CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Earnings This Week: Big Tech, UK banks and defence stocks

Article By: ,  Former Market Analyst

Corporate earnings calendar: Oct 23 - 27

US earnings season ramps-up this week and Big Tech takes centre stage as Microsoft, Alphabet, Meta and Amazon are all due to report.

An array of other big-name stocks will be providing updates, including social media platform Snap, music streaming giant Spotify, airplane maker Boeing, beverage behemoth Coca-Cola, delivery firm UPS and media outfit Comcast. There are also reports due out from payments giants Visa and Mastercard, defence firms RTX and Northrop Grumman, telecoms business Verizon and AT&T, automakers General Motors and Ford and travel operators Southwest Airlines and Royal Caribbean Cruises. There will also be results out from oil giants Exxon Mobil, Chevron and Italian firm Eni.

UK banks will also be in the spotlight this week, when Lloyds, Barclays, Standard Chartered and NatWest report. There will be other updates out from online fashion firm ASOS, airline IAG and consumer goods firms Unilever and Reckitt Benckiser.

Outside of the UK and the US, keep an eye on, drinks maker Heineken, retailer Woolworths, airline Air France, carmakers Volkswagen and Mercedes Benz, as well as banks Santander and Deutsche Bank.

Below is an outline of all the top earnings to watch this week:

Monday October 23

Thursday October 26

Cadence Design Q3

Amazon Q3

Tuesday October 24

Mastercard Q3

Microsoft Q1

Merck Q3

Alphabet Q3

Linde Q3

Visa Q4

Comcast Q3

Coca-Cola Q3

Intel Q3

Novartis Q3

Caterpillar Q3

Hermes Q3

UPS Q3

Texas Instruments Q3

Honeywell Q3

Verizon Q3

Unilever Q3

General Electric Q3

Bristol-Myers Squibb Q3

RTX Corp Q3

American Tower Q3

NextEra Energy Q3

Boston Scientific Q3

Fiserv Q3

Northrop Grumman Q3

3m Q3

Altria Q3

Kimberly-Clark Q3

Mercedes-Benz Q3

General Motors Q3

BNP Paribas Q3

Archer-Daniels Q3

Iberdrola Q3

Centene Q3

Volkswagen Q3

Halliburton Q3

Chipotle Q3

Dow Q3

Ford Q3

Anglo American Q3 (Prod)

Keurig Dr Pepper Q3

Spotify Q3

Hershey Q3

Snap Q3

Bunzl FY

Cleveland-Cliffs Q3

Kenvue Q3

Wednesday October 25

STMicroelectronics Q3

Meta Q3

Mobileye Q3

IBM Q3

Standard Chartered Q3

ServiceNow Q3

Royal Caribbean Cruises Q3

Boeing Q3

Bunge Q3

ADP Q1

Southwest Airlines Q3

CME Group Q3

WPP Q3

General Dynamics Q3

Hertz Q3

KLA Corp Q1

Overstock Q3

Santander Q3

Inchcape Q3

Moody's Q3

Hunting Q3

O'Reilly Automotive Q3

Friday October 27

Reckitt Benckiser Q3

Exxon Mobil Q3

Heineken Q3

Chevron Q3

Hilton Q3

AbbVie Q3

Baker Hughes Q3

Sanofi Q3

Lloyds Banking Group Q3

Equinor Q3

Woolworths Q1

Colgate-Palmolive Q3

Deutsche Bank Q3

Eni Q3

Akzo Nobel Q3

NatWest Q3

Mattel Q3

IAG Q3

Fresnillo Q3 (Prod)

AutoNation Q3

Chubb Q3

Air France Q3

ASOS FY

 

 

Big Tech stocks: Earnings preview

All of the five Big Tech behemoths – Microsoft, Alphabet, Meta, Amazon and Apple – are forecast to grow earnings this season, albeit at very different rates.

Advertising giants Meta and Alphabet will see the strongest recovery as the ads market shows signs of bottoming-out. Growth at Microsoft and Apple is seen as being more tepid. However, all are expected to grow their bottom-lines at a faster pace than the S&P 500 and valuations have tempered over recent months, suggesting they could continue to shine this quarter. Still, the uncertain economic outlook threatens their prospects as we approach the end of the year.

You can find out everything you need to know, including our mini previews on each firm and all the consensus numbers to watch out for, in our Big Tech Q3 Earnings Preview.

 

UK banks: Q3 earnings preview

The earnings season will also kick-off for UK banks this week, starting with Barclays, Lloyds and NatWest. The better-than-expected performance from US Q3 banks’ earnings often paves the way for some encouraging numbers from UK banks. While NatWest, Lloyds, and HSBC (which reports on October 30) are expected to post a year-on-year rise in pretax profit, Barclays is forecast to post a decline. 

High-interest rates have been a double-edged sword for the banks. On the one hand, higher rates have boosted Net Interest Margin NIM, the difference between interest received on loans and interest paid out on deposits. However, on the other hand, rising impairment provisions could outweigh those NIM improvements. 

With the BoE potentially at the end of its rate hiking cycle, the outlook for NIM will be in focus, particularly considering that full-year NIM guidance was set at a higher rate of 5.5%, so a downward revision could be on the cards. Any comments on this topic will be scrutinized closely. 

Loan demand will also be under the spotlight as higher borrowing costs stifle demand, as noted through recent weakness in mortgage approvals.  

Customer deposits will be another area to watch as customers react to higher interest rates by paying down debt or moving to higher-yielding assets. 

Barclays is set to underperform its sector peers, with investment banking in focus and a deeper downturn in FICC (fixed income, currency, and commodities) trading. Pretax profit is forecast to decline 3.9%. 

Meanwhile, HSBC is likely to outperform, underpinned by rising rates worldwide, with Q3 pre-tax profits expected to rise an impressive 168%. 

Keep an eye on our news and analysis page for the full UK banks preview.

 

RTX & Northrop Grumman: Q3 earnings preview

Defence stocks have popped from recent lows this month as conflict in the Middle East increases appetite for the sector. Notably, Lockheed Martin recently reported results and managed to keep hold of recent gains after beating expectations, suggesting others could also avoid losing the ground they have gained this month if they can avoid any negative surprises.

RTX sales are forecast to rise 9.8% from the year before to $18.6 billion in the third quarter and adjusted EPS is seen staying broadly flat at $1.21. Engine maker Pratt & Whitney and, to a lesser degree, Collins Aerospace Systems, will provide the topline growth and counter weakness from its missile, defence, intelligence and space operations. Earnings won’t grow because the topline expansion will be eaten into by higher interest costs and taxes. Pratt & Whitney is seen booking billions in charges to account for the problems with a powder used on its engines.

Northrop Grumman is forecast to report a 6.8% rise in quarterly revenue to $9.58 billion and a 1.8% decline in EPS to $5.79. All of its divisions are expected to grow sales.

 

Visa & Mastercard stock: Q3 earnings preview

Payments giants Visa and Mastercard both report results this week, which will not only be of interest to investors but the broader market as the pair can provide vital clues on how the US consumer and their spending habits are faring.

Visa, which said this week that chairman Alfred Kelly, who previously led the payments giant as CEO, will step down early next year and be replaced by lead independent director John Lundgren, is forecast to report a 9.9% year-on-year rise in revenue to $8.55 billion and adjusted EPS is seen climbing 16% to $2.24.

Mastercard is expected to report a 13.4% year-on-year rise in revenue to $6.52 billion and a 20.4% jump in EPS to $3.23.

 

General Motors & Ford stock: Q3 earnings preview

Strike action continues to hit Ford and General Motors (as well as Stellantis) and this will be the central theme this season as markets prepare to see how big a financial hit they are taking from industrial action from the United Auto Workers union.

Any breakthrough would be significant considering strikes have been going on for over a month. Plus, there is a threat that UAW will continue to expand strike action to more plants if talks don’t progress, which only weakens the industry’s prospects. Still, the trio are trying to limit the big increase in labour costs that a deal will lead to, with 20%-plus pay rises currently on the table and the UAW pushing for more.

There have been reports that General Motors is close toward agreeing a tentative deal with the UAW, according to a union negotiator speaking to Bloomberg. “All the pieces are there, we just have to glue it together,” said Mike Booth, the vice president of the GM unit of UAW. The company is forecast to report a 2.7% year-on-year rise in revenue to $43.0 billion in the third quarter and net income attributable to stockholders is expected to plunge almost 23% to $2.52 billion.

Ford is reported to have offered a larger pay rise to the UAW than what General Motors had last tabled. That could mean the reports GM and UAW are getting closer to striking a deal also bodes well for Ford. Ford is forecast to report a 10.2% rise in revenue to $40.98 billion and swing to net income of $1.77 billion from a $827 million loss the year before.

Another key theme to watch out for will be electric vehicles and the losses that it is causing traditional automakers. With prices coming down and demand showing signs of weakening, the transition to electric could become more difficult.

 

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosures and Risk Warning. Increased leverage increases risk.

GAIN Capital Group LLC (dba FOREX.com) 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA. GAIN Capital Group LLC is a wholly-owned subsidiary of StoneX Group Inc.

© FOREX.COM 2024