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These 3 Quarterly Reports Could Shake the Market

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As we enter the thick of earnings season, investors are gearing up for a flurry of reports from some of the most prominent market heavyweights, including Meta Platforms (META - Free Report) , Alphabet (GOOGL - Free Report) , and Amazon (AMZN - Free Report) , to list a few.

Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.

Zacks Investment Research
Image Source: Zacks Investment Research

As we can see, all three have staged strong rebounds in 2023 so far, particularly META. But can their outperformance continue post-earnings? Let’s take a closer look at what’s expected from each.  

Meta Platforms

The market took META’s latest quarterly results well, sending shares soaring post-earnings. The company revealed a focus on cost-cutting measures, helping inject positive sentiment into shares.

As we can see in the chart below, META shares have been sensitive to recent quarterly releases.

Zacks Investment Research
Image Source: Zacks Investment Research

Currently, the Zacks Consensus EPS Estimate of $1.96 implies roughly a 30% pullback in earnings year-over-year, with the estimate being revised 23% higher since January of this year. Currently, META is a Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, our consensus revenue estimate presently stands at $27.5 billion, 1.5% lower than year-ago sales of $27.9 billion. The quarterly revenue estimate has been revised marginally higher (+1%) since the beginning of 2023.

Zacks Investment Research

Image Source: Zacks Investment Research

Alphabet

Alphabet shares have faced selling pressure post-earnings following back-to-back releases, with the tech giant falling short of revenue and earnings expectations in each instance.

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Image Source: Zacks Investment Research

Overall, since January, the Zacks Consensus EPS Estimate of $1.07 has been revised roughly 4% lower, with the value implying a 13% year-over-year pullback within earnings. Still, it’s worth noting that the estimate has ticked marginally higher over the last 60 days, indicating more recent optimism from analysts.

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Image Source: Zacks Investment Research

The Google parent is forecasted to generate $57.1 billion in revenue, reflecting an improvement of roughly 2% year-over-year. Since January, the quarterly sales estimate has been revised 1.7% lower.

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Image Source: Zacks Investment Research

Amazon

Many anxiously await Amazon’s quarterly print, as it’ll give us a deeper view of the state of e-commerce and sentiment among consumers. Shares have faced selling pressure following several of the company’s recent quarterly releases, as shown in the chart below.

Zacks Investment Research
Image Source: Zacks Investment Research

Analysts have primarily been bearish regarding the upcoming quarter, with the $0.21 Zacks Consensus EPS Estimate being revised nearly 20% lower since January.

Zacks Investment Research
Image Source: Zacks Investment Research

Investors will undoubtedly focus on AWS as cloud-computing growth cools, a metric Amazon has negatively surprised on recently. The Zacks Consensus Estimate for AWS Net Sales stands at $21.1 billion, implying growth of 15% year-over-year.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Needless to say, investors have more than enough on their plate to remain busy for the week, with many investor favorites such as Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) , and Meta Platforms (META - Free Report) all scheduled to report.

As we’re all aware, these heavyweight reports can become market-moving events, making it reasonable for investors to assume a potentially increased level of volatility within the market post-earnings.


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