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Investors’ Q2 Earnings Expectations for Major Firms

Only approximately one-fifth of the S&P 500 has so far released second-quarter results, but since earnings season began more than a week ago, some significant talking points have surfaced, some of which are fairly unexpected. 

Given growing worries that the Federal Reserve’s aggressive interest rate increases to combat historically high inflation would send the U.S. economy into a recession, a key concern going into earnings season wasn’t what had happened over the previous three months. 

Instead, it was how much companies would cut their forward guidance.

According to I/B/E/S data provided by Refinitiv, 75.5 percent of the businesses reporting have been outperforming consensus analyst estimates for earnings per share by an average of approximately 4.7 percent. 

This contrasts with an average beat margin of 9.5 percent over the previous four quarters and 66 percent of corporations beating EPS projections in a normal quarter since 1994.

In terms of sales, 68.9% of the companies have outperformed expectations on average by 1.3 percent, down from a beat rate of 3.4 percent during the previous four quarters and an usual 62 percent of companies since 2002.

As per FactSet data, there have been more wins by less than usual amounts, which has caused the mixed EPS estimate, which includes results from businesses that have already reported results and estimates of companies yet to report, to slip from an estimate of 5.7 percent growth as of March 31 to 5.0 percent growth year-over-year.

However, there was a concern going into earnings season that is now realized: the strong increase in the value of the U.S. dollar will lower the value of profits and revenue from international operations.

Apple Inc.

Apple’s conference call to discuss third fiscal quarter results and business updates is scheduled for. Thursday, July 28, 2022 at 2:00 p.m. PT / 5:00 p.m.

On July 26, 2022, after the close of the market, Microsoft Corporation is anticipated to announce profits. The report will be for the fiscal Quarter ending Jun 2022. 

The consensus EPS expectation for the quarter is $2.28 based on predictions from multiple analysts.

Alphabet Inc.

Alphabet Inc. is expected to report earnings after the market closes on July 26, 2022. The report will cover the fiscal quarter that wrapped up in June 2022.

The consensus EPS forecast for the quarter is $1.28, based on multiple analyst predictions. Last year, the reported EPS for the same quarter was $1.3599999999999999.

Visa Inc.

Visa Inc. is expected to report earnings after the market closes on July 26, 2022. The report will cover the fiscal quarter that ends in June 2022. 

The consensus EPS forecast for the quarter is $1.74, based on  multiple analyst forecasts. Last year, the reported EPS for the same quarter was $1.49.

Advanced Micro Devices, Inc.

Advanced Micro Devices, Inc. is expected to report revenues after the market closes on August 02, 2022. The report will cover the fiscal quarter that ends in June 2022. 

The consensus EPS forecast for the quarter is $0.94, based on 13 analyst forecasts. Last year, the reported EPS for the same quarter was $0.58.

Starbucks Corporation

Starbucks Corporation is expected* to report earnings on August 02, 2022 after market close. The report will be for the fiscal Quarter ending Jun 2022. 

Based on multiple analysts’ predictions, the consensus EPS forecast for the quarter is $0.77. The reported EPS for the same quarter last year was $1.01.

3M Company

3M Company is expected* to report earnings on July 26, 2022 before the market opens. The report will be for the fiscal Quarter ending Jun 2022.

Based on multiple analysts’ forecasts, the consensus EPS forecast for the quarter is $2.41. The reported EPS for the same quarter last year was $2.59.

General Electric Company

General Electric Company is expected* to report earnings on July 26, 2022 before the market opens. The report will be for the fiscal Quarter ending Jun 2022. 

Based on multiple analysts’ forecasts, the consensus EPS forecast for the quarter is $0.38. The reported EPS for the same quarter last year was $0.4.

UBS AG

UBS AG is expected* to report earnings on July 26, 2022 before the market opens. The report will be for the fiscal Quarter ending Jun 2022. 

Based on multiple analysts’ forecasts, the consensus EPS forecast for the quarter is $0.62. The reported EPS for the same quarter last year was $0.55.

Boston Scientific Corporation

Boston Scientific Corporation is expected* to report earnings on July 27, 2022 before the market opens. The report will be for the fiscal Quarter ending Jun 2022. 

Based on multiple analysts’ forecasts, the consensus EPS forecast for the quarter is $0.42.

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Author

  • Phyllis Wangui

    Phyllis Wangui is a Financial Analyst and News Editor with qualifications in accounting and economics. She has over 20 years of banking and accounting experience, during which she has gained extensive knowledge of the forex, stock news, stock market, forex analysis, cryptos and foreign exchange industries. Phyllis is an avid commentator on these topics and loves to share her insights with others through financial publications and social media platforms.