Stocks to watch: Earnings Blitz includes Apple, Microsoft, Twitter, Amazon and Boeing
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Tech giants will be in the spotlight with Apple (NASDAQ: AAPL), Amazon, Microsoft (MSFT), Alphabet (GOOG), Meta Platforms (META), and Intel (NASDAQ: INTC) all on the earnings scene. So far, the earnings season has been somewhat balanced between sizzling results (think Tesla) and major disappointments (think Netflix). While the economic calendar includes updates on new home sales, durable goods orders, pending home sales, GDP and the trade balance, the focus may be on expectations from the Federal Reserve. . FOMC members will be in a pre-meeting blackout from giving lectures, but analysts will continue to buzz. Bank of America forecasts the Fed to hike 50 basis points in the next three meetings and 25 points thereafter until the fed funds rate hits 3.50% in May 2023. Nomura shook the market with a forecast of 75 basis point hikes at the June and July FOMC meetings after a 50 basis point rise in May.
Earnings Spotlight: Monday, April 25 – Coca Cola (NYSE: KO) and Activision Blizzard (ATVI).
Earnings Spotlight: Tuesday, April 26 – Centene (CNC), Alphabet (GOOG), General Motors (GM), Chipotle (CMG), Microsoft (MSFT), UPS (UPS), PepsiCo (NASDAQ: PEP), General Electric (GE) and Visa (V).
Earnings Spotlight: Wednesday, April 27 -Boeing (NYSE: BA), Human (NYSE: HUM), T-Mobile US (TMUS), Ford Motor (F), Meta Platforms (FB), Kraft Heinz (NASDAQ: KHC), and Amgen (AMGN).
Earnings Spotlight: Thursday, April 28 – Twitter (TWTR), Comcast (CMCSA), Merck (M.K.R.), Caterpillar (CAT), Northrop Grumman (NOC), Amazon (NASDAQ: AMZN), Apple (AAPL), Intel (INTC), Altria (MO), Domino’s Pizza (NYSE: DPZ) and PayPal (PYPL).
Earnings Spotlight: Friday, April 29 – AbbVie (NYSE: ABBV), Bristol-Myers Squibb Company (BMY), Exxon Mobil (XOM), Chevron (NYSE: CLC), Phillips 66 (PSX) and AbbVie (ABBV).
IPO monitoring: IPOs expected to price in the coming week include Tenon Medical (TNON) and SaverOne (SVRE) on April 27. , GlobalFoundries (GFS), Fluence Energy (FLNC), Solo Brands (DTC), Udemy (UDMY), HireRight Holdings (HRT), Aura Biosciences (AURA), and Entrada Therapeutics (TRDA).
Projected dividend increases: A hefty earnings list means further increases in the dividend payout could be on the way. Apple (OTC: APPL) is one of the more interesting companies that could reward shareholders with a dividend rate increase to $0.24 from the forecast of $0.22. Other notable companies expected to increase their quarterly dividend payouts include Parker-Hannifin (PH) at $1.37 from $1.03, Marathon Oil (MRO) at $0.08 from $0.07, Regal Rexnord Corporation (RRX) at $0.36 from $0.33, Avery Dennison (NYSE: AVY) to $0.74 from $0.68, American Water (NYSE: AWK) at $0.650 from $0.6025, PepsiCo (PEP) at $1.150 from $1.075, Raytheon Technologies (RTX) at $0.545 from $0.510, Ameriprise Financial (AMP) at $1.20 from $1.13 and Exxon Mobil (XOM) at $0.92 from $0.88.
Corporate events: The Surface Transportation Board will hold public hearings on April 26 to address recent service issues and recovery efforts. Officers of Burlington Northern Santa Fe, CSX Corporation (NASDAQ: CSX), Norfolk Southern (NSC) and Union Pacific (UNP), Canadian National (CN), Canadian Pacific (NYSE: CP), and Kansas City Southern are expected to attend the hearing. The objective of the hearings will be to push the railway companies to detail action plans to solve the problems. Before the hearing, Union Pacific said congestion on the lanes was hurting its ability to meet shipping demand. Also on April 26, Callaway Golf Company (ELY) will host an Investor Day featuring presentations and Q&A sessions led by members of the Callaway and Topgolf leadership teams. Eledon Pharmaceuticals (ELDN) will host a virtual R&D Day event on April 28. Learn more about next week’s events that could impact stock prices in Seeking Alpha’s Catalyst Watch.
Conference schedule: The most notable conference of the week is the Chardan 6th Annual Genetic Medicines Manufacturing Summit 2022 with a slew of healthcare companies due to appear. The Berenberg Discover AI seminar will also be attended with the participation of Recursion Pharmaceuticals (RXRX), AbCellera Biologics (ABCL), Absci Corporation (ABSI) and Simulations Plus (SLP).
Overview of Boeing earnings: Boeing (BA) is due to report earnings on April 27 with revenue expectations of $16.16 billion and EPS of -$0.21. The company previously reported that commercial shipments increased 23.4% in the quarter and defense shipments increased 5.1%. JPMorgan predicts that no major announcements are likely regarding when the MAX will return to service in China or the FAA’s approval of the 787, but believes updates to aircraft delivery expectations or annual free cash flow forecasts could have an impact on the share price. The company also cautioned against the risk that Boeing may disclose additional aircraft program fees that, although non-monetary in nature, would still reduce overall EBIT and optically increase calculated leverage.
NAB Overview: The media industry will go through a big test next week when the NAB Show in Las Vegas shines the spotlight on ad buying trends. After a two-year hiatus, nearly every major broadcast and radio company will be heading to Vegas for meetings and presentations. Prior to NAB, Wells Fargo named Nexstar Media Group (NXST) and Gray Television (GTN) as its preferred industry picks. iHeartMedia (NASDAQ: IHRT) is noted for not catching a bid this year, but Wells thinks that could change if the company releases a confident outlook on free cash flow.
Apple revenue overview: Analysts have been gradually positive on Apple (AAPL) over the past few weeks based on strong iPhone 13 and Mac trends, although there is still plenty of caution about what executives will report on the China and the supply chain. Apple is expected to provide its annual return on capital update on the earnings call, which could include a progressively positive return on capital update. Morgan Stanley advises investors to buy AAPL in the face of weak earnings, with product launches expected later in the year. A wild card with the Apple earnings call is the Apple car. A recent patent filing from Apple claimed protection for a “vehicle having a plurality of cameras, a network interface, memory, and one or more computer processors.” Apple’s direction with the production of autonomous electric vehicles is still unclear, with speculation about potential manufacturing partners including from Porsche (OTCPK:POAHY), Tesla (TSLA), Volkswagen (OTCPK:VLKAF), Hyundai (OTCPK:HYMLF), XPeng (NYSE: XPEV), Nio (NIO), Magna International (MGA), Stellantis (STLA), Foxconn (OTC: FXCOF), Nissan (OTCPK: NSANY), Toyota (TM), etc.
SPAC and M&A monitoring: The SPAC schedule includes a vote at Archimedes Tech SPAC Partners Co. (ATSPT) on the deal to take artificial intelligence company SoundHound public, as well as a vote at Spring Valley Acquisition Corp. (SV) to vote on NuScale Power’s IPO. On the M&A front, shareholders with 51 jobs (NASDAQ: JOBS) will formally vote on the takeover bid from DCP Capital and Ocean Link Partners. Earnings calls from MKSI and Frontier Group (ULCC) will also be closely watched with buyout offers in the hopper. Also see Rite Aid (NYSE: RAD), Spear Point hosting a webinar regarding its takeover bid.
Annual meetings: IBM (New York Stock Exchange: IBM) holds its annual meeting on April 26. Across the Atlantic, British American Tobacco plc (BTI) will hold its annual meeting on April 28.
Mentions of Barron: The cover story addresses major issues in Meta Platforms (FB) with core business growth slowing. Apple’s consumer changes mean that Meta (FB) continues to be viewed by investors in a different light. Meta’s stock is noted to be historically cheap, but the argument is that it will stay cheap until investors are confident the company can solve the “ad-targeting problem, effectively compete with TikTok and understand the metaverse, while defending itself”. against critics who still think the company is far too powerful.” On the other side of the ledger, Under Armor (New York Stock Exchange: UAA) is sized favorably in a glowing room. The company has become leaner with fewer product offerings and a portfolio that offers better profitability. AU’s balance sheet is also rated as a major asset, as the recent announcement of takeovers showed.
Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital