This earnings reporting season has yet to live up to expectations that it will be the worst since the depth of the 2008 financial crisis, but many big names may deliver some better news in the coming week.
Tesla Inc. TSLA,
Microsoft Corporation MSFT,
And Intel Corp. INTC,
The pace increases as soon as the report’s inverse slate is highlighted. Eight Dow Jones Industrial Average DJIA,
The components are set to number with 80 members of the S&P 500 Index SPX in the coming week,
So far, the results have been disappointing. S&P 500 components reported a 47.4% drop in second quarter profits, with the release of approximately 9% of the report. Analysts modeled the 44% earnings decline for the index as a whole model, taking into account previously reported results and estimates for the rest. This would mark the steepest year-over-year decline in income since the fourth quarter of 2008, when profits fell by 70%.
See More: S&P 500 Earnings as Coronavirus Determined to Collide on All Areas – Wall Street Counts at a Bounce That May Not Come
Tech giants Intel and Microsoft are on a better trajectory as both benefit from in-house trends during the coronovirus epidemic, which cater to greater demand for remote-work services and devices, and posting modest dips-per-share Hoping to exclude development. Net income. Positive surprises can help the overall performance of the S&P 500, as larger companies tend to be heavier in the index. Microsoft reports later Wednesday afternoon and Intel arrives a day later.
Tesla expects FactSet to show red ink for the second quarter, though analysts estimate lower losses than a year earlier. Some are still hopeful that the company can help a surprising GAAP gain and land Tesla in the S&P 500, requiring four straight quarters of profitability to enter; Tesla has been profitable for the last three quarters.
Other leading names include United Airlines United Airlines Holdings Inc. in the coming week. UAL, included.
And Southwest Airlines Company LUV,
Social-media player Twitter Inc. TWTR,
And snap inc snap,
As well as Chipotle Mexican Grill Inc. CMG,
There are some topics to see.
Tesla’s next test
Tesla crushed delivery expectations in the second quarter, providing more ammunition in the stock’s strong 2020 rally, and now the company faced another test because of the financial impact of COVID-19 on its business It shows.
Read: Will Tesla’s earnings tap on next week to compensate for the stock market rally?
Barclays analyst Brian Johnson wrote that upbeat delivery numbers suggest that consensus financial forecasts may be too conservative. He was already forecasting a $ 4.2 million GAAP profit before the delivery was announced and has since brought his estimate to $ 42 million. The FactSet consensus currently calls for a loss of $ 53 million.
AT&T Inc, T
And Verizon Communications Inc. VZ,
It is set to show how the trend of smartphone buying has evolved during the epidemic. The two companies saw the equipment revenue tank at the end of the March quarter due to COVID-19 closing stores, but analysts are optimistic that things are now picking up that social-sanctions restrictions have eased.
Even with these challenges, the wireless business should remain a bright spot for AT&T, which is working with film production for its Warner Bros. business, advertising weakness for its media channels, and on DirecTV Avalanche of cord-cutting. AT&T’s numbers are due on Thursday morning, followed by Verizon the next day.
Delta Air Lines Inc. After the lentils,
Gave a loss of $ 5.72 billion for the June quarter and warned that “permanent recovery” seems to be more than two years away, with United and Southwest on deck.
United’s comments would be particularly worth watching because Helen Baker of Cowen & Company said the company is “at the forefront with information about the reality of the epidemic” and “more right than wrong” during the crisis. She will be looking for information on planned staff reductions and capacity changes. “What has been most disappointing about the combined situation and their ability plans has been mimics,” Baker said. The next day proceeds with a morning call.
For Southwest on Thursday morning, Baker is interested to see if the company will use the recession as an opportunity to gain shares as it has in the past.
Twitter is set to face investors on Thursday morning, more than a week after the company faced a troubled security breach that allowed hackers to access several major Twitter accounts for what appeared to be a bitcoin scam. The company is still investigating the incident and management is sure to face tough questions about Twitter’s privacy and security mechanisms. John Egbert of Stifel expects Twitter to increase its security spending even more.
Twitter and Snap should shed light on the state of the advertising market during the epidemic. Egbert predicted that Snap’s revenue growth plummeted from the first quarter to the second quarter, but he still looks for double-digit advertising growth from a year earlier, given Snap’s “growing appetite” for direct-response ads. Has been doing. Snap report on Tuesday afternoon, followed by Twitter on Thursday morning.
food for thought
As some states take a strict stance on indoor food, Chipotle will emphasize its digital progress on Wednesday afternoon. Third-party data and loyalty sign-ups on app downloads suggest a “suggestion in stock for a longer period”, wrote Gregory Francefort of Bank of America. He added that the company feels “we are having to manage COVID better than expected” although she still worries about the economics of delivery.
One week of dow
International Business Machines Corp. has at least one Dow component every day in the week before starting with IBM.
Monday afternoon, to the Coca-Cola Company,
Microsoft on Tuesday morning, and Wednesday afternoon. Passenger Cos. Inc. TRV,
Dow and Dow, Inc.
Follow on Thursday morning, that afternoon with Intel, and American Express Company XXP,
And the Verizon round out on Friday morning.