Netflix, Apple, Amazon… some of the world’s biggest companies are set to release their first quarterly reports later in April and May.
The release of these earnings will cause high volatility, particularly in the technology sector.
In this article, we highlight what makes the upcoming earnings season so important and why you shouldn’t miss out on the trading opportunities they present.
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State of the market – post Q1 2023
From a red-hot January as China finally ended its COVID-19 restrictions to February’s crash as interest rates surged, it’s been a rollercoaster start to 2023.
March saw several banking blow-ups as financial institutions crashed continuing an action-packed start to the year.
Ultimately, the first quarter shows world stocks gaining a healthy 6%, US government bonds up 3%-5% and gold is 8% higher. Energy prices, however, are dropping and the dollar has barely moved.
Overall, it’s been an incredibly volatile year for markets.
Global shares soared 10% in January, lifted by the tech sector. Gains however were lost by the time Silicon Valley Bank collapsed followed by the 167-year-old Swiss banking behemoth, Credit Suisse, being bailed out.
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Equities are seeing movement and US and European government bond yields – the primary drivers of global borrowing costs – are bracing for their biggest monthly drop since the global crash of 2008.
The global economy is still reeling from the dual combination of high-interest rates and high inflation; to curb the latter, many institutions such as the US Federal Reserve have implemented rate hikes.
A key reason as to why assets have been volatile is that investors are unsure how major central banks will react in 2023. Will they push on with rate hikes and risk further banking sector problems? Or finally, pause rate hikes and risk more inflation?
All eyes will be on company performance in April and May as this will show whether consumer spending and overall sales are rising.
Earnings Season 2023 – Snapshot of top companies
Netflix (NFLX) – $348,28 USD, 18.08% YTD
Global streaming giant Netflix is set to release its Q1 earnings on April 18. Its stock is up 18% year-to-date and shows the company’s gamble with advertising during streams and clamping down on account-sharing appears to be paying off.
Amazon (AMZN) $102,41, 19.33%
Amazon remains the dominant force in e-commerce and cloud computing. The company has undergone massive restructuring and cost-cutting to push its growth in 2023.
Apple (AAPL) $166,17, 32.86%
Apple stock is pushing up toward its former highs as a result of sustained demand for iPhones and future services revenue. The company is benefiting from strong demand in Asia for its iPhone 14, with no major production cuts planned for the year.
Tesla (TSLA) $194,77, 80.18%
Tesla reported a modest 4% rise in sales in the first quarter compared to the final three months of 2022. Its shares have skyrocketed in 2023 with the company reportedly selling 422 875 vehicles in Q1.
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Check out the top companies releasing their earnings in April 2023:
Company – EPS Forecast / Revenue Forecast / Market cap
Tuesday, April 18, 2023
Netflix (NFLX) – $2.88 – $8.17B – $155.11B
Wednesday, April 19, 2023
Tesla (TSLA) – $0.8566 – $23.62B – $618.27B
Nasdaq Inc (NDAQ) $0.6504 – $906.38M – $26.6B
Tuesday, April 25, 2023
Alphabet A (GOOGL) – $1.08 – $68.9B – $1.34T
Wednesday, April 26, 2023
Meta Platforms (META) – $2.01 – $27.64B – $552.41B
Thursday, April 27, 2023
Apple (AAPL) – $1.43 – $92.63B – $2.63T
Microsoft (MSFT) – $2.24 – $51.13B – $2.14T
Amazon.com (AMZN) – $0.2072 – $124.62B – $1.05T
Friday, April 28, 2023
Exxon Mobil (XOM) – $2.67 – $88.32B – $472.76B
Chevron (CVX) – $3.55 – $50.19B – $324.04B
Stay up to date on the latest market news
How earnings season works:
Earnings season is a period during which publicly traded companies release their financial results for a specific quarter. In general, companies report earnings four times per year, corresponding to the end of each quarter:
Q1: January through March
Q2: April through June
Q3: July through September
Q4: October through December
During earnings season, companies announce their financial performance for the previous quarter. This includes their revenue, earnings per share, and other financial metrics. Companies may also guide their future performance, outlining their expectations for the coming quarter or year.
Investors and analysts closely follow earnings reports to evaluate a company’s financial health and performance, as well as to gauge the potential for future growth. Earnings reports can also impact on stock prices, as investors may buy or sell shares based on the company’s financial results and guidance.
In general, earnings season kicks off several weeks after the end of each quarter, with many companies releasing their earnings reports within a few days of each other. The actual release date can vary, however, and some companies may report earnings outside of the traditional earnings season schedule.
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