As the calendar transitions from January to February, the upcoming week promises a flood of earnings reports from some of the world’s largest companies by market capitalization. Among the noteworthy releases are anticipated updates from tech giants Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG).
In addition to these tech behemoths, the week ahead will also feature reports from diverse sectors, including coffee giant Starbucks (SBUX), aerospace and defense giant Boeing (NYSE:BA) and payment processor Mastercard (MA). In addition, figures are slated to be released by major pharmaceutical players Pfizer (PFE), AbbVie (ABBV), Novartis (NVS) and Merck (MRK), as well as energy sector giants Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM).
Furthermore, investors can expect insights into the automotive industry with updates from General Motors (GM) and the semiconductor sector, featuring stalwarts like Advanced Micro Devices (AMD), and Qualcomm (QCOM). The upcoming week’s earnings releases are poised to provide a comprehensive snapshot of the financial landscape across various key sectors.
Below is a rundown of the major quarterly updates anticipated in the week of January 29 to February 2.
Monday, January 29
SoFi Technologies (NASDAQ:SOFI)
SoFi Technologies (SOFI), an online personal financing firm, is set to announce its Q4 earnings results on Monday before the market opens. The stock has experienced a 23% decline since the start of 2024. Meanwhile, it has received a Hold ratings from both sell-side analysts and Seeking Alpha’s Quant rating system, which flags profitability as a chief concern.
Despite the stock’s pullback in recent weeks, JR Research, a SA Investing group leader, suggests that investors should closely monitor SoFi’s price action and improved fundamentals. With these as evidence, the analyst argued that there may not be a need for undue concern.
- Consensus EPS Estimates: Nil
- Consensus Revenue Estimates: $571.51M
- Earnings Insight: The company has exceeded revenue in 100% of the past 8 quarters, missing EPS only once in that time frame.
Also reporting: Cleveland-Cliffs (CLF), Nucor (NUE), Whirlpool (WHR), Philips (PHG), Super Micro Computer (SMCI) and more.
Tuesday, January 30
Alphabet (GOOG) (GOOGL)
Alphabet (GOOG) is scheduled to announce its Q4 results during Tuesday’s post-market session. The parent company of Google has displayed remarkable stock performance over the past year, boasting over 58% growth in the past twelve months. This has outpaced the S&P 500’s approximately 22% advance since January 2023.
Looking at the firm’s projected results, analysts anticipate a 50% bottom-line increase, fueled by AI enthusiasm and layover buzz.
The Seeking Alpha Quant Rating system has shown some uncertainty lately. After consistently signalling a Strong Buy stance for some time, in mid-January, the system for grading stocks on quantitative measures shifted to Hold. However, this too has reversed lately: earlier this week, SA’s Quant Ratings reverted to a Strong Buy recommendation
Wall Street analysts maintain a bullish view on the stock, with a consensus Buy rating.
However, Tangerine Capital, a Seeking Alpha author, issues a cautionary note, warning that generative AI advancements may pose a threat to Alphabet’s advertising dominance, while the expanding cloud business could lead to potential future margin shrinkage.
- Consensus EPS Estimates: $1.60
- Consensus Revenue Estimates: $85.23B
- Earnings Insight: Google has topped EPS expectations in 4 of the past 8 quarters, beating revenue estimates in 5 of those reports.
Microsoft (MSFT)
Scheduled to detail its quarterly performance after the closing bell on Tuesday, Microsoft (MSFT) follows Alphabet in the earnings lineup. Microsoft has outperformed the broader market by an even wider margin than GOOG. Shares of the software giant have showcased over 68% growth in the past year.
While Seeking Alpha’s Quant Rating system maintains a cautious Hold outlook, Wall Street analysts continue to express optimism with a Strong Buy rating.
Recently, the US Federal Trade Commission has opened an in-depth inquiry into Alphabet, Amazon, and Microsoft’s deals with artificial intelligence start-ups, Anthropic, and OpenAI. The inquiry, which will scrutinize their corporate partnerships and investments, will aim to assess the tech giants’ market cap of over $6.5 trillion.
SA Investing Group leader Daniel Jones emphasizes Microsoft’s strategic integration of AI into its business, citing investments in OpenAI and the development of Copilot as positioning the company for future success.
- Consensus EPS Estimates: $2.76
- Consensus Revenue Estimates: $61.1B
- Earnings Insight: Microsoft has outperformed EPS forecasts in 7 of the last 8 quarters and revenue in 6 of those quarters.
Also reporting: Advanced Micro (AMD), Pfizer (PFE), Starbucks (SBUX), General Motors (GM), UPS (UPS), Corning (GLW), Electronic Arts (EA), Danaher (DHR), Cameco (CCJ), Mondelez Int’l (MDLZ), Stryker (SYK), JetBlue Airways (JBLU), Teradyne (TER), Sysco (SYY), Match Group (MTCH), Chubb (CB), Juniper Networks (JNPR), PulteGroup (PHM) and more.
Wednesday, January 31
Boeing (BA)
Boeing (BA) is preparing to report Q4 results before the opening bell on Wednesday. The Virginia-based industrial and defense giant has seen a 23% drop in shares since the start of 2024, prompting a Hold rating from Seeking Alpha’s Quant Rating system due to valuation concerns. In contrast, Wall Street analysts maintain a Buy rating.
Recetly, Bank of America Securities downgraded Boeing from Buy to Neutral, citing worries about product quality and safety. This comes after the US Federal Aviation Administration restricted Boeing from expanding its 737 Max jetliner output, although grounded planes will be allowed to fly post-inspections.
The downgrade follows the grounding of 170 Boeing 737 Max 9 jets on January 6 after a midair crisis. Bank of America Securities has reduced its earnings estimates for Boeing in 2024 and 2025, emphasizing the need for quality improvements as the company aims to increase production amid heightened post-pandemic air travel demand.
- Consensus EPS Estimates: -$0.75
- Consensus Revenue Estimates: $21.11B
- Earnings Insight: Boeing has beaten EPS expectations just once in the past 8 quarters and revenue just twice in that span.
Also reporting: Qualcomm (QCOM), Mastercard (MA), Teva Pharma (TEVA), GlaxoSmithKline (GSK), Phillips 66 (PSX), Corteva (CTVA), Novartis AG (NVS), Nutrien (NTR), Agnico-Eagle Mines (AEM), Thermo Fisher (TMO), Qorvo (QRVO), Automatic Data (ADP), Aflac (AFL), MetLife (MET), NASDAQ (NDAQ) and more.
Thursday, February 1
Meta Platforms (META)
Facebook parent Meta Platforms (META) is set to announce its Q4 results after Thursday’s closing bell. Following an impressive performance in Q3, the social media giant projected Q4 revenue within the range of $36.5B to $40B.
However, concerns over a weak outlook for advertising revenue impacted shares. Despite this, Meta’s cost-cutting measures and a rebound in ad income have significantly boosted the stock’s performance, resulting in a substantial 177% gain over the past 12 months.
- Consensus EPS Estimates: $4.99
- Consensus Revenue Estimates: $39.09B
- Earnings Insight: Meta has topped EPS expectations in 4 of the past 8 quarters, beating revenue estimates in 6 of those reports.
Amazon (AMZN)
E-commerce and cloud giant Amazon (AMZN) is set to unveil its Q4 earnings on Thursday after the market closes. While Wall Street analysts have a consensus Strong Buy rating, Seeking Alpha Quant Ratings system assesses the company as a Hold. Over a period of one year, Amazon shares have seen a 62% increase .
SA contributor Bradley Guichard takes a bullish stance on the stock, noting that Amazon is historically undervalued and currently trading 17% below its all-time high. He believes the current price doesn’t fully reflect the company’s potential.
- Consensus EPS Estimates: $0.79
- Consensus Revenue Estimates: $166.25B
- Earnings Insight: Amazon has beaten revenue and EPS expectations in 5 of the past 8 quarters.
Apple (AAPL)
California-based tech giant Apple (AAPL) is set to release its Q1 earnings after Thursday’s market close. AAPL shares have gained over 35% in the past 12 months, although that largely represents a sharp rise in the first half of 2023 and sideways trading since. The stock maintains a market value of $3T.
Analysts anticipate an increase in earnings per share Y/Y, while revenue is expected to remain nearly flat. Despite Wall Street analysts maintaining a Buy rating, Seeking Alpha’s Quant Rating system has concerns about growth and valuation, assigning a Hold rating.
In China, Apple has become the largest phone seller, securing a 17.3% market share in 2023 according to IDC. Although iPhone shipments declined by 2.1% in Q4, Apple surpassed Vivo for the entire year.
However, analysts predict sales pressure in 2024, attributing it to competition, limited product upgrades impacting high-end market share, and reduced iPhone appeal. Despite these challenges, Apple managed to maintain demand through discounts and promotions offered through third-party distribution channels.
SA author Geoffrey Seiler observes that AAPL stock has been a significant winner over the past decade and five years. However, Seiler highlights potential risks for Apple, particularly in two large high-margin revenue streams—its app store and search default revenue.
While he doesn’t expect these revenue sources to disappear soon, there’s a real possibility of them facing challenges at some point. Seiler suggests that a hardware upgrade cycle and the Vision Pro could provide support in 2024, but he expresses concerns about the stock’s valuation, deeming it unattractive given the potential risks the company is confronting.
- Consensus EPS Estimates: $2.10
- Consensus Revenue Estimates: $118.26B
- Earnings Insight: Apple has beaten EPS estimates in 7 of the past 8 quarters, missing revenue expectations in 3 of those reports.
Also reporting: Altria (MO), Merck (MRK), Enterprise Products (EPD), Barrick (GOLD), Honeywell (HON), Peloton (PTON), U.S. Steel (X), Sirius XM (SIRI), Sanofi (SNY), Royal Caribbean (RCL), Clorox (CLX), Cardinal Health (CAH), Atlassian (TEAM), First Majestic Silver (AG), Illinois Tool (ITW), Canadian Natural Resources (CNQ) and more.
Friday, February 2
Oil giants Chevron (CVX) and Exxon Mobil (XOM) are gearing up to unveil their Q4 earnings before the market opens on Friday. Despite both stocks trailing the broader market index, Seeking Alpha’s Quant Rating system takes a cautious stance with a Hold rating. In contrast, Wall Street analysts remain optimistic, assigning both stocks a Buy rating.
Amid current market conditions and rising crude oil prices, analysts anticipate a year-over-year decline in earnings per share and revenue for both CVX and XOM.
Last week, TD Cowen downgraded Chevron to Market Perform with a lowered price target of $150, expressing execution concerns. Conversely, TD Cowen upgraded Exxon Mobil to Outperform with a $115 price target, highlighting the stock’s decline and unchanged valuation.
SA Investing Group leader Danil Sereda maintains a bullish stance on Exxon Mobil, citing the integrated oil and gas industry’s expected growth due to supply-side measures and a resurgence in crude oil consumption. He emphasizes XOM’s appeal with organic growth opportunities, the pending acquisition of Pioneer Natural Resources, and the potential for cash returns and dividend growth.
Also reporting: Bristol-Myers (BMY), Enbridge (ENB), Regeneron Pharma (REGN), Brookfield Renewable Partners (BEP), The Cigna Group (CI), Grainger (GWW) and more.
