After Netflix' Disappointment Spotlight Shifts to Apple, Amazon, And Google: Here Are The Key Earnings To Watch Out For

Zinger Key Points
  • The spotlight shifts to tech earnings in the unfolding week as Big techs prepare to release their quarterly scorecards
  • Apple, Google parent Alphabet are among the companies expected to report strong results although geopolitical tensions have cast a cloud on the outlook

The earnings season has started on a firmer footing. The percentage of S&P 500 companies reporting a positive earnings surprise is above the five-year average, but the magnitude of upside surprise is below the average for the same timeframe, FactSet said in its weekly earnings insight report.

It's still early days to provide any conclusive evidence, given only 20% of the S&P 500 companies have released their quarterly results.

We are moving into that part of the reporting season, when tech earnings pick up their pace, taking over the baton from financial companies. Last week, Netflix, Inc. NFLX reported a revenue miss amid a loss of net paid adds. Investors promptly punished the stock, particularly because the management's revival package suggested a long-drawn-out recovery.

The following big tech companies are scheduled to release their quarterly results in the unfolding week:

Alphabet, Inc. GOOGL GOOG

Earnings Date: Tuesday after the market close

The Google parent is expected to report earnings per share (EPS) of $26.11 and revenues of $68.04 billion, according to BenzingaPro data. This compares to the year-ago numbers of $26.29 and $55.31 billion, respectively.

"By virtue of advantaged positioning for new ad privacy restrictions, leadership in viral video and emerging success in cloud services, no company is better positioned to leverage what is working online right now, and avoid what isn't," Rosenblatt Securities analyst Barton Crockett said in a recent report.

The earnings call is scheduled for 5 p.m. EDT.

Microsoft Corporation MSFT

Earnings Date: Tuesday, after the close

Analysts, on average, estimate, EPS of $2.18 for the fiscal-year third quarter, up from $2.03 a year ago. Revenue is expected at $49.03 billion, compared to $41.7 billion in the year-ago quarter.

Piper Sandler analyst Brent Bracelin expects the company's cloud mix to increase to 48% of the total revenue and a positive bias to Office 365. The analyst, however, warned that there is “little margin for error,” given the guidance for a sequential improvement in Azure and expectations for moderation in commercial bookings growth.

The earnings call is scheduled for 5:30 p.m. EDT on Tuesday.

Related Link: Apple's Newest Line Dominated iPhone Sales In Q1: What It Could Mean For Earnings

Meta Platforms, Inc. FB

Earnings Date: Wednesday, after the close

The consensus expectations for the first quarter call for EPS of $2.56 per share and revenue of $28.23 billion. Meta's top- and bottom-line were at $2.56 per share and $23.67 billion a year ago.

Meta is coming off a disappointing quarter, as it missed expectations on many metrics in the fourth quarter. The company suggested on the previous quarter's earnings call that Apple, Inc.'s AAPL App tracking transparency feature will impact 2022 revenues by about $10 billion.

The earnings call is scheduled for 5 p.m. EDT.

Twitter, Inc. TWTR

Earnings Date: Thursday, before the market open

Analysts, on average, expect Twitter to report first-quarter EPS of 3 cents, down from 16 cents in the year ago quarter. Revenues are estimated to have climbed 19.20% year-over-year to $1.22 billion.

This time around, the focus will be on what Twitter's management has decided about Tesla, Inc. TSLA CEO Elon Musk's offer to buy the company for $54.20 per share.

The earnings call is scheduled for 8 a.m. EDT.

Apple AAPL

Earnings Date: Thursday, after the close

Apple is expected to report fiscal year second-quarter EPS of $1.43, up from $1.40 in the year-ago quarter. The consensus estimate for the quarter calls for revenue of $94.02 billion, up from $89.6 billion for the year-ago quarter.

Morgan Stanley analyst Katy Huberty said she expects upside to March quarter expectations, with iPhone 13 and Mac strength more than offsetting relative underperformance in iPad and Services.

With COVID resurgence in China prompting many of its suppliers to shutter operations in April, investors may be keen on finding out the impact of component shortages.

The earnings call is scheduled for 5 p.m. EDT.

Amazon, Inc. AMZN

Earnings Date: Thursday, after the close

Amazon's first-quarter EPS is expected to decline from $15.79 in 2021 to $8.13 in 2022. Revenue, however, is expected to increase 11.30% to $116.29 billion.

The earnings call is scheduled for 5:30 p.m. EDT.

Other Key Earnings:

Activision Blizzard, Inc. ATVI (Monday, before the market open)
Spotify Technology S.A. SPOT (Wednesday)
Qualcomm, Inc. QCOM (Wednesday, after the close)
Intel, Inc. INTC (Thursday, after the close)

Related Link: How Elon Musk Managed to Convince Banks For Financing Proposed Twitter Deal?

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Posted In: EarningsNewsPreviewsTechTrading IdeasBarton CrockettBrent BracelinElon MuskKaty Huberty
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