Investing

Earnings Previews: Alphabet, Chipotle Mexican Grill, Microsoft, Visa

This promises to be a busy week for March-quarter earnings. More than a thousand U.S.-traded firms are scheduled to report results this week, including some of the country’s largest tech and energy firms.

Before markets opened on Monday, Otis Worldwide beat analysts’ profit estimates while missing on expected revenue. The elevator maker also narrowed its fiscal year earnings per share (EPS) forecast range and lowered its forecast revenue range. Shares traded up about 2.2% shortly after the opening bell.

Activision Blizzard missed on EPS and revenue, but Microsoft still has the $95.00 per share offer on the table so the stock is down less than 1%. Coca-Cola beat both top-line and bottom-line estimates and left its guidance unchanged. The stock was trading up by about 1.8% in the early going Monday.

Before markets open on Tuesday, we shall hear from eight companies we already have previewed. ADM, Corning, D.R. Horton and PepsiCo were covered in one story, and GE, Raytheon, UPS and Valero in another. Earlier in the morning, we previewed four companies set to report results late Tuesday: Enphase Energy, GM, QuantumScape and Texas Instruments.

Here is a look at four more firms set to report results after markets close Tuesday.

Alphabet

Since posting a 52-week high in mid-November, Alphabet Inc. (NASDAQ: GOOGL) shares have declined by 20.6%. Analysts and investors are concerned that ad revenue will stall as a result of inflation and the overall macroeconomic outlook. Over the past weekend, the 27 members of the European Union signed a new Digital Services Act that bans certain types of advertising and requires websites to label clearly promotional content. Violations could cost companies up to 6% of their global revenue. The new rule takes effect in 2024.

Analysts, however, remain universally bullish on the stock. All 50 brokerages covering the stock have a Buy or Strong Buy rating on the stock. At a recent share price of around $2,392.30, the upside potential based on a median price target of $3,475.00 is 45.3%. At the high price target of $3,850.00, the upside potential is nearly 61%.

First-quarter revenue is forecast at $67.8 billion, down 10.0% sequentially but up 22.6% year over year. Adjusted EPS are pegged at $25.55, down 16.8% sequentially and 2.7% lower year over year. For the full 2022 fiscal year, current consensus estimates call for EPS of $115.52, up 3%, on revenue of $302.67, up 17.5%.

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