Stock Market News – Amazon, Apple & Alphabet quarterly results keep investors on edge
February 1, 2018 4:26 pm
Corporate giants Amazon, Apple and Google owner Alphabet will be releasing earnings reports for the quarter ending December 2017 after Wall Street’s closing bell on Thursday. The consensus recommendations for all three stocks is “buy”, with the average consensus recommendation for Amazon’s Department Stores peer group being a “hold”, while Apple’s and Alphabet’s peer groups – Computer Hardware and Online Services respectively – are also holding a “buy” recommendation.
Amazon’s quarterly EPS are expected to come in at $1.84, with analysts’ average EPS estimate being revised downwards from $1.85 over the last four weeks. If earnings come in line with forecasts, this would reflect an improvement by 19.5% relative to Q4 2016 when the retail giant earned $1.54 per share. The most bearish analyst submitting their expectations to Thomson Reuters’ estimate system (the Institutional Brokers’ Estimate System – I/B/E/S) projects EPS to stand at $1.21 and the most bullish puts them at $2.62. The firm managed to exceed analysts’ projections in three of the four quarters that preceded, while falling short of forecasts once.
The Seattle-based company’s stock closed not far below $1,451 on Wednesday after previously reaching an all-time high of $1,472.58. A positive earnings surprise could lead to price advancing, with the area around $1,500 – this being a level of potential psychological significance – having the capacity to act as resistance, given of course that the price action previously clears yesterday’s record high. On the way down and in case of an earnings miss that would result in selling pressure, the range around $1,400 – this being another level that may be of psychological importance – could offer support.
Turning to Apple, its EPS for the quarter ending December 2017 are forecast to stand at $3.85, with analysts’ average EPS estimate being revised upwards from $3.77 over the last four weeks. If earnings are released as projected, this would constitute an increase of 14.6% compared to the same quarter last year when the iPhone-maker made $3.36 in earnings per share. Thomson Reuters I/B/E/S estimates for Apple EPS currently range from $3.68 to $4.12. The firm managed to exceed Wall Street earnings estimates in all four preceding quarters.
An earnings beat might lead to buying interest for Apple’s stock which has suffered losses in recent days amid rising concerns that iPhone X sales will fail to meet expectations. A stock price rise might meet a barrier around the current level of the 50-day moving average at $172.87, with stronger bullish movement shifting the focus to the record high (accounting for splits) of $180.10 hit earlier in the year. On the downside and in case of a disappointing report that exerts downside pressure on the stock, the area around Tuesday’s three-month low of $164.70 could provide support. Price action is at the moment taking place not far above Tuesday’s low; a violation of this level would turn the attention to the current level of the 200-day MA at $159.24.
Finally, Alphabet’s quarterly EPS are anticipated at $9.98, this being the result of a downward revision from $9.99 from four weeks ago. Should earnings come in as expected, it too would have earned more – specifically, 6.6% more – on a per share basis relative to the respective quarter from last year when EPS stood at $9.36. EPS estimates for the tech firm range from $9.00 to $10.92. The company missed consensus estimates once during the last four quarters, while beating them in all remaining ones.
Stronger-than-anticipated earnings could lead to positive momentum, pushing Alphabet’s stock price higher. In this scenario, resistance might come around the all-time high of $1,198 that was recorded earlier in the week. A decline that might result from a weaker-than-projected report could meet support around $1,150, a potential psychological level.
It is invariably the case that sharper movements are spurred by more profound deviations between actual and forecasted results; it is expected to be no different this time round for all three companies. Also, beyond earnings, investors will be assessing other aspects of the corporations’ reports to gauge any changes in their outlook, and of course position themselves accordingly.
It is worthy of mention that the three corporations have a combined market capitalization that exceeds $2 trillion – Apple leads the market-cap “race”, with Alphabet in second place and Amazon being fourth, behind Microsoft – with their supply chains involving numerous other companies. Collective upbeat reports by the three companies definitely have the capacity to spur positive sentiment in equity markets not just in the US but internationally as well, and vice versa.
All three companies are S&P 500 and Nasdaq 100 constituent stocks, with Apple also being one of the thirty companies comprising the Dow Jones Industrial Average. The year-to-date (and prior to Thursday’s US market open) performance of the Dow, S&P 500 and Nasdaq 100 is 5.8%, 5.6% and 8.65% respectively. The respective performance for Amazon, Apple and Alphabet stands at 24.1%, -1.1% (to clarify, Apple is down year-to-date), and 12.2%.
Big names reporting quarterly results on Friday include energy companies Chevron and Exxon Mobil and pharmaceuticals firm Merck & Co. All three will be releasing their reports before Wall Street’s opening bell.
Corporate giants Amazon, Apple and Google owner Alphabet will be releasing earnings reports for the quarter ending December 2017 after Wall Street’s closing bell on Thursday. The consensus recommendations for all three stocks is “buy”, with the average consensus recommendation for Amazon’s Department Stores peer group being a “hold”, while Apple’s and Alphabet’s peer groups – Computer Hardware and Online Services respectively – are also holding a “buy” recommendation.
Amazon’s quarterly EPS are expected to come in at $1.84, with analysts’ average EPS estimate being revised downwards from $1.85 over the last four weeks. If earnings come in line with forecasts, this would reflect an improvement by 19.5% relative to Q4 2016 when the retail giant earned $1.54 per share. The most bearish analyst submitting their expectations to Thomson Reuters’ estimate system (the Institutional Brokers’ Estimate System – I/B/E/S) projects EPS to stand at $1.21 and the most bullish puts them at $2.62. The firm managed to exceed analysts’ projections in three of the four quarters that preceded, while falling short of forecasts once.
The Seattle-based company’s stock closed not far below $1,451 on Wednesday after previously reaching an all-time high of $1,472.58. A positive earnings surprise could lead to price advancing, with the area around $1,500 – this being a level of potential psychological significance – having the capacity to act as resistance, given of course that the price action previously clears yesterday’s record high. On the way down and in case of an earnings miss that would result in selling pressure, the range around $1,400 – this being another level that may be of psychological importance – could offer support.
Turning to Apple, its EPS for the quarter ending December 2017 are forecast to stand at $3.85, with analysts’ average EPS estimate being revised upwards from $3.77 over the last four weeks. If earnings are released as projected, this would constitute an increase of 14.6% compared to the same quarter last year when the iPhone-maker made $3.36 in earnings per share. Thomson Reuters I/B/E/S estimates for Apple EPS currently range from $3.68 to $4.12. The firm managed to exceed Wall Street earnings estimates in all four preceding quarters.
An earnings beat might lead to buying interest for Apple’s stock which has suffered losses in recent days amid rising concerns that iPhone X sales will fail to meet expectations. A stock price rise might meet a barrier around the current level of the 50-day moving average at $172.87, with stronger bullish movement shifting the focus to the record high (accounting for splits) of $180.10 hit earlier in the year. On the downside and in case of a disappointing report that exerts downside pressure on the stock, the area around Tuesday’s three-month low of $164.70 could provide support. Price action is at the moment taking place not far above Tuesday’s low; a violation of this level would turn the attention to the current level of the 200-day MA at $159.24.
Finally, Alphabet’s quarterly EPS are anticipated at $9.98, this being the result of a downward revision from $9.99 from four weeks ago. Should earnings come in as expected, it too would have earned more – specifically, 6.6% more – on a per share basis relative to the respective quarter from last year when EPS stood at $9.36. EPS estimates for the tech firm range from $9.00 to $10.92. The company missed consensus estimates once during the last four quarters, while beating them in all remaining ones.
Stronger-than-anticipated earnings could lead to positive momentum, pushing Alphabet’s stock price higher. In this scenario, resistance might come around the all-time high of $1,198 that was recorded earlier in the week. A decline that might result from a weaker-than-projected report could meet support around $1,150, a potential psychological level.
It is invariably the case that sharper movements are spurred by more profound deviations between actual and forecasted results; it is expected to be no different this time round for all three companies. Also, beyond earnings, investors will be assessing other aspects of the corporations’ reports to gauge any changes in their outlook, and of course position themselves accordingly.
It is worthy of mention that the three corporations have a combined market capitalization that exceeds $2 trillion – Apple leads the market-cap “race”, with Alphabet in second place and Amazon being fourth, behind Microsoft – with their supply chains involving numerous other companies. Collective upbeat reports by the three companies definitely have the capacity to spur positive sentiment in equity markets not just in the US but internationally as well, and vice versa.
All three companies are S&P 500 and Nasdaq 100 constituent stocks, with Apple also being one of the thirty companies comprising the Dow Jones Industrial Average. The year-to-date (and prior to Thursday’s US market open) performance of the Dow, S&P 500 and Nasdaq 100 is 5.8%, 5.6% and 8.65% respectively. The respective performance for Amazon, Apple and Alphabet stands at 24.1%, -1.1% (to clarify, Apple is down year-to-date), and 12.2%.
Big names reporting quarterly results on Friday include energy companies Chevron and Exxon Mobil and pharmaceuticals firm Merck & Co. All three will be releasing their reports before Wall Street’s opening bell.
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