As July transitions into August, there will be a slew of earnings reports from some of the world’s largest companies in the coming week. The spotlight is firmly on the members of Magnificent 7: Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Yuan platform(Nasdaq: Target) and Apple (NASDAQ:AAPL).
In addition to these tech giants, reports from various industries will be released in the coming week, including coffee shop chain Starbucks (NASDAQ: SBUX), fast food giant McDonald’s (NYSE:MCD), aerospace and defense giant Boeing (NYSE:BA) and payment processor Mastercard (MA).
Major pharmaceutical companies Pfizer (PFE), Moderna (MRNA) and Merck (MRK) will also release, as will energy giants Chevron (CVX), Exxon Mobil (XOM), Shell (SHEL) and BP (BP) data.
Meme stocks DraftKings (DKNG), Roblox (RBLX), SoFi Technologies (SOFI), Advanced Micro Device (AMD), Intel (INTC) and Qualcomm (QCOM) were also profit highlights.
The following is a summary of the major quarterly updates expected for the week of July 29-August 2:
Monday, July 29
McDonald’s (MCD)
McDonald’s (MCD), the world’s second-largest restaurant chain, will report second-quarter earnings on Monday. While analysts expect revenue to rise slightly, profits will be down about 3% from the previous year.
While Wall Street analysts remain optimistic about the fast-food giant, with a consensus “buy” rating, Seeking Alpha’s quantitative model is more cautious, giving it a “hold” rating and noting concerns about McDonald’s valuation and growth. Worry.
Optimistic South African author Luca Socci predicts McDonald’s shares will fall due to high commodity prices and rising consumer prices. The company’s shift toward franchising resulted in flat revenue growth but improved profitability. However, second-quarter earnings previews point to a bleak outlook, with value promotions impacting margins and the risk of a potential post-earnings sell-off.
- Consensus EPS estimate: $3.07
- Consensus revenue estimate: $6.63B
- Earnings Insight: McDonald’s has missed EPS estimates just once in the past eight quarters and missed revenue estimates twice during that period.
Also reports: Tilray Brands (TLRY), Chesapeake Energy (CHK), ON Semiconductor (ON), F5 (FFIV), Koninklijke Philips NV (PHG) and others.
Tuesday, July 30
Microsoft (MSFT)
Microsoft (MSFT) is set to release quarterly results after the close on Tuesday, following disappointing reports from other members of the Magnificent 7. Analysts expect earnings per share to grow by more than 9% and revenue to grow by about 15%. The company has recently been in the international spotlight, being involved in a global IT outage along with CrowdStrike ( CRWD ).
So far this year, Microsoft is the second-worst performing stock on the famous Magnificent 7 of technology and growth stocks (behind Tesla).
While Seeking Alpha’s Quantitative Ratings system maintains a cautious Hold outlook, Wall Street analysts continue to express optimism, with a unanimous Strong Buy rating.
Optimistic SA investment group leader Oakoff Investments expects strong performance in the operating systems, cloud and search sectors this quarter, citing the latest developments, guidance and market trends.
On the other hand, pessimistic Noah’s Arc Capital Management believes that Microsoft’s growth relies heavily on future back-end performance to achieve ambitious price targets. Despite high profit expectations, Microsoft’s valuation remains above the industry median, hence the Hold rating. The company plans to double capital spending by fiscal 2025 with a focus on artificial intelligence, but competition from Google poses a significant threat, the analyst said.
- Consensus EPS estimate: $2.94
- Consensus revenue estimate: $64.41B
- Earnings Insight: Microsoft has exceeded earnings per share estimates in seven of the past eight quarters, and revenue has exceeded expectations in six of those quarters.
Also reports: Advanced Micro Devices (AMD), Pfizer (PFE), PayPal Holdings (PYPL), Starbucks (SBUX), Procter & Gamble (PG), Merck (MRK), BP plc (BP), Pinterest (PINS), SoFi Technologies (SOFI) , American Tower Company (AMT), First Solar (FSLR), Rio Tinto Group (RIO), Lemonade (LMND), Electronic Arts (EA), JetBlue Airways (JBLU), etc.
Wednesday, July 31st
Meta Platform (META)
Facebook parent Meta Platforms (META) will report quarterly results after the market close on Wednesday. The company’s shares fell after its last earnings report, which forecast second-quarter revenue in the range of $36.5B to $39B, with the midpoint missing consensus estimates. Meta also expects full-year expenses of $94B-$99B due to higher infrastructure and legal costs. Additionally, the company raised its full-year capital expenditure forecast to $35B-$40B from the previous range of $30B-$37B to support its AI investments.
Meta is the second-best performer among the Magnificent 7 stocks in 2024 (behind NVIDIA), up 28% this year and about 54% over the past 12 months. Wall Street analysts remain optimistic, maintaining unanimous buy recommendations. Meanwhile, SA Quantitative Ratings recommends a Hold on the stock.
Earlier this week, Meta launched its largest language model, Llama 3.1 405B, amid growing competition from Microsoft (MSFT) and Google (GOOGL).
SA Investment Group head Michael Wiggins De Oliveira is bullish on Meta, with a price target of $630 by the summer of 2025. The stock’s valuation of 22 times next year’s free cash flow is attractive to new investors.
In contrast, another SA Investment Group principal, Tom Lloyd, has removed Meta from his model portfolio due to poor performance and multiple sell signals. He showed a bearish trend based on technical and fundamental data, with the stock falling towards support and showing various sell signals on the chart.
- Consensus EPS estimate: $4.77
- Consensus revenue estimate: $38.28B
- Earnings Insight: Meta has beaten EPS estimates in five of the past eight quarters, with revenue beating estimates in six of those quarters.
Also reports: Arm Holdings (ARM), Boeing (BA), Qualcomm (QCOM), Altria (MO), Mastercard (MA), Kraft Heinz (KHC), Etsy (ETSY), GlaxoSmithKline (GSK), DuPont (DD), Lam Research (LRCX), Riot Platform (RIOT), Transocean (RIG), eBay (EBAY), Norwegian Cruise Line Holdings (NCLH), T-Mobile US (TMUS), American International Group (AIG), Mi Grand Mercure International (MGM), Automatic Data Processing (ADP), Aflac Incorporated (AFL), Marriott International (MAR), MetLife (MET), etc.
Thursday, August 1
Apple (AAPL)
California-based technology giant Apple (AAPL) is scheduled to release financial data after the close on Thursday. Analysts expect earnings per share to increase by 6% annually and revenue to grow by about 3%.
While Wall Street’s optimism is reflected in a consensus Buy rating, Seeking Alpha’s quantitative model is more cautious, assigning a Hold rating due to concerns about growth and valuation.
SA author Roberts Berzins also gives AAPL a Hold rating, saying sales dynamics remain weak and investment in Vision Pro has yet to produce a significant return.
- Consensus EPS estimate: $1.33
- Consensus revenue estimate: $84.14B
- Earnings Insight: Apple has beaten earnings per share estimates in seven of the last eight quarters, with revenue beating estimates in five of those quarters.
Amazon(AMZN)
Magnificent 7: Amazon ( AMZN ), another e-commerce and cloud giant, will join Apple in reporting second-quarter earnings after the close on Thursday.
Amazon shares are up about 39% in the past 12 months and nearly 20% so far this year. Seeking Alpha’s Quantitative Ratings system maintains a Hold rating on the stock despite Wall Street analysts giving the stock a unanimous Strong Buy rating.
Dividend Sensei, head of SA Investment Group, took a bullish stance, noting that the volatility of the tech earnings season provides a buying opportunity for Amazon investors. He emphasized Amazon’s huge growth potential and predicted that by 2029, growth expenditures in seven markets will exceed US$1T and US$1.1T respectively. Traffic increases to $200B.
Conversely, SA author The Entertainment Oracle, which has a “hold” rating, noted that Amazon’s expansion into streaming would lead to misleading comparisons with Netflix, which is solely focused on streaming. Amazon’s streaming business is primarily complementary to its main retail business. The analyst said a recent update to its streaming interface to only display content from subscription services is in line with its strategy of keeping its streaming and retail platforms simple and user-friendly.
- Consensus EPS estimate: $1.01
- Consensus revenue estimate: $148.59B
- Earnings Insight: Amazon has beaten revenue estimates in seven of the last eight quarters, while earnings per share only hit 6x during that period.
Also reports: Intel (INTC), Block (SQ), Roku (ROKU), Shell (SHEL), Moderna (MRNA), Twilio (TWLO), ConocoPhillips (COP), Coinbase (COIN), Snap (SNAP), DraftKings ( DKNG), MercadoLibre (MELI), Prudential Financial (PRU), Roblox (RBLX), Biogen (BIIB), Regeneron Pharmaceuticals (REGN), Marathon Digital (MARA), U.S. Steel (X), Sirius XM Holdings (SIRI), Booking Holdings ( BKNG ), Clorox ( CLX ), Consolidated Edison ( ED ), Anheuser-Busch InBev ( BUD ), and more.
Friday, August 2
Chevron (CVX) and ExxonMobil (XOM)
A busy earnings week ends with oil giants Chevron (CVX) and Exxon Mobil (XOM) reporting second-quarter results before the market opens on Friday. Analysts expect both companies’ revenue to grow significantly year over year, but Chevron’s profits to fall.
Seeking Alpha’s quantitative rating system takes a cautious stance on the two stocks, giving both stocks a “hold” rating, while Wall Street analysts maintain an optimistic “buy” rating.
SA author Steven Fiorillo is bullish on CVX and XOM, arguing that ExxonMobil is a strong investment due to its solid financials, attractive valuation and the potential for growth from dividends and buybacks. He also believes Chevron offers value due to its high dividend yield and capital appreciation potential.
- Consensus EPS forecast: XOM: $2.04; CVX: $3.01
- Consensus revenue estimates: XOM: $89.68B; CVX: $50.61B
- Earnings Insight: XOM has surpassed EPS estimates in 5 of the last 8 quarters, with 50% of reports beating revenue estimates, while CVX has topped EPS and revenue estimates in 6% of reports.
Also reports: AMC Entertainment (AMC), Berkshire Hathaway (BRK.A), Editas Medicine (EDIT), Frontier Communications (FYBR), Fulgent Genetics (FLGT), Tellurian (TELL) and others.
