies have already disclosed that Q3 vehicles sales plunged in the U.S., their biggest market by far, by 27% for Ford and 33% for GM, as the chip crisis worsened, dashing expectations.
Defense Companies Report
Lockheed Martin (LMT) will report Q3 results Tuesday. Analysts expect the F-35 maker’s EPS to fall 63% to $2.29 but revenue is seen rising 3.8% to $17.1 billion. General Dynamics (GD) will report results Wednesday with Northrop Grumman (NOC) on tap for Thursday. Northrop’s EPS is seen edging up 1.7% to $5.99 but revenue is expected to dip 1.7% to $8.92 billion.
Boeing’s Woes Linger
Boeing (BA) will report Q3 results before the market opens Wednesday. The aerospace giant is seen posting a loss of 5 cents per share vs. a $1.39 per share loss in the year-ago quarter. Revenue is seen rising 19% to $16.86 billion. For the quarter, Boeing delivered 85 commercial aircraft. But it did not deliver any 787 Dreamliners as production problems continue to plague the aircraft.
Big Oil To Report Results
Royal Dutch Shell (RDSA) kicks off earnings season for Big Oil on Thursday. Exxon Mobil (XOM) and Chevron (CVX) will report Q3 results Friday. Analysts see Exxon swinging to a profit of $1.53 per share from a loss of 18 cents per share in the year-ago quarter. Revenue is expected to jump 54% to $71 billion. Chevron’s EPS is seen soaring nearly 2000% to $2.22 from 11 cents in the year-ago quarter. Revenue is expected to climb 63% to $39.87 billion.
Transportation Profit To Deliver
Early Tuesday, UPS (UPS) should see earnings increase 12% to $2.55 a share as revenue grows 7% to $22.57 billion. Early Wednesday, analysts expect Old Dominion (ODFL) to post a 37% EPS jump to $2.34 on a 29% revenue gain to $1.37 billion. SAIA (SAIA), a less-than-truckload transporter, follows Thursday.
Eli Lilly, Merck On Deck
Pharmaceutical companies Eli Lilly (LLY) and Merck (MRK) will report their Q3 earnings Tuesday and Thursday, respectively. Analysts polled by FactSet expect Lilly to earn $1.96 a share on $6.64 billion in sales. Earnings would grow more than 27% and sales would increase nearly 16%. Merck is expected to post $1.55 adjusted profit per share, down close to 7%, and a nearly 2% sales decline to $12.32 billion.
Gambling Firms To Show Hand
Boyd Gaming (BYD) will report Q3 earnings on Tuesday. FactSet analysts expect the company, a partner of sports betting giant FanDuel, to post EPS of $1.24, more than triple the year-ago period. Sales are seen gaining 28% to $835.2 million. Meanwhile, horse racing powerhouse Churchill Downs (CHDN) will report earnings on Wednesday. EPS is expected to rise 24% year over year to $1.47, while revenue is seen increasing 20% to $406.8 million.
- DexCom (DXCM) is expected to report Q3 EPS of 64 cents per share on $618 million in sales on Thursday. Earnings would fall almost 32% as sales rise more than 23%.
- McDonald’s (MCD) reports Q3 earnings Wednesday. Analysts expect EPS to rise 10.8% to $2.46 as revenue grows 11.2% to $6.02 billion, according to Zacks Investment Research. The consensus for U.S. same-store sales growth is 8.2% per Consensus Metrix.
- InMode (INMD) is to report adjusted Q3 EPS and revenue of 45 cents and $89.4 million Tuesday, growing nearly 41% and 50%, respectively. The company announced its expectations for adjusted EPS of 53 to 54 cents and $93.5 million to $94 million in sales.
- General Electric (GE) should report EPS of 43 cents early Tuesday, down 11%, on revenue of $19.284 billion, down 0.7%.
- Enphase Energy (ENPH) is seen reporting Q3 EPS of 0.49 on Tuesday, up 63% from the same year-ago period. Revenue is expected to jump 92.6% to $343.77 million.