Big Tech Companies Strengthen with Earnings Reports

A Busy Week in the Financial World

In the markets, the intensity of third-quarter earnings is being felt. According to FactSet data from S&P 500 companies, by October 24, 29% have reported their earnings results, and analysts expect a 9.2% increase in earnings per share for the third quarter. If this happens, positive earnings growth will reach the ninth quarter, but this will represent a slowdown from the 12% increase in the second quarter of this year.

At the beginning of the third quarter, expectations were somewhat low; analysts had predicted a 7.9% increase in earnings per share for S&P 500 companies. This week, five of the "Fabulous Seven" tech companies, including Microsoft (MSFT), Alphabet (GOOG), Meta (META), Apple (AAPL), and Amazon (AMZN), will announce their results. These five companies represent about a quarter of the S&P 500.

This week, other notable companies such as Boeing (BA), Visa (V), Starbucks (SBUX), and UnitedHealth Group (UNH) will also share their updates.

Caterpillar (CAT) reported an increase in third-quarter earnings, but also noted a rise in production costs. The company reported a diluted earnings per share of $4.88, which is above analysts' expectation of $4.52. However, this reflects a $0.18 decline compared to the same period last year. Caterpillar indicated that the increased sales volumes did not offset the rising production costs.

Visa (V) reported that, despite a decline in consumer confidence, card usage continues. The company reported $5.8 billion in net income for the fourth quarter, achieving a 12% year-over-year increase.

PayPal (PYPL) announced earnings per share of $1.34, significantly surpassing analyst expectations, with $8.4 billion in revenue. The company also announced a new partnership with OpenAI, aiming to integrate payment solutions through AI interfaces.

Wayfair (W) reported third-quarter results with earnings per share of $0.70, achieving an 8.1% year-over-year revenue increase. The company’s shares gained more than 20% at the opening.

Royal Caribbean Cruises (RCL) exceeded Wall Street estimates with its third-quarter earnings; however, there were losses in stock value. The company noted that increased reservations boosted business volume.

For more information and analysis on third-quarter earnings, continue to follow market developments.