Earnings week: Amazon, AMD, Eli Lilly, Apple, and Novo Nordisk

Key earnings this week

This week presents more than 300 earnings releases across major indices in North America, Asia, and Europe. In terms of market impact there are five earnings releases that we will highlight for investors. AMD as a preview to Nvidia earnings. Amazon on cloud growth and US retail demand. Apple on digital consumer demand. Eli Lilly and Novo Nordisk are the two frontrunners in the new class of obesity drugs that is seeing incredible demand.

• Amazon (Tuesday, aft-mkt): Estimates point to revenue of $142.6bn up 12% YoY and EPS of $1.19 up 200% YoY as Amazon is growing itself out of its self-inflicted pain during the pandemic when the retailer overinvested. The biggest potential upsides to Q1 earnings come from the cloud business (AWS) and advertising on its platform as the global advertising market is still running hot.
  
  
• AMD (Tuesday, aft-mkt): Expected to deliver revenue of $5.4bn up 2% YoY which will likely be a surprise to many as that represents a meagre growth rate compared to Nvidia. AMD is temporarily hit by weak consumer electronics markets and weakness in its Clients and Servers segment, but its rising MI300 GPU 2024 outlook which was latest put at $3.5bn vs prior $2bn is the bright spot investors are focusing on.
  
  
• Eli Lilly (Tuesday, bef-mkt): Analysts expect revenue of $8.9bn up 28% YoY and EPS of $2.44 up 54% YoY as its Zepbound obesity drug is likely to dominate growth once again with management recently saying revenue would accelerate in the second half of the year as supply improves. Eli Lilly is expected long-term to grow revenue from current $34.1bn to $70.4bn in 2027 on top of the operating margin expanding by 14%-points. While enormous growth is expected the market is also aggressively pricing it making the stock one of the most aggressively priced stocks in the S&P 500.
  
  
• Apple (Thursday, aft-mkt): The once invincible technology company is under pressure from EU regulation and weaker Chinese demand as Chinese consumers are preferring local smartphone brands. Analysts expect revenue of $90.3bn down 5% YoY and EPS of $1.50 down 1% YoY. Outside the iPhone weakness, which IDC projected saw 10% drop in shipments in the previous fiscal quarter, the Services segment is expected to show solid growth and if there is an upside surprise this is where it could come from. Any updates on client adoption of AR/VR could also be a positive surprise for investors.
  
  
• Novo Nordisk (Thursday, bef-mkt): Revenue is expected at DKK 63.7bn up 19% YoY and EPS of DKK 5.21 up 19% YoY driven by another strong quarter for its obesity drugs Wegovy and Ozympic (diabetes 2 drug but used as an alternative to Wegovy because they share the same active GLP-1 substance). Like Eli Lilly, the valuation is at the absolute high end of the range in Europe leaving no room for a disappointment on the outlook for demand and production.

The list below highlights all the key earnings releases this week.

• Monday: Philips, BBVA, NXP Semiconductors
  
  
• Tuesday: Stryker, Amazon, AMD, Starbucks, Mondelez, Eli Lilly, Coca-Cola, McDonald’s HSBC, Eaton, Cameco, Mercedes-Benz Group, Volkswagen, Adidas, Banco Santander, PayPal, Super Micro Computer
  
  
• Wednesday: Qualcomm, Mastercard, Pfizer, ADP, Barrick Gold, Franco-Nevada, GSK, Estee Lauder, DoorDash, AIG, Kraft Heinz
  
  
• Thursday: Novo Nordisk, Linde, Booking, Apple, Amgen, Shell, ConocoPhillips, Cigna, Regeneron Pharmaceuticals, National Australia Bank, Macquarie Group, Vestas, Mærsk, Ørsted, Genmab, Pandora, Universal Music, ING, ArcelorMittal, Coinbase, Fortinet, Block, Moderna, Cloudflare
  
  
• Friday: Novonesis, Danske Bank, Credit Agricole, Societe Generale, Intesa Sanpaolo, MercadoLibre, Monster Beverage
  
  
• Weekend: Berkshire Hathaway

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