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Earnings Season: 3 Upcoming Reports Investors Can't Ignore

Earnings season can sometimes feel hectic, with a surplus of companies unveiling quarterly results daily. Still, that’s just the nature of the period, and seasoned investors have become well used to this chaotic nature.

For 2023 Q2, S&P 500 earnings are expected to decline -9.8% from the same period last year on -0.4% lower revenues. This would follow the -3.4% decline in index earnings in the preceding period (2023 Q1) and the -5.4% decline in 2022 Q4.

Sheraz Mian, Director of Research at Zacks, says, “The picture emerging from the Q2 earnings season is one of continued resilience and strength, with an above-average proportion of companies not only beating estimates but also providing reassuring guidance for the coming periods.”

Below is a chart illustrating the quarterly earnings and revenue growth expectations for the S&P 500.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

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For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture

And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. But how do expectations stack up for the three heading into their respective releases?

Apple - August 3rd

Analysts have shown modest positivity for the technology titan’s quarter to be reported, with the $1.19 per share estimate revised marginally higher over the last several months.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Regarding the top line, our consensus quarterly revenue estimate stands at $81.3 billion, implying a pullback of roughly 2% from the year-ago quarter. It’s worth noting that the quarterly sales estimate has been revised 3% lower from the $84.1 billion expected at the beginning of May.

Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Further, our expectation for quarterly iPhone revenue is $40.1 billion, implying a slight 1.4% decrease from the year-ago quarter. The technology titan exceeded iPhone revenue expectations in its latest release, delivering a 4% beat.

While iPhone revenue remains important, the company’s Services results will also be closely watched, which includes cloud services, the App Store, Apple Music, Apple Pay, and several others. The Zacks Consensus Estimate for Services revenue resides at $20.8 billion, 6% higher than the year-ago quarter.

Amazon - August 3rd

Analysts raised their expectations for Amazon’s quarter to be reported back in May, with the $0.34 per share estimate remaining unchanged since. Impressively, the value reflects a 240% improvement from the year-ago quarter.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The company’s revenue is also expected to see solid growth, with the $131.5 billion quarterly estimate indicating a 9% change year-over-year. Analysts have primarily left their top-line estimates unchanged over the last several months.

Similar to AAPL, Amazon’s revenue has a seasonal nature.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Of course, investors will closely monitor Amazon Web Services (AWS) results. The Zacks Consensus estimate for AWS net sales stands at $21.5 billion, 9% higher than year-ago sales of $19.7 billion but reflecting a slight slowdown relative to prior year-over-year growth rates.

Uber Technologies - August 1st

Analysts have been consistently revising their expectations higher for Uber’s quarterly release, with the -$0.01 per share loss estimate up a sizable 80% since the beginning of May and reflecting a year-over-year improvement of 100%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Top-line expectations have remained essentially unchanged, however, with Uber forecasted to post $9.3 billion in quarterly revenue, reflecting growth of 15% from the same period last year. Uber’s sales growth has been impressive, as we can see below.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Of course, the overall number of Trips is a big focus within Uber’s quarterly results, an area that continues to snowball. For the upcoming release, the Zacks Consensus Estimate for quarterly Trips sits at 2.2 billion, suggesting an improvement of 21% from Q2 2022.

Bottom Line

While earnings season can become overwhelming, that’s just the nature of the period. We’ve had many companies come out and post better-than-expected results so far, helping us avoid the ‘earnings apocalypse’ many feared.

And next week, we’ll hear from several notable companies, including Amazon AMZN, Apple AAPL, and Uber Technologies UBER.

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Uber Technologies, Inc. (UBER) : Free Stock Analysis Report

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Zacks Investment Research