WBD - Earnings Week Ahead: Apple Ford Starbucks Anheuser Busch and more

2023-04-28 13:30:26 ET

Earnings season keeps running at pace during the first week of May, with reports due from numerous leaders in the semiconductor, auto, pharmaceuticals, energy, software and media industries. The week is also dotted with earnings updates from consumer packaged goods companies, restaurants and gaming names.

Apple ( NASDAQ: AAPL ) headlines the incoming reports, following updates from tech titans like Alphabet, Meta and Amazon in the week prior. Meanwhile, investors will also get financial figures from ON Semiconductor ( ON ), NXP Semiconductor ( NXP ), AMD ( AMD ) and Qualcomm ( QCOM ), providing insight on the state of chips.

Outside of tech, Moderna ( MRNA ) and Pfizer ( PFE ) will offer insight on pharmaceuticals, Marriott International ( MAR ) and Airbnb ( ABNB ) will shine a light on the lodging industry, while Shell ( SHEL ), BP ( BP ) and ConocoPhillips ( COP ) will add data on the energy industry.

Below is a rundown of major quarterly updates anticipated in the week of May 1 to 5:

Monday, May 1

ON Semiconductor ( ON )

Arizona-based semiconductor supplier ON Semiconductor ( ON ) will report first-quarter results before the opening bell on Monday. Shares of the chip company have rocketed about 40% higher in the past year, significantly outpacing major semiconductor indices and ETFs.

The company’s focus on attractive end markets, such as vehicles , has aided the outperformance in the view of analysts. For example, Wells Fargo named ON Semiconductor ( ON ) a top pick in late 2022 due to positive trends in automotive chip demand. The sell-side consensus remains a Buy , though there have been 19 downward EPS revisions in the 90 days prior to the earnings announcement.

• Consensus EPS Estimates: $1.08
• Consensus Revenue Estimates: $1.93B
• Earnings Insight: ON Semiconductor has beaten EPS and revenue estimates in 8 consecutive quarters.

Also reporting: NXP Semiconductor ( NXPI ), VICI Properties ( VICI ), Diamondback Energy ( FANG ), MGM Resorts International ( MGM ), Check Point Software ( CHKP ), Avis Budget Corp. ( CAR ), and Norwegian Cruise Line Holdings ( NCLH )

Tuesday, May 2

Starbucks ( SBUX )

Seattle-based coffee chain Starbucks ( SBUX ) will offer its fiscal second quarter update after the closing bell on Tuesday. The quarterly earnings report will be the first to come under new CEO Laxman Narasimhan after he succeeded founder Howard Schultz in late March . The chain’s battle with employees seeking to unionize remains an area of focus for investors under the new leadership .

Shares of Starbucks ( SBUX ) have surged about 50% in the past year, rising about 10% so far in 2023. Analysts remain optimistic on continued growth for the stock, with the consensus remaining a Buy . Evercore added the stock to a Tactical Positioning list ahead of earnings,  advising strength in China could propel the stock higher.

• Consensus EPS Estimates: $0.64
• Consensus Revenue Estimates: $8.40B
• Earnings Insight: Starbucks has beaten EPS and revenue estimates in 5 of the past 8 quarters.

Ford ( F )

Ford ( F ) is set to release first-quarter results after the closing bell on Tuesday, just a week after its cross-town competitor in GM. The company’s expansion of EV operations are under the microscope after the announcement of over $1B in investments to convert a Canadian factory for EV production and a $3.5B investment in a battery plant alongside CATL. The latter remains under scrutiny due to CATL’s status as a Chinese “national champion.” Republican Senator Marco Rubio in particular has called for a review of the deal .

An early April deliveries update indicated continued strength in truck and SUV sales despite continued production problems. Price cuts, led by Tesla , also loom over the US auto industry amid heavy spending on EV efforts.

• Consensus EPS Estimates: $0.44
• Consensus Revenue Estimates: $37.42B
• Earnings Insight: Ford has beaten EPS estimates in 5 of the past 8 quarters, topping revenue estimates in 6 of those reports.

Also reporting: Advanced Micro Devices ( AMD ), Airbnb ( ABNB ), Arrowhead Pharmaceuticals ( ARWR ), HSBC Holdings ( HSBC ), Herbalife Nutrition ( HLF ), BP Plc ( BP ), Pfizer ( PFE ), Sysco Corporation ( SYY ), Marriott International ( MAR ), Cheniere Energy ( LNG ), Marathon Petroleum ( MPC ), Eaton Corporation ( ETN ), Illinois Tool Works ( ITW ), Cummins ( CMI ), DuPont de Nemours ( DD ), Clorox ( CLX ), Match Group ( MTCH ) and Caesars Entertainment ( CZR )

Wednesday, May 3

Qualcomm ( QCOM )

Earnings results from major chip companies continue with San Diego-based Qualcomm ( QCOM ), which is set to report second-quarter earnings. Shares of Qualcomm ( QCOM ) have rebounded about 7% to start 2023, but remain down about 15% in the past year. The sell-side consensus on Qualcomm ( QCOM ) stands at Buy, bolstered by a recent upgrade from Susquehanna .

"[W]e believe the acute portion of the contraction has passed, inventory levels [have normalized], and early demand shoots [have appeared],” equity analyst Christopher Rolland wrote in an investor note ahead of the print.

• Consensus EPS Estimates: $2.16
• Consensus Revenue Estimates: $9.12B
• Earnings Insight: Qualcomm has beaten EPS and revenue expectations in 7 of the past 8 quarters.

Also reporting: CVS Health Corp. ( CVS ), Estee Lauder Company ( EL ), Cortev ( CTVA ), Kraft Heinz ( KHC ), Wingstop ( WING ), and Zillow Group ( Z )

Thursday, May 4

Apple ( AAPL )

Apple headlines reports for the week on Thursday, with a quarterly earnings report due to come after the closing bell. Shares of the Cupertino, California-based tech giant have risen over 30% to start 2023, rebounding after an inauspicious close to 2022. Amid the rebound, analysts remain bullish on the stock, per Seeking Alpha surveys.

Morgan Stanley analyst Erik Woodring, said the company could benefit from a boost in growth both for the iPhone and Services, gross margins near record levels, two new product launches and the potential for an iPhone subscription service.

"Combined, we believe the first 4 of these 5 catalysts have the potential to drive a re-rating in Apple shares toward our new sum-of-the-parts driven $180 price target, with the launch of a hardware subscription program key to unlocking our $230 LTV-driven bull case valuation,” he told clients in March .

Piper Sandler, which also maintains a Buy rating on the stock, noted that the iPhone remains dominant among teens . As such, the firm believes Apple’s brand cache remains intact.

Regulatory issues remain an overhang over the stock however, as both European and American regulators probe the company. German antitrust regulators, for example, are reviewing the company’s tracking safeguards . Meanwhile, US regulators continue to seek information on AI efforts among big tech players. The company recently won a court ruling upholding its approach to mobile app marketplaces, part of a battle with Epic Games , which had accused the tech giant of antitrust violations.

Elsewhere, the company is said to be eyeing significant investments in India in coming years.

• Consensus EPS Estimates: $1.43
• Consensus Revenue Estimates: $92.84B
• Earnings Insight: Apple has topped EPS estimates in 7 of the past 8 quarters and revenue expectations in 5 of those reports.

Anheuser Busch ( BUD )

Anheuser Busch is set to post fiscal first quarter earnings after the bell on Thursday. Shares of the brewery conglomerate have risen about 13% in the past year, rising about 5% in the past month despite an ad controversy hanging over its Bud Light brand . A decline in sales of the brand and a social media-driven backlash to its ad efforts prompted an apology from the CEO in mid-April. Citi recently advised clients that the noise could create an opportunity for investors.

“We view the weakness as providing another attractive entry point for investors,” the bank’s analysts wrote . “Although brand volumes in some states may see some short-term headwinds, we do not believe these will be material or long-lasting.”

While the sell-side consensus remains a Buy, Seeking Alpha’s Quant ratings moved to Hold in early April .

• Consensus EPS Estimates: $0.62
• Consensus Revenue Estimates: $14.05B
• Earnings Insight AB InBev has beaten EPS and revenue estimates in 6 of the past 8 quarters.

Also reporting: Shell ( SHEL ), Novo Nordisk ( NVO ), ConocoPhillips ( COP ), Booking Holdings ( BKNG ), Shopify ( SHOP ), Moderna ( MRNA ), Ferrari ( RACE ), Block ( SQ ), Kellogg Company ( K ), DoorDash ( DASH ), Aptiv ( APTV ), Ball Corporation ( BALL ), BorgWarner ( BWA ), Floor & Decor Holdings ( FND ), Five9 ( FIVN ), PENN Entertainment ( PENN ), Wayfair ( W ), WestRock ( WRK ), and XPO Inc. ( XPO )

Friday, May 5

Warner Bros Discovery

Warner Bros Discovery ( WBD ) is set to announce its fiscal first-quarter earnings result before the opening bell on Friday. The company recently moved to remove the HBO branding from its Max product. The company also moved to terminate long-time CNN host Don Lemon on the same day that Fox Corporation parted ways with Tucker Carlson.

Shares of Warner Bros Discovery ( WBD ) have dropped over 35% in the past year, though the stock has rebounded about 30% year to date. The Seeking Alpha Quant ratings moved to a Buy rating about two weeks prior to the earnings print.

• Consensus EPS Estimates: $-0.11
• Consensus Revenue Estimates: $10.82B
• Earnings Insight: Warner Bros Discovery has beaten top-line estimates in 3 of the past 8 quarters.

Also reporting: Cigna Group ( CI ), Dominion Energy ( D ), Enbridge ( ENB ), EPAM Systems ( EPAM ), and Plug Power ( PLUG )

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