Big Tech Earnings To Watch This Week | October 24 – 28

Tech giants under the earnings microscope! This week, the world’s largest tech companies all report their September-quarter financial results. Every one of these companies reports results in a three-day span, from Tuesday to Thursday. Therefore, upcoming earnings reports may cause increased volatility in the stock market. This article will help you get informed in order to build your trading and investing strategy during such an important period.

What are Earnings?

A quarterly earnings report is a quarterly filing made by public companies to report their performance. Earnings reports include items such as net income, earnings per share, earnings from continuing operations, and net sales. By analyzing quarterly earnings reports, investors can begin to gauge the financial health of the company and determine whether it deserves their investment. This week we will see such reports from the big tech giants for Q3 2022.

Why is it so important for investors and traders?

It will be the last full read on the sector’s fundamental performance before the end of the year, and the wave of reports could determine the next swing in stock prices. The tech sector continues to face fierce headwinds from the strong dollar, softening consumer spending, rising interest rates, stubbornly high inflation, and a potential recession. The market is yearning for some hint that the worst is over, but don’t hold your breath.

Big Tech Earnings To Watch

This week we expect the biggest global tech companies to report third-quarter earnings in the week to come: Alphabet ($GOOGL), Twitter ($TWTR) and Microsoft ($MSFT) on Tuesday; Meta ($FB) on Wednesday; Apple ($AAPL) and Amazon ($AMZN) on Thursday. But could Q3 earnings provide the pivot they need to recover? Let’s find out more about this!

Meta ($FB)

Meta will release its 3rd quarter results on Wednesday, 26 October. Analysts expect earnings per share of $1.86 (59 cents less than last quarter), and revenue is estimated at $27.42 billion, which is also less than in the previous period. Meta Platforms Inc.’s quarterly report will show us whether its first-ever revenue decline last quarter will actually be the first of many. Meta may join a chorus of social media companies lamenting the ongoing effects of Apple Inc.’s privacy changes, which made it harder for them to track your online activity and tailor ads specifically for you.

Alphabet ($GOOG)

Google parent Alphabet will round out the slate of mega-cap tech reports due in Tuesday’s after-hours period. Shares of the tech giant have tumbled over 30% in the past year, accelerating declines since August alongside many of its tech peers. Nevertheless, the company plans to show increased profits and slightly reduced EPS compared to the previous quarter. The results may turn out to be mixed. Meanwhile, Wall Street analysts see the stock as a “Strong Buy” ahead of the Q3 report.

Microsoft ($MSFT)

Microsoft is due to post its quarterly earnings update after the market closes on Tuesday. Shares of the software giant have declined about 30% in 2022, outpacing declines in broader indices and accelerating to the downside since the summer in particular. Since August, analysts have reeled in estimates significantly, with EPS and revenue estimates revised downward. The company has also cut a significant number of staff since that point, reportedly laying off 1,000 employees.

Twitter ($TWTR)

Twitter, Inc. is estimated to report earnings on October 25th. But the upcoming earnings date is derived from an algorithm based on a company’s historical reporting dates. According to analysts’ forecasts, the consensus EPS forecast for the quarter is $-0.21. The reported EPS for the same quarter last year was $-0.7. This could be one of the worst numbers in the past year, caused in part by the legal battle with Elon Musk.

Apple ($AAPL)

Apple will release its 3rd quarter results on Wednesday, 26 October. Analysts expect earnings per share of $1.86 (59 cents less than last quarter), and revenue is estimated at $27.42 billion, which is also less than in the previous period. Apple will report on Thursday of next week, giving investors a look at the health of consumer spending. Analysts will track iPhone sales data closely and will watch Apple’s bottom line to see if the company’s year-over-year earnings per share shrink for the first time in two years.

Amazon ($AMZN)

Seattle-based retail giant Amazon will update investors on its quarterly performance after the market close on Thursday. In the 90 days prior to the earnings release, consensus EPS estimates have been revised down 35 times. Nevertheless, looking back at the firm’s last earnings report, shares of Amazon marked a double-digit gain on the day after announcing its Q2 results. Financial figures were bolstered by a surge in net AWS sales from $14.8B in Q2 2021 to $19.74B in Q2 of 2022. This time around, the company may also increase EPS to $0.20 and revenue to $127.57 billion. This could again have a positive effect on the share price immediately after the data is released.

Conclusion

All of the above and many other company shares are available on NAGA. This means you can improve your trading experience and explore updated trading strategies with upcoming earnings reports in mind. Find out more about investing in real stocks.

Summary

• This week, the world’s largest tech companies all report their September-quarter financial results.
• Alphabet ($GOOGL), Twitter ($TWTR), Microsoft ($MSFT), Meta ($FB), Apple ($AAPL) and Amazon ($AMZN) expect the biggest global tech companies to report third-quarter earnings.
• It will be the last full read on the sector’s fundamental performance before the end of the year, and the wave of reports could determine the next swing in stock prices.
• The earning statement dates mentioned are provisional. They are subject to change at the discretion of the company.