Big Tech Companies to Lead Earnings Calendar
This week marks the beginning of the highly anticipated quarterly earnings season, with several prominent tech companies set to release their financial reports. Alphabet (GOOG, GOOGL) and Tesla (TSLA) are among the most closely watched stocks, as investors eagerly await updates on their capex commitments for the AI build-out.
The US chipmaker Intel (INTC) will provide crucial insights into the demand for artificial intelligence, while IBM (IBM) will offer a more comprehensive picture of its Q2 results after its stock plunged on pre-announced earnings. The reports from General Motors (GM), AMC Entertainment Holdings (AMC), GE Vernova (GEV), AT&T (T), Lockheed Martin (LMT), and American Express (AXP) will round out the docket this week.
Last week, the second-quarter reporting season kicked off with a wave of bank earnings from JPMorgan (JPM), Morgan Stanley (MS), Citigroup (C), and their Wall Street peers. While the banks reported robust profits, Netflix’s (NFLX) earnings disappointed as its forecast fell short of estimates.
Despite the mixed bag of results, the overall earnings season is shaping up to be a strong one for the S&P 500 (^GSPC). According to FactSet data, analysts estimate the year-over-year S&P 500 earnings growth rate for the second quarter will be 24.7% — above the five-year average of 16.4% and the 10-year average of 10.3%.
If that holds, it will mark the second consecutive quarter of earnings growth above 20% for the index and the seventh straight quarter of double-digit growth. The S&P 500’s impressive earnings growth is a testament to the resilience of the US economy and the continued demand for technology and innovation.
As the earnings season heats up, investors will be closely watching the reports from these tech giants to gauge their progress in the AI build-out. The quarterly results will provide valuable insights into their strategies and financials, setting the stage for the rest of the year.
The ‘Magnificent Seven’ — Alphabet, Tesla, Intel, IBM, General Motors, AMC Entertainment Holdings, and GE Vernova — will kick off the earnings season, followed by reports from AT&T, Lockheed Martin, and American Express. As the week unfolds, investors will be on high alert, awaiting the release of these crucial financial reports.
