Wall Street will get its first take a look at earnings from major tech firms this week. Google parent Alphabet and Tesla are amongst greater than 100 S&P 500 firms resulting from report earnings. Results from Ford Motor, IBM and General Motors are also due. The reporting period is off to a solid start. As of Friday’s close, about 14% of S&P 500 firms have reported second-quarter numbers. Of those names, 81% beat expectations, in line with FactSet. At 9.66%, the S&P 500’s overall earnings growth can be on course to be the best for the reason that fourth quarter of 2021. Check out CNBC Pro’s breakdown of what to anticipate from this week’s major reports. All times are Eastern time. On Tuesday, General Motors is anticipated to report earnings before the market opens. Management will hold a conference call at 8:30 a.m. Last quarter: GM raised its 2024 guidance, handily beating first-quarter results. This quarter: Analysts expect profits to rise greater than 40% yr over yr, in line with LSEG. What CNBC auto reporter Michael Wayland observes: “Investors have high expectations for General Motors to not only report strong second-quarter earnings, but at least meet the upper end of its 2024 financial targets, if not raise them for the second year in a row. New vehicle sales and prices remained more stable than GM expected at the start of the year, creating a favorable environment for the company in the first half of the year. Aside from results, investors will be eager for news on the company’s launch of new electric vehicles, gasoline-powered trucks and crossovers, as well as commentary on GM’s Cruise autonomous vehicle division and China, where GM has struggled recently.” What history shows: Data from Bespoke Investment Group shows GM beats earnings expectations 87% of the time. The automaker has also posted seven consecutive quarters of profit-beating. Tesla will report its results after the market closes. Company management will then hold a conference call at 5:30 p.m. Last quarter: TSLA shares jumped after CEO Elon Musk said the corporate plans to start out producing an inexpensive electric vehicle in early 2025. This quarter: Analysts surveyed by LSEG expect Tesla to report a 30% year-over-year decline in profit. What to look at: Some analysts are anxious about Tesla ahead of Tuesday’s report, including Barclays’ Dan Levy, who rates the stock equal weight. In a note Wednesday, he warned that the report “could confirm continued pressure on margins, even if they are near a low point.” He added, “While expectations for 2024 have been broadly revised, we still see a need to trim estimates over the medium term due to weaker volumes, leaving significant uncertainty about when fundamentals will return to favorable.” Baird’s Ben Kallo is more optimistic ahead of the report. “We like the setup and think the likelihood of an earnings per share beat is high. We think a more stable pricing environment during the quarter, higher revenue from fully autonomous driving, and strong overachievement in the energy segment all support a solid quarter.” What history shows: Tailored data shows GM beats earnings expectations 62% of the time. However, the stock has fallen after 4 of the last five earnings days. Alphabet will report earnings after the market close, followed by a conference call at 4:30 p.m. Last quarter: GOOGL shares rose after the corporate announced its first-ever dividend. This quarter: The tech giant is anticipated to post earnings growth of nearly 30% from the identical period last yr, in line with LSEG. What to look at: For Alphabet investors, updates on the corporate’s digital ad sales and enhancements in artificial intelligence might be key. Deutsche Bank analyst Benjamin Black also said ahead of the report that he likes the stock’s setup. “Overall, we maintain our buy rating given the robust ad market, AI-related tailwinds, and signs of growing management cost discipline,” he said in a note on Thursday. What history shows: According to Bespoke, Google averages gains of over 1% on the times it reports quarterly results. The tech giant has also beaten earnings estimates for five consecutive quarters. On Wednesday, Ford Motor will report earnings after the market closes. A conference call with management is scheduled for five p.m. Last quarter: Ford’s results beat estimates as the corporate’s industrial unit offsets losses in electric vehicles. This quarter: The automaker’s results are expected to have fallen barely, LSEG data showed. What CNBC auto reporter Michael Wayland observes: “Ford Motor is expected to report a relatively solid second quarter, but not as strong as its same-city rival GM. Ford remains in the midst of a restructuring under Ford CEO Jim Farley called ‘Ford+.’ The plan initially focused heavily on all-electric vehicles, but also calls for more efficient new product rollouts and cost cuts to make the company’s vehicles more profitable. Wall Street expects the automaker’s ‘Ford Pro’ commercial vehicle business, as well as sales of its highly profitable traditional pickup trucks, to offset losses in its ‘Model e’ electric vehicle business.” What history shows: According to Bespoke, Ford’s earnings beat estimates nearly 70% of the time. But on earnings days, shares fall a median of 0.45%. IBM will announce its earnings after-hours, followed by a conference call at 5 p.m. Last quarter: IBM reported one other revenue decline and announced the acquisition of HashiCorp for $6.4 billion. This quarter: Analysts expect flat earnings and revenue year-over-year, in line with LSEG. What to look at: IBM shares have outperformed the S&P 500 technology sector over the past month, rising 7% while the sector has fallen 3% during that point. Can that momentum proceed? RBC analyst Matthew Swanson thinks so. He wrote Thursday, “We expect solid results when the company reports second-quarter 2024 earnings on 7/24, with continued outperformance in infrastructure and improved software results despite a challenging competitive environment.” Swanson has an Outperform rating on his stock. What history shows: IBM’s earnings beat expectations 84% of the time, data from Bespoke shows. On Thursday, American Airlines will report earnings in premarket, with a conference call scheduled for 8:30 a.m. Last quarter: AAL posted a loss but gave better-than-expected guidance. This quarter: The airline’s earnings are expected to have fallen greater than 10% from the identical period last yr, in line with LSEG. What CNBC airline reporter Leslie Josephs observes: “American Airlines investors will want to watch for clear steps the company is taking to correct a direct-to-consumer strategy that backfired earlier this year. The airline cut its earnings and revenue forecast in May and announced that its chief commercial officer will be leaving the company. Investors in the airline will be looking for clues about travel demand and further capacity cuts, as additional flights have pushed down fares this year. American also had one of the most contentious labor negotiations with its flight attendants, and executives will likely be questioned about their progress.” What history shows: American Airlines beats earnings estimates 88% of the time. On earnings days, nevertheless, shares are likely to stay flat.
