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The 2024 Q2 earnings season continues to roll on, with next week’s reporting docket stacked with many notable names. The period has remained positive so far, with the big banks’ results not causing any spooks.
Concerning next week’s docket, several Mag 7 members, including Meta Platforms (META - Free Report) , Amazon (AMZN - Free Report) , and Apple (AAPL - Free Report) , all report. All three stocks have been big-time performers in 2024, with many wondering if their momentum can continue.
Let’s take a closer look at how they stack up heading into the releases.
Apple’s China Sales in Focus
Apple shares were scrutinized for their slow start to 2024 but have picked up considerable steam lately, up 14% overall YTD. Worries surrounding China and falling behind in AI weighed on performance, though these concerns seem to have temporarily subsided.
The stock sports a Zacks Rank #2 (Buy), with earnings expectations for the period to be reported ticking higher over the last several months. The $1.34 expected suggests a 6% climb from the year-ago period, with sales also expected to be up 2.7% Y/Y.
Image Source: Zacks Investment Research
The company experienced woes in China throughout its latest period, but overall, sales came in much closer to expectations relative to other periods, missing our consensus estimate by $220 million vs. a $2.5 billion miss in the previous period.
In addition, favorable news surrounding iPhone shipments in China has been announced over recent weeks, further easing fears. Investors will also be focused on the company’s Services portfolio, which has been a solid growth driver over recent periods and has helped ease reliance on iPhone results.
As shown below, Services results have beat our expectations regularly as of late outside of one instance.
Image Source: Zacks Investment Research
Amazon’s AWS in the Spotlight
AMZN was firing on all cylinders throughout its latest period, with operating income of $15.3 billion 220% higher year-over-year. Most importantly, AWS delivered great results, with net sales of $25 billion showing 17% year-over-year growth and snapping a recent streak of negative surprises on the metric.
Many had feared a cloud slowdown, which was present for a few periods, but the recent results overall paint a picture of positivity heading into the upcoming release.
Image Source: Zacks Investment Research
Earnings and revenue expectations for the upcoming release have primarily been muted, but big growth is expected, with EPS expected to be up 63% on 10% higher sales. Easing costs and operational efficiencies have aided profitability in a big way, leading to meaningful margin expansion.
Please note that the chart below is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Meta Platforms CapEx Under Scrutiny
META’s improved operational efficiencies have boosted its profitability significantly, leading to robust EPS growth over recent quarters.
Investors will be looking for color on CapEx trends surrounding AI, which was also a focal point in Alphabet’s quarterly release. Earnings expectations for the release have ticked higher over recent months, with the $4.69 per share expected reflecting 45% Y/Y growth.
Image Source: Zacks Investment Research
Concerning key metrics, the Zacks Consensus Estimate for Advertising revenue stands at $37.5 billion, 20% higher than the year-ago period. It’s worth noting here that Alphabet’s Advertising business showed great results, with sales of $64.6 billion climbing 12% year-over-year.
META shares plunged following its latest set of quarterly results, with the negativity attributed to a higher CapEx guide for its current fiscal year. As mentioned above, the development will certainly be monitored closely among investors, with peer Alphabet spooking some with its higher than expected CapEx.
Bottom Line
The 2024 Q2 earnings season continues to chug along, with a notably stacked reporting docket this week. Another period of positivity is expected, underpinned by another strong showing from Tech.
Several Mag 7 members report this week, a list that includes Meta Platforms (META - Free Report) , Amazon (AMZN - Free Report) , and Apple (AAPL - Free Report) . Their results will undoubtedly be scrutinized given the momentum they’ve enjoyed in 2024, perhaps reflecting the most important week of the Q2 cycle overall.
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Mag 7 Earnings Loom: A Closer Look
The 2024 Q2 earnings season continues to roll on, with next week’s reporting docket stacked with many notable names. The period has remained positive so far, with the big banks’ results not causing any spooks.
Concerning next week’s docket, several Mag 7 members, including Meta Platforms (META - Free Report) , Amazon (AMZN - Free Report) , and Apple (AAPL - Free Report) , all report. All three stocks have been big-time performers in 2024, with many wondering if their momentum can continue.
Let’s take a closer look at how they stack up heading into the releases.
Apple’s China Sales in Focus
Apple shares were scrutinized for their slow start to 2024 but have picked up considerable steam lately, up 14% overall YTD. Worries surrounding China and falling behind in AI weighed on performance, though these concerns seem to have temporarily subsided.
The stock sports a Zacks Rank #2 (Buy), with earnings expectations for the period to be reported ticking higher over the last several months. The $1.34 expected suggests a 6% climb from the year-ago period, with sales also expected to be up 2.7% Y/Y.
Image Source: Zacks Investment Research
The company experienced woes in China throughout its latest period, but overall, sales came in much closer to expectations relative to other periods, missing our consensus estimate by $220 million vs. a $2.5 billion miss in the previous period.
In addition, favorable news surrounding iPhone shipments in China has been announced over recent weeks, further easing fears. Investors will also be focused on the company’s Services portfolio, which has been a solid growth driver over recent periods and has helped ease reliance on iPhone results.
As shown below, Services results have beat our expectations regularly as of late outside of one instance.
Image Source: Zacks Investment Research
Amazon’s AWS in the Spotlight
AMZN was firing on all cylinders throughout its latest period, with operating income of $15.3 billion 220% higher year-over-year. Most importantly, AWS delivered great results, with net sales of $25 billion showing 17% year-over-year growth and snapping a recent streak of negative surprises on the metric.
Many had feared a cloud slowdown, which was present for a few periods, but the recent results overall paint a picture of positivity heading into the upcoming release.
Image Source: Zacks Investment Research
Earnings and revenue expectations for the upcoming release have primarily been muted, but big growth is expected, with EPS expected to be up 63% on 10% higher sales. Easing costs and operational efficiencies have aided profitability in a big way, leading to meaningful margin expansion.
Please note that the chart below is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Meta Platforms CapEx Under Scrutiny
META’s improved operational efficiencies have boosted its profitability significantly, leading to robust EPS growth over recent quarters.
Investors will be looking for color on CapEx trends surrounding AI, which was also a focal point in Alphabet’s quarterly release. Earnings expectations for the release have ticked higher over recent months, with the $4.69 per share expected reflecting 45% Y/Y growth.
Image Source: Zacks Investment Research
Concerning key metrics, the Zacks Consensus Estimate for Advertising revenue stands at $37.5 billion, 20% higher than the year-ago period. It’s worth noting here that Alphabet’s Advertising business showed great results, with sales of $64.6 billion climbing 12% year-over-year.
META shares plunged following its latest set of quarterly results, with the negativity attributed to a higher CapEx guide for its current fiscal year. As mentioned above, the development will certainly be monitored closely among investors, with peer Alphabet spooking some with its higher than expected CapEx.
Bottom Line
The 2024 Q2 earnings season continues to chug along, with a notably stacked reporting docket this week. Another period of positivity is expected, underpinned by another strong showing from Tech.
Several Mag 7 members report this week, a list that includes Meta Platforms (META - Free Report) , Amazon (AMZN - Free Report) , and Apple (AAPL - Free Report) . Their results will undoubtedly be scrutinized given the momentum they’ve enjoyed in 2024, perhaps reflecting the most important week of the Q2 cycle overall.