The Q3 FY2021 (third quarter of the 2021 fiscal year) earnings season is still going on. This week we will see the five horsemen of technology, also known as the Big Tech, releasing their earnings reports for the quarter that ended on September 21, 2021. These include iPhone maker Apple Inc. (ticker: AAPL), e-commerce giant Amazon.com Inc. (ticker: AMZN), software and hardware giant Microsoft Corporation (ticker: MSFT), Google’s parent company Alphabet Inc. (ticker: GOOG, GOOGL), and social media giant Facebook Inc. (ticker: FB).
However, these are not the only companies that are set to report their earnings this week. Other S&P 500 Index (SPX) components will also release their reports, and notable of these include investment and financial services company HSBC (ticker: HSBC), food and beverage company The Coca-Cola Company (KO), popular microblogging site Twitter Inc. (ticker: TWTR), among many others. In total, over 40% of the S&P 500 Index will release its quarterly earnings report this week from sectors such as tech, pharmaceutical, financial services, and energy, among others.
Last week on Thursday, Snap Inc. (ticker: SNAP) released its Q3 FY2021 earnings report in which it made its first billion dollars in revenue but issued a lower-than-expected guide for Q4. The company blamed its woes on Apple’s privacy changes for its iOS, and investors are waiting to see if the same changes have affected other social network companies like Facebook and Twitter, whose primary revenue stream is digital advertising. It is worth noting that FactSet data shows that consensus analysts expect these companies to continue their winning streak, as they have beaten analysts’ expectations in the previous four quarters.
Today, Monday, October 25, 2021, social media giant Facebook will release its Q3 FY2021 earnings report, and analysts, shareholders, and investors expect several things from this report. Analysts expect the company to talk about the events that led to the six-hour-long shutdown of the company’s suite of services (WhatsApp, Instagram, Messenger, Facebook). Other issues include accusations by Frances Haugen that the company prioritizes profit over the safety of its users.
Facebook has had a mixed year at the stock market. In June, the company crossed the trillion-dollar mark in market capitalization, but it has retracted since then, settling at $915.22 billion to date. Facebook’s stock has gained 20.70% year to date, slightly underperforming the benchmark S&P 500, which has gained 22.81% in the same period. Facebook’s stock is currently trading at $324.61 a share.
Other companies releasing their quarterly reports after market close include banking giant HSBC, which has announced a $2 billion share buyback program, and Canon Inc. (ticker: CAJ), a Japanese multinational corporation majoring in optical and imaging products. We will also receive the Japan Leading Economic Index for the month of August.
Tomorrow, Tuesday, October 26, 2021, tech giant Microsoft will release the earnings report for its first quarter of the 2022 fiscal year (Q1 FY2022) after market close. The company has been on an upward movement this year thanks to the excellent performance of its software and hardware products, specifically its Microsoft Azure cloud computing business segment.
Microsoft is one of those companies whose fiscal year does not align with the calendar year. In September this year, Microsoft’s cash inflow was so good that the company decided to announce a share repurchase program worth $60 billion to cover a period of three years and increased its dividends to shareholders by 11%. On the stock market, Microsoft shares have gained 42.02% year to date, outperforming the S&P 500 Index by almost 100%. The company’s stock is trading at $309.16 a share, and analysts expect its Q1 FY2022 earnings report to be better than its Q4 FY2022.
HOOD is set to release its Q3 FY2021 earnings report on Tuesday, and investors will have their ears and eyes glued to what the company will say about its cryptocurrency business gains. Since the crypto market has been in rally mode for much of Q3, investors expect the company to report how much of its trading revenue has come from cryptocurrencies. In Q2 FY2021 that ended on June 30, 2021, Robinhood said that more than half of its trading revenue came from cryptocurrencies.
Other companies reporting their quarterly earnings on Tuesday are Twitter, Alphabet, Capital One Financial (ticker: COF), logistics company UPS (ticker: UPS), among many others.
Wednesday will see food and beverage companies and those in the transport sector report their quarterly earnings. Companies like Coca-Cola, McDonald’s (ticker: MCD), and Kraft Heinz (ticker: KHC) will report their Q3 FY2021 results on this day. Automakers General Motors (ticker: GM) and Ford Co. (ticker: F), as well as sky giant The Boeing Company (ticker: BA), will also report on this day.
The largest company in the world by market capitalization, the iPhone maker will report its Q3 F2021 earnings on Thursday, October 28, 2021. Investors are waiting to see if the company will include early sales made from the latest release of its flagship product iPhone 13 will be factored into the report. The iPhone business segment of Apple is the company’s biggest revenue earner, and investors are also looking forward to the company’s Q4 guidance as we head into the holiday season that could see iPhone sales soar.
Currently trading at $148.69 a share, Apple’s stock has gained 14.90% this year so far, underperforming the SPX in the same period.
Amazon’s Q3 earnings report is one of the most important for investors and shareholders. It comes with guidance for Q4 of the company’s fiscal year, which gives investors a sneak peek into its expected performance in the festive season. The e-commerce giant has gained 4.67% year to date, its stock trading at $3,335.55 for each share. Amazon will report its earnings on Thursday.
Facebook (FB), HSBC (HSBC), and Canon (CAJ), Japan Leading Economic Index (August).
Microsoft (MSFT), Alphabet (GOOGL), Twitter (TWTR), MSCI (MSCI), S&P Global (SPGI), Visa (V), Capital One Financial (COF), UBS (UBS), Robinhood (HOOD), Ameriprise Financial (AMP), Eli Lilly (LLY), Novartis (NVS), Texas Instruments (TXN), AMD (AMD), UPS (UPS), 3M (MMM), Logitech (LOGI), and Lockheed Martin (LMT), S&P Case-Shiller Home Index (August), CB Consumer Confidence (October), China Industrial Profits (September).
Coca-Cola g(KO), McDonald’s (MCD), Kraft Heinz (KHC), Thermo Fisher Scientific (TMO), GSK (GSK), eBay (EBAY), Spotify (SPOT), General Motors (GM), Ford (F), and Boeing (BA), US Durable Goods Orders (September), EA Loans to Households and Companies (September), Japan Retail Sales (September).
Apple (AAPL), Amazon (AMZN), Shopify (SHOP), Sony (SONY), MasterCard (MA), Comcast (CMCSA), Starbucks (SBUX), AB InBev (BUD), YUM! Brands (YUM), Sanofi (SNY), Merck (MRK), and Gilead Sciences (GILD), US PCE (Q3), US Pending Home Sales (September), EA Economic, Industrial, and Services Sentiment (October), ECB Press Conference and Interest Rate Decision, Japan CPI (September), Japan Industrial Production (September).
ExxonMobil (XOM), Chevron (CVX), AbbVie (ABBV), and Colgate-Palmolive (CL), Personal Income (September), Michigan Consumer Sentiment Final Reading (October), US Employment (Q3), EA Flash Inflation Rate (October).
PS: Stock prices are quoted in real-time, so they are subject to change at any time.