Monstrous Earnings Ahead: Facebook, Microsoft, Alphabet, Apple and Amazon in Focus

• Monday (October 25)

• Tuesday (October 26)

• Wednesday (October 27)

• Thursday (October 28)

• Friday (October 29)

Earnings Calendar For The Week Of October 25

Monday (October 25)

IN THE SPOTLIGHT: FACEBOOK

The world’s largest online social network Facebook is expected to report its third-quarter earnings of $3.19 per share, which represents year-over-year growth of over 17% from $2.71 per share seen in the same period a year ago.

The Menlo Park, California-based social media conglomerate would post revenue growth of over 35% to around $29.3 billion. It has beaten consensus earnings per share estimates in all of the last four quarters.

“We kept our 3Q21 adv forecast in check after our 3Q21 Digital ad expert call on 10/8, which suggested strong but decelerating ad growth at Core FB and IG with growth led mainly by pricing. For 3Q21, we are +0.7% & (1.0%) vs. consensus revenue & EBITDA; we are 1.1% and 1.6% above 4Q21 cons. rev. & EBITDA. Investors will focus on iOS 14.5 colour and 4Q21 rev. guide at the print,” noted John Blackledge, equity analyst at Cowen.

“We forecast 16% annual revenue growth’21-’26 driven by 16% annual advertising revenue and offset by 6% annual Other revenue. We view Advertising revenue as driven mostly by the contribution of mobile, video and Instagram, while we forecast Desktop remaining flattish. We expect EBITDA margins to remain roughly in line with current levels.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE OCTOBER 25

Tuesday (October 26)

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IN THE SPOTLIGHT: MICROSOFT, ALPHABET

MICROSOFT: The Redmond, Washington-based global technology giant would report its fiscal first-quarter earnings of $2.07 per share, which represents year-over-year growth of about 14% from $1.82 per share seen in the same period a year ago. The world’s largest software maker would post revenue growth of over 18% to around $44 billion. It is worth noting that the company has beaten earnings per share estimates at all times in the last two years.

“Channel work and CIO survey point to building momentum across Cloud and Hybrid solutions, which should power a strong Q1 top-line. Revenue outperformance may prove operating margins more durable than feared, driving EPS upside. Our model suggests durable high-teens EPS growth,” noted Keith Weiss, equity analyst at Morgan Stanley.

ALPHABET: The parent of Google and the world’s largest search engine that dominates internet search activity globally, Alphabet, is expected to report its third-quarter earnings of $23.75 per share, which represents year-over-year growth of about 45% from $16.4 per share seen in the same period a year ago.

The Mountain View, California-based internet giant would post revenue growth of more than 35% to around $51.4 billion. In the last two years, the company has beaten earnings per share estimates most of the time with a surprise of over 25%.

“We remain bullish on Search strength amid an ongoing ad market recovery and following our Digital ad expert check-call on 10/7, which suggested strong Search spend (despite tougher comps) as CPCs continue to drive growth. Our 3Q21 net rev. (+39% y/y), EBITDA, & EPS are all above consensus. We also expect robust Holiday spending, despite inventory issues. Maintain Outperform & $3,300 Price Target,” noted John Blackledge, equity analyst at Cowen.

“We currently forecast 13% and 14% annual gross and net revenue growth respectively’21-’26 and EBITDA growth of ~14% over the time period.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE OCTOBER 26

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