Big Tech Companies Ready for Earnings Reports!

In the markets, the busiest week for third-quarter earnings reports is approaching. Important dates emerge from the results of many Big Tech companies.

So far, the earnings season has had a positive start. As of October 24, S&P 500 companies have reported their results at a rate of 29%, and analysts expect a 9.2% increase in earnings per share for the third quarter. This indicates that it would be the ninth consecutive quarter of positive earnings growth following a 12% earnings increase recorded in the second quarter of 2023.

Analysts had forecasted a 7.9% increase in earnings for S&P 500 companies in the third quarter. This week, five of the "Fabulous Seven" technology companies, including Microsoft (MSFT), Alphabet (GOOG), Meta (META), Apple (AAPL), and Amazon (AMZN), will announce their results, representing about a quarter of the S&P 500.

This week, other noteworthy companies will also share updates. Among these companies are Boeing (BA), Visa (V), Starbucks (SBUX), UnitedHealth Group (UNH), Verizon (VZ), Mastercard (MA), Merck & Co. (MRK), Shell (SHEL), Exxon Mobil (XOM), Chevron (CVX), Coinbase (COIN), Caterpillar (CAT), ServiceNow (NOW), Anheuser-Busch InBev (BUD), and Eli Lilly (LLY).

The latest updates from Corporate America are as follows: PayPal (PYPL) shares rose by more than 14% after the digital payment company's earnings exceeded estimates by a wide margin. The company reported earnings of $1.34 per share, significantly above Wall Street's expectations of $1.21. Revenue was reported at $8.4 billion, surpassing expectations of $8.2 billion.

PayPal raised its annual earnings forecast to a range of $5.11-$5.15, up from the previous estimate of $4.90-$5.05. PayPal also announced plans to partner with OpenAI to offer integrated payment solutions for AI platforms such as ChatGPT.

Visa (V) customers continued to use their cards despite worsening consumer expectations. In the fourth fiscal quarter, Visa reported net income of $5.8 billion, recording $2.98 per share. Revenue reached $10.7 billion, reflecting a year-over-year increase of 12%.

On the other hand, Mondelez (MDLZ) shares fell by 4% despite reporting results at upper levels, pointing to current macroeconomic challenges. Earnings per share decreased by 9.5% year-over-year to $0.57. The company reported revenue of $9.74 billion, which was above estimates. However, net revenues in North America declined due to high cocoa prices.

Royal Caribbean Cruises (RCL) raised its annual forecast after reporting third-quarter earnings that exceeded Wall Street estimates, despite a decline of more than 9%. The company reported adjusted revenue of $5.75.

Wayfair (W) shares rose over 20% at market open after reporting third-quarter results that surpassed expectations. The company achieved revenue of $3.12 billion, which was above the expected $3.02 billion. UPS (UPS) revised its fourth-quarter forecast upward, leading to a 14% increase in its shares. UnitedHealth (UNH) raised its year-end profit forecast, resulting in a 4% increase in share value.

Lastly, Waste Management (WM) fell nearly 2% after falling short of third-quarter revenue targets. Whirlpool (WHR) reported better-than-expected results after market close, leading to a 3% increase in its shares. Keurig Dr. Pepper (KDP) reported revenue above expectations and saw a 9% increase.

In addition to developments this week, Deckers Outdoor Corporation (DECK) shares fell by over 8%, while Blackstone (BX) faced a 4% decline.