So far, U.S. companies have hardly managed to achieve positive earnings growth in this quarter’s performance quarter, but a major test will appear in the coming week.
Nearly a quarter of the S&P 500 SPX,
According to calculations performed by FactSet data, the company will report the results. The market capitalization of these companies accounts for 39% of the index. Given that the S&P 500 index is weighted by market capitalization, the company roster will have a huge impact on the index’s profit trajectory.
Once all the latest quarterly results are announced, earnings are expected to decline for the fourth consecutive quarter, but so far, the companies that have reported have generally exceeded expectations.
FactSet’s consensus now simulates a 5% decline in the index’s returns, compared to a 6.3% decline expected a week ago. If the S&P 500̵
And Facebook Inc. FB,
Is one of the highlights of Tesla (Tesla Inc.) and TSLA, nominated next week,
This will be the first performance since a member of the S&P 500 Index. All three high-profile companies plan to release reports on Wednesday afternoon and are expected to set new revenue records in the holiday quarter.
The holidays are of utmost importance to Apple, and Apple will release a new iPhone in the fall. As the pandemic pushed sales during this period to a climax, Apple’s release time this year was a little later than in previous years. It is widely expected that Apple will release its largest quarterly revenue in history and exceed $100 billion for the first time in history. Microsoft may continue to benefit from remote work and distance education trends that have driven strong sales of iPad and Mac throughout the COVID-19 crisis.
Full Preview: Prepare for the first 100 billion US dollars in Apple history
Considering the strong digital advertising trend during the holidays, Facebook is also expected to release a record quarter. Nonetheless, the company will still face questions about user engagement and the decision to ban Donald Trump indefinitely because of Donald Trump’s role in inciting riots in the US Capitol. Bernstein analyst Mark Shmulik pointed to “continuous use fatigue” on social media and “a dialogue that favors political events that cannot be monetized”.
Full preview: Facebook’s revenue is still booming under the pandemic, economic slowdown, and antitrust review
Tesla has announced the delivery volume for the whole year, exceeding analysts’ expectations, and all eyes are on the company’s 2021 prospects. RBCCapital Markets analyst Joseph Spak expects annual deliveries to be between 825,000 and 875,000 million vehicles, despite CEO Elon Musk on Tesla’s last earnings call Said that analysts expect to deliver 840,000 to 1 million vehicles in 2021, “not far from the target.”
Full preview: Can Tesla’s sales growth compare with the stock’s rise?
This is something to watch over the next week, including reports from 117 members of the S&P 500 index and 13 members of the Dow Jones Industrial Average (DJIA).
up in the air
Bachelor’s degree from Boeing,
Even if the company’s 737-MAX jets were grounded for nearly two years and then re-certified, the journey remains turbulent. Benchmark company analyst Josh Sullivan said that although the company is beginning to deliver these aircraft, “the speed of delivering 450 parked 737-MAX will depend on airline customers’ ability to absorb aircraft and air traffic needs.”
Boeing’s Wednesday morning report will provide insights into the company’s expected recovery during the pandemic, although Sullivan believes that the recent stock issuance and the impact of the COVID-19 crisis on airlines will cause future volatility.
So far, the fourth quarter report of American Airlines has been bleak, American Airlines Group (AAL)
And Southwest Airlines LUV,
More on Thursday morning.
Can you hear me?
Verizon Communications Inc. VZ,
After a busy week of telecommunications business on Tuesday morning, followed by AT&T Inc. T,
On Wednesday morning with Comcast Corp. CMCSA,
For wireless operators, the key issue will be the impact of iPhone 12 promotions on recent performance. Investors will also be looking for information about the spectrum of recent wireless auction products, which is essential for 5G network deployment. Although the bid has not yet been made public, the auction has driven record expenditures, and both AT&T and Verizon are expected to pay high prices to maintain their position. The question for investors is what effect these bids will have on the company’s financial health.
Full preview: AT&T’s revenue will start a landmark year for the telecom giant
AT&T and Comcast have more media exposure than Verizon, and these two companies have been working hard to deal with the new realities brought about by this epidemic. Both companies have taken actions to use more movie resources for streaming media after the theaters are closed. The financial impact of these actions is worthy of attention.
The evolving situation of the pandemic may not be more clearly reflected than the results of Visa Inc. V.
And American Express AXP,
This has had an impact on the global consumer spending pattern. The two companies should provide insights on the resumption of travel at the end of the year and the impact of the recent shutdown.
Susquehanna analyst James Friedman recently wrote that his $3.97 billion revenue forecast for Mastercard is slightly lower than the market consensus, although he also asked: “Someone really cares about the 2020 The fourth quarter?” Friedman is optimistic about Mastercard’s mobile payment and online shopping dynamics, which heralds the “positive trend” of Mastercard. Visa announced that afternoon, and American Express announced the kickoff of the week in a report on Tuesday morning.
Chip legend continues
Advanced Micro Devices Inc. AMD,
It is expected to continue to benefit from Intel’s INTC,
Although Intel is preparing to send a new, technology-oriented CEO at the helm, analysts expect this situation to continue for some time.
Jefferies analyst Mark Lipacis wrote after the release of Intel’s latest earnings report: “We are not confident that Intel can quickly close the transistor gap and therefore continue to lose share in the foreseeable future. .” AMD will show how this momentum works when it releases the numbers on Tuesday afternoon.
Full preview: If Intel works together, can AMD maintain valuation inflation?
Other chip manufacturers reporting in the coming week include Texas Instruments Inc. TXN,
On Tuesday afternoon; Xilinx Inc. XLNX,
AMD will release a report on Wednesday afternoon. The company will join chip equipment manufacturer Lam Research Corp. LRCX.
; And Western Digital Corp. WDC,
On Thursday afternoon.
Dow Jones busy week
Among the 13 members of the Dow Jones Industrial Average DJIA,
What will be reported this week is 3M Co MMM,
, Johnson & Johnson JNJ,
American Express, Verizon and Microsoft Corp. MSFT,
All of these are reported on Tuesday.
JP Morgan analyst Chris Schott wrote: “In the near future, we see the company’s COVID-19 vaccine readings as a key catalyst for the coming, and believe that more than 80% efficacy will indicate that The clear role of the product in the market.”.
Cowen & Co. analyst J. Derrick Wood believes that it is difficult to compare Microsoft, especially in the Azure and server business, although he expects the situation to be more favorable.
Full preview: SolarWinds hackers may actually be a good thing for Microsoft
Wednesday brought the performance of Boeing and Apple, and on Thursday there was the MCD of McDonald’s Corp.,
And Visa. Honeywell International (HON)
And Caterpillar Inc. CAT,
End the week on Friday morning.