Our title of this week’s Earnings Watch sounds dramatic, but it is actually not far from the truth. This week seven out the 10 largest companies in the S&P 500 Index will report earnings representing around $8.5trn of market value alone corresponding to close to 15% of the MSCI World Index from these giants alone. On top of that hundreds of the biggest companies in the world will report with a total 250 large companies reporting earnings out of the 2,500 companies we track during the earnings season. In other words, it is the monster week of earnings.
The list below shows the most important earnings of the 250 companies expected to releases earnings that all are important for the overall equity market, their specific domestic equity index or industry.
Monday: Canon, Tesla, Philips, NXP Semiconductors
Tuesday: DSV Panalpina, FANUC, HSBC, BP, Atlas Copco, Novartis, ABB, UBS, Microsoft, Alphabet (Google), Visa, Eli Lilly, Texas Instruments, UPS, Amgen, Starbucks, General Electric, 3M, AMD, Mondelez, Pinterest, Archer-Daniels-Midland
Wednesday: Shopify, Kone, Sanofi, Dassault Systems, Delivery Hero, Deutsche Bank, China Construction Bank, China Life Insurance, BYD, Sony, Keyence, GlaxoSmithKline, Lloyds Banking Group, Banco Santander, Apple, Facebook, Qualcomm, Boeing, Spotify, Ford Motor, eBay
Thursday: Orsted, Neste, Nokia, Total, Airbus, BASF, Agricultural Bank of China, Bank of China, PetroChina, Eni, Royal Dutch Shell, Equinor, Wilmar International, Nordea Bank, Amazon.com, Mastercard, Comcast, Merck & Co, McDonald’s, Caterpillar, NIO, Twitter
Friday: BNP Paribas, AstraZeneca, Barclays, BBVA, Siemens Gamesa Renewable Energy, DBS Group, ExxonMobil, Chevron, AbbVie, Colgate-Palmolive
Besides the seven out of the 10 biggest companies in the S&P 500, the week is also heavy on European and Chinese banking earnings, global energy companies which are important for inflation and our commodity basket, the largest pharmaceuticals, the rest of social media and online advertising companies after Snap earnings the past week, and then a couple of global giants within global consumer staples which will provide more insights on inflation in consumer goods.
The conclusion on earnings before this week’s earnings is that companies are still rebounding in terms of earnings with MSCI World earnings per share (EPS) up 3.8% q/q compared to 3.7% q/q and 1.4% q/q for the S&P 500 and Nasdaq 100 respectively hinting at the value vs growth outperformance. But this week could easily change that and catapult Nasdaq 100 into the earnings lead. Although the bar is getting increasingly high for US technology companies that have seen EPS grow almost 18% since Q4 2019. The MSCI World Index has surprisingly been doing much better than the S&P 500 suggesting that outside the mega caps the US corporate sector has been hit harder than European and the rest of the developed world.