The quarterly report of Apple will dominate the coming week of US June quarter earnings reports.
In Australia, it’s a quiet week except for the half-year financial report from Rio Tinto on Thursday afternoon after trading (timed for 4.15pm).
For the US it’s a smattering of techs, more consumer products groups and some energy majors.
After last week’s reasonable reports from Facebook and Alphabet (Google), Apple is not expected to surprise.
Amazon though did reveal a weak report, and a weak forecast for the coming quarter, so it’s in the ‘doghouse’ so to speak with Netflix after its bad miss on new subscribers, particular the surprise fall in US customer numbers.
Amazon did OK, but not as well as it and analysts had forecast and the prediction on revenue for the September quarter was also less than market forecasts.
Up to Friday of last week the June quarter reporting season has been a little better than expected.
Some 44% of S&P 500 index companies have reported quarterly earnings for the second quarter and 77% have posted a stronger-than-forecast profit, according to US financial data group, FactSet.
Around 59% have beaten forecasts on sales and earnings growth for the quarter looking like it will come in at around a gain of 3% year on year instead of a small dip at the start of the season in early July.
That means the US will not have an ‘earnings recession’ which is two successive quarter of negative earnings growth for the S&P 500 companies.
The 3% rise though is a long, long way from the 27% earnings growth a year ago because growth has slowed and the boost from Trump’s tax cuts has fallen out.
Last week also saw solid results from Starbucks, McDonalds and Coca Cola.
Besides Apple this week, General Motors is also down to report along with Mondolez, Eli Lilly, Merck, Electronics Arts, The New York Times,Yum Brands, Under Armour, GE and Proctor and Gamble Kraft Heinz (That list includes some well known consumer products groups so the chances of better than expected results is quite possible).
A quartet of oil majors are due to report – BP, Shell and Chevron and Exxon Mobil.
Source: Bloomberg, AMP Capital
In Australia its a quiet week before the deluge starts the week after.
