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Apple, Alphabet, Microsoft, Facebook and Amazon are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – April 27,2020 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Apple (AAPL - Free Report) , Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) , Facebook and Amazon (AMZN - Free Report) .
Previewing Tech Sector Earnings
We get into the heart of the Q1 earnings season over the next two weeks, with almost 700 companies on deck to report results this week, including 154 S&P 500 members. This week’s docket has ample representation from all the major sectors, but the focus will be on the Technology leaders like Apple, Alphabet, Microsoft, Facebook, Amazon and others that are coming out with results this week.
All of these Tech stocks have led the market’s strong rebound from the March 23rd low, with many in the market looking at these companies as least affected, if not benefiting, from the post-outbreak locked-down operating environment. In effect, these mega cap Tech stocks appear to have become the new go-to defensive plays of the current market environment. This week’s results from these companies will likely show that investors’ confidence in these companies was largely justified.
We will dig deeper into current market expectations for the Tech sector a little later, as we first want to give you a real-time update on the Q1 reporting cycle.
Q1 Earnings Season Scorecard
As of Friday, April 24th, we have seen Q1 results from 122 S&P 500 members or 24.4% of the index’s total membership. With another 154 index members on deck to report results this week, we will have crossed the halfway mark by the end of this week.
Total earnings or aggregate net income for these 122 index members that have reported already are down -16.2% from the same period last year on +2.5% higher revenues, with 64.8% beating EPS and 63.1% beating revenue estimates.
Had it not been for the Finance sector drag, Q1 earnings growth for the remaining S&P 500 companies at this stage would have been positive, thanks largely to strong results from Intel (INTC) whose Q1 earnings and revenues were up +54% and +23.5% from the year-earlier levels, respectively.
Excluding the Finance sector, whose Q1 earnings for the companies that have reported already are down -48.3% on +1.7% higher revenues, earnings for the rest of S&P 500 companies that have reported would be up +8.4%.
The earnings growth comparisons start looking a lot better when seen on an ex-Finance basis.
For Q1 as a whole, combining the 122 companies that have reported results already with estimates for the wide majority of still-to-come results, total earnings are expected to be down -15.3% on +1.2% higher revenues.
Please note that unlike the earnings growth pace for the reported companies which looks materially different on an ex-Finance basis, the blended or combined Q1 picture doesn’t change much, as you can see above. Excluding the Finance sector, Q1 earnings for the index is on track to be down -11.4% on +1% higher revenues.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Apple, Alphabet, Microsoft, Facebook and Amazon are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – April 27,2020 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Apple (AAPL - Free Report) , Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) , Facebook and Amazon (AMZN - Free Report) .
Previewing Tech Sector Earnings
We get into the heart of the Q1 earnings season over the next two weeks, with almost 700 companies on deck to report results this week, including 154 S&P 500 members. This week’s docket has ample representation from all the major sectors, but the focus will be on the Technology leaders like Apple, Alphabet, Microsoft, Facebook, Amazon and others that are coming out with results this week.
All of these Tech stocks have led the market’s strong rebound from the March 23rd low, with many in the market looking at these companies as least affected, if not benefiting, from the post-outbreak locked-down operating environment. In effect, these mega cap Tech stocks appear to have become the new go-to defensive plays of the current market environment. This week’s results from these companies will likely show that investors’ confidence in these companies was largely justified.
We will dig deeper into current market expectations for the Tech sector a little later, as we first want to give you a real-time update on the Q1 reporting cycle.
Q1 Earnings Season Scorecard
As of Friday, April 24th, we have seen Q1 results from 122 S&P 500 members or 24.4% of the index’s total membership. With another 154 index members on deck to report results this week, we will have crossed the halfway mark by the end of this week.
Total earnings or aggregate net income for these 122 index members that have reported already are down -16.2% from the same period last year on +2.5% higher revenues, with 64.8% beating EPS and 63.1% beating revenue estimates.
Had it not been for the Finance sector drag, Q1 earnings growth for the remaining S&P 500 companies at this stage would have been positive, thanks largely to strong results from Intel (INTC) whose Q1 earnings and revenues were up +54% and +23.5% from the year-earlier levels, respectively.
Excluding the Finance sector, whose Q1 earnings for the companies that have reported already are down -48.3% on +1.7% higher revenues, earnings for the rest of S&P 500 companies that have reported would be up +8.4%.
The earnings growth comparisons start looking a lot better when seen on an ex-Finance basis.
For Q1 as a whole, combining the 122 companies that have reported results already with estimates for the wide majority of still-to-come results, total earnings are expected to be down -15.3% on +1.2% higher revenues.
Please note that unlike the earnings growth pace for the reported companies which looks materially different on an ex-Finance basis, the blended or combined Q1 picture doesn’t change much, as you can see above. Excluding the Finance sector, Q1 earnings for the index is on track to be down -11.4% on +1% higher revenues.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.