Apple, Tesla and Facebook set to report record sales in peak week of earnings

US companies have barely recovered positive earnings growth so far this season of quarterly results, but a big test is set to come in the week.

About a quarter of the S&P 500 SPX,
As calculated based on FactSet data, those companies are set to report results with companies representing the index at 39% below market value. Given that the S&P 500 is weighted by market capitalization, this roster of companies will have a huge impact on the profit trajectory for the index.

Earnings are expected to decline in the fourth quarter in a row, as all results are for the latest period, but those companies reported yet beat expectations overall.

The FactSet consensus now forecasts a 5% earnings decline for the index, compared with a 6.3% drop a week earlier. If the profit growth for the S&P 500 eventually turns positive, it will be the end of the current income downturn, which occurs when corporate profit falls for two or more consecutive quarters.

Apple Inc AAPL,
+ 1.61%
And Facebook Inc. FB,
+ 0.60%
Tesla Inc., along with TSLA, are among the highlights of next week’s slate.
+ 0.20%,
Which will result after becoming a member of the S&P 500 for the first time. The three high-profile companies are scheduled to report on Wednesday afternoon and are expected to produce record revenue in the holiday quarter.

The holiday quarter is always important for Apple, which releases new iPhones in the fall. Launched a little later than usual this year, pushing sales into the epidemic period, Apple is widely expected to post its largest quarterly revenue ever and total ever above $ 100 billion. is. The vast potential of technology continued to see benefits from remote-work and remote-school trends, which have driven strong iPad and Mac sales throughout the COVID-19 crisis.

Full preview: Get ready for Apple’s first $ 100 billion quarter in history

Facebook is also expected to easily record what should be a record quarter given the strong digital advertising trend during the holiday period. Nevertheless, the company will have to face indefinitely the user engagement and Donald Trump’s decision to ban the platform from his role in instigating a violent riot in the US Capitol. Bernstein analyst Mark Schmulik pointed to the “relentless use fatigue” on social media, as well as “looking oblique towards political events unfit by dialogue”.

Full preview: Facebook’s earnings still flourishing amid epidemic, economic downturn and lethal scrutiny

Tesla has already revealed delivery numbers for the full year, which were ahead of analyst expectations, and all will be eyeing the company’s outlook for 2021. RBC Capital Markets analyst Joseph Spack estimates delivery of 825,000 to 875,000,000 units for the full year. Even though chief executive Elon Musk said on Tesla’s last earnings, an analyst was “not far off” to expect 840,000 for one million deliveries during 2021.

Full preview: Can Tesla’s sales growth match the stock’s rise?

What else to watch in the coming week, which brings reports of 117 members of the S&P 500 and 13 Dow Jones Industrial DJ DJs,

Up in the air

The Boeing Company’s B.A.
The journey remains turbulent even after the company’s 737-MAX jets were grounded for nearly two years. However, the company began delivery of these aircraft, “according to Benchmark Company analyst Josh Sullivan, delivering speed to all 450 parks at 737-MAX with the ability to meet the demand for air traffic as well as air traffic by customers. Will be decided. ”

Boeing’s Wednesday morning report will take a look at the company’s recovery expectations amid the epidemic, although Sullivan sees volatility stemming from the recent equity offer and the impact of the COVID-19 crisis on airlines.

American Airlines’ fourth quarter report has been bleak so far, and American Airlines Group Inc. AAL,
And Southwest Airlines Company LUV,
Provide more on Thursday morning.

Can you hear me now

Verizon Communications Inc., VZ
+ 0.35%
Tuesday morning leads to a busy week of telecom earnings, followed by AT&T Inc. T.,
+ 0.35%
Wednesday Morning and Comcast Corp. CMCSA,
Thursday morning

For wireless carriers, a major issue will be the impact of the iPhone 12 promotion on recent results. Investors will be looking for information about the spectrum recently offered for wireless auctions that will be critical to the deployment of 5G networks. Although the bid has not yet been made public, the auction halted record spending and both AT&T and Verizon have paid handsomely to claim their standing. The question for investors is what will be the impact of these bids on the financial position of the companies.

Full preview: AT&T proceeds to kick off a defining year for the telecom giant

AT&T and Comcast have more media exposure than Verizon, and those two companies have tried to contend with the new realities brought on by the epidemic. Both companies have made moves to emphasize more with their film slates as the theater closes, and the financial implications of these moves will be worth watching.

Are paying

The emergent situation with the epidemic is reflected perhaps not more clearly than the results of Visa Inc. V.
MasterCard Inc MA,
And American Express Company AXP,
Which is a pulse on the global consumer spending scenario. Companies should provide insight on a travel recovery at the end of the year, as well as the impact of the recent lockdown.

Sushekhana analyst James Freedman recently wrote that his MasterCard revenue of $ 3.97 billion is slightly lower than the consensus viewpoint, although he also asked: “Does anyone really care about Q4 2020?” Freedman is excited about the mobile-payment and online-shopping dynamics that suggest a “positive trend ahead” for MasterCard, which reports on Thursday morning. Visa follows that afternoon, while American Express with its Tuesday morning report for the week.

The chip saga continues

Advanced Micro Devices Inc., AMD
+ 1.38%
Intel Corp. Is ready to benefit from INTC,
Stumbles, which analysts expect to last for some time, even as Intel prepares a new, technology-oriented chief executive to take the helm.

Jefferies analyst Mark Lipakis wrote after Intel’s latest earnings report, “We are less confident that Intel will be able to close that transistor gap quickly and therefore expect it to continue losing stock for the future. AMD will show up That is how Dynamic has played in its side of the equation when it posts the number on Tuesday afternoon.

Full preview: If Intel does its action together, can AMD sustain the inflammation?

Other chip makers reporting in the week include Texas Instruments Inc. TXN included.
Tuesday afternoon; Xilinx Inc. XLNX,
+ 1.26%,
In the line to be acquired by AMD in Wednesday afternoon’s report, when chip-making company Lam Research Corp. LRCX,
; And Western Digital Corp. WDC,
Thursday afternoon.

Busy week for dow

Of the 13 members of the Dow Jones Industrial Average DJIA,
3M Co MMM set to report this week
, Johnson & Johnson JNJ,
+ 1.13%,
American Express, Verizon and Microsoft Corp, MSFT
+ 0.44%,
All of which report on Tuesday.

“In the near term, we see the company’s COVID-19 vaccine readout as an important upcoming catalyst and consider efficacy in the 80% + range,” JPMorgan analyst Chris Scott quoted Johnson & Johnson. .

Cowen & Company analyst J. Derrick Wood sees tough comparisons for Microsoft, particularly in its Azure and server businesses, although he expects a more favorable position to move forward.

Full preview: SolarWinds hack can actually be a good thing for Microsoft

Wednesday brings results from Boeing and Apple, while on Thursday, McDonald’s Corp MCD
Dow Inc. Dow,
And visa. Honeywell International Inc., Honey
Chevron Corp CVX,
And Caterpillar Inc Kat,
Week out of Friday morning.


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