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As the market gears up for another eventful earnings week, investors are eagerly anticipating reports from a wide array of companies across various sectors. Big names like Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) will be among the highlights, alongside tobacco giants Philip Morris International (PM) and Altria Group (MO).
The week ahead is also packed with earnings from technology and communications behemoths like IBM (IBM), AT&T (T), Intel (INTC) and Texas Instruments (TXN). Healthcare companies such as AbbVie (ABBV), Merck & Co. (MRK), Bristol-Myers Squibb Company (BMY), Gilead Sciences (GILD), AstraZeneca (AZN), AbbVie (ABBV) and Thermo Fisher Scientific (TMO) will also report.
Additionally, the energy sector will be in focus, with companies like Exxon Mobil (XOM), Chevron (CVX), Valero Energy (VLO), and Phillips 66 (PSX) releasing their earnings reports.
Companies in the industrial sector, including General Electric (GE), Boeing (BA), Caterpillar (CAT) and Union Pacific (UNP), will also announce their earnings, providing insights into the state of the industrial economy.
Moreover, the consumer goods sector will be represented by companies such as PepsiCo (PEP), Kimberly-Clark (KMB), Colgate-Palmolive (CL), Ford (F) and General Motors (GM), offering a glimpse into consumer spending and demand.
The airline sector will also be in focus, with companies like American Airlines Group (AAL), Southwest Airlines (LUV) and JetBlue (JBLU) announcing their earnings, providing insights into the performance of the travel industry. Package delivery giant United Parcel Service (UPS) is also on the docket, giving a key insight into the economy from its vantage point as a critical logistics provider.
Below is a rundown of major quarterly updates anticipated in the week of April 22–26:
Monday, April 22
Cleveland-Cliffs (CLF)
Cleveland-Cliffs (CLF) is slated to report Q1 earnings results on Monday, after market close. Analysts expect a profit for the quarter, while revenue is projected to remain almost flat.
The stock gets a Hold rating from Seeking Alpha's Quant Rating system, aligning with Wall Street analysts' consensus recommendation.
According to a recent article by Seeking Alpha contributor Joseph Parrish, Cleveland-Cliffs is considered an undervalued investment opportunity due to its pricing power and ability to generate positive free cash flow. Parrish expressed a bullish outlook for the company, suggesting that it will prevail regardless of market conditions.
- Consensus EPS Estimates: $0.21
- Consensus Revenue Estimates: $5.34B
- Earnings Insight: The company has beaten EPS expectations in 4 of the past 8 quarters and revenue in 5 of those reports.
Also reporting: Verizon Communications (VZ), AGNC Investment (AGNC), Nucor Corporation (NUE), SAP SE (SAP), Alexandria Real Estate Equities (ARE), Albertsons Companies (ACI) and more.
Tuesday, April 23
Tesla (TSLA)
Elon Musk's EV giant Tesla (TSLA) is slated to disclose its Q1 earnings after the closing bell on Tuesday, with analysts expecting a significant Y/Y decline in EPS. This is projected in large part due to the impact of the pricing war.
Previously boasting a market capitalization exceeding $1T, Tesla now finds itself as the weakest performer within the prestigious "Magnificent 7" group of technology and growth stocks. YTD, Tesla's share price has declined by 40%, resulting in its market capitalization falling below $500B.
Both the Seeking Alpha Quant Rating system and sell-side analysts have a cautious stance on the stock, assigning Hold ratings.
Recently, Deutsche Bank lowered its rating on Tesla to Hold, citing the high likelihood of the Model 2 launch being pushed out and the company's shift of strategic priority to the Robotaxi business. Analyst Emmanuel Rosner warns that the delay in Model 2 efforts could result in no new vehicle in Tesla's consumer lineup for the foreseeable future, putting downward pressure on volume and pricing for many more years. Deutsche Bank also slashed its price target on Tesla to $123 from $189, with lowered expectations for deliveries, revenue, and EPS.
"The company missed deliveries for the first time in four years, indicating potential exhaustion of price cuts, and the effects of recent layoffs will take time to fully assess," says SA author Christopher Robb.
- Consensus EPS Estimates: $0.50
- Consensus Revenue Estimates: $22.52B
- Earnings Insight: Tesla has beaten EPS estimates in 5 of the past 8 quarters, revenue only three times in that span.
Also reporting: General Electric (GE), Visa (V), General Motors Company (GM), Lockheed Martin (LMT), PepsiCo (PEP), Freeport-McMoRan (FCX), Philip Morris International (PM), United Parcel Service (UPS), Texas Instruments (TXN), Halliburton Company (HAL), Spotify Technology S.A. (SPOT), Kimberly-Clark (KMB), JetBlue Airways (JBLU), Xerox (XRX), PulteGroup (PHM), The Boston Beer Company (SAM), Ryder System (R) and more.
Wednesday, April 24
Meta Platforms (META)
Facebook parent Meta Platforms (META) is set to announce its Q1 results after Wednesday's closing bell. Following an impressive performance in Q4, which included a dividend initiation, the social media giant projected Q1 revenue within the range of $34.5B–37B.
The stock has performed well, rising 42% so far this year and more than doubling over the past 12 months. Wall Street analysts are bullish, maintaining a Buy recommendation, while the SA Quant Rating System suggests holding the stock.
Truist Securities anticipates that Meta (META) will beat revenue expectations for Q1. The brokerage raised its revenue projection to $36.54B from $36.12B and its EPS estimate to $4.28 from $4.18. Truist remains bullish, giving the stock a Buy rating, and raised its price target to $550 from $525, crediting Meta's AI investments for boosting user engagement (Facebook usage is up 3% Y/Y) and ad performance.
SA author Dair Sansyzbayev notes that META is strong in revenue growth and cost discipline, with a competitive edge due to its alignment with the digital revolution. The Llama 3 language model is still in development, and valuation analysis suggests the stock is attractively priced, making the current share price a good deal.
- Consensus EPS Estimates: $4.34
- Consensus Revenue Estimates: $36.16B
- Earnings Insight: Meta has topped EPS expectations in 5 of the past 8 quarters, beating revenue estimates in 6 of those reports.
Also reporting: AT&T (T), Ford (F), The Boeing Company (BA), IBM (IBM), QuantumScape Corporation (QS), Lam Research Corporation (LRCX), ServiceNow (NOW), Biogen (BIIB), Chipotle Mexican Grill (CMG), Hilton Worldwide Holdings (HLT), CME Group (CME), Hasbro (HAS), Humana (HUM) and more.
Thursday, April 25
Alphabet (GOOG) (GOOGL)
Alphabet (GOOG) (GOOGL) is scheduled to announce its Q1 results after the closing bell on Thursday. Analysts anticipate a strong quarter, with a 28% bottom-line increase and a 13% climb in on the top line.
The parent company of Google has exhibited exceptional performance over the past year, boasting over 50% growth in the share price over the past twelve months, outpacing the S&P 500's approximately 21% return.
According to SA Quant Ratings, Google has a SA Quant Score of 4.95 (out of 5), indicating a Strong Buy rating. Wall Street analysts also maintain a bullish stance on the stock, with a consensus Buy rating.
However, Dair Sansyzbayev, a Seeking Alpha author, suggests caution, noting valuation concerns and arguing that a "lag in the AI race is a big threat to Google's prospects in the cloud business. Another author, Damir Tokic, also holds a bearish view, citing ChatGPT as a potential threat to Google Search's ad-based model.
- Consensus EPS Estimates: $1.50
- Consensus Revenue Estimates: $78.68B
- Earnings Insight: Google has topped EPS expectations in 4 of the past 8 quarters, beating revenue estimates in 5 of those reports.
Microsoft (MSFT)
Microsoft (MSFT) follows Alphabet in the earnings lineup, scheduled to release its quarterly earnings print after the market close on Thursday. Analysts expect more than 15% growth in both the top and bottom lines.
While Seeking Alpha's Quant Rating system remains cautious on the stock, giving it a Hold outlook, Wall Street analysts are bullish, maintaining a consensus Strong Buy recommendation.
Recently, analysts at Citi predicted Microsoft's artificial intelligence revenue would outperform expectations.
SA author Stuart Allsopp holds an extremely bearish view on Microsoft, citing valuation concerns. Allsopp believes that investors are relying on unrealistically high growth rates and low required rates of return for many decades into the future to justify current equity values.
- Consensus EPS Estimates: $2.84
- Consensus Revenue Estimates: $60.85B
- Earnings Insight: Microsoft has outperformed EPS forecasts in 7 of the last 8 quarters and revenue in 6 of those quarters.
Also reporting: Intel (INTC), Altria Group (MO), Gilead Sciences (GILD), Merck & Co. (MRK), Bristol-Myers Squibb Company (BMY), Caterpillar (CAT), Roku (ROKU), Teladoc Health (TDOC), American Airlines Group (AAL), Snap (SNAP), Southwest Airlines (LUV), Newmont Corporation (NEM), Comcast Corporation (CMCSA), Valero Energy (VLO), AstraZeneca PLC (AZN), Union Pacific (UNP), Royal Caribbean Cruises (RCL), Northrop Grumman (NOC), Deutsche Bank (DB), Capital One (COF) and more.
Friday, April 26
Oil giants Chevron (CVX) and Exxon Mobil (XOM) are gearing up to unveil their Q1 earnings before the market opens on Friday. Seeking Alpha's Quant Rating system takes a cautious stance on the stocks, with a Hold rating for both. In contrast, Wall Street analysts remain optimistic, assigning both stocks a Buy rating.
Amid the current market scenario, analysts anticipate a Y/Y decline in earnings per share and revenue for both CVX and XOM.
According to a bullish SA author, The Asian Investor, XOM's low valuation and potential for higher capital returns make it an attractive investment before the Q1 report.
The Asian Investor expects Chevron to report strong earnings, driven by higher petroleum prices and supply cuts from OPEC+. They further highlight that the company is likely to see a significant increase in cash flow and has a track record of returning cash to shareholders through stock buybacks and dividends.
More on stocks reporting earnings next week:
- Meta Q1 Earnings Preview: The Optimism Is Justified
- Ford Motor: P/E Is A Poor Indicator Of Cyclical Low
- Altria: Price Appreciation Isn't What's Valued Here
- Google's changes to cookies for ad-privacy fall short, says UK regulator - report
- Tesla recalls certain Cybertrucks to fix faulty accelerator pedal