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Facebook, Alibaba, Amazon, Apple and Alphabet are part of Zacks Earnings Preview

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For Immediate Release

Chicago, IL – Jan 29, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Facebook , Alibaba (BABA - Free Report) , Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) .

To see more earnings analysis, visit https://at.zacks.com/?id=3207.

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Q4 Earnings This Week: Facebook, Apple, Google and Amazon

The picture emerging from the Q4 earnings season is one of all around strength and momentum. Not only is an above average proportion of companies beating top- and bottom-line expectations, but estimates for the current period are materially going up. With results from 26% of the S&P 500 members already out and another 24% on deck to report results this week, we will be at the halfway mark by the end of this week.

It is still early going for the small-cap S&P 600 index, with results from only 14% of the index’s members out.

Of the roughly 400 companies reporting results this week, including 121 S&P 500 members, the most notable reports are:

Facebook– The social-media giant reports Q4 results after the market’s close on Wednesday, January 31st. The company is expected to earn $1.94 per share on $12.56 billion in revenues, up +37.6% and +42.6% from the year-earlier period, respectively. The company’s ever-growing tally of daily active users will be of as much importance to the market, as its top- and bottom-line results. The expectation is that the worldwide tally of daily active users increased to 1.414 billion, up from 1.227 billion in the year-earlier quarter and 1.368 billion in the preceding quarter. The impact of recent newsfeed changes on ad revenues will likely be of interest on the earnings call. The stock is up +7.7% since the start of the New year and +43.8% over the past year, outperforming the Zacks Tec sector’s +28.1% gain over the past year.

Alibabaand Amazon– Alibaba reports before the market’s open on Thursday, February 1st, while Amazon reports after the market’s close that day. As impressive as Amazon’s stock market performance over the past year has been, Alibaba has done even better, with the stock up +101% over the past year, better than Amazon’s +67.7% gain. Amazon has long ‘trained’ the market on not to look for earnings performance in its quarterly results and that will likely be case this time around.

The key factor will be overall revenues and performance of the company’s cloud business – Amazon Web Services (AWS). With respect to revenues, the current Zacks Consensus expectation is $59.98 billion, which represents +37.1% growth from the year-earlier level, while earnings of $1.85 per share would represent a +20.1% year-over-year gain.

Apple- Apple reports Q4 results after the market’s close on Thursday, February 1st. The company is expected to earn $3.81 per share on $86 billion in revenues, up +13.4% and +9.8% from the year-earlier period, respectively. Apple makes plenty of products, but the most important product in its portfolio is the iPhone, whose unit sales are expected to have reached 79.8 million in the quarter, up from 78.29 million in the year-earlier quarter and 28.85 million in the preceding quarter. The stock has lost ground in recent days, but it is up +40.5% over the past year, handily outperforming the broader Tech sector.

Alphabet– Thursday evening is very busy on the reporting calendar, with Alphabet also coming out with its quarterly results at the same time as Apple and Amazon. The search giant is expected to earn $10.12 per share on $25.67 billion in revenues, up +8.12% and +20.99% from the year-earlier period, respectively.
The stock has literally been on a tear in January, up +12.7% year-to-date, bring its performance of the past year to +40.6%.

Q4 Earnings Season Scorecard (as of Friday, January 26, 2018)

Total earnings for the 133 S&P 500 members that have reported results already are up +12.3% from the same period last year on +8.8% higher revenues, with 81.2% beating EPS estimates and 78.9% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 65.4%.

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