What To Know About Tech Earnings This Week

By: Spencer Israel

This is the week that the Q4 earnings season really shifts into high gear. A number of Dow components are slated to report, including Boeing, Verizon, McDonald’s, Chevron, and Caterpillar.

But without a doubt, the story of the week will be tech earnings. Here’s a preview of what to expect from the biggest earnings reports this week.

Tuesday Afternoon

Microsoft (MSFT)

If recent history is a guide, Microsoft will most likely beat the consensus estimates. Microsoft hasn’t reported an EPS figure below estimates since March 2016, a stretch of 18 quarters. It’s also only missed its revenue figure twice in that span.

The crown jewel of the company continues to be its Intelligent Cloud unit. Though the growth rate for Azure is slowing, it was still the largest segment in Microsoft’s most recent report.

The 7-day Implied Volatility (expected move) for Microsoft is 4%. The stock has opened lower the morning after its last two earnings reports by an average of 2.45%.

AMD (AMD)

AMD is coming off a quarter in which it reported revenue of $2.8 billion, a 55% year-over-year increase and the highest in the company’s history.

For Q4, the company has said it expects revenue to be between $2.9-3.1 billion. That would represent an approximately 40% year-over-year increase.

The 7-day Implied Volatility (expected move) for AMD is 8.6%. The stock has opened lower the morning after five of its last six earnings reports.

Wednesday Afternoon

Facebook (FB)

Facebook is coming off a quarter in which Daily Active Users rose year-over-year but fell quarter-over-quarter.

The company expects that deceleration to continue, guiding flat-to-down DAU and MAU growth this time around.

Total advertising revenue grew 22% year-over-year in Q3, and the company said during its last earnings call it expects that growth rate to increase in Q4. That would mean advertising revenue would have to exceed $25.89 billion to meet the company’s guidance.

The 7-day Implied Volatility (expected move) for Facebook is 7%. The stock has opened higher the morning after its nine of last 12 earnings reports.

Apple (AAPL)

The headline of Apple’s last report was weak iPhone sales and stronger-than-expected results from the Mac, iPad, Wearables, and Services segments.

The company chose not to issue guidance due to pandemic uncertainty, but investors will surely want to see iPhone sales recover. Apple also hasn’t missed its EPS estimate in 19 straight earnings reports dating back to March 2016.

The 7-day Implied Volatility (expected move) for Apple is 6.4%. The stock has opened higher the morning after eight of its last 12 earnings reports.

Tesla (TSLA)

With Tesla, it’s usually about deliveries. The company previously reported it was able to meet its 2020 goal to deliver 500,000 vehicles. Now all eyes will turn to what the company projects for its 2021 deliveries guidance, both in the U.S. and in China

Profitability will also be notable. In its last report, Tesla reported a fifth straight quarter of profitability, which led to the company’s inclusion in the S&P 500.

The 7-day Implied Volatility (expected move) for Tesla is 8%. The stock has opened higher the morning after its last five earnings reports by an average of 8.56%.

The author is long the S&P 500 in his retirement account

Active Trading with Lightspeed
Lightspeed provides professional traders with all the tools required to help them find success in stock trading, and we have been developing and honing our active trader platform to offer an optimal user experience. With the intuitive interface layouts and institutional quality stock and options scanners, we aim to help traders reach their goals, no matter what their strategy is. We also offer our clients some of the lowest trading fees in the industry.

For more information on a professional trading platform with Lightspeed, please call us at 1-888-577-3123, request a demo or to open an account.

Lightspeed Financial Services Group LLC is not affiliated with these third-party market commentators/educators or service providers. Data, information, and material (“content”) are provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities or contracts. Any investment decisions made by the user through the use of such content is solely based on the users independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lightspeed Financial Services Group LLC does not endorse, offer nor recommend any of the services or commentary provided by any of the market commentators/educators or service providers and any information used to execute any trading strategies are solely based on the independent analysis of the user.

You may also be interested in...

Mitigating Investment Risk Using Lightspeed’s Risk Management Software
Read More
What is the Best Way to Trade Earnings? Your Guide to Quarterly Earnings Report Trading Strategies.
Read More
The IPOX® Week, May 10th, 2021
Read More
3 Reasons to Buy S&P 500 Index Funds
Read More

Try the demo

Compare Platforms
Check the background of this firm on FINRA's BrokerCheck

Our website uses cookies to improve the performance of our site, to analyze the traffic to our site, and to personalize your experience of the site. You can control cookies through your browser settings. Please find more information on the cookies used on our site in our Privacy Policy. By clicking OK, you agree to allow us to collect information through cookies.

OK