Apple Inc.,
AAPL 1.37%
Amazon.
AMZN 3.04%
com Inc.,
Meta Platforms Inc.
META 3.01%
and
Alphabet Inc.
GOOG 1.56%
report earnings in the coming week, four of the many companies providing quarterly updates as layoffs and slowing growth hit the tech industry.
Leaders across multiple industries—such as fossil-fuel giant Exxon Mobil Corp., pharmaceutical company
Merck
MRK -1.39%
& Co., fast-food chain
McDonald’s Corp.
MCD -0.82%
and construction-equipment giant
Caterpillar Inc.
CAT 0.92%
—are also scheduled to report their financials in the coming week.
More than 100 S&P 500 companies, including six Dow components, are slated to report earnings in the week ahead, according to FactSet. Their results will offer insights into the overall health of the economy, as layoffs mount and businesses adjust to higher interest rates and slower growth.
Thursday will feature a trio of technology behemoths. Apple’s results are expected to show how well its iPhone and other products did during the holiday season, while Amazon will provide insight on the health of online shopping. Google-parent Alphabet will provide color on the digital-advertising market, following reports from Facebook-parent Meta on Wednesday and social-media company
Snap Inc.
on Tuesday.
Apple’s earnings report will shed light on holiday sales of its iPhone and other devices.
Photo:
DAVID GRAY/REUTERS
Tech companies are navigating an environment where growth has cooled. “Just as we saw customers accelerate their digital spend during the pandemic, we are now seeing them optimize that spend,”
Microsoft
Chief Executive
Satya Nadella
said this past Tuesday after the software giant recorded its slowest sales growth in more than six years in its latest quarter.
Profits are projected to decline for the fourth-quarter earnings season, according to FactSet. The data tracker said that, with 29% of S&P 500 companies having reported, earnings are on track to decline 5% in the quarter from a year ago, with information technology and communications companies among the top contributors to the earnings decline. Revenue is projected to increase 3.9%.
Layoffs have picked up beyond the technology and media sectors, as spending slowdowns weaken profits elsewhere in the economy.
McDonald’s told The Wall Street Journal earlier this month that it would be making “difficult” decisions in terms of its corporate-staffing levels. The burger giant, which had around 200,000 full-time employees by the end of 2021, is issuing its results on Tuesday.
McDonald’s Corp. has signaled that tough decisions on corporate staffing are coming.
Photo:
Daniel Acker/Bloomberg News
Starbucks Corp.
, reporting Thursday, will detail its performance after hitting a sales record in its quarter ended Oct. 2, while plans for a multimillion-dollar investment in new cafe equipment and higher wages cut into its profits.
Results for snack-food company
Mondelez International Inc.
coming on Tuesday and chocolate maker
Hershey Co.
on Thursday will show whether consumers balked at rising costs for snacks and candy.
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Possible consumer-spending fluctuations in the global beauty market, which hasn’t shown signs of cooling down, will be seen in results for cosmetics business
Estée Lauder
Cos., due Thursday.
In the healthcare space,
Pfizer Inc.’s
PFE -1.04%
earnings, scheduled for Tuesday, are set to provide a broader view on demand for Covid-19 vaccines amid an increase in XBB.1.5 subvariant cases. Pharmaceutical companies Merck and
Eli Lilly
& Co. are also scheduled to issue their reports on Thursday.
General Motors Co.
and
Ford
F 2.71%
Motor Co. results, slated for Tuesday and Thursday respectively, will offer a look at the current state of the auto market and provide an update on their electric-vehicle plans. This past Wednesday,
Elon Musk
said demand for
Tesla
‘s EVs “will be good despite probably a contraction in the automotive market as a whole.”
Other notable companies expected to make public their quarterly earnings include delivery company
United Parcel Service Inc.
on Tuesday, and
T-Mobile US Inc.
TMUS -1.32%
and tobacco-maker
Altria Group Inc.
on Wednesday. Footwear retailer
Skechers USA Inc.
and crude-oil producer
ConocoPhillips
are scheduled to report Thursday.
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