WDC - Can Magnificent 7 Help Script Market Turnaround? Earnings Pick Up Pace With Microsoft Meta Alphabet And Tesla Expected This Week | Benzinga
As the market runs into rough weather, the importance of the upcoming week’s earnings cannot be emphasized enough. A lot is riding on the earnings reports of companies like Tesla, Inc. (NASDAQ:TSLA), Meta Platforms, Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT) and Alphabet, Inc. (NASDAQ:GOOGL) (GOOG).
The Season So Far: The percentage of S&P 500 companies that have reported positive earning surprises and the magnitude of earnings surprises are at or above their 10-year averages, said FactSet in its report released Friday. That said, substantial downward revisions to earnings per share (EPS) estimates of two healthcare companies have led to a decline in earnings growth over the past two weeks.
The combined earnings per share growth rate of S&P 500 companies, considering both the already reported actual results and the estimates for those yet to report, is at 0.5%, according to FactSet. The metric, however, fell from the 0.9% estimated previous week and the 3.4% estimated at the end of the first quarter. Earnings growth for the quarter may extend the positive growth streak to three quarters.
So far, 14% of the S&P 500 companies have reported March quarter results.
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Look Ahead: The upcoming week will likely feature earnings releases from 158 S&P 500 companies, including 11 Dow 30 components. With the bank earnings tapering off, the spotlight shifts to tech companies, as they begin to roll out their quarterly scorecard this week.
Apart from some big techs, which are part of the group called the “Magnificent Seven,” homebuilders, defense contractors, airlines and transportation companies are also due to release their quarterly reports.
All eyes are focused on Tesla as analysts expect a downbeat report from the company. Analysts see the scope of a further contraction in margin and potentially a double miss yet again in the first quarter.
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