A giant earnings week is coming up, with among the biggest firms on this planet collaborating. About 30% of the S&P 500 is anticipated to report. So far, the reporting period has been mixed. While greater than 73% of reported firms beat estimates, overall first-quarter growth is on target to be flat from a 12 months ago, FactSet data shows. Analysts expected growth of greater than 3% firstly of the season. Companies set to release results include Meta Platforms, Tesla and General Motors. Take a take a look at CNBC Pro’s breakdown of expectations for a few of this week’s biggest stories. All times are eastern. On Tuesday, General Motors will report its premarket earnings, followed by a conference call at 8:30 a.m. Last quarter: GM beat Wall Street earnings and gave strong 2024 guidance. This quarter: Analysts expect a slight year-over-year decline in profits, LSEG data shows. What CNBC auto reporter Michael Wayland observes: “Wall Street expects General Motors to report solid, if not ‘resilient’ results for the first quarter of this year, largely due to expectations that vehicle prices will rise According to recent analyst reports, the company has beaten Wall Street earnings estimates in 35 of the last 36 quarters, leading several analysts to name GM their top pick in the automotive space. “Aside from the results, some investors expect the company to raise its full-year guidance. Aside from earnings, any updates to its electric vehicle plans, its Cruise autonomous car division, or its stock buyback program will be closely watched by investors.” What History Shows: According to Bespoke Investment Group, GM beats earnings expectations 87% of the time. However, shares fell on three of the last four reporting days. Tesla is expected to report earnings after the market closes. A call with management is scheduled for 5:30 p.m. Last quarter: TSLA reported weak automotive sales and warned of slower sales growth in 2024. On the back of the report, stocks fell. This quarter: According to LSEG, Tesla profits are likely to have fallen nearly 40% year-over-year. What CNBC is watching: Tesla will struggle with its earnings report as the stock has fallen more than 40% since the start of the year. The company was also downgraded to “Hold” from “Buy” by Deutsche Bank analyst Emmanuel Rosner amid concerns about the electric vehicle maker’s possible move away from a low-cost, entry-level vehicle toward a robotaxi. What History Shows: Tailored data shows Tesla beating earnings estimates 63% of the time. However, the stock has fallen following the last four earnings releases. Boeing will report premarket earnings on Wednesday. A phone call with management is scheduled for 10:30 a.m. Last quarter: BA held off on releasing 2024 guidance as the CEO said “we caused” the 737 Max 9 air damage. This quarter: Boeing revenue is anticipated to have fallen greater than 8% year-over-year, in response to LSEG data. What CNBC is watching: The problems for Boeing won’t stop. Shares have fallen 35% for the 12 months, a whistleblower said last week the corporate should stop production of the 787 Dreamliner because of safety concerns, and CEO Dave Calhoun said last month he would step down at the tip of 2024. Could this be the aerospace giant’s first quarter? Numbers mark the start of a trend reversal? What History Shows: Boeing shares have risen in 4 of the last five earnings days, Bespoke data shows. Additionally, the corporate beats earnings estimates 69% of the time. Chipotle Mexican Grill is scheduled to report earnings after the bell, followed by a call with management at 4:30 p.m. Last quarter: CMG significantly beat earnings estimates due to strong restaurant dining. This quarter: The fast-casual chain is anticipated to post double-digit profit and revenue growth, in response to LSEG. What CNBC is watching: Chipotle investors read the corporate’s earnings report and like what they see from the Mexican grocery chain. Shares are up about 25% because the start of the 12 months. Can the stock maintain its momentum? Peter Saleh, analyst at BTIG, continues to be bullish together with his $3,250 price goal and Buy rating. “In the seasonally strong spring season, same-store sales should accelerate as the company benefits from faster throughput, the Easter shift and higher prices in California,” Saleh wrote last month. What history shows: Chipotle has exceeded earnings expectations 4 quarters in a row, in response to Bespoke. Ford Motor is anticipated to report earnings after the market closes. Management is anticipated to carry a conference call at 5 p.m. Last quarter: F beat earnings estimates and provided solid guidance for the 12 months. This quarter: The automaker’s profits are expected to have fallen greater than 33% in comparison with the identical period last 12 months, LSEG data shows. What CNBC auto reporter Michael Wayland observes: “There is less consensus about Ford Motor than its rival General Motors. While the Detroit automaker is Morgan Stanley’s “top pick,” many others on Wall Street are less optimistic about the company. Ford has faced years of unexpected warranty and recall problems that have hit its profits and continues to lose billions on sales of its all-electric vehicles. Investors will be watching for improvements in both areas, as well as progress on CEO Jim Farley’s “Ford+” restructuring plan, first announced in 2021. Investors will also be interested in further changes to the vehicle lineup, including electric and hybrid vehicles, and future production plans.” What History Shows: According to Bespoke, Ford has beaten earnings estimates in three of the last 4 quarters. However, shares are down on 4 of the last five earnings days. Meta Platforms is anticipated to post its earnings report. A conference call can be scheduled for five:00 p.m. Last quarter: META profits tripled year-over-year, and the corporate paid its first dividend 100%, in response to LSEG: Meta shares have soared about 36% this 12 months. Can Citi analyst Ronald Josey recently raise his price goal on the stock? : “We believe Meta will benefit from greater engagement and numbers of Reels ads and adopt newer ad formats and features (including Adv.+ creative and catalog updates, reminder ads and longer Reels) as our research suggests Advertisers are increasingly using Reels and its lo-fi video ads for campaigns.” What history shows: According to Bespoke, Meta has a powerful revenue track record, beating estimates 87% of the time. Even on earnings days, shares record a mean gain of two.3%. Alphabet will report earnings after the market closes on Thursday. A management conference call is scheduled for 4:30 p.m. Last quarter: GOOGL shares fell because of disappointing promoting revenue. This quarter: Google parent is anticipated to post earnings growth of about 30%, LSEG data shows. What CNBC is watching: Alphabet investors will probably be trying to the tech giant for updates on the AI front. Last month, Bloomberg News reported that the corporate was negotiating with Apple to license its Gemini AI tools for the iPhone. What history shows: According to Bespoke, shares of the Google parent company record a mean gain of 1.3% on earnings days. However, the stock fell within the last two reporting days, including a decline of 9.6%. Microsoft is anticipated to report earnings after the market close, followed by a conference call at 5:30 p.m. Last quarter: MSFT gave light guidance despite strong Azure growth. This quarter: The tech giant is anticipated to report profit and revenue growth of greater than 10% in comparison with the identical period last 12 months, in response to LSEG. What CNBC tech reporter Jordan Novet observes: “Microsoft stock has helped keep the S&P in positive territory this 12 months, due to growth from artificial intelligence. Now investors need to see latest progress. When Microsoft reports on Thursday, it should talk concerning the first full quarter of the impact of the launch of the Copilot AI assistant for industrial customers of Microsoft 365 productivity software. Analysts would search for the next share of Azure cloud growth tied to AI workloads. together with any latest comments about firms attempting to optimize their cloud spending. A recovering PC market should boost sales of Windows licenses.” What history shows: Microsoft’s profits have beaten earnings estimates in six consecutive quarters, Bespoke data shows. However, the stock fell following the release of these four reports.
Wednesday, November 27, 2024
