Factset predicts that the S&P 500 will record an earnings growth rate 64% YoY in the second quarter. This is the highest season in more than a decade. As corporate America tends not to provide accurate EPS forecasts, the actual growth rate may be higher. This could allow for the S&P 500 to deliver an earnings growth rate of 64% YoY for the second quarter.
This week will see big tech companies like IBM, Netflix and Intel start to release results. Here's a quick preview.
Source: Bloomberg, DailyFX
IBM: Expected Q2 EPS of 2.275 and $18.26 Billion in revenue Cloud and Cognitive Software will be driven by the global trend towards digitalization, which already grew 4% in its first quarter. Red Hat's acquisition is expected to increase cloud revenues. The Global Business Services segment could benefit from increased client investment in digital technology IBM's former president Jim Whitehurst may be the focal point of the earnings call. NETFLIX For Q2, expect EPS to be $2.248 and revenue to reach $7.323 billion Netflix could see some moderation after a year of explosive subscriber growth. This is due to the high watermark that was set during the pandemic. Analysts expect less than 2,000,000 new users to be added in the fourth quarter. In Q3 guidance, uncertainties could be caused by recent price increases and pent-up outdoor entertainment demand Netflix is moving away from a subscription-oriented narrative to a more stable average revenue per customer (ARPU) metrics. INTEL Expected Q2 EPS of $1.065, and $17.84 Billion in revenue Intel expects to see YoY lower EPS and revenue Although PC and server shipments are a bright spot in the overall picture, its semiconductor segment continues to lag behind Nvidia or AMD. TWITTER For Q2, expect EPS to be $0.064 and revenue to reach $1.058 billion Live events and sports can be resumed to drive engagement and increase daily active users. Advertisers may also increase spending as a result of the Covid lockdown being lifted.Keep checking DailyFX for additional earnings updates. To download quarterly equity forecasts, click HERE.