Earnings Reports To Watch This Week: Facebook, Apple, Tesla & More

After Friday’s fall, the market awaits reports from major companies that are set to post earnings this week. Here are some major stocks that need to be watched:

Advanced Micro Devices (AMD)

The Santa Clara, California-based AMD is set to report on Tuesday after the close. Analysts expect earnings of 47 cents per share on revenue of $3.02 billion. Compared to the same period last year, earnings were 32 cents per share on sales of $2.13 billion.

The company has topped estimates five times in the last six quarters. Analysts expect it to continue to do so. Last week, rival Intel posted recovering sales in the datacenter business and PC. AMD has grabbed market share in both these segments from Intel. Hence, investors await positive guidance.

Shares have surged 5% over the last week while they are 1.2% up year to date.

Microsoft

Wall Street is expecting adjusted earnings of $12.4 billion or $1.64 per share on revenue of $40.2 billion from Microsoft after the market closes on Tuesday. For the same period last year, the software giant reported earnings of $1.51 per share on revenue of $36.9 billion. Full-year sales are expected to be $158.3 billion.

The company has benefitted from the increased demand for work-from-home tools led by the pandemic. Microsoft’s cloud computing platform, Azure has seen exceptional growth of 48% year over year last quarter, even though it’s less than the 50% growth in Q4. Investors expect positive revenue growth for the company over the fiscal year 2021.

Shares have jumped 5.5% since October 27, when the company last reported earnings.

Apple

The iPhone maker is estimated to report adjusted earnings of $24.5 billion or $1.41 per share on revenue of $102.8 billion after the closing on Wednesday. For the same quarter, a year ago, Apple reported earnings of $1.25 per share on revenue of $91.8 billion.

The sales of the new iPhone 12 will be driving the results of the company. Analysts were impressed with the recent launch of the device owing to its 5G capabilities and upgraded features like the LIDAR sensor. Besides the iPhone, Apple’s Services business now makes up for around 22% of the total revenue. Its revenue climbed last quarter to a record high of $14.5 billion, exceeding estimates of $14.12 billion.

The shares have rocketed 18.7% since October 29 when the company last posted earnings.

Facebook

The leading social networking platform Facebook is expected to post adjusted earnings of $9.6 billion or $3.18 per share on revenue of $26.3 billion after the market concludes on Wednesday. In the same quarter last year, Facebook reported adjusted earnings of $2.56 per share on revenue of $21.1 billion. Full-year revenue is expected to be $84.2 billion.

Facebook has been consistent in delivering positive results, exceeding analysts’ expectations since the past eleven quarters. It has only missed estimates once over the last five years. The company has been subject to regulatory actions due to its market dominance, making its shares underperform. Investors will keep an eye on Facebook’s daily active users, monthly active users, and revenue guidance.

Shares have slipped 2.8% since October 29 when the company last reported earnings.

Tesla

EV giant Tesla will report earnings on Wednesday after the market closes. Analysts expect earnings of $1 billion or $1.04 per share on revenue of $10.5 billion. For the same period last year, the company reported earnings of 42.8 cents per share on revenue of $7.4 billion. Full-year revenue is estimated to be $31.1 billion.

The EV leader has topped profit estimates for six quarters straight. The company has been growing rapidly with around 63% year over year increase in vehicle registrations in Q4. Investors will be looking out for its guidance for 2021.

Shares have rocketed 99.9% since October 21 when the company last reported earnings.