APA - Earnings week ahead: Amazon Apple Pfizer Starbucks Uber and more

2023-07-28 14:33:13 ET

As July gives way to August, the upcoming week is jam-packed with earnings reports from some of the biggest companies in the world. The highlighted companies include Apple ( NASDAQ: AAPL ), Amazon ( NASDAQ: AMZN ), Advanced Micro Devices ( AMD ) and Pfizer ( PFE ).

These key reports will be joined by releases from Starbucks ( SBUX ), Qualcomm ( QCOM ), Uber ( UBER ), Pinterest ( PINS ), Moderna ( MRNA ), Merck ( MRK ), CVS Healthcare ( CVS ) and Caterpillar ( CAT ). Additionally, the market will also receive updates from energy giants BP ( BP ), Marathon Petroleum ( MPC ), Dominion Energy ( D ), and Transocean ( RIG ).

The busy week of earnings also features names like Airbnb ( ABNB ), Marriott International ( MAR ), and Hyatt Hotels ( H ).

Below is a rundown of the major quarterly updates anticipated in the week of July 31 to August 4:

Monday, July 31

Diamondback Energy ( FANG )

Following disappointing results from industry heavyweights Chevron and Exxon, Diamondback Energy ( FANG ) will provide its Q2 results after the bell on Monday. Seeking Alpha's Quant Rating system calls the stock a Hold, citing growth concerns. In contrast, Wall Street analysts have a consensus Buy recommendation.

"FANG's attractive valuation and oil footprint make it a potential takeover target, while its overall qualities position it for long-term outperformance in the energy sector," says SA author Leo Nelissen, who has a bullish stance on the stock with a Buy rating.

• Consensus EPS Estimates: $3.89
• Consensus Revenue Estimates: $1.89B
• Earnings Insight: Diamondback Energy has beaten EPS and revenue estimates in 7 of the past 8 quarters.

Also reporting : SoFi Technologies ( SOFI ), Transocean ( RIG ), ON Semiconductor ( ON ), Avis Budget ( CAR ) and more.

Tuesday, August 1

Pfizer ( PFE )

Following the better-than-anticipated results of peers AstraZeneca ( AZN ) and Novartis ( NVS ), analysts expect a year-over-year decline in Pfizer's ( PFE ) Q2 earnings. The report is slated to come out prior to the market opening on Tuesday.

Sell-side analysts are optimistic about the stock, giving it a consensus Buy rating. HOwever, the Seeking Alpha Quant Rating system takes a more cautious approach, viewing the stock as a Hold rating .

On Friday, AstraZeneca ( AZN ) unit Alexion announced an agreement with Pfizer ( PFE ) to acquire several preclinical gene therapy programs and technologies targeted at rare diseases in a deal worth up to $1 billion.

• Consensus EPS Estimates: $0.59
• Consensus Revenue Estimates: $13.46B
• Earnings Insight: Pfizer has consistently outperformed EPS estimates in the past 8 quarters and revenue forecasts in 6 of those reports.

Altria ( MO )

Tobacco giant Altria ( MO ) will post its Q2 earnings results prior to Tuesday’s open, just days after peer Philip Morris ( PM ) smashed the consensus estimate in its Q2 performance. The stock has been cautiously viewed by market participants, receiving a consensus Hold rating from the sell-side analysts. SA's Quant Rating system also gives it a Hold.

“For MO, we watch for signs of progress on its smoke-free vision (including its recent purchase of NJOY), success in balancing volumes vs. profits, lingering FDA pressures, and inflation weary consumers,” BofA said.

• Consensus EPS Estimates: $1.30
• Consensus Revenue Estimates: $5.44B
• Earnings Insight: Altria has beaten EPS consensus estimates in 6 of the past 8 quarters, while exceeding revenue expectations in 2 of those reports.

Also reporting : Advanced Micro ( AMD ), Starbucks ( SBUX ), Merck ( MRK ), BP ( BP ), Caterpillar ( CAT ), Uber ( UBER ), Pinterest ( PINS ), Virgin Galactic ( SPCE ), Prudential ( PRU ), Sirius XM ( SIRI ), Norwegian Cruise Line ( NCLH ), American Intl ( AIG ), SunPower ( SPWR ), SolarEdge Technologies ( SEDG ), Electronic Arts ( EA ), Marriott ( MAR ), JetBlue Airways ( JBLU ), Match Group ( MTCH ),  MicroStrategy ( MSTR ), Allstate ( ALL ), Caesars Entertainment ( CZR ), Molson Coors Brewing ( TAP ) and more.

Wednesday, August 2

CVS Health Corp. ( CVS )

CVS Health ( CVS ) will update investors on its Q2 performance before the bell on Wednesday. Sell-side analysts predict a year-over-year increase in revenue for Q2. Sell-side analysts rate the company as a Buy, but the Seeking Alpha Quant Rating system grades it as a Hold.

• Consensus EPS Estimates: $2.13
• Consensus Revenue Estimates: $86.53B
• Earnings Insight: CVS Health has beaten EPS and revenue estimates in all of the past 8 quarters.

Shopify ( SHOP )

Shopify ( SHOP ) is set to post its Q4 earnings results after the closing bell on Wednesday. Wall Street analysts expect top-line growth of ~25%.

Just days before the earnings report, the Seeking Alpha Quant Rating changed its view from Strong Buy to Hold. Meanwile, Wall Street analysts have a consensus Buy rating. "Shopify stock is a speculative buy before earnings," says SA author Danil Sereda.

• Consensus EPS Estimates: $0.05
• Consensus Revenue Estimates: $1.62B
• Earnings Insight: The company has beaten EPS and revenue estimates in 5 of the past 8 quarters.

Also reporting : Qualcomm ( QCOM ), PayPal ( PYPL ), Realty Income ( O ), Shopify ( SHOP ), CVS Health ( CVS ), Simon Properties ( SPG ), Kraft Heinz ( KHC ), Unity Software ( U ), Etsy ( ETSY ), DuPont ( DD ), Phillips 66 ( PSX ), Lemonade ( LMND ), Marathon Oil ( MRO ), MGM Resorts ( MGM ), Clorox ( CLX ), APA Corp. ( APA ), MetLife ( MET ), Kinross Gold ( KGC ), Sunrun ( RUN ), Yum! Brands ( YUM ), McKesson ( MCK ), Robinhood Markets ( HOOD ), DoorDash ( DASH ), Humana ( HUM ) and more.

Thursday, August 3

Amazon ( AMZN )

Ecommerce and cloud giant Amazon ( AMZN ) is due to release its Q2 earnings on Thursday after the market closes. The quarter will see the impact of some of the recent cost-saving measures, including shutting down unprofitable businesses and reducing global headcount.

Wall Street Analysts have a consensus Strong Buy rating, but Seeking Alpha Quant Ratings assesses the company as a Hold. On a YTD basis, Amazon shares have expanded by 50% in value.

"Despite near term growth headwinds, AWS still has a very long runway for growth ahead, suggesting that it will very likely reaccelerate growth," writes SA contributor Louis Stevens with a bullish stance on the stock.

• Consensus EPS Estimates: $0.34
• Consensus Revenue Estimates: $131.31B
• Earnings Insight: Amazon has beaten revenue expectations in 3 of the past 8 quarters and has beaten EPS estimates in half of those reports.

Apple ( AAPL )

The California-based tech giant Apple ( AAPL ) will post its Q3 earnings after the market closes on Thursday. AAPL shares have increased in value by more than 50% this year, surpassing a $3 trillion market value in early July.

Earnings are expected to fall sharply Y/Y, according to sell-side analysts. The stock is still rated a Buy by Wall Street analysts, as opposed to a Hold by Seeking Alpha's Quant Rating system, which has raised concerns about growth and valuation.

Goldman Sachs is expecting the tech giant to top earnings estimates, led by strength in its Mac and Services segments.

• Consensus EPS Estimates: $1.19
• Consensus Revenue Estimates: $81.82B
• Earnings Insight: Apple has beaten EPS estimates in 7 of the past 8 quarters, missing revenue expectations in 5 of those reports.

Also reporting : Block ( SQ ), Gilead Sciences ( GILD ), Moderna ( MRNA ), Airbnb ( ABNB ), Amgen ( AMGN ), ConocoPhillips ( COP ), Coinbase ( COIN ), DraftKings ( DKNG ), Southern ( SO ), Booking Holdings ( BKNG ), Warner Bros. Discovery ( WBD ), Anheuser-Busch InBev ( BUD ), Kellogg ( K ), Cigna ( CI ), Expedia Group ( EXPE ) and more.

Friday, August 4

Dominion Energy ( D )

Dominion Energy ( D ) is set to release its Q2 financial figures prior to the market opening on Friday. Seeking Alpha's Quant Rating system just changed its rating on the stock to Sell from Hold, a move driven by declining growth and decelerating momentum when compared to other utilities stocks.

In the last week of June, the company cut its Q2 operational EPS guidance to $0.44–$0.50 per share, below the earlier guidance of $0.58–$0.68 per share and the $0.65 analyst consensus estimate, reflecting the projected impact of historically mild weather and unplanned interruptions at Connecticut's Millstone nuclear power plant.

The company expects extremely mild weather in its electric service territories to hit Q2 operating earnings by $0.07–$0.09 per share.

• Consensus EPS Estimates: $0.47
• Consensus Revenue Estimates: $3.72B
• Earnings Insight: The company has beaten EPS estimates in 6 of the past 8 quarters, missing revenue expectations in half of those reports.

Also reporting : Enbridge ( ENB ), Fisker ( FSR ), PPL Corp ( PPL ) and more.

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