Market Update- July 17-21 Earnings.

Coming up: a busy week of corporate earnings

Coming up: a busy corporate earnings week. Analysts expect the banking and finance sector to overcome its misfortune and lead the way with strong earnings growth. Investors will closely watch to see if the results meet their expectations.

It is expected to enter a busy week with reports from Bank of America, Morgan Stanley, Lockheed Martin, Tesla, Netflix, IBM, Goldman Sachs, Johnson & Johnson, Marsh & McLennan Companies, and American Express, among others.

Note: On July 18, 2023, Tuesday, the U.S. Census Bureau will issue data on retail sales for June, offering a valuable update on consumer spending.

Earnings Spotlight: Tesla

Analysts expect Tesla earnings to increase modestly over last year’s earnings in comparison. In Q2 2022, the Shanghai plant was shut down for several weeks to Covid, while the Berlin and Austin plants were slowly ramping up. Earnings per share could be flat with Q1 reflected to $0.85. Tesla reports that it delivered 466,140 electric vehicles in Q2 of this year, easily beating predictions thanks to discounts and incentives that have been in place since the beginning of the year.

First Cybertruck built at Giga Texas! 🤠 pic.twitter.com/ODRhHVsd0t
— Tesla (@Tesla) July 15, 2023

Saturday, July 15. The EV MVP tweeted a photo of the first Tesla Cybertruck made at the Austin factory. That kicked off the production of the love-it-or-hate-it electric vehicle.

In the lead-up to Tesla’s earnings report, investors are optimistic. The stock of Tesla surged 1.8% last week to $281.38, hitting an intraday high of $281.38 for the first time since 2023. There is a 160.38% increase in TSLA stock so far in 2023.

Earnings Spotlight: SAP SE

SAP SE, a German multinational software company, develops business and customer relationship management software. The company is the world’s leading enterprise resource planning software vendor. In addition to being the world’s third-largest publicly traded software company by revenue, SAP is also the largest German company by market capitalization.

Hinting that the company’s earnings announcement is coming in a few days, the stock had attracted investors before its announcement, which was scheduled to take place on July 20, 2023. The stock of SAP rose 8.21% last week to $144.35. So far in 2023, the stock of SAP has risen 38.82%.

This week’s Earning Schedule.

July 18

Last week’s earnings announcements for finance companies continue.

In Tuesday’s earnings report, investors will look for clues about how the Fed’s rate hikes have affected big banks’ profits. It is likely that higher interest rates boosted Bank of America’s interest margins.

Bank of America’s (BAC) EPS is expected to increase to $0.84 from $0.73.
Morgan Stanley’s (MS) EPS is expected to drop to $1.67 from $1.56.
Novartis’s (NVS) EPS is expected to increase to $1.67 from $1.56.
The Charles Schwab’s (SCHW) EPS is expected to drop to $0.74 from $0.97.
Interactive Broker’s (IBKR) is expected to increase to $1.41 from $0.84.

Non-Financial.

The leading defense and aerospace company, Lockheed Martin’s (LMT) EPS is expected to rise to $6.43 from $6.32.
Hasbro’s (HAS) EPS is expected to drop to $0.57 from $1.15.

July 19

Tesla’s (TSLA) EPS is expected to increase $0.04 compared to last year’s EPS.
Netflix’s (NFLX) EPS is expected to drop $0.39 compared to last year’s EPS.
IBM is expected to drop $0.31 compared to last year’s EPS.

The energy sector will start taking off with:

Baker Hughes (BKR) to increase by $0.21 compared to last year’s EPS of $0.11.
Halliburton Company (HAL) is also expected to rise by $0.26 compared to last year’s EPS of $0.49 to $0.75.

July 20

**Combination of banking, consumer, and industrial sectors.

It is the world’s largest semiconductor company, Taiwan Semiconductor Manufacturing Company’s (TSM) EPS is expected to drop from $1.55 to $1.07 from last year.
Johnson & Johnson’s (JNJ) EPS is expected to increase by $0.02 from $2.59.
In comparison to last year’s earnings per share, Abbott Laboratories (ABT) is expected to drop $0.397 from $1.43.
Phillip Morris (PM): No change.
Initutive Surgical Inc’s (ISRG) EPS is expected to increase to $1.02 from $0.85.
Marsh & McLennan Companies Inc’s (MMC) EPS is expected to increase to $2.12 from $1.89.

July 21

American Express’s (AXP) EPS is expected to increase to $2.80 from $2.57.
Schlumberger’s (SLB) EPS is expected to increase to $0.71 from $0.50.

The key takeaways/market update is a series by AxeHedge, which serves as an initiative to bring compact and informative In/Visible Talks recaps/takeaways on leading brands and investment events happening around the globe.

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