Earnings week ahead: TSLA, GOOG, IBM, AAL, GM, F, VZ, T, and more (NASDAQ:TSLA)

As market participants gear up for another busy week in the stock market, a diverse array of companies across multiple sectors are set to report their quarterly earnings. Big names like Tesla (NASDAQ:TSLA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) are set to dominate headlines as the week will feature heavyweights from the technology, automotive, energy, healthcare and consumer goods industries.

The week ahead is also packed with earnings from technology and communications behemoths like IBM (NYSE:IBM), AT&T (T), Verizon (NYSE:VZ), Comcast (NASDAQ:CMCSA), ServiceNow (NYSE:NOW), Texas Instruments (NASDAQ:TXN) and NXP Semiconductors N.V. (NXPI). Additionally, Spotify Technology S.A. (SPOT) will shed light on the music streaming industry.

The automotive industry will be represented by General Motors (GM) and Ford (F). In the energy sector, NextEra Energy (NEE), TotalEnergies (TTE) and Enphase Energy (ENPH) will be closely watched for developments in renewable energy, while Valero Energy Corporation (VLO) offers insights into the refining industry.

Healthcare and pharmaceutical companies are also well-represented, with AbbVie Inc. (ABBV), Bristol-Myers Squibb Company (BMY) and AstraZeneca PLC (AZN) highlighting drug development and healthcare trends.

Other noteworthy reports include Thermo Fisher Scientific Inc. (TMO), Philip Morris International (PM), Colgate-Palmolive Company (CL), Visa (V), 3M Company (MMM), Lockheed Martin (LMT), RTX (RTX), Dow (DOW), Cleveland-Cliffs Inc. (CLF), Coca-Cola (KO), Chipotle Mexican Grill (CMG), American Airlines Group (AAL), Southwest Airlines (LUV), United Parcel Service (UPS) and Waste Management (WM).

Below is a rundown of major quarterly updates anticipated in the week of July 22–26:

Monday, July 22

Cleveland-Cliffs (CLF)

Cleveland-Cliffs (CLF) is set to release its Q2 earnings results on Monday after market close. Analysts expect a year-over-year decline in EPS and revenue.

Seeking Alpha’s Quant Rating system upgraded the stock from Sell to Hold at the beginning of July, aligning with Wall Street analysts’ consensus recommendation.

Seeking Alpha author Michael Del Monte believes CLF shares remain undervalued, with long-term growth potential. Despite the industry facing a cyclical downturn, he does not anticipate near-term excitement from shareholders.

• Consensus EPS Estimates: $0.00
• Consensus Revenue Estimates: $5.19B
• Earnings Insight: The company has beaten EPS expectations in 3 of the past 8 quarters, and revenue in 50% of those reports.

Also reporting: Verizon Communications (VZ), AGNC Investment (AGNC), Nucor (NUE), SAP SE (SAP) and more.

Tuesday, July 23

Tesla (TSLA)

Elon Musk’s EV giant Tesla (TSLA) is set to disclose its financial results on Tuesday after market close, with analysts expecting a significant year-over-year decline in EPS due to pricing impacts and the trade war with China.

Tesla delivered 443,956 electric vehicles in Q2, slightly above the 439,302 projected by analysts and a substantial increase from the previous quarter’s 386,810 deliveries. However, the figure was nearly 5% below year-ago delivery numbers of 466,140.

Tesla, once boasting over $1T market cap, continues to be the weakest performer in the “Magnificent 7” tech and growth stocks. So far in 2024, Tesla’s share price is down 3%, but this modest retreat comes as a result of a surge of over 60% in the past 3 months, raising its market cap to $800B from below $500B in Q1.

Recently, Tesla postponed its robotaxi unveiling event to October from an original schedule of August 8.

Both Seeking Alpha’s Quant Rating system and sell-side analysts have a cautious stance on the stock, assigning Hold ratings.

Earlier this week, Barclays reiterated an Equal-weight rating on Tesla just ahead of its Q2 earnings report, raising its price target to $225 from $180. Analyst Dan Levy believes Tesla has a clear lead in the global electric vehicle transition and the emergence of software-defined vehicles. However, the firm believes near-term headwinds are being overlooked amid the recent rally in the stock, keeping the firm on the sidelines.

SA contributor Rasoli research argues that the Tesla’s stock is overvalued due to speculative growth and extreme multiples, causing challenges like increased competition and low margins. High capital intensity hinders cash flows and limits capital return to shareholders. Tesla’s technological advantage diminishes due to underwhelming self-driving capabilities and potential liability issues.

• Consensus EPS Estimates: $0.62
• Consensus Revenue Estimates: $24.70B
• Earnings Insight: Tesla has beaten EPS estimates in 4 of the past 8 quarters, revenue only twice in that span.

Alphabet (GOOG) (GOOGL)

Alphabet (GOOG, GOOGL) is set to announce its Q2 results after the closing bell on Tuesday. Analysts predict a strong quarter, with a 27% increase in earnings and a 12% rise in revenue. Over the past year, Alphabet’s share price has surged over 45%, significantly outperforming the S&P 500’s approximately 22% return.

Last month, Seeking Alpha’s Quant Rating system downgraded Alphabet from Strong Buy to Hold, although Wall Street analysts maintain a bullish outlook with a consensus Buy rating.

Seeking Alpha author Dair Sansyzbayev advises caution, citing valuation concerns due to recent rallies. He highlights that a valuation analysis suggests Alphabet’s fair value is $1.7T, 27% lower than its current market cap. Additionally, Google’s heavy reliance on search presents a secular challenge as generative AI disrupts the industry. The company lags OpenAI’s ChatGPT, with competition expected to intensify.

• Consensus EPS Estimates: $1.84
• Consensus Revenue Estimates: $84.29B
• Earnings Insight: Google has topped EPS and revenue expectations in 5 of the past 8 quarters.

Also reporting: General Electric (GE), Visa (V), Coca-Cola (KO), General Motors (GM), Lockheed Martin (LMT), Freeport-McMoRan (FCX), Philip Morris International (PM), United Parcel Service (UPS), Texas Instruments (TXN), Comcast (CMCSA), Spotify Technology S.A. (SPOT), Kimberly-Clark (KMB), Capital One Financial (COF), PulteGroup (PHM), Mattel (MAT) and more.

Wednesday, July 24

Ford Motor (F)

Detroit-based automaker Ford Motor (F) is scheduled to release its Q2 earnings results after the market close on Wednesday. EPS is anticipated to decline Y/Y, while revenue is projected to grow by 5%.

Recently, Ford reported a 1% growth in Q2 deliveries to 536,050, driven by a robust performance of electric vehicles (EVs) and hybrids. The F-150 Lightning saw a 77% increase in sales, while total EV sales rose 61%. Total truck sales increased by 5% to 308,920, with the F-Series truck seeing a 30% increase. Hybrid sales also saw a 56% increase to 53,822.

Yiannis Zourmpanos, a Seeking Alpha author with a bearish stance on the stock, notes that Ford’s stock has underperformed, losing nearly 50% from 2022 highs and lagging General Motors. With reduced capital expenditure and free cash flow, investors should consider the 4.3% dividend yield, but caution is needed due to the challenging macro environment, the analyst stated.

• Consensus EPS Estimates: $0.68
• Consensus Revenue Estimates: $44.58B
• Earnings Insight: Ford has missed EPS and revenue expectations in 5 of the past 8 quarters.

Also reporting: AT&T (T), IBM (IBM), Annaly Capital Management (NLY), Newmont (NEM), NextEra Energy (NEE), QuantumScape (QS), ServiceNow (NOW), Chipotle Mexican Grill (CMG), Waste Management (WM), General Dynamics (GD), Thermo Fisher Scientific (TMO), Las Vegas Sands Corp. (LVS), KLA Corporation (KLAC), Deutsche Bank (DB), International Paper Company (IP), Boston Scientific Corporation (BSX), CME Group (CME), Whirlpool (WHR) and more.

Thursday, July 25

American Airlines (AAL) and United Airlines (UAL)

Following a disappointing result from its peers Delta Air Lines (DAL) and United Airlines (UAL), American Airlines (AAL) and Southwest Airlines (LUV).will be reporting its Q2 results on Thursday. Both AAL and LUV are anticipated to report almost 50% Y/Y declines in profits, as a result of an uncertain macroeconomic environment with high oil prices and elevated interest rates.

Both Seeking Alpha’s Quant Rating system and Wall Street analysts maintain a Hold rating on both stocks.

Stone Fox Capital, holding a bullish stance on AAL and LUV, states, “American Airlines stock is undervalued, with the stock valued as if bankruptcy is around the corner, yet the more likely outcome is stock buybacks.” Additionally, “Elliott Investment Management made a large investment in Southwest Airlines Co. due to underperformance, calling for a leadership upgrade and predicting a 77% upside potential. The airline faces revenue and cost performance issues, needing significant operational improvements to justify the current price compared to legacy airlines.”

• Consensus EPS Estimates: AAL – $1.04; LUV – $0.51
• Consensus Revenue Estimates: AAL – $14.37B; LUV – $7.34B
• Earnings Insight: AAL has topped EPS expectations in 7 of the past 8 quarters and LUV in only 3 of the past 8 quarters, while both beating revenue estimates in 50% of those reports.

Also reporting: AbbVie (ABBV), RTX Corporation (RTX), Dow (DOW), Honeywell International (HON), Valero Energy (VLO), AstraZeneca (AZN), Union Pacific (UNP), TotalEnergies SE (TTE), Unilever PLC (UL), Sanofi (SNY), Northrop Grumman (NOC), Baker Hughes Company (BKR), Weyerhaeuser Company (WY), Stellantis N.V. (STLA), Juniper Networks (JNPR), Norfolk Southern (NSC), New York Community Bancorp (NYCB), Hasbro (HAS), Harley-Davidson (HOG) and more.

Friday, July 26

3M (MMM)

Minnesota-based 3M (MMM) is slated to release its Q2 update on Friday, ahead of the opening bell. Analysts anticipate more than a 20% decline in the firm’s top and bottom lines.

Recently, MMM’s finance chief Manish Patolawala resigned to become the CFO of Archer Daniels Midland (ADM). His last day on the job will be July 31.

The stock is rated Hold by Wall Street analysts as well as Seeking Alpha’s Quant Rating system.

SA author Stephen Simpson predicts that MMM’s Q2 results will be less than its multi-industrial peers, with an organic contraction of around 1%. Auto electrification and electronics are expected to be healthier businesses, but short-cycle manufacturing consumables could be weak. Bill Brown has been named as the new CEO, with potential for meaningful transformation, the analyst stated.

• Consensus EPS Estimates: $1.68
• Consensus Revenue Estimates: $5.84B
• Earnings Insight: Google has topped EPS expectations in 7 of the past 8 quarters, beating revenue estimates in 6 of those reports.

Also reporting: WisdomTree (WT), Bristol-Myers Squibb Company (BMY), Colgate-Palmolive (CL), T. Rowe Price Group (TROW), Spirit Airlines (SAVE) and more.