Wall Street will get its first look at earnings from big tech companies this week. Google parent Alphabet Inc. and Tesla Inc. are among more than 100 S&P 500 companies scheduled to report. Results from Ford Motor Co., IBM Corp. and General Motors Corp. are also on the docket. The reporting period is off to a strong start. About 14% of S&P 500 companies have posted second-quarter numbers through Friday’s close. Of those, 81% beat expectations, according to FactSet. At 9.66%, the S&P 500’s overall earnings growth is also on track to be the highest since the fourth quarter of 2021. Check out CNBC Pro’s breakdown of what to expect from this week’s key reports. All times are ET. General Motors Co. is scheduled to report earnings before the bell on Tuesday. Management is scheduled to hold a conference call at 8:30 a.m. ET. Q4: GM raised its 2024 guidance and posted strong first-quarter earnings. Current quarter: Analysts expect earnings to grow more than 40% year-over-year, according to LSEG. What CNBC automotive reporter Michael Weiland is watching: “Investors have high expectations for GM to not only report strong second-quarter earnings, but at least target the top end of its fiscal 2024 targets, if not raise them for a second straight quarter. New vehicle sales and pricing have been more resilient than GM expected to start the year, creating a favorable environment for the company during the first half. Beyond the results, investors will be looking to hear any updates on the company’s rollout of new electric cars, gas-powered trucks and crossovers, as well as any comments on GM’s self-driving vehicle unit Cruise and China, where GM has struggled recently. What history shows: Data from Bespoke Investment Group shows that GM beats earnings expectations 87% of the time. The automaker has also posted earnings beats for seven straight quarters. Tesla is scheduled to report earnings after the close. Leadership will then hold a conference call at 5:30 p.m. Last Quarter: TSLA shares jump after CEO saysCEO Elon Musk says the company aims to start producing an affordable electric car by early 2025. This quarter: Analysts surveyed by LSEG expect Tesla to post a 30% year-over-year decline in earnings. What to watch: Some analysts are concerned about Tesla heading into Tuesday’s report, including Dan Levy at Barclays, who has an equal-weight rating on the stock. In a note Wednesday, he warned that the report “may confirm continued margin pressure, even if it’s near rock bottom.” He added that “while 2024 guidance has been revised downward, we still see a need to lower estimates in the medium term given weak volumes, leaving a lot of uncertainty around when fundamentals will turn favorable again.” Baird’s Ben Calo was more bullish ahead of the report. “We like the setup and believe there is a high potential for EPS beats. We believe the more stable pricing environment during the quarter, higher revenue from full self-driving, and strong outperformance in the energy segment all support a strong quarter.” What history shows: Custom data shows GM beats earnings expectations 62% of the time. However, the stock has fallen on four of the last five earnings days. Alphabet is scheduled to report earnings after the bell, followed by a call at 4:30 p.m. Last quarter: GOOGL shares rose after the company reported its first-ever dividend. This quarter: The tech giant is expected to post earnings growth of about 30% from the prior-year period, according to LSEG. What to watch: Key for Alphabet investors will be updates on the company’s digital ad sales as well as improvements in artificial intelligence. Deutsche Bank analyst Benjamin Black also said he likes the stock’s setup ahead of the report. “Overall, given the strong ad market, AI-led tailwinds, and signs of increasing cost discipline from management, we maintain our Buy rating,” he said in a note Thursday. What history shows: Google averages more than 1% gains on earnings days, according to Bespoke. The tech giant has also beaten net profit estimates for five straight quarters. Ford Motor Co. is scheduled to report earnings after the bell on Wednesday. A call with management is scheduled for 5 p.m. ET. Last quarter: F’s earnings beat estimates as the company’s electric-vehicle business offset losses. This quarter: The automaker’s earnings are expected to decline slightly, according to LSEG data. What CNBC automotive reporter Michael Weiland is watching: “Ford Motor Co. is expected to report a relatively strong second quarter, though not as strong as cross-town rival GM. Ford is still in the midst of a restructuring under Ford CEO Jim Farley called “Ford+.” The plan initially focused heavily on all-electric vehicles but also includes more efficient product launches and cost-cutting to make the company’s vehicles more profitable. Wall Street expects the automaker’s “Ford Pro” commercial vehicle business, along with sales of its highly profitable conventional pickup trucks, to offset losses in its “Model e” EV business. What history shows: Ford’s earnings beat estimates about 70% of the time, according to Bespoke. However, the stock averages 0.45% lower on earnings days. IBM is scheduled to report earnings in the after-market, followed by a call at 5 p.m. Last quarter: IBM reported another revenue decline and announced it will acquire HashiCorp for $6.4 billion. This quarter: Analysts see earnings flatAnd revenue on a year-over-year basis, according to LSEG. What to watch: IBM shares have outperformed the S&P 500 technology sector in the past month, rising 7% while the sector has fallen 3% in that time. Can that momentum continue? RBC analyst Matthew Swanson thinks so. “We expect strong results when the company reports Q2 2024 on July 24, with infrastructure continuing to outperform and software results improving despite tough competition,” he wrote Thursday. Swanson gives the stock an outperform rating. What history shows: Bespoke data shows IBM’s earnings beat expectations 84% of the time. American Airlines is scheduled to report its earnings premarket Thursday, with a call scheduled for 8:30 a.m. Last quarter: AAL reported a loss but issued better-than-expected guidance. This quarter: The airline’s earnings are expected to fall more than 10% from the year-ago period, according to LSEG. What CNBC aviation correspondent Leslie Joseph is watching: “American Airlines investors will want to look for clear steps the company is taking to correct a direct-to-consumer sales strategy that backfired earlier this year. In May, the airline cut its earnings and revenue forecasts and said its chief commercial officer would leave the company. Investors in the airline will be looking for clues about travel demand and further capacity cuts as additional flights this year have driven down fares. American Airlines has also been locked in one of its most contentious labor negotiations with flight attendants and executives are likely to be grilled about progress.” What history shows: American Airlines tops earnings estimates 88% of the time. However, the stock tends to hold steady on earnings days.
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Your guide to a busy week of earnings, including Alphabet and Tesla
