The big earnings week has arrived just as the market jitters are reaching a fever pitch. The EPS and revenue results of tech giants and hundreds of other companies will be put under the microscope in the next few days. So far this earnings season the investors’ attitudes have been skeptical: even most companies who beat the consensus have seen their stocks decline the next day. So, if the beginning of the earnings season is any indication, investors will be applying extra scrutiny to the upcoming earnings releases. Below is the quick rundown of the most important announcements.
Tech giants must prove themselves again
- Apple (AAPL): $1.97 our AI forecast vs. $1.95 earnings whisper number vs. $1.89 analyst consensus EPS estimate
- Microsoft (MSFT): $2.49 our AI forecast vs. $2.39 whisper number vs. $2.31 consensus EPS estimate
- Tesla (TSLA): $2.58 our forecast vs. $2.71 whisper vs. $2.26 consensus EPS estimate
- Visa (V): $1.78 our forecast vs. $1.70 consensus estimate
- Johnson & Johnson (JNJ): $2.23 our forecast vs. $2.12 consensus estimate
- Mastercard (MA): $2.35 our forecast vs. $2.22 consensus
- Chevron (CVX): $3.32 our forecast vs. $3.11 consensus
- Verizon Communications (VZ): $1.32 our estimate vs. $1.28 consensus
- Intel (INTC): $1.02 our estimate vs. $0.90 consensus
- McDonalds (MCD): $2.45 our estimate vs. $2.33 consensus
- AT&T (T): $0.80 our estimate vs. $0.76 consensus
- Texas Instruments (TXN): $2.04 ours vs. $1.94 consensus
- Boeing (BA): -$0.46 ours vs. -$0.35 consensus
- International Business Machines (IBM): $3.54 ours vs. $3.31 consensus
While our AI expects all the companies except Boeing to beat the analyst consensus, it may be hard for some companies to beat the whisper. Tesla is among the names one should be concerned about. The stocks we are most optimistic about are Intel, AT&T and Chevron, who appear poised to beat both EPS and revenue expectations by substantial margins.
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Looking ahead to next week
In terms of earnings announcements the first week of February will be just as busy as the end of January: over 300 companies will release their results. Tech and healthcare will dominate the calendar, with Alphabet (GOOGL), Qualcomm (QCOM) and Meta Platforms (FB) setting the tone early in the week. Pharma giants Eli Lilly (LLY) and Merck (MRK) will then be announcing on Thursday.
Our models’ expectations are more subdued than usual: Proximilar’s AI anticipates a mixed performance relative to analysts’ estimates. Most tech names are expected to do well, although Amazon (AMZN) may have some difficulty beating its revenue number. On the other hand, pharma names may have a harder time beating expectations. Meanwhile, AI finds some bright spots in the automotive sector: both Ford (F) and General Motors (GM) are well positioned to beat Wall Street’s estimates by a wide margin.