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Earnings Preview: Tech & Oil Dominate The List

Tuesday, April 27, 2021 04:27 PM | Neal Farmer

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Earnings Preview: Tech & Oil Dominate The List

Earnings season continues this week with a heavy emphasis on tech stocks, oil and gas companies, and everyone’s favorite online retailer.

Two of the biggest tech companies Alphabet (GOOG) and Microsoft (MSFT) have already reported 2021 first quarter earnings. Google blew things out, beating handily on the top and bottom lines, and announcing a plan to repurchase up to $50 billion of the company's stock. Microsoft's results were less impressive, but still topped expectations on both lines. Google rose and Microsoft fell after the reports were released.

Reddit traders got off to a great start this week as well when Tesla (TSLA) surpassed both earnings and revenue estimates with earnings per share of $0.93. Yet to report this week though are giants such as Apple (AAPL), Facebook (FB) and Amazon (AMZN) as well as Ford (F), Gilead (GILD), Boeing (BA), and some of the biggest oil companies in the world.

Tech Rules The Week

Young people’s favorite sector has some of its biggest players yet to report as Apple and Facebook, and Twitter (TWTR) are going later this week. Apple is expected to report earnings per share of $0.98, up from $0.64 in its year ago quarter but down from $1.68 last quarter. Apple has managed to surpass earnings estimates over the past four quarters. Meanwhile, Facebook’s earnings estimates currently sit at $2.32 per share, up from $1.71 in its year-ago quarter while also down from last quarter’s $3.88. Facebook has consistently outperformed estimates but just barely missed in the year-ago quarter which saw the first effects of coronavirus. Finally, analysts expect earnings per share of $0.14 for Twitter, higher than the flat 0 it reported a year ago.

Additionally, Microvision (MVIS), Reddit’s newest meme stock, is set to report first quarter numbers after market close on Thursday April 29. MVIS rose 47% on Monday, but gave most of it back on Tuesday. This volatility comes after a Reddit craze that saw it become one of the most mentioned stocks on r/wallstreetbets. With 20% of Microvision’s shares held short, traders are attempting to force a short squeeze similar to what happened to GameStop (GME) earlier this year. Microvision is currently expected to report earnings per share of -$0.02 and revenue of $600,000 (yes, $600,000).

Digging For Gains

Aside from technology, oil and gas companies are the focus of this heavy earnings week. BP shares rose on Tuesday following its earnings call where the firm reported earnings per share of $0.78. The report showed a massive jump in EPS from the $0.03 it had reported the previous two quarters, BP was expected to announce earnings per share of only $0.07. BP’s performance is a good sign for the industry as many investors have moved to energy stocks recently off of strong vaccination growth and a reopened economy.

Still yet to report are Exxon (XOM), Chevron (CVX), and Phillips 66 (PSX). All are expected to release 2021 first fiscal quarter earnings on Friday April 30 before market open. Estimates for Exxon currently sit around earnings per share of $0.53, a spike upwards from $0.03 last quarter and right in line with the $0.53 it reported a year ago. Chevron meanwhile is expected to report an EPS of $0.85 after being slightly negative last quarter at -$0.01, but is still significantly down from $1.29 in its year ago quarter. Finally, analysts expect Phillips 66 to release negative earnings per share of -$0.28, up from -$1.16 last quarter and lower than the $1.02 a year ago before the largest impact of the coronavirus.

The earnings show a strong upward trend for many of these firms as many are expected to show profit after negative earnings due largely to the pandemic.

Amazon

Amazon’s earnings call is set for after market close on Thursday April 29, the firm is expected to report earnings per share of $9.55 and revenue of $105 billion for the first quarter. The estimated EPS is down from $14.09 last quarter, however, Amazon has significantly outperformed analysts expectations over the past three quarters evidenced by last quarter’s estimated earnings per share of $7.05. Amazon has done predictably well during the pandemic as the online retail giant had earnings per share of “just” $5.01 in its year ago quarter. Additionally, reports are coming out that Amazon is expected to announce a stock split in 2021 possibly as early as Thursday as the move would allow AMZN to join the Dow Jones Industrial Average.

Other Big Names

Finally, other big names from a number of different industries are reporting earnings this week. Ford is expected to release earnings per share of $0.13 after market close on Wednesday April 28, which would be lower than the previous two quarters but above its year-ago quarter. Gilead Sciences is expected to report earnings per share of $2.08 after close on Thursday, a slight drop from the previous quarter. Lastly, Boeing is expected to show an EPS of $-1.08 for the first quarter of 2021, which would be the best number it has reported in over a year as the aircraft manufacturer reported an EPS of -$1.7 in its year ago quarter.

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