As earnings season continues, investors will have a slightly shortened trading week due to the U.S. stock market closure on Monday in observance of Washington’s Birthday (Presidents’ Day). However, the rest of the week remains packed with key earnings reports from major companies across multiple sectors, offering plenty of insights both in the U.S, and International markets.
What to Expect This Week
With the market closed on Monday, investors will shift focus to Tuesday through Friday, where several major companies from the U.S, and a couple of notable Chinese listed stocks are set to release their latest quarterly results.
Again, we will be keeping a keen eye on guidance and outlook indications for the upcoming quarters, with companies likely to discuss economic headwinds, supply chain challenges, and emerging growth opportunities. So far this earnings season, there has been a theme where those beating on top and bottom lines have been harshly punished for disappointing guidance.
There were plenty of major moves by 15% or more (in either direction) over the past week's earnings, with Applovin's stock price (NASDAQ: APP) making a huge 30% gain. Reddit's share price (NYSE: RDDT) moved in the opposite direction, with a loss of 14.23% on the week a mild recovery on what looked to initially be shaping up worse. Caution should be exercised on the week, with a prudent approach to risk management potentially key.
Key Earnings Reports by Day
| Company | Exp. EPS | Exp. Revenue | Prev. EPS | Prev. Revenue |
|---|---|---|---|---|
| Baidu | ¥13.44 | ¥33.43B | ¥16.6 (Miss) | ¥33.56B (Miss) |
| Medtronic | $1.36 | $8.33B | $1.26 (Beat) | $8.40B (Beat) |
| Occidental | $0.67 | $7.14B | $1.00 (Beat) | $7.15B (Beat) |
| Etsy | $1.46 | $861.37M | $0.95 (Miss) | $662.41M (Beat) |
| Carvana | $0.32 | $3.34B | $1.14 (Beat) | $3.66B (Beat) |
| Alibaba | ¥2.46 | ¥278.93B | ¥1.88 (Miss) | ¥236.50B |
| Walmart | $0.65 | $178.83B | $0.58 (Beat) | $168B (Beat) |
| Rivian | -$0.65 | $1.43B | -$0.99 (Miss) | $874M (Miss) |
| Block | $0.88 | $6.26B | $0.88 (Miss) | $5.98B (Miss) |
Tuesday, February 18
Before The Bell:
Baidu (BIDU): Expected EPS ¥13.44, Revenue ¥33.43 billion. Previous quarter EPS ¥16.6 (missed expected ¥17.9), Revenue ¥33.56 billion (missed expected ¥33.63 billion).
The latest consensus points to a projected 19% decrease in EPS and a marginal 0.4% decline in revenue quarter-over-quarter. Baidu continues to expand its AI capabilities and cloud computing services, diversifying its revenue streams beyond search advertising.
Medtronic (MDT): Expected EPS $1.36, Revenue $8.33 billion. Previous quarter EPS $1.26 (beat expected $1.25), Revenue $8.40 billion (beat expected $8.27 billion).
Expectations indicate an anticipated 7.9% increase in EPS but a slight 0.8% decrease in revenue sequentially. Medtronic's new cardiovascular product launches have positioned it well in the growing medical technology market.
After Hours:
Occidental Petroleum (OXY) : Expected EPS $0.67, Revenue $7.14 billion. Previous quarter EPS $1.00 (beat expected $0.75), Revenue $7.15 billion (beat expected $7.12 billion).
This reflects a projected 33% decrease in EPS and a marginal 0.1% decline in revenue quarter-over-quarter. Occidental has been expanding its carbon capture investments and focusing on lowering debt.
Wednesday, February 19
Before Market Open:
Etsy (ETSY): Expected EPS $1.46, Revenue $861.37 million. Previous quarter EPS $0.95 (missed expected $1.06), Revenue $662.41 million (beat expected $652.4 million).
This suggests an expected 53.7% increase in EPS and a 30% rise in revenue quarter-over-quarter. Etsy has seen strong seller growth but faces challenges in maintaining user engagement amid economic uncertainties.
Garmin (GRMN) : Expected EPS $1.35, Revenue $1.45 billion. Garmin continues to expand its wearables and fitness tracking technology, benefiting from demand in health-conscious markets.
After Closing Bell:
Carvana (CVNA) : Expected EPS $0.32, Revenue $3.34 billion. Previous quarter EPS $1.14 (beat expected $0.31), Revenue $3.66 billion (beat expected $3.47 billion).
This indicates a projected 71.9% decrease in EPS and an 8.7% decline in revenue sequentially. Carvana is working on improving cost efficiencies and reducing debt as it navigates a shifting used car market.
Cheesecake Factory (CAKE) : Expected EPS $0.92, Revenue $912.67 million. Previous quarter EPS $0.58 (beat expected $0.49), Revenue $856.47 million (missed expected $866.12 million).
This reflects an anticipated 58.6% increase in EPS and a 6.6% rise in revenue quarter-over-quarter. The company has focused on expanding digital ordering and improving restaurant efficiency.
Thursday, February 20
Before Opening Bell:
Alibaba (BABA) : Expected EPS ¥2.46, Revenue ¥278.93 billion. Previous quarter EPS ¥1.88 (missed expected ¥14.77), Revenue ¥236.50 billion (missed expected ¥240.05 billion).
This suggests a projected 30.9% increase in EPS and an 18% rise in revenue quarter-over-quarter. Alibaba's cloud division continues to be a strong growth driver, but regulatory scrutiny remains a concern.
Walmart (WMT) : Expected EPS $0.65, Revenue $178.83 billion. Previous quarter EPS $0.58 (beat expected $0.53), Revenue $168 billion (beat expected $166.62 billion).
This indicates an expected 12.1% increase in EPS and a 6.4% rise in revenue quarter-over-quarter. Walmart has been ramping up e-commerce initiatives, recently surpassing $100 billion in online sales.
After The Close:
Rivian (RIVN) : Expected EPS -$0.65, Revenue $1.43 billion. Previous quarter EPS -$0.99 (missed expected -$0.90), Revenue $874 million (missed expected $1.01 billion).
This suggests an expected 34.3% improvement in EPS and a 63.7% rise in revenue quarter-over-quarter. Rivian is scaling up production to meet demand but faces continued supply chain constraints.
Block (SQ) : Expected EPS $0.88, Revenue $6.26 billion. Previous quarter EPS $0.88 (missed expected $0.89), Revenue $5.98 billion (missed expected $6.26 billion).
Block’s digital payments ecosystem remains strong, with increasing adoption of its Cash App services.
