Beginning with a look at last week and to get a flavor of the earnings action so far: GE Aerospace and Boeing shares both flew higher by over 6% after the former reported a strong beat on both the top bottom lines, and the latter announced aircraft deliveries rose; Tesla stock drove to higher ground despite missing their numbers, on optimism the worst of their troubles may be behind them; Chipotle Mexican Grill warmed up a bit after a slight earnings beat and revenues that were not as bad as some had feared; International Business Machines, aka Big Blue, traded in the red by over 6% even though they posted a solid beat on earnings (IBM has been an outperformer this year and many investors simply took profits); Alphabet shares traded only moderately higher, which was not what investors were searching for after the company posted a big beat on earnings.
Checking the current overall earnings scoreboard: For the first quarter of 2025, with 36% of S&P 500 companies reporting actual results, 73% of companies have reported a positive EPS (Earnings Per Share) surprise, and 64% of companies have reported a positive revenue surprise – according to FactSet.
Looking to the week ahead, this is the busiest week of earnings season for the stock market. Over 180 of the Standard & Poor’s 500companies are scheduled to report results. Highlighting the earnings parade is mega cap technology stocks, with four of the Magnificent Seven reporting – Amazon, Apple, Meta Platforms, and Microsoft. Until more recently, the Mag 7 were leaders of the market. These earnings reports will provide some color and indication as to whether they return to their former glory or continue to underperform other sectors of the market.
Additional companies announcing results this week include Visa, Coca-Cola, Eli-Lilly, General Motors, Kraft Heinz, PayPal, United Parcel Service, Starbucks, Caterpillar, eBay, Harley-Davidson, Sherwin-Williams, Pfizer, Hershey, Mastercard, McDonald’s, Wendy’s, Chevron and Exxon Mobil. So, while big tech is in the spotlight, we’ll hear from plenty of other companies and sectors as well!
With so many high-profile companies reporting this week, along with the continued uncertainty regarding tariffs and global trade, we would not be at all surprised to see market volatility this week.
As always, call us with any questions you may have or if you would like to schedule a meeting.
All the best – Southport Station Financial Management, LLC