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Highlights:
- Microsoft will announce its Q1 FY23 earnings results on October 25.
- Q3 2022 earnings results of Meta will be out on October 26.
- Net sales of Amazon rose seven per cent YoY in Q2 FY22.
The earnings season has taken its pace with several major companies already reporting their earnings. The optimism over the third quarter earnings season seems to have also partially lifted the investors' spirits, helping all three US indices to notch a two-day winning streak this week.
In the first week, mainly the big banks and some other companies posted their earnings, which showed that most of the banks benefited from the higher interest rates. The market participants were anticipating negative corporate earnings this quarter, mainly due to the increasing costs, a jump in interest rates, and geopolitical turmoils.
Although the earnings did not come as a complete surprise, it still seems that the reports were better than previously expected, as evidenced by the rally in the market for the starting two days.
However, on Wednesday, the market again tumbled on cautious guidance from some companies that the strong dollar and the soaring inflation might hamper their profits in the coming days.
Now, focusing on the next week's earnings, the technology behemoths including Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Meta Platforms, Inc. (NASDAQ:META), Apple Inc. (NASDAQ: AAPL), and Amazon.com, Inc. (NASDAQ:AMZN) are scheduled to report their quarterly earnings results.
The investors would keep a close track of these earnings, as it might set the future path of the market and provide insights into how the technology leaders handled the economic challenges.
Let's look at the recent stock performance and their past quarter earnings details ahead of their latest operating results next week.
Microsoft Corporation (NASDAQ:MSFT)
The leading multinational technology and consumer electronics firm, Microsoft Corporation, holds a dividend yield of 1.04 per cent. The company specializes in producing software, consumer electronics products, computers, etc.
The stock of the Redmond-based US$ 1.76 trillion market cap firm lost over 29 per cent YTD and 23 per cent YoY. In the running month, the MSFT stock rose over one per cent through October 20 falling to its 52-week low of US$ 219.13 last Thursday, October 13.
The technology behemoth said on October 11 that its Q1 FY23 earnings results would be out on October 25.
Meanwhile, in Q4 FY22, Microsoft Corporation's revenue rose 12 per cent YoY to US$ 51.9 billion, and its diluted EPS ticked up three per cent YoY to US$ 2.23 apiece.
Its annual revenue in the previous fiscal year was US$ 198.3 billion, up 18 per cent YoY, and its GAAP diluted EPS rose 20 per cent YoY to US$ 9.65 apiece.
Alphabet Inc. (NASDAQ:GOOGL)
The leading multinational technology conglomerate firm by market cap, Alphabet Inc., engages in several operations. The parent firm of Google and its subsidiaries holds a market cap of US$ 1.31 trillion.
The stock of the Mountain View-based firm fell 31 per cent YTD and 30 per cent YoY. In the running month through October 20, its price went up over four per cent, and it also touched its 52-week low of US$ 94.3836 on the same date as MSFT stock.
The company said on September 29 it intends to release its Q3 FY22 earnings results on Tuesday, October 25, at 5:00 pm ET. Meanwhile, in Q2 FY22, the technology conglomerate firm's revenue rose 13 per cent YoY to US$ 69.68 billion, and its diluted EPS was US$ 1.21 apiece, compared to US$ 1.36 per share in Q2 FY21.
Meta Platforms, Inc. (NASDAQ:META)
The technology conglomerate firm Meta Platforms' market cap is US$ 366.07 billion, and its stock plummeted over 60 per cent this year.
This month, it lost over one per cent while touching its 52-week low of US$ 122.5301 on the same date as the two stocks mentioned above. The firm said on October 3 that it would be announcing its Q3 FY22 financial report after the closing bell on Wednesday, October 26.
In Q2 FY22, the social media company's revenue plunged one per cent YoY to US$ 28.82 billion, while its diluted EPS dropped by 32 per cent YoY to US$ 2.46 apiece.
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Apple Inc. (NASDAQ:AAPL)
Apple is another leading technology and consumer electronics firm by market cap, which holds a dividend yield of 0.64 per cent. The iPhone maker's stock price fell lost about 18 per cent YTD and three per cent YoY.
However, in the running month, it added over four per cent through October 20. Apple is expected to report its fourth quarter and fiscal 2022 earnings results on Thursday, October 27.
Meanwhile, in the June quarter, the US$2.51 trillion market cap firm's revenue rose two per cent YoY to US$ 83 billion, and its diluted EPS was US$ 1.20 per share, compared to US$ 1.30 apiece in Q3 FY21.
Amazon.com, Inc. (NASDAQ:AMZN)
The leading e-commerce-focused technology firm Amazon.com, Inc. also engages in other businesses. The US$ 1.18 trillion market cap company operates in streaming services, cloud, and other related markets.
The leading e-commerce and streaming services firms fell about 30 per cent YTD and 33 per cent YoY. However, in the running week, the AMZN stock added over one per cent through October 20.
The company would release its Q3 FY22 earnings results on the same date as Apple, Inc. Meanwhile, in Q2 FY22, Amazon's net sales were up seven per cent YoY to US$ 121.2 billion, and its net loss was US$ 0.20 per diluted share, against an income of US$ 0.76 per diluted share.
Bottom line:
The market has been highly volatile this year amid a flurry of uncertainties hampering the sentiment of traders. The growth stocks, especially the mega-cap technology stocks were among the worst-hit sectors amid these challenges, as evidenced by their performances.
Now, investors are looking for the earnings and guidance signals for cues on businesses' health while walking cautiously with their investment plans. Macroeconomic headwinds have made the trades a bit skeptical, and they are anticipating a potential recession in future.
In addition, the recent inflation data showed that the core inflation has reached the highest in 40 years. It raised concerns that the Federal Reserve might opt for another rate hike at their next meeting in November.
Meanwhile, the tech-savvy Nasdaq Composite Index fell 31.73 per cent YTD, but in the running quarter, it traded flat, mainly due to the earnings optimism.
