Earnings from KB Home and Progressive are on deck
Earnings season kicks off this week with a number of big banks reporting. Here's what's on tap for Monday, January 12, and Tuesday, January 13:
Monday, after the close:
KB Home (KB)
Tuesday, before the open:
Progressive (PGR)
Tuesday, after the close:
Applied Digital Corp (APLD)
Calavo Growers (CVGW)
S&P 500 Q4 earnings growth is expected to be the highest in three years
The fourth-quarter year-over-year earnings growth rate for the S&P 500 is expected to land at 11.7%, which would be the highest since Q4 2021, according to John Butters, senior earnings analyst at FactSet.
Considering most companies report earnings that are above estimates, Butters says this growth rate could potentially exceed 14%. Indeed, the actual earnings growth rate has beaten estimates in 37 of the past 40 quarters and by roughly 6.7%, on average.
- Karee Venema
I am the Senior Investing Editor at Kiplinger.com, having joined the publication in April 2021. I have over a decade of experience writing about the stock market and have covered corporate earnings reports and stock reactions over that time frame. I find corporate earnings to be so important because they allow investors a closer look into the strength of a company's fundamentals and how these may impact its stock price down the road.
KB Home stock soars after earnings beat
KB Home (KBH) stock shot nearly 11% higher out of the gate Tuesday after the homebuilder said fourth-quarter earnings were up 36% year over year to $2.52 per share. Revenue jumped 19% to $2 billion.
The results came in higher than the $2.44 per share in earnings and $1.98 billion in revenue analysts at S&P Global Market Intelligence were expecting.
The homebuilder also said it delivered 3,978 homes over the three-month period, up 17% from Q4 2023, while the average selling price increased by 3% to $501,000.
UBS Global Research analyst John Lovallo reiterated a Buy rating on KBH stock after earnings. He continues to "view the public homebuilders as well positioned to gain outsized market share, while generating above historical average margins, returns and cash flow."
Lovallo adds that "the recent pullback in KBH and peer shares creates attractive opportunities for investors." Heading into Tuesday's session, KBH was down 2.5% for the year to date.
- Karee Venema
JPMorgan and Goldman Sachs report Wednesday morning
Here's who is reporting on Wednesday, January 15:
Wednesday, before the open
BlackRock (BLK)
BNY Mellon (BK)
Citigroup (C)
Goldman Sachs (GS)
JPMorgan Chase (JPM)
Wells Fargo (WFC)
Wednesday, after the close
Concentrix (CNXC)
H.B. Fuller (FUL)
Home Bancshares (HOMB)
Synovus (SNV)
Goldman Sachs is the best Dow Jones stock after earnings
Goldman Sachs (GS) is the best Dow Jones stock Wednesday after the financial giant said fourth-quarter earnings more than doubled to $11.95 per share, while revenue jumped 23% to $13.87 billion.
Growth was seen across all segments in the final three months of 2024, with the company's Global Banking & Markets segment seeing the biggest year-over-over increase in revenue (+33%).
The report also showed investment banking fees rose 24%, while asset and wealth management revenue was up 8% vs Q4 2023.
CFRA Research analyst Kenneth Leon reiterated a Strong Buy rating on GS after earnings. "There was record quarterly management and other fees, while assets under supervision (AUS) rose to new high of $3.14 trillion," Leon wrote in a note to clients. "Alternative investments are a key focus area, with AUS in this category reaching $336 billion."
- Karee Venema
JPMorgan is still a Buy after earnings
CFRA Research analyst Kenneth Leon maintained a Buy rating on JPMorgan Chase (JPM) stock after the big bank's fourth-quarter earnings beat.
In the three months ending December 31, JPMorgan said its revenue increased 9.5% year over year to $43.7 billion, while its earnings per share (EPS) rose 58.2% from the year-ago period to $4.81. Wall Street was anticipating revenue of $41.7 billion and earnings of $4.11 per share.
"Non-interest revenue saw robust growth in Q4 of 34% to $19.4 billion, benefiting from higher asset management fees and a recovery in investment banking activity," Leon says. He believes non-net interest income, such as investment banking fees, will will drive earnings per share higher this year.
- Joey Solitro
Read more: Is JPMorgan Chase Stock a Buy, Hold or Sell After Earnings?
Citigroup reports earnings beat, new stock buyback program
"Citigroup's (C) challenge in improving fee income is a concern, says Brian Mulberry, client portfolio manager at Zacks Investment Management. Still, the bank's big rise in investment banking revenues (+35% YoY) show that CEO Jan Fraser is "making positive strides in turning around the balance sheet."
He adds that while there are "still challenges for C to address ... this is a strong indication that Citi is back on track.
For the fourth quarter, Citigroup saw earnings rise 60% to $1.34 per share, while revenue grew 12% to $19.6 billion. Analysts expected earnings of $1.22 per share on $19.5 billion in revenue.
The company also announced a $20 billion stock buyback program.
- Karee Venema
Read more: Citigroup Stock Jumps on Earnings, $20 Billion Stock Buyback News
Wells Fargo reports mixed results
Wells Fargo (WFC) stock is trading near the top of the S&P 500 after the financial services company beat profit expectations for its fourth quarter and issued a strong outlook for fiscal 2025.
For the three months ending December 31, WFC reported earnings of $1.43 per share, up 66% year over year, on revenue of $20.4 billion (-0.5%). While Wells Fargo beat analysts' estimates for earnings of $1.35 per share, it fell short of the $20.6 billion in revenue they anticipated.
For the full fiscal year, Wells Fargo said it expects to achieve net interest income growth of 1% to 3% over 2024's figure of $47.7 billion.
- Joey Solitro
Read more: Why Wells Fargo's Revenue Miss Isn't Worrying Wall Street
UnitedHealth headlines Thursday's earnings lineup
Here are a few of the companies reporting on Thursday, January 16:
Thursday, before the open:
Bank of America (BAC)
First Horizon (FHN)
Morgan Stanley (MS)
UnitedHealth Group (UNH)
Thursday, after the close:
Bank OZK (OZK)
J.B. Hunt Transport (JBHT)
UnitedHealth slumps after rare revenue miss
UnitedHealth Group (UNH) suffered several setbacks in the final three months of 2024 including the fatal shooting of a key executive and bipartisan efforts to prohibit the joint ownership of pharmacy benefit managers (PBMs) and pharmacies.
And a rare revenue miss has dealt another blow to the stock, which is down more than 4% on Thursday. In the three months ending December 31, UnitedHealth reported revenue of $100.8 billion, below analysts' expectations for revenue of $101.8 billion. This was the first top-line miss for UNH since Q2 2020.
The company said earnings rose 11% year over year to $6.81 per share, beating estimates for earnings of $6.75 per share.
Despite the recent technical troubles, Truist Securities analyst David MacDonald (Buy) feels this pullback should be viewed as a buying opportunity. In addition to "meaningful diversification" across its platforms, which creates "a key differentiator in an uneven operating environment," the insurer's "Optum trends remain brisk, and we expect ongoing revenue and customer growth as the company continues to expand the service offering [and] integrate services to improve [its] value-based-care positioning," he says.
Read more: UnitedHealth Is the Worst Dow Jones Stock Thursday. Here's Why
Semiconductor stocks soar after TSM earnings
Several chip stocks are getting a halo lift from Taiwan Semiconductor Manufacturing (TSM) Thursday after the chip manufacturer reported strong fourth-quarter results and gave upbeat guidance.
At last check, TSM was up more than 5%, while peers Broadcom (AVGO, +2.4%), Lam Research (LRCX, +7.7%) and KLA Corp (KLAC, +7.4%) were notably higher.
- Joey Solitro
Read more: Taiwan Semiconductor Earnings Fuel a Rally in Chip Stocks
BAC stock slips despite earnings beat
Bank of America (BAC) shares are trading lower Wednesday even after the financial giant reported stronger-than-expected fourth-quarter earnings of 82 cents per share on revenue of $25.5 billion.
BAC continued the momentum sparked by several big banks on Wednesday, says David Wagner, portfolio manager at Aptus Capital Advisors.
He adds that the company's outlook points to upside in net interest income in Q1, a trend that's being rewarded by the market right now. "Couple this with being efficient on the expense side of the ledger, the market loves net interest margin expansion."
- Joey Solitro
Read more: Why Bank of America Stock Is Still a Buy After Earnings
Regional banks report on Friday
Here are some of the companies reporting on Friday, January 17:
Citizens Financial Group (CFG)
Huntington Banc (HBAN)
Regions Financial (RF)
State Street (STT)
SLB reports solid Q4 results, hikes dividend
SLB (SLB) is one of the best S&P 500 stocks Friday after the oilfield services company beat top- and bottom-line expectations for its fourth quarter, raised its dividend payout and announced a $2.3 billion accelerated share repurchase program.
In the three months ending December 31, SLB reported earnings of 92 cents per share on $9.3 billion in revenue. Analysts called for earnings of 90 cents per share on $9.2 billion in revenue.
- Joey Solitro
Read more: SLB Stock Jumps on Earnings, Dividend Hike and Buyback News
J.B. Hunt sinks on profit miss
J.B. Hunt Transport Services (JBHT) stock is one of the worst S&P 500 stocks Friday after the transportation and logistics provider reported lackluster results for its fourth quarter.
For the three-month period, JBHT said earnings came in at $1.53 per share on revenue of $3.15 billion. Wall Street expected earnings of $1.61 per share on $3.15 billion in sales.
"We think it makes sense to tread carefully here and remain on the sidelines. We were expecting and got a beat ... and then got beaten down as we were expecting a better start to the year,” says Bernstein analyst David Vernon, who has a Market Perform (Hold) rating on JBHT.
- Joey Solitro
3M, Netflix headline Tuesday's earnings lineup
Monday, January 20, is a stock market holiday, with the equities and bond markets closed in observance of Martin Luther King Jr. Day. Earnings season picks back up on Tuesday, January 21, with several noteworthy companies reporting. Here are a few:
Tuesday, before the open:
3M (MMM)
Charles Schwab (SCHW)
Progressive (PGR)
Tuesday, after the close:
Capital One Financial (COF)
Netflix (NFLX)
Seagate Technology (STX)
3M tops the Dow on Tuesday after an earnings beat
Industrial conglomerate 3M (MMM) kicked off a busy week of earnings on a high note, sending the blue chip stock to the top of the Dow Jones Industrial Average.
In the three months ending December 31, 3M's revenue increased 0.1% year over year to $6 billion, while its earnings per share declined 1.2% from the year-ago period to $1.68. Wall Street was anticipating revenue of $5.8 billion and earnings of $1.66 per share.
- Joey Solitro
Read more: Why 3M Is the Best Dow Jones Stock Today
What are earnings saying about M&A activity?
Earnings season can tell us a lot about merger-and-acquistion (M&A) activity, which has lagged in recent years due to high interest rates.
Mark Williams, chief revenue officer at Datasite Americas, says the impressive earnings reports we've seen from several leading banks recently reflect "higher levels of capital and increased confidence in a robust economic and a more accommodating regulatory environment." Translation: "The outlook for increased mergers and acquisitions activity is strong."
Williams adds that he's already seeing this on Datasite, which facilitates close to 15,000 new deals annually. "New global deals on Datasite jumped 22% year over year just two weeks after the U.S. election, while 2024 fourth-quarter new global deal kick-offs on Datasite rose 10% compared to the same time a year ago."
He notes that these increases indicate dealmakers are already preparing for "an environment conducive to M&A growth since these are deals at inception, rather than announced."
- Karee Venema
Several blue chips report on Wednesday
Here are some of the noteworthy names on Wednesday's earnings calendar:
Wednesday, before the open:
Comerica (CMA)
GE Vernova (GEV)
Johnson & Johnson (JNJ)
Procter & Gamble (PG)
Travelers (TRV)
Wednesday, after the close:
Alcoa (AA)
Discover Financial Services (DFS)
Steel Dynamics (STLD)
Netflix jumps after earnings
Netflix (NFLX) is one of the best S&P 500 stocks Wednesday morning after the streaming giant said fourth-quarter earnings more than doubled from the year-ago period to $4.27 per share. Revenue jumped 16% to $10.2 billion. Analysts expected Netflix to disclose earnings $4.21 per share on revenue of $10.1 billion.
The company also said it added 19 million paid memberships over the three-month period and finished the quarter with 302 million memberships.
For the first quarter, NFLX expects revenue to be up 11.2% to $10.4 billion and earnings to increase 5.7% year over year to $5.58 per share.
CFRA Research analyst Kenneth Leon reiterated a Buy rating on the large-cap stock after earnings. "We think premium plan price increases will drive higher revenue with best-in-class content," Leon wrote in a note to clients. "NFLX should double its advertising revenue in 2025 and continue its foray into gaming and sporting events."
At last check, NFLX was up more than 12%, adding to its long-term gains.
GE Vernova pops despite earnings miss
GE Vernova (GEV) shares are up nearly 3% Wednesday morning even though the gas power and renewable energy company reported lower-than-expected fourth-quarter earnings of $1.73 per share on $10.6 billion in revenue.
Wall Street could be cheering the company's reaffirmed outlook for 2025, which calls for revenue in the range of $36 billion to $37 billion, representing growth of 3% to 5.9% over 2024.
- Joey Solitro
Read more: Why GE Vernova Stock Is Higher After Its Earnings Miss
Procter & Gamble reports earnings beat
Procter & Gamble (PG) is one of the best Dow Jones stocks Wednesday after the consumer products giant beat top- and bottom-line expectations for its fiscal 2025 second quarter and reaffirmed its outlook for 2025.
For the three-month period, PG said earnings rose 2.2% to $1.88 per share, while revenue was up 2.1% to $21.9 billion. Analysts expected earnings of $1.86 per share on $21.5 billion in revenue of $21.5 billion.
For the full fiscal year, PG is guiding for revenue growth in the range of 2% to 4% and earnings of $6.91 to $7.05 per share.
- Joey Solitro
Read more: Procter & Gamble Stock Rises on Earnings Beat: What to Know
Industrial stocks report on Thursday
Several industrial stocks are included in Thursday's busy earnings lineup. Here's a sampling of who is reporting:
Thursday, before the bell
Alaska Air Group (ALK)
American Airlines (AAL)
GE Aerospace (GE)
Union Pacific (UNP)
Thursday, after the close
CSX (CSX)
American Airlines' weak guidance weighs on stock
American Airlines stock is down nearly 8% at last check Thursday after the air carrier said it expects a wider first-quarter loss than Wall Street is anticipating.
The company pointed to "present demand trends" and "the current fuel price" as the reason it expects to record a per-share loss of 20 cents to 40 cents in the first quarter.
For the fourth quarter, AAL reported earnings of 86 cents per share on revenue of $13.7 billion. Analysts called for earnings of 64 cents per share on revenue of $13.4 billion.
Read more: American Airlines Stock Sinks After Earnings. Here's Why
GE Aerospace gains after Q4 earnings beat, strong outlook
GE Aerospace shares are up more than 6% Thursday afternoon thanks to the industrial giant's fourth-quarter top- and bottom-line beats.
The company also said it expects to achieve revenue growth in the low-double-digit percentages and earnings per share of $5.10 to $5.45. Analysts are calling for 11% annual revenue growth and earnings of about $5.23 per share.
- Joey Solitro
Read more: Is GE Aerospace Stock Still a Buy After Earnings?
American Express, Verizon report earnings on Friday
Blue chips American Express and Verizon Communications headline Friday's earnings lineup. Check out Kiplinger's earnings calendar to see who else is reporting.
American Express drops despite earnings beat, dividend hike
American Express (AXP) is the worst-performing of the 30 Dow Jones stocks on Friday even after the credit card giant reported a fourth-quarter beat and hiked its dividend.
For the three months ending December 31, AXP said earnings rose 16% year over year to $3.04, while revenue was up 9% to $17.2 billion. The company also hiked its quarterly dividend by 17%.
While Truist Securities analyst Brian Foran (Buy) says questions over sustainable growth have been swirling, he believes these are offset by AXP's "competitive moats and long-term tailwinds for the company – such as a loyal high-end customer base and international reach."
Read more: What American Express' Latest Dividend Hike Means for Investors
Verizon pops as price hikes fuel earnings beat
Verizon Communications (VZ) said its fourth-quarter revenue increased 1.6% year over year to $35.7 billion. Its earnings rose 1.9% from the year-ago period to $1.10 per share. The company also reported a 3.1% increase in wireless service revenue to $20 billion, which Verizon says is a result of price hikes and sales perks.
Wall Street was anticipating revenue of $35.3 billion and earnings of $1.09 per share.
- Joey Solitro
Read more: Verizon Sails to the Top of the Dow After Earnings Beat
AT&T, Nucor report on Monday
The earnings calendar really gets rolling on Tuesday, but here are a few names reporting on Monday.
Monday, before the open:
AT&T (T)
SoFi Technologies (SOFI)
Monday, after the close:
Alexandra RE (ARE)
Graco (GGG)
Nucor (NUE)
Western Alliance Bancorp (WAL)
Lockheed Martin, Starbucks report on Tuesday
Tuesday's earnings calendar features several blue chips, including:
Tuesday, before the bell:
Boeing (BA)
General Motors (GM)
Lockheed Martin (LMT)
Tuesday, after the close:
Chubb (CB)
Starbucks (SBUX)
Lockheed Martin's share-price weakness creates buying opportunity
Ahead of Tuesday's open, Lockheed Martin (LMT) reported Q4 earnings of $2.22 per share, down from the $7.58 per share it disclosed in the year-ago period. Revenue fell 1.6% year to $18.6 billion. Analysts expected earnings of $6.61 per share on revenue of $18.8 billion.
Shares of the industrial stock fell roughly 8% in Tuesday's session and LMT is now down nearly 25% since late October. But Truist Securities analyst Michael Ciarmoli says this weakness creates a "compelling entry point," and he recently initiated coverage on LMT with a Buy rating and a $579 price target.
Ciarmoli adds that fears related to potential cost cuts recommended by the Department of Government Efficiency (DOGE) are "overblown" and that "defense spending will continue to rise in coming periods."
Read more: Is Lockheed Martin Stock Still a Buy After Its Earnings Miss?
General Motors is no longer a Sell after earnings, says CFRA
In the three months ending December 31, General Motors said its revenue increased 11% year over year to $47.7 billion. Its earnings per share surged 54.8% to $1.92. The results topped analysts' expectations. Wall Street was anticipating revenue of $43.6 billion and earnings of $1.84 per share.
CFRA Research analyst Garrett Nelson upgraded GM to Hold from Sell after earnings, noting this is the automaker's 10th straight bottom-line beat. He adds that the better-than-expected results came "despite concerns that GM's year-over-year comparisons should be much more difficult in 2025 and the company could lose market share in the near- and intermediate-term due to its lack of hybrid vehicle offerings
However, Nelson cautioned that "GM's automotive free cash flow should be about $2 billion lower in 2025, as capex remains significant."
- Joey Solitro
Read more: Why General Motors Stock Is Sinking After Its Earnings Beat
Mag 7 earnings start to roll in on Wednesday
Several notable names report Wednesday, including a few Magnificent 7 stocks:
Wednesday, before the open:
ASML (ASML)
Danaher (DHR)
Norfolk Southern (NSC)
T-Mobile US (TMUS)
Wednesday, after the close:
Bausch Health (BHC)
Meta Platforms (META)
Microsoft (MSFT)
Tesla (TSLA)
Read more: Earnings Calendar and Analysis for This Week (January 27-31)
Starbucks jumps on earnings beat
Starbucks (SBUX) is one of the best S&P 500 stocks Wednesday after the coffee chain reported higher-than-expected earnings of 69 cents per share on revenue of $9.4 billion. Both its top and bottom lines declined on a year-over-year basis due in part to a 4% decline in global comparable-store sales. This marked its fourth consecutive quarter of falling same-store sales.
While most of Wall Street is bullish toward SBUX, Wedbush analyst Nick Seytan maintained a Neutral (Hold) rating on the stock after earnings. "We believe SBUX's current valuation appropriately reflects limited near-term top- and bottom-line visibility, offset by some level of confidence in management's ability to deliver longer-term annual operating margin expansion and EPS growth in line with the brand's equity," he says.
- Joey Solitro
Read more: Starbucks Stock Pops as Turnaround Efforts Lead to Earnings Beat
ASML (ASML) stock is rallying Wednesday after the world's largest supplier to the semiconductor industry beat top- and bottom-line expectations for its fourth quarter and issued a strong outlook for its first quarter.
Investors are paying close attention to semiconductor stocks, following the arrival of DeepSeek, an open-source AI chatbot from China that sparked a big sell-off in the U.S. stock market on Monday.
But for its Q4 results, ASML said earnings per share grew 31% year over year while revenue was up 28%. It also forecast higher-than-expected first-quarter earnings.
- Joey Solitro
Several Dow Jones stocks report Thursday
Thursday's earnings lineup is long, with a number of Dow Jones stocks reporting.
Thursday, before the open:
Altria (MO)
Caterpillar (CAT)
Mastercard (MA)
Sherwin-Williams (SHW)
United Parcel Service (UPS)
Thursday, after the close:
Apple (AAPL)
Deckers Outdoor (DECK)
Intel (INTC)
U.S. Steel (X)
Visa (V)
Zuckerberg expects "really big year" for Meta Platforms
Meta Platforms (META) stock is trading higher Thursday after the Facebook parent reported better-than-expected earnings ($8.02 per share), revenue ($48.4 billion) and daily active people (3.35 billion) than Wall Street was expecting.
As for spending levels, which Wall Street is keeping a close eye on, Meta said it expects total expenses in 2025 to be in the range of $114 billion to $119 billion, with infrastructure believed to be the "single largest driver of expense growth."
Meta CEO Mark Zuckerberg said he expects this to "be a really big year" for the company and that "the trajectory for most of our long-term initiatives" will be "a lot clearer by the end of this year."
Read on to see what Wall Street has to say about the results: Is Meta Stock a Buy, Hold or Sell After Earnings?
Microsoft sinks to the bottom of the Dow after earnings
Microsoft (MSFT) is the worst Dow stock on Thursday after the tech giant forecast lower-than-anticipated revenue of $67.7 billion for its fiscal third quarter.
Brian Mulberry, client portfolio Manager at Zacks Investment Management, says Wall Street could also be disappointed in the company's 31% year-over-year revenue growth in Azure, its cloud computing platform, in fiscal Q2. This slightly missed analysts' estimates for 32% growth.
"[Azure] has been a key component of both revenue growth and profitability that will be critical in funding the capex projects announced around AI infrastructure," Mulberry notes. " Long term, the balance sheet looks healthy and the revenue growth is still a net positive."
Indeed, Microsoft said fiscal second-quarter revenue was up 12% year over year, while earnings per share jumped 10%.
UPS spirals after slashing Amazon delivery volume
United Parcel Service (UPS) is at the bottom of the S&P 500 after the logistics giant reported lower-than-expected fourth-quarter revenue of $25.3 billion. Additionally, the company said Amazon (AMZN) shipping volumes will by cut in half by 2026.
Still, UPS' earnings of $2.75 per share came in higher than Wall Street was anticipating.
Blue chip energy stocks round out this week's earnings calendar
A pair of oil majors headline Friday's earnings lineup. Here's who is reporting:
Friday, before the open:
AbbVie (ABBV)
Chevron (CVX)
Exxon Mobil (XOM)
LyondellBasell (LYB)
Apple earnings are in
Apple (AAPL) stock is up 3% in Thursday's after-hours session thanks to the tech giant's top- and bottom-line fiscal first-quarter beats and fiscal second-quarter revenue growth in the "low to mid single digits."
For the three months ending December 28, the tech giant reported fiscal Q1 earnings of $2.40 per share (+10% YoY) on revenue of $124.3 billion (+4% YoY). Analysts expected earnings of $2.35 per share on $124.1 billion in sales.
iPhone revenue of $69.1 billion fell short of the $71.0 billion Wall Street was expecting. The report also showed that sales from China were down 11% year over year.
CFRA Research analyst Angelo Zino maintained a Buy rating on Apple after earnings. There are a number of reasons he still likes Apple, including its "aging installed base and broadening AI features," as well as the potential for higher prices and services revenue.
However, Zino does "see muted China demand and recent forex moves [that pose] downside risk to consensus estimates."
- Karee Venema
Related content: Apple Stock Climbs to the Top of the Dow After Earnings
Intel struggles for direction after earnings
Intel (INTC) has traded in both positive and negative territory Friday as investors weigh a fourth-quarter beat against weak guidance.
For the three months ending December 28, Intel reported earnings of 13 cents per share on $14.3 billion in revenue. Analysts expected earnings of 12 cents per share on $13.8 billion in revenue.
But for Q1, the chipmaker said it expects earnings of roughly zero cents per share on revenue of $11.7 billion to $12.7 billion, lower than Wall Street's forecasts. "Our Q1 outlook reflects seasonal weakness magnified by macro uncertainties, further inventory digestion and competitive dynamics," said Intel interim co-CEO and Chief Financial Officer David Zinsner in a statement.
- Joey Solitro
Read more: Intel Earnings Do Little to Excite Investors: What to Know
Chevron's Q4 profit falls short
Chevron (CVX) is the worst Dow stock Friday after the oil major reported earnings of $2.06 per share, below the $2.11 per share analysts expected. On a positive note, fourth-quarter revenue of $52.2 billion came in higher than the $46.8 billion in sales Wall Street was expecting.
CVX also announced its 38th consecutive dividend hike, raising its quarterly payout by 4.9%.
- Joey Solitro
Read more: Chevron Stock Declines Despite Another Dividend Hike
Palantir sails to the top of the S&P 500 after earnings
Palantir Technologies (PLTR) jumped more than 20% out of the gate Tuesday after the artificial intelligence (AI) software provider reported better-than-expected earnings of 14 cents per share on revenue of $827.5 million. The company also gave upbeat guidance.
"There are some transformational tech stocks that come along every decade and change the landscape ... Palantir is one of them in our view and proved it for all the tech world to see last night," says Wedbush analyst Daniel Ives. "Palantir is helping lead the AI Revolution into the use case phase as its AIP [Artificial Intelligence Platform] product moat is unmatched in our view."
Read more: Why Palantir Is the Best S&P 500 Stock Today
PayPal sinks on high expectations
PayPal Holdings (PYPL) is set to end Tuesday near the bottom of the S&P 500 even after the payments giant disclosed fourth-quarter earnings and revenue that were higher than Wall Street anticipated.
"Expectations likely ran ahead of themselves," said Mizuho analyst Dan Dolev in response to the market's initial reaction to PayPal's earnings report. "We are not concerned," Dolev added, noting that PayPal's "branded button has been consistently growing in line with its major merchant partners."
Read more: PayPal Stock Falls Despite Earnings Beat, Strong Outlook
Pepsi hikes its dividend again, misses on revenue
PepsiCo (PEP) is down more than 4% in Tuesday's session after the snack food maker and soft drink giant reported a fourth-quarter top-line miss. This is overshadowing the company's stronger-than-anticipated earnings of $1.96 per share.
PEP also said it hiked its quarterly dividend by 5%, marking the 53rd straight year it has raised its payout.
CFRA Research analyst Garrett Nelson maintained a Buy rating on Pepsi but lowered his price target after earnings to $175 from $190.
PepsiCo's bottom-line beat was "driven by stronger-than-expected margins," Nelson says, as both revenue and volume declined over the three-month period. And while PEP's full-year EPS guidance arrives "slightly below the current consensus," Nelson notes that the "company's masterful track record of providing conservative guidance and then exceeding it."
He adds that despite industry headwinds, he still sees value in PEP despite the stock's recent slide.
- Joey Solitro
Read more: PepsiCo Stock Falls Despite Earnings Beat, Dividend Hike
Disney, Arm Holdings report earnings on Wednesday
Wednesday's earnings lineup is jam-packed. Here's a sampling of who is reporting:
Wednesday, before the bell:
Boston Scientific (BSX)
GlaxoSmithKline (GSK)
Performance Food Group (PFGC)
Uber Technologies (UBER)
Walt Disney (DIS)
Wednesday, after the close:
Arm Holdings (ARM)
Hologic (HOLX)
O'Reilly Automotive (ORLY)
Skyworks Solutions (SWKS)
Suncor Energy (SU)
Alphabet slumps as AI spending accelerates
Alphabet (GOOGL) disclosed its fourth-quarter results after Tuesday's close, reporting earnings of $2.15 per share (+31% YoY) on revenue of $96.5 billion (+11.8% YoY). Analysts expected GOOGL to unveil earnings of $2.12 per share on $96.7 billion in revenue.
The Q4 results also showed that Google Services revenue was up 10% on strength in Google Search and YouTube ads, while cloud revenue jumped 30%.
The company also said it will invest $75 billion in capital expenditures in 2025, which is 43% higher than 2024.
GOOGL shares are down more than 7% at last check, but Wedbush analyst Scott Devitt isn't too concerned. "We continue see a favorable risk/reward for Alphabet and think there is a case for multiple expansion in the coming quarters as investors gain more comfort related to infrastructure spending, regulatory risk, and the impact of generative AI on Google Search," he says.
Read more: The Two Reasons Alphabet Stock Is Sinking After Earnings
DIS stock drops as Disney+ subscribers decline
Walt Disney (DIS) is near the bottom of the Dow Wednesday after the media and entertainment giant reported earnings. For its fiscal first quarter, DIS disclosed higher-than-expected earnings of $1.76 per share on $24.7 billion in revenue.
The company also profits in its direct-to-consumer streaming business continued to climb. However, October price hikes caused Disney+ subscribers to decline over the three-month period.
Read more: Is Disney stock a buy, sell or hold?
Uber stock sinks on disappointing gross bookings forecast
Uber Technologies (UBER) is down nearly 9% Tuesday afternoon after the ride-hailing company said it expects first-quarter gross bookings, a key revenue measure, of $42.75 at the midpoint, below the $43.5 billion analysts are calling for. This is offsetting UBER's better-than-expected fourth-quarter results.
Still, the majority opinion on Wall Street is bullish. According to S&P Global Market Intelligence, the average analyst target price for UBER is $88.63, representing implied upside of nearly 40% to current levels. Additionally, the consensus recommendation is a Buy.
Read more: Why Uber Stock Is Falling After Earnings
AMD's data center revenue disappoints
Advanced Micro Devices (AMD) is down more than 7% late Tuesday after the chipmaker reported lower-than-expected data center revenue of $3.9 billion for its fourth quarter. Still, it's top- and bottom-line results came in higher than expected.
Wall Street doesn't seem to be too worried, though. "We view the sell-off post AMD's report as overdone," says Wedbush analyst Matt Bryson. He notes that "investors were already assuming softer forward AI sales" and says "more attention should be paid to AMD's robust client compute business."
Read more: AMD Stock Falls Despite Earnings Beat: What to Know
Amazon headlines Thursday's lineup
All eyes are on Amazon's earnings report, which will be released after Thursday's close. Here are a few more names to watch:
Thursday, before the open:
Air Products and Chemicals (APD)
Eli Lilly (LLY)
Honeywell (HON)
Under Armour (UAA)
Thursday, after the close:
Affirm Holdings (AFRM)
Expedia Group (EXPE)
Pinterest (PINS)
Take-Two Interactive Software (TTWO)
Honeywell drops as weak outlook offsets split news
Honeywell International (HON) was the worst Dow stock on Thursday after the industrial conglomerate's weak full-year forecast overshadowed news that it plans to split into three separate companies.
"The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies, and unlock significant value for shareholders and customers," said Honeywell CEO Vimal Kapur in a statement.
CFRA Research analyst Jonathan Sakraida says that the separation of businesses will unlock value for shareholders "via a simplified operating structure and optimized capital allocation alignment."
Read more: Honeywell Stock Is at the Bottom Of the Dow After Split News
Qualcomm sinks as licensing revenue disappoints
Qualcomm (QCOM) fell nearly 4% Thursday after the integrated circuit specialist reported lower-than-expected fiscal first-quarter licensing revenue of $1.54 billion.
Still, the company disclosed total revenue of $11.7 billion and earnings per share of $3.41, both more than analysts anticipated.
Oppenheimer analyst Rick Shafer maintained a Perform (Hold) rating on QCOM after earnings. "While we recognize QCOM's leading position in modem and single-chip integrated chipset solutions, we believe the company is over-exposed to the mobile market, with its diminishing growth and increasing competition," he says.
Read more: Qualcomm Stock Drops After Its Earnings Beat. Here's Why
CBOE, Flower Foods report on Friday
Friday's lineup caps off a busy week of earnings. Here's a sampling of who is reporting:
Friday, before the open:
CBOE Global Markets (CBOE)
Flower Foods (FLO)
Newell Brands (NWL)
Plains All American (PAA)
Read more: Earnings Calendar and Analysis for This Week