Technology

Earnings Previews: Alphabet, AMD, Microsoft

Only 14 companies in our watch list reported earnings before markets opened Monday. But the week ahead promises to be a busy one, with more than 900 firms reporting results.

This week gets off to a big start with these reports due after markets close Monday or before they open Tuesday morning: Facebook, GE, Lockheed Martin, Raytheon and UPS.

Tuesday and Wednesday are loaded, too. Here is a look at three tech companies scheduled to report results after markets close Tuesday, but results from Robinhood, Twitter and Visa are due at that time too.

Alphabet

Since October of last year, shares of Alphabet Inc. (NASDAQ: GOOGL) have increased by about 73.5%. Until early September that rise had been virtually unchecked. Over the past several weeks, however, expected changes to European and U.S. regulations have weighed on the stock, and the share price has dropped by more than 5%, including a decline of 3% on Friday.

Analysts, however, remain universally bullish on the stock. Of 46 ratings, 44 give the stock a Buy or Strong Buy rating, and the other two have a Hold rating on the shares. At a recent price of around $2,751.30, the upside potential based on a median price target of $3,200 is 27%. At the high price target of $3,600, the upside potential is nearly 31%.

Third-quarter revenue is forecast at $63.32 billion, which would be up 2.3% sequentially and up 37% year over year. Adjusted earnings per share (EPS) are pegged at $23.37, down 14.3% sequentially but up 42.5% year over year. For the full year, current consensus estimates call for EPS of $101.07, up 72.4%, on revenue of $251.33, up 37.7%.

Alphabet stock trades at 27.3 times expected 2021 EPS, 25.9 times estimated 2022 earnings and 22.0 times estimated 2023 earnings. The stock’s 52-week range is $1,508.48 to $2,925.08. The company does not pay a dividend.

AMD

Over the past 12 months, Advanced Micro Devices Inc. (NASDAQ: AMD) has added 51% to its share price. Most of that gain (64%) has come since mid-May. Rival Intel missed revenue estimates last week and that appears to have given AMD a boost, especially since Intel lowered its guidance. Investors are expecting AMD’s numbers and outlook to be better than that.