More than a third of the S&P 500 will report quarterly results; earnings are on track to rise nearly 34% from the year-ago period
More than a third of the S&P 500 are expected to report their quarterly results in the coming week, including Apple Inc. and Tesla Inc., as companies detail how the reopening world is affecting their businesses.
Tech giants will dominate the coming earnings calendar. In addition to Apple and Tesla, other big names providing quarterly updates include Microsoft Corp. , Google parent Alphabet Inc. and Amazon. com Inc.
In total, 181 companies in the S&P 500 will report results this coming week, according to FactSet, following the 25% that have already logged results through Friday.
Tesla jump-starts the week with its report Monday. The Silicon Valley car company has enjoyed record sales, delivering nearly 185,000 vehicles in the first quarter. However, the company also is facing questions about the safety of its battery-powered vehicles following a recent crash in Texas and a protest in China.
On Tuesday, Microsoft and Alphabet report their results after the market closes. Microsoft has benefited from strong demandfor its cloud-computing services and videogame business during the pandemic. The company posted record quarterly revenue in the holiday quarter, and analysts are projecting sales to grow 17% to more than $41 billion in the opening months of 2021, according to FactSet.
Alphabet’s recent quarters have reflected the recovery in ad spending, which deflated earlier in the pandemic. The company’s top line—which hit a record last quarter at $56.9 billion—is expected to surpass $51 billion for its latest three-month period, up nearly 25% from a year ago.
Earnings this quarter are on track to rise 33.8%, year over year, for the companies in the S&P 500, based on actual results and estimates for those that have yet to report, FactSet said. That percentage would mark the highest such increase since the third quarter of 2010, the data tracker said. Padding the gains are easier comparisons to weaker earnings in the year-ago quarter when the onset of the pandemic hurt many businesses.
Revenue for 2021’s first quarter is on pace to increase 7.5%, year over year, also based on actual results and estimates for companies that have yet to report, FactSet said.
Apple reports its results on Wednesday. The iPad and iPhone maker’s fourth quarter was its most profitable yet, boosted by the delayed arrival of the iPhone 12, which can access the 5G network. According to FactSet, analysts are expecting Apple’s sales to jump 32% to $76.7 billion.
Facebook Inc. also is expected to report Wednesday. The company in January posted record fourth-quarter revenue and talked about growing friction with Apple. Facebook Chief Executive Mark Zuckerberg said then that Apple is increasingly one of his company’s biggest competitors. Facebook sales are seen rising 34% to $23.7 billion, FactSet said.
Amazon on Thursday is expected to report a 39% increase in revenue to more than $104 billion for the first quarter, FactSet said. That would be the second quarter in a row that Amazon logged more than $100 billion in revenue. The company has benefited during the pandemic from strong demand for online shopping and its cloud-computing business, in which companies rent server capacity and software tools.
Both companies are trying to move on from one of the more painful years for oil-and-gas companies. The coronavirus sapped global demand for fossil fuels as the industry also faces longer-term challenges from the rise of electric cars, the proliferation of renewable energy and growing concern about the lasting impact of climate change.