Earnings playbook: An investor's guide to reports from Alphabet, Amazon, Meta and more

Published Sun, Jan 30 20228:37 AM EST

Sara Salinas @in/saracsalinas @saracsalinas

This week brings the rest of the Big Tech earnings reports, with quarterly updates from Alphabet, Amazon and Meta Platforms, formerly known as Facebook. Wall Street has so far been underwhelmed with some of what it's seen from tech, sending shares of Tesla, Intel and Netflix sharply lower after each of those reports. Apple and Microsoft fared better, though, which could bode well for the remaining mega-caps. Starbucks, General Motors and Ford will also offer updates this week and are likely to weigh in on broad supply chain and labor headwinds. Here are the reports CNBC will be watching: Tuesday Exxon Mobil is set to report results at 7:30 a.m. ET, followed by an investor call at 9:30 a.m. Last quarter: XOM posted its highest quarterly profit in years , but disappointed on revenue. This quarter: Wall Street is looking for massive EPS upside compared with the same period last year, when Exxon earned just 3 cents per share. What CNBC energy reporter Pippa Stevens is watching: "Exxon's fourth-quarter results come on the heels of oil surging to its highest level in more than seven years, with international benchmark Brent crude settling above $90 per barrel on Friday for the first time since Oct. 10, 2014. Exxon said in a pre-results filing that higher natural gas prices could boost fourth-quarter results by between $700 million and $1.1 billion, with higher liquids prices boosting results by between $400 million and $800 million. Investors will also be watching for updates on the company's shareholder return program. Expectations might have come down a little bit after Chevron posted results on Friday , with profits falling short of Wall Street's expectations." What history shows: Exxon's stock typically has a tough time around earnings reports, but the fourth quarter is traditionally its strongest, with shares gaining a fraction of a percent on average after the report, according to Bespoke Investment Group. Alphabet is due to report earnings right at market close and will host an investor call at 5 p.m. ET. Last quarter: GOOGL reported better-than-expected quarterly profit and revenue . This quarter: The Street is forecasting year-over-year growth of 20% to 25% in both earnings and revenue. What CNBC technology reporter Jennifer Elias is watching: "Investors expect Alphabet to be among the stronger tech performers in Q4 and will be watching the company's growth rate, which they expect to be slightly lower than previous quarters due to tough comparisons. They will also be looking closely at margin expansion, a likely result of spend in headcount, as well as its cloud unit and its self-driving car unit Waymo. The search giant could also offer clues into how well travel and retail have rebounded from the pandemic and whether the industries held back spend amid the omicron wave." What history shows: Alphabet shares gain ground after an earnings release nearly 60% of the time for an average rise of 1.7%, according to Bespoke. Starbucks will report earnings at 4:05 p.m. ET and host a call with analysts at 5 p.m. Last quarter: SBUX saw its revenue fall short and offered a mixed fiscal 2022 outlook. This quarter: Analysts are looking for 30% EPS growth over last year. What CNBC restaurants reporter Amelia Lucas is watching: "Last quarter, Starbucks said it was preparing for record-breaking holiday sales. But then came the omicron surge, resulting labor shortages and continued supply chain challenges. Did the chain manage to live up to its sky-high hopes? Wall Street is also focusing on recovery in China, the coffee giant's second-largest market." What history shows: Starbucks shares are on a 5-quarter losing streak in next-day trading, according to Bespoke. Advanced Micro Devices will report earnings around 4:15 p.m. ET, with an investor call set for 5 p.m. Last quarter: AMD reported sales up 54% on strong demand for chips for servers and game consoles. This quarter: Analysts are projecting 45% earnings growth year over year. What CNBC technology reporter Kif Leswing is watching: "AMD's latest generation of chips has sported significant performance gains, but investors will be closely watching to see if that translates to enterprises and cloud providers plugging AMD processors into their servers. AMD is also the chip provider for Sony's PlayStation 5 and Microsoft's Xbox Series X, which have been in short supply. Any positive update on supply issues for AMD's semi-custom segment could mean a much easier time for gamers looking for game consoles later this year." What history shows: AMD shares advance just 32% of the time following a quarterly release, but the fourth quarter is the stock's strongest in next-day trading, according to Bespoke. Still, shares rise an average of just 0.14% after a fourth-quarter release. General Motors should release results sometime after market close, followed by a call with executives at 5 p.m. ET. Last quarter: GM beat Wall Street estimates and guided toward the high end of its full-year earnings forecast. This quarter: Wall Street is expecting earnings to come in almost 40% lower than the same period last year, as revenue falls off. What CNBC autos reporter Michael Wayland is watching: "Last month, GM said fourth-quarter results were coming in stronger than expected and increased its adjusted earnings guidance for the year to $14 billion, up from guidance that was already raised once to a range of $11.5 billion to $13.5 billion. That, in combination with external factors such as supply chain issues and inflation concerns, means investors will be particularly focused on the automaker's 2022 outlook. That includes any guidance around a global semiconductor chip crisis that has depleted vehicle inventories and caused sporadic factory closures in the U.S. since early last year." What history shows: GM stock typically falls the day after an earnings report and has suffered sell-offs of 5% and 8% the last two quarters, according to Bespoke. Wednesday Qualcomm is set to report earnings just after the end of trading and will host an analyst call at 4:45 p.m. ET. Last quarter: QCOM beat on earnings and revealed a 56% rise in smartphone chip sales. This quarter: The Street is looking for roughly 38% EPS growth over the same period last year. What CNBC technology reporter Kif Leswing is watching: "Qualcomm is perhaps the major semiconductor vendor least stressed about the chip shortage — it said in November that shortage issues were in the 'rearview' and that's it's got multiple suppliers for all of its manufacturing needs. So investors will instead be looking at the progress that the company has made toward diversifying into markets beyond smartphones. The company is best known for smartphone processors and modems, but it sees big growth opportunities in chips for cars and internet-of-things devices. CEO Cristiano Amon, who took over last summer, has made that one of Qualcomm's top priorities." What history shows: The fourth quarter is Qualcomm stock's weakest for next-day trading. It's the only quarter in which shares lose ground on average following an earnings release, according to Bespoke. Meta Platforms, formerly Facebook, is set to release its results around 4:05 p.m. ET, followed by an investor call at 5 p.m. Last quarter: FB beat on EPS and said it would add $50 billion to its share buyback program. This quarter: Wall Street is expecting earnings to come in slightly below last year's levels, despite projected revenue growth of roughly 20%. What CNBC technology editor Steve Kovach is watching: "Meta will deliver its first earnings report since CEO Mark Zuckerberg rebranded the company last fall to focus on building the metaverse. Meta will have a new reporting structure to reflect its new mission: The company will now break out results for its traditional apps like Facebook, Instagram and WhatsApp separately from its Reality Labs segment, which includes virtual reality hardware and software. This will be the first time investors will see how much money Meta is making (or losing) in its futuristic projects as it embarks on its next chapter." What history shows: Meta shares gain an average of 2.3% the day after an earnings release, according to Bespoke. Thursday Amazon will report earnings right at market close and host a call with executives at 5:30 p.m. ET. Last quarter: AMZN badly missed on earnings and revenue and gave disappointing fourth-quarter guidance. This quarter: The Street is forecasting earnings massive downside, with EPS expected to come in more than 70% lower than the same period last year. What CNBC technology reporter Annie Palmer is watching: "Labor shortages and supply chain disruptions will once again be in focus for Amazon. CEO Andy Jassy previously warned the company would take on several billion dollars worth of extra costs this quarter, tied to higher wages and incentives, as well as logistics investments to mitigate supply chain bottlenecks. Investors will be seeking clarity on whether either of those headwinds have subsided. They'll also be paying close attention to Amazon's outlook for 2022, as some analysts expect pandemic-driven demand to normalize." What history shows: Amazon stock is on a 5-quarter losing streak around earnings reports, according to Bespoke. Ford Motor will release its results around 4:05 p.m. ET, with an analyst call set for 5 p.m. Last quarter: F shattered Wall Street earnings expectations and raised guidance for the full year on new vehicle demand. This quarter: Analysts are looking for roughly 30% earnings growth year over year and a modest revenue pop. What CNBC autos reporter Michael Wayland is watching: "Ford, like its crosstown rival GM, has already loosely set investor expectations for the fourth quarter. It announced several special items and financing adjustments earlier this month. The most notable were a fourth-quarter gain of $8.2 billion on Ford's equity investment in EV start-up Rivian as well as a reclassification of $900 million from the first quarter from a non-cash gain to a special item. The change impacts the automaker's full-year adjusted earnings guidance that was previously between $10.5 billion and $11.5 billion, including that gain. Given those details, investors will be focused on Ford's 2022 guidance as well as any progress or setbacks in CEO Jim Farley's Ford+ turnaround plan." What history shows: Ford stock typically falls the day after a quarterly release, but last quarter shares gained almost 9%, according to Bespoke.

Traders on the floor of the NYSE, Jan. 18, 2022.

Source: NYSE

This week brings the rest of the Big Tech earnings reports, with quarterly updates from Alphabet, Amazon and Meta Platforms, formerly known as Facebook.