US Earnings Week Ahead

Investors expect a huge week for US earnings as the week will be packed with notable economic data releases. Microsoft, Intel, Tesla, and Verizon Communications Inc. are some of the companies to watch out for. 

Update 30 January 2023

As earnings results filter through and with the US earnings season in full swing, market participants are expecting a rather dull and subdued growth in earnings for the S&P 500 Index. If the index reports negative growth or a decline in earnings for the fourth-quarter of 2022, this will mark the first year-on-year decline in earnings for the S&P 500 Index since the third-quarter of 2020. With that in mind, we look to the recently released earnings results for technology giants Microsoft (NASDAQ: MSFT) and Tesla (NASDAQ: TSLA), but also consider the latest quarterly earnings results for American pharmaceuticals giant Johnson & Johnson (NYSE: JNJ).

Despite “better than feared” quarterly earnings results, American software and technology company, Microsoft Corp. (NASDAQ: MSFT) has warned market participants that it expects a slowdown in the growth of its Azure cloud computing service suggesting that a possible “weak few quarters ahead” could be in store for investors. The technology giant reported a 6% year-on-year decline in adjusted earnings per share while fourth-quarter revenue grew by approximately 2% on a year-on-year basis. World-renowned pharmaceuticals company, Johnson & Johnson (NYSE: JNJ) surpassed earnings expectations reporting a quarterly earnings per share figure of $2.35 against expectations of $2.23, but fell short on revenue estimates, reporting quarterly revenue of $23.71 billion against estimates of $23.86 billion. American multinational automotive and clean energy kingpin, Tesla Inc. (NASDAQ: TSLA), has seen its share price deteriorate in recent months, partially due to CEO Elon Musk’s venture into the social media space via his Twitter takeover. Much to the pleasure of Tesla shareholders, fourth-quarter earnings results were better than expected for the automotive giant with a reported earnings per share figure of $1.19 against expectations of $1.11. Moreover, Tesla has recently entered into a $5 billion unsecured revolving credit facility with Citibank, a corporate action that will gain the attention of many market participants.

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