Earnings to Watch This Week (original) (raw)

Many companies are reporting this week, so let's sift through the pile to target those most critical to the AAP portfolio.

TheStreet

Earnings are pouring in this week and we're closely watching our stocks as well as competitors'. Let's see what to expect and which stocks to follow.

Kicking off the week, Coca-Cola (KO) reported a solid quarterly beat earlier Monday, and now Action Alerts PLUS holding PepsiCo (PEP) reports before Tuesday's market open. Those are just two of the more than 1,000 reports coming over the next few days.

Following positive pricing comments from Procter & Gamble (PG) and Coca-Cola, results from PepsiCo, and Mondelez International (MDLZ) will round out what we're likely to see in the coming results for inflation at the grocery store.

Similar insights will arrive from AAP-stock Chipotle (CMG) , which reports Tuesday, and Domino's Pizza (DPZ) , and McDonald's (MCD) when it comes to the restaurant sector.

Further painting the picture of consumer spending will be insights from Visa (V) , Mastercard (MA) , which reports Thursday, and Amazon (AMZN) , which is also expected to report Thursday. Results from Hilton (HLT) could confirm whether upbeat guidance from airline companies is more due to pricing or volume. We'll be interested in that distinction given our position in Clear Secure (YOU) shares, which reports in May.

Following Tesla's (TSLA) results last week and the latest round of price cuts, we'll get another view on the electric vehicle market from General Motors (GM) and Nio (NIO) . The crux of those reports, in our view, will be volume expectations but more importantly if those companies will target responsible growth vs. sacrificing margins for share gains. As we discussed in Friday's Roundup, those learnings may influence our next move with Ford Motor (F) shares. (Ford is slated to report May 2.)

Turning to tech, artificial intelligence, as well as cloud, will be two of the key topics when Alphabet GOOGL and Microsoft (MSFT) report Tuesday; and Amazon and Meta Platforms (META) report. Those insights will flow through to key chip companies like Nvidia (NVDA) , AMD (AMD) , and others, including our shares of Marvell (MRVL) , which already reported. We'll corroborate that cloud outlook with a project update and data center capital spending plans from Digital Realty Trust (DLR) later in the week.

We will be looking to see if these big tech stocks see their end markets bottoming out in the current quarter like Taiwan Semi (TSM) does. We will also be interested in recent headcount reductions and the expected profitability benefit, but also when they see advertising spending rebounding. Earnings and guidance from Snap (SNAP) will help round out that picture as well.

As it relates to Bullpen resident Applied Materials (AMAT) , last week Taiwan Semi revealed unchanged plans for its 2023 capital spending despite rumors of potential cuts. This week brings quarterly results from Intel (INTC) , and while we'll be matching its outlook for the PC market against Micron's (MU) with an eye toward implications for Microsoft, its capital spending plans, and cloud comments are what we'll be watching for Applied and Marvell.

Looking at U.S. infrastructure spending, we'll focus on Caterpillar's (CAT) comments for nonresidential construction expectations. As we get those comments, we'll be thinking of our shares of United Rentals (URI) , which reports Wednesday, and Vulcan Materials (VMC) and Deere (DE) , which all report in May.

PEP, CMG, MA, AMZN, YOU, F, GOOGL, MSFT, MRVL, URI, VMC, and DE are stocks in the AAP portfolio.