Earnings Season: What to Expect from Key Companies

Merck

• Earnings Report: Before the bell
• Conference Call: 8 a.m. ET
• Last Quarter: Beat earnings estimates despite Covid antiviral treatment sales decline
• This Quarter: Expected to post a loss
• Key Points to Watch:
• Pressure to reduce dependence on blockbuster antibody cancer treatment Keytruda
• Updates on experimental drugs that could cushion Keytruda’s patent cliff
• Continuation of M & A spree
• Impact of $10.3 billion acquisition of Prometheus Biosciences on R&D costs
• Lawsuit seeking to halt Medicare drug price negotiations
• Historical Performance: Beats earnings expectations 75% of the time

Starbucks

• Earnings Report: After the bell
• Conference Call: 5 p.m. ET
• Last Quarter: Earnings beat as same-store sales reversed in China
• This Quarter: Expected double-digit earnings growth
• Key Points to Watch:
• Potential signs of a turnaround
• Increase in daily subway rides as an indicator of normalized post-Covid mobility
• Historical Performance: Beats earnings expectations 54% of the time

Pfizer

• Earnings Report: Before the open
• Conference Call: 10 a.m. ET
• Last Quarter: Earnings and revenue topped estimates despite decline in Covid vaccine sales
• This Quarter: Expected steep year-over-year earnings drop
• Key Points to Watch:
• Pivot away from blockbuster Covid products
• Update on near-term drug launches
• Impact of tornado on major plant
• Historical Performance: Exceeds earnings expectations 87% of the time

Amazon

• Earnings Report: After the bell
• Conference Call: 5:30 p.m. ET
• Last Quarter: First-quarter sales beat expectations, but weak guidance for cloud business
• This Quarter: Expected double-digit earnings growth
• Key Points to Watch:
• Growth of Amazon Web Services
• Plans around AI
• Improvement of retail margins
• Progress on one- and same-day delivery
• Historical Performance: Exceeds earnings expectations 62% of the time

Apple

• Earnings Report: After the close
• Conference Call: 5 p.m. ET
• Last Quarter: Better-than-expected results driven by strong iPhone sales
• This Quarter: Small earnings decline expected
• Key Points to Watch:
• Momentum of stock after a 50% rise this year
• Expectation of exceeding estimates
• Historical Performance: Beats earnings estimates 89% of the time