Investors will be determining the profitability of companies that have been eyeing on by looking at this quarter’s EPS. Consistent EPS increase, despite various economic challenges, is a good sign of future companies’ profitability and ability to raise dividends gradually.
Uber Technologies, Inc. and Advanced Micro Devices, Inc. are two examples of equities investors frequently look for as they prepare for earnings season. The companies’ earnings are coming in rather quickly, and things are looking well for their reports.
Advanced Micro Devices, Inc.
The chip manufacturer, Advanced Micro Devices (NASDAQ: AMD), will have to demonstrate that, despite supply-chain problems and inflationary pressures, there is still solid demand for its products when it reports its most recent quarterly earnings later today.
This is due to recent favorable earnings estimate revision activity at Advanced Micro Devices, which is typically an indicator of an earnings beat. After all, analysts upping expectations so close to earnings is a very solid indication that AMD is experiencing some positive trends beneath the surface of this report.
In fact, AMD’s Most Accurate Estimate is currently $1.05 per share for the current quarter, vs. a higher Consensus Estimate of $1.03 per share. The stock now has an Earnings ESP of +1.66 percent going into earnings season, indicating that analysts have recently raised their predictions for AMD.
Uber Technologies, Inc.
Uber Technologies, Inc. will announce results for the second quarter of 2022 on August 2, following market close.
The company has a strong track record of above earnings expectations, having done so in each of the previous four quarters with an average beat of 128.48 percent.
In fact, the current Most Accurate Estimate for the current quarter exceeds the more general Consensus Estimate of a loss of 25 cents per share. This implies that analysts have increased their predictions for UBER, as the firm now has an Earnings ESP of +1.22% going into the earnings season.
S&P Global Inc.
On August 2, 2022, before the market opens, S&P Global Inc. is anticipated to release its earnings. According to investment research, the average EPS projection for the quarter is $2.94, which represents a decrease of 18.8 percent from the reported number for the same period last year of $3.62. The earnings of S&P Global are likely to have suffered from rising costs. The financial quarter covered by the report ended in June 2022.
Starbucks stock (NASDAQ: SBUX) is expected to release its third-quarter earnings for 2022 on Tuesday, August 2. Starbucks is the world’s largest roaster, marketer, and retailer of specialty coffee. Because revenues and earnings in SBUX’s third-quarter results are probably in line with forecasts, we anticipate the stock to trade in accordance with the market.
Trefis analysis predicts Starbucks’ Q3 2022 earnings per share (EPS) will be 76 cents, which is somewhat more than the consensus forecast. The company reported 59 cents in profits per share in Q2, a 3 percent year-over-year decline.
The company’s price hikes were outpaced by inflationary pressures, which caused some short-term margin compression and cost it over 200 basis points in the first half of the fiscal year.
Caterpillar (NYSE: CAT) will release its second-quarter 2022 earnings on Tuesday, August 2. Caterpillar is expected to report lower revenue and earnings than the consensus projections. While the company’s revenue will be driven by strong demand and price, its overall performance may be hampered by supply chain interruptions and lockdowns in China.
Trefis expects Caterpillar’s Q2 2022 revenue to be around $14.1 billion, representing a 9% year-on-year increase but falling short of the $14.4 billion consensus expectation. According to Trefis, Caterpillar’s adjusted earnings per share (EPS) for the second quarter of 2022 are predicted to be $2.92, compared to the consensus expectation of $3.01.
PayPal Holdings, Inc.
PayPal Holdings, Inc. PYPL is set to release results for the second quarter of 2022 on August 2.
On a year-over-year and currency-neutral basis, the company anticipates a 9 percent revenue increase in the second quarter on a year-over-year and currency-neutral basis. The Consensus Estimate for revenues is $6.76 billion, representing an 8.3 percent increase over the prior-year quarter’s reported amount.
PayPal expects non-GAAP earnings per share of 86 cents. The Consensus Estimate for earnings is 85 cents per share, implying a 26.1 percent decrease from the previous year’s reported amount. Furthermore, the figure has fallen 1.2 percent in the last 30 days.
BP p.l.c. is expected to disclose its earnings report before the market opens on Tuesday, August 2. The report will cover the fiscal quarter that ends in June 2022. According to investment analysts, the consensus EPS projection for the quarter is $2.2, based on the forecasts of four analysts. Last year, the reported EPS for the same quarter was $0.83.
On August 2, Airbnb ABNB will release its second-quarter 2022 earnings. ABNB forecasts sales in the second quarter to range between $2.03 billion and $2.13 billion. The Consensus Estimate for the same is $2.1 billion, representing a 57.6 percent increase over the previous year’s reported total.
Earnings per share are expected to be 41 cents per share. The consensus figure has remained constant over the last 30 days. In the previous fiscal year, ABNB lost 11 cents per share.
Airbnb exceeded earnings expectations in each of the previous four quarters, with an average margin of 67.8 percent.
On August 1, Ferrari N.V. (RACE) declared its earnings for the fiscal quarter ending June 30, 2022. In the most recent quarter, Ferrari was expected to earn $1.26 per share but instead made $1.45 per share, representing a 15.08 percent surprise.
The previous quarter’s consensus estimate was $1.02 per share, but it actually delivered $1.33 per share, a 30.39 percent surprise.
Pinterest, Inc. (NYSE: PINS) announced financial results for the quarter ended June 30, 2022, on August 1, 2022. Q2 revenue increased by 9% year on year to $666 million, while global monthly active users (MAUs) fell by 5% year on year to 433 million. For the second quarter, the GAAP net loss was $43 million. For the second quarter, adjusted EBITDA was $92 million.
Despite the uncertainties that advertisers face, Pinterest achieved 9 percent revenue growth year over year in Q2, or 10 percent revenue growth on a constant currency basis, according to Bill, the CEO of Pinterest.
“We accelerated our investment in shopping and ecommerce this quarter, and I am thrilled by the dedication of our leaders and employees to continue to build a positive place on the Internet. Pinterest is uniquely positioned to tackle unsolved problems in our industry, capitalize on long-term digital commerce trends and help people go from inspiration to realization.”
said Bill Ready.
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