Breaking News

Earnings Season: Big Tech Swoops in to Save the Day

By Christine ShortStock MarketsMay 01, 2023 20:53

ph.investing.com/analysis/earnings-season-big-tech-swoops-in-to-save-the-day-166038

By Christine Short | May 01, 2023 20:53

Saved. See Saved Items.

This article has already been saved in your Saved Items

Better-than-expected results in big tech lift S&P 500 EPS growth for Q1 2023, now set to come in at -3.7%
Potential earnings surprises this week: Marriott International
Names to watch during the second peak week: AAPL, SBUX, BUD, AMD, UBER, YUM
Peak weeks for Q1 season from April 24 - May 12

Earnings Recap - Big Tech Saves the Day

The first quarter 2023 peak earnings season started out last week with a sour earnings report from First Republic Bank (NYSE:FRC) which revealed deposits fell 40% during the quarter. Last month, we pointed out that the regional bank had confirmed a later-than-expected earnings date, 11 days later, to be exact, noting that this was a bearish sign for the upcoming earnings call. After rising ahead of the announcement, the stock is now down 75% since that report, and further news that the bank would likely not be rescued and instead taken into receivership by the FDIC.

However, starting on Tuesday, big tech swooped in to save the day. Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META) and Amazon (NASDAQ:AMZN) all reported better-than-expected earnings and revenue results and mostly bullish guidance, lifting the Dow Jones Industrial Average to its best monthly gain since January. Widespread layoffs appear to have helped improve margins for many tech companies, with more announcements coming in last week for workforce reductions at Lyft (NASDAQ:LYFT) and Dropbox (NASDAQ:DBX).

Robust results in the last week bring the current S&P 500 growth rate up to -3.7% from -6.2% the week prior. We’re still on track for an “earnings recession” as it is unlikely that results will be so good for the quarter that we emerge from negative growth territory. Still, it’s certainly shaping up better than expected, with 79% of companies beating EPS estimates.

Potential Earnings Surprises this Week - Marriott International

With an earlier-than-expected earnings date for the world’s largest hotel chain, travel demand appears to have recovered from pandemic-caused losses.

Marriott International (MAR)

Company Confirmed Report Date: Tuesday, May 2, BMO
Projected Report Date (based on historical data): Thursday, May 4, BMO
DateBreaks Factor: 2*

Marriott International (NASDAQ:MAR) is set to report Q1 2023 results on Tuesday, May 2. While this is only two days earlier than anticipated, it does push MAR’s Q1 report date into the 18th week of the year rather than the long-term trend of reporting during the 19th or 20th week of the year.

Academic research shows when a corporation reports earnings earlier than they have historically, it typically signals good news to come on the conference call. This narrative could make sense for Marriott as travel demand in the US has been high, especially as we head into peak travel season. Large international carriers such as Delta Air Lines Inc (NYSE:DAL), American Airlines (NASDAQ:AAL), and United Airlines (NASDAQ:UAL) have already reported for Q1 and commented on the strength in travel demand as well as record advanced bookings for this coming summer.

On Deck this Week:

This week will mark the second of peak earnings season, with 2,333 companies in our universe of nearly 10,000 global equities slated to release results for the first quarter. Tech will still be in focus with Apple (NASDAQ:AAPL) results out on Thursday AMC, as well as results from internet service companies such as Shopify (NYSE:SHOP), Etsy (NASDAQ:ETSY) and Zillow (Z), and internet tech names such as Atlassian (NASDAQ:TEAM) and Hubspot (HUBS). We’ll also be getting a smattering of reports from other sectors, with companies like Uber (NYSE:UBER), Starbucks Corporation (NASDAQ:SBUX), and Yum! Brands (NYSE:YUM) are all in focus.

Top Earnings Announcements - May 1

Source: Wall Street Horizon

Q1 Earnings Wave

This season peak weeks will fall between April 24 - May 12, with each week expected to see over 1,000 reports. Currently, May 11 is predicted to be the most active day, with 963 companies anticipated to report. Thus far, 73% of companies have confirmed their earnings date (out of our universe of 9,500+ global names), so this is subject to change. The remaining dates are estimated based on historical reporting data.

Q1 Earnings Season (Announcement Dates)

Source: Wall Street Horizon

Add a Comment

S&P 500, Nasdaq Brace for Support Test; Russell 2000's Next Move Key:... By Declan Fallon - Sep 25, 2023

While the Russell 2000 has recovered from breaks of its 200-week MA before, every such test (and break) of the moving average increases the chance of a flip from a level of support...

FedEx Stock Surges After Benefiting From Rivals’ Woes By Shane Neagle - Sep 21, 2023

FedEx delivered a significant quarterly profit beat that surprised investors The solid FQ1 performance was attributed to the company's effective cost-cutting measures Shares rose...

Will the Fed 'Cause' a Mini-Crash? By Avi Gilburt - Sep 19, 2023

That was quite a week we just had in the market. In fact, if you are a news follower, you are probably confused as hell. Let’s start with the Wednesday announcement of the...

Add a Comment

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically.
Use standard writing style. Include punctuation and upper and lower cases.
NOTE: Spam and/or promotional messages and links within a comment will be removed
Avoid profanity, slander or personal attacks directed at an author or another user.
Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read and understood Investing.com Philippines's comment guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d62-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d62-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d62-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

More Categories

1D1W1M6M1Y5YMax

PSEi Composite	6,172.84	+30.05	+0.49%
Nikkei 225	32,704.50	+307.50	+0.95%
Shanghai	3,115.61	-16.82	-0.54%
US 500	4,318.5	-1.6	-0.04%
US Tech 100	14,692.2	-8.9	-0.06%
DAX	15,453.25	-104.04	-0.67%
Dollar Index	105.309	+0.049	+0.05%

Crude Oil WTI	90.14	+0.11	+0.12%
Brent Oil	92.03	+0.07	+0.08%
Natural Gas	2.889	+0.010	+0.35%
Gold	1,943.95	-1.65	-0.08%
Silver	23.823	-0.021	-0.09%
US Soybeans	1,293.00	-2.00	-0.15%
Copper	3.6740	-0.0220	-0.60%

Philippines 2Y	6.280	+0.000	+0.00%
Philippines 10Y	6.590	+0.000	+0.00%
Philippines 25Y	3.772	0.000	0.00%
U.S. 2Y	5.118	-0.005	-0.09%
U.S. 10Y	4.498	+0.058	+1.31%
U.S. 30Y	4.595	+0.073	+1.60%
Germany 10Y	2.8005	+0.0645	+2.36%

Alphabet C	131.25	-0.11	-0.08%
Brookfield Property	18.59	0.00	0.00%
Anheuser Busch ADR	56.44	-0.39	-0.69%
Booking	3,062.54	+26.27	+0.87%
Apple	174.79	+0.86	+0.49%
Alibaba ADR	88.30	+4.19	+4.98%
Tesla	244.88	-10.82	-4.23%

	Interest Rates	Next Meeting
BSP	2%	Feb 16, 2023
BOC	5.00%	Oct 25, 2023
FED	5.50%	Sep 20, 2023
BOE	5.25%	Sep 21, 2023
ECB	4.50%	Oct 26, 2023
SNB	1.75%	Dec 14, 2023
RBA	4.10%	Oct 03, 2023
RBNZ	5.50%	Oct 04, 2023
BOJ	-0.10%	Oct 31, 2023
CBR	13.00%	Oct 27, 2023
RBI	6.50%	Oct 06, 2023
PBOC	3.45%

Earnings Season: Big Tech Swoops in to Save the Day

Earnings Recap - Big Tech Saves the Day

Potential Earnings Surprises this Week - Marriott International

Marriott International (MAR)

On Deck this Week:

Q1 Earnings Wave

Related Articles