Strap in. The busiest week of the earnings season is upon us. Roughly 160 S & P 500 companies are slated to post their quarterly figures, including Microsoft and Advanced Micro Devices .
Apple is also on deck. Those reports come as major tech stocks face pressure from a rotation out of the winning mega-cap trade in favor of beaten-down small-cap names. The first reports from stocks within the former cohort weren't well received, either.
Tesla and Google parent Alphabet fell sharply last week on disappointing releases, dragging the broader market lower. The overall season, however, has been solid. About 41% of S & P 500 companies have reported earnings through Friday's close.
Of those names, 78% have beaten earnings expectations. Take a look at CNBC Pro's breakdown of what's expected from this week's key reports. All times are Eastern.
Tuesday Advanced Micro Devices is set to report earnings after the bell. A call with management is slated for 5 p.m.
Last quarter: AMD said it will sell $4 billion in artificial intelligence chips this year. This quarter: Analysts polled by LSEG expect the chipmaker's earnings per share gained 17% from the year-earlier period. What CNBC is watching: Investors will look for signs of progress on the chipmaker's position in the AI race.
In a note last week, Stifel analyst Ruben Roy said: "We continue to believe that AMD has established itself as a strong Number Two supplier of GPU-based AI compute and we expect continued progress as the company expands its AI technology footprint." What history shows: AMD has a checkered record around earnings. The company beats expectations 62% of the time, per Bespoke Investment Group.
However, shares average a 1.5% drop on earnings days. Microsoft is set to report earnings after the close, followed by a call at 5:30 p.
m. Last quarter: MSFT reported cloud revenue growth acceleration thanks to the company's AI push. This quarter: Analysts expect more than 14% year-over-year revenue growth from the company, per LSEG.
What CNBC is watching: Expectations are high for Microsoft heading into Tuesday's report. Evercore ISI hiked its price target on shares to $500 from $485 last week, while Jefferies named the tech giant a top pick. "We expect solid F4Q results and reiteration of double-digit top and bottom line growth for FY25.
While this might not be enough to catalyze shares (in a material way) in the near-term, we believe our estimates have room to move higher over CY25," Evercore ISI said. What history shows: Bespoke data shows Microsoft exceeds earnings estimates 81% of the time. Shares also average a 0.
4% gain on earnings day. Thursday Apple is set to report earnings following the market close. A call with leadership is also slated for 5 p.
m. Last quarter: AAPL announced its largest-ever buyback as iPhone sales dropped . This quarter: Expectations are muted around the tech giant, with analysts forecasting just 6% year-over-year earnings growth, according to LSEG data.
What CNBC is watching: Key for the tech giant will be any updates around its AI efforts. "Following years of slowing upgrade rates ..
. we believe Apple Intelligence could provide a much needed upgrade catalyst, boosting revenue and EPS growth meaningfully," Baird analyst Will Power wrote last week. He also raised his price target on shares to $240 from $200.
What history shows: Apple earnings beat expectations 89% of the time, per Bespoke. However, shares have fallen after three of the last four earnings days. Amazon is set to report earnings after the close.
A call with management is set for 5:30 p.m. Last quarter: AMZN said its profit more than tripled .
This quarter: Analysts polled by LSEG see earnings growth of more than 55% for Amazon. What CNBC is watching: Amazon shares have been under pressure recently, losing more than 5% this month amid a broader sell-off in tech-related stocks. Could Thursday's report turn the tide for the e-commerce and cloud giant? BMO analyst Brian Pitz thinks so.
Last week, he raised his price target on shares to $230 from $220, noting the following: "We raise our 2Q24E AWS growth estimate by 120bps to 19% from 17.8%, as companies shift on the offensive — channel checks indicate 2Q24 AWS growth could approach 22%+." What history shows: Amazon shares rose after the last four earnings days, Bespoke data shows.
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