Technology Wind: We Are Awaiting Third Quarter Earnings

Critical Trends in the Financial Market

As the markets enter the busiest week of the third quarter earnings season, several major technology companies' results are in the spotlight. So far, the earnings season has had a positive start. As of October 24, 29% of S&P 500 companies have reported results, and analysts expect a 9.2% increase in earnings per share for the third quarter. If this figure holds, it would mark the ninth quarter of positive earnings growth; however, it would indicate a slowdown from the 12% earnings growth recorded in the second quarter of this year.

Pre-second quarter expectations were a bit lower, considering analysts expected a 7.9% increase in earnings per share for S&P 500 companies for the third quarter. This week, five of the "Magnificent Seven" technology companies — Microsoft (MSFT), Alphabet (GOOG), Meta (META), Apple (AAPL), and Amazon (AMZN) — will report their results, representing about a quarter of the S&P 500.

In addition to these, other important companies reporting this week include Boeing (BA), Visa (V), Starbucks (SBUX), UnitedHealth Group (UNH), Verizon (VZ), and Mastercard (MA).

News from Featured Companies

Waste Management (WM) reported lower-than-expected third-quarter earnings after the market close on Monday, and its stock fell by 2%. The adjusted earnings for the quarter were $1.98 per share, while Wall Street analysts expected $2.01. Revenue of $6.44 billion also fell slightly below the anticipated $6.49 billion.

The company confirmed its adjusted operating EBITDA guidance to be between $7.4 billion and $7.6 billion, but expects the annual revenue forecast of $25.2 billion to be at the lower end of its previous guidance range.

Whirlpool (WHR) reported better-than-expected results after the market closed on Monday, leading its stock to rise by 3%. Revenue was $4.03 billion, exceeding Wall Street’s estimate of $3.93 billion. The adjusted earnings per share came in at $2.09, significantly above analysts' forecast of $1.40.

Keurig Dr. Pepper (KDP) rose 9% in pre-market trading after raising its annual sales forecast and surpassing Wall Street expectations. The company reported earnings per share of $0.54 and revenue of $4.3 billion, exceeding expectations of $4.1 billion.

American Airlines (AAL) boosted its stock by 4% with better-than-expected results for the third quarter. The loss per share was $0.17, while analysts had expected $0.27. Revenue was $13.69 billion, reflecting an increase of 0.3% compared to the previous year.

Lastly, T-Mobile (TMUS) surpassed its third-quarter earnings expectations, but its stock fell 0.6% in pre-market trading. The company reported earnings of $2.41. Total revenue was $21.95 billion, slightly below Wall Street expectations.