Some of the top US companies with global presence will be announcing their earnings results for the previous quarter. The market is highly focused on these companies’ management outlook in addition to understanding the financial performance of the most recent quarter. Apple, Alphabet, Amazon, Merck & Company, Gen Digital, Royal Dutch Shell Intercontinental Exchange, Ford Motor ING Group and Starbucks Corporation are among those declaring their quarterly results today on February 2, 2023. Sanofi and Cigna Corporation will be announcing quarterly results on February 3.
Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory, asset management, and fintech organisations had made an observation ahead of a big week of earnings reports from tech heavyweights such as Amazon, Apple, Alphabet, and Meta – “Investors shouldn’t bet against big tech in the longer term.”
Meta stock price performance shows exactly that. In extended trading on Wednesday, Meta shares rose 20% after the company reported fourth-quarter revenue that exceeded expectations and announced a $40 billion stock buyback.
The quarterly earnings for Meta Platforms Inc. fell by 55% as a result of a sizable charge due to cost-cutting measures like layoffs, office closures, and a rethinking of its data centre strategy. In the quarter that ended on December 31, net income decreased to $4.65 billion, or $1.76 per share, from $10.29 billion, or 3.67 per share, a year earlier.
On Thursday, February 2, Apple Inc. will release its first-quarter financial results. Apple’s conference call for the first fiscal quarter results and business updates is scheduled for Thursday, February 2, 2023 at 2:00 p.m. PT / 5:00 p.m. ET.
Before the Q1 FY23 results, Apple’s stock price is around $145, and the share is down nearly 16% year on year. However, 2023 has been a good start for Apple, with the stock up 12% in January.
The impact from weakness seen in dollar in recent times may go against the global giants. FactSet in a recent study finds S&P 500 companies with more international revenue exposure reporting lower earnings and revenues in Q4 2022 than S&P 500 companies with more domestic revenue exposure. By January end, Domestic blended earnings decline was -3.5% while international blended earnings decline was more at -7.3%.
Overall, 29% of the companies in the S&P 500 have reported actual results for Q4 2022 till January 27th. Of these companies, 69% have reported actual EPS above estimates, which is below the 5-year average of 77% and below the 10-year average of 73%.