The US March quarter earnings reporting season slows this week, with around 40% of the companies on the S&P 500 still to report from this week onwards.
In terms of outright performance, it will be hard to top last week’s reports from the likes of Amazon, Apple, Facebook, Microsoft, Alphabet, Qualcomm, BP, Shell, Exxon and Chevron.
Most of the near 1,000 companies due to report this week are smaller industrials, banks, tech – related and service companies, with some media majors such as the New York Times, Liberty Media, Gannett, ViacomCBS and News Corp.
The most important company reporting is General Motors with investors wanting to hear more about the company’s plans to reinvent itself into a renewables-driven manufacturer and retailer of electric vehicles.
Roughly 60% of the S&P 500 has now reported with 87% beating earnings expectations by an average +24% and 72% beating on revenue.
Consensus earnings expectations for the quarter have now risen to 46% year on year, from 21% two weeks ago.
AMP chief economist, Shane Oliver pointed out in his weekend note “That’s a 21% upgrade in less than three weeks.”
“Tech sector EPS are up 42%year on year (yoy), but the cyclicals (like consumer discretionary, financials and materials) are outperforming,” Dr Oliver pointed out.
Monday sees few companies reporting – Avis Budget is one of the best known, along with Estee Lauder.
Tuesday sees a few more with Under Armour, Apollo Global, Warner Music, Amcor (the former Australian based packaging group), Conoco Phillips, Zillow, Wynn Resorts and Pfizer.
Wednesday sees the quarterlies from New York Times and Fox Corp (controlled by the Murdochs), Barrick Gold, General Motors, EchoStar and Liberty Global Plc.
Thursday sees quarterlies from News Corp, GoPro, Trip Adviser, Tenneco, ViacomCBS and Nielsen.
Friday it’s EW Scripps, Gannett, Liberty Media, Cigna and Fluor.
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In Australia it’s the three big banks reporting interim results this week, starting with Westpac this morning, then the ANZ, then NAB with the final from Macquarie on Friday.
Friday also sees the March quarter figures from REA Group (61% owned by News Corp). Eclipx group releases its half year figures on Thursday.
