5 Much-Awaited Earnings Reports to Watch

In this article, we discuss the 5 much-awaited earnings reports to watch. If you want to read our detailed analysis of these companies, go directly to the 11 Much-Awaited Earnings Reports to Watch.

5. General Electric Company (NYSE:GE)

Number of Hedge Fund Holders: 57

General Electric Company (NYSE:GE) recently announced better-than-expected financial results for the first quarter. However, the company cautioned that the latest pandemic-driven lockdowns in China and Russia-Ukraine war have intensified logistic challenges and inflationary pressure, which could impact its full-year outlook.

The Boston-based company maintained its adjusted earnings guidance of $2.80 – $3.50 per share. But at the same time, General Electric Company (NYSE:GE) expects the results to come at the lower end of the outlook.

For the first quarter, General Electric Company (NYSE:GE) reported adjusted earnings of 24 cents per share, up from 13 cents per share in the comparable period of 2021. Revenue came in at $17 billion, nearly unchanged from the year-ago period. The results were better than the consensus of 19 cents per share for earnings and $16.91 billion for revenue.

Discussing the outlook, CEO H. Lawrence Culp, Jr. said in a statement:

“We’re holding the outlook range we shared in January, but as we continue to work through inflation and other evolving pressures, we’re currently trending toward the low end of the range. Importantly, we remain on track to launch three independent, investment-grade companies with leading positions in growing, critical sectors, well positioned to create long-term value.”

4. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 90

Shares of General Motors Company (NYSE:GM) turned green in the after-hours trading session on Tuesday, April 26, 2022, following its upbeat profit for the first quarter. The Michigan-based automaker earned $2.09 per share on an adjusted basis, crushing expectations of $1.68 per share.

On the downside, the quarterly revenue of $35.98 billion missed expectations of $37.01 billion. General Motors Company (NYSE:GM) is the first major U.S. automobile company to report Q1 results. Many are closely watching the report to get a clear idea of the ongoing global supply chain issues.

Looking forward, General Motors Company (NYSE:GM) now expects adjusted earnings in the range of $6.50 – $7.50 per share for the full year, up from its previous outlook between $6.25 – $7.25 per share.

Updating investors on its electric vehicle (EV) production targets, CEO Mary Barra said in a statement:

“Launching more EVs faster is the catalyst for growth, and we are accelerating our volumes, growing to 1 million units of EV capacity in North America by the end of 2025, and expanding from there. In North America alone, we target production of 400,000 all-electric vehicles over the course of 2022 and 2023.”

3. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 142

Shares of Visa Inc. (NYSE:V) rose nearly six percent in the pre-market trading session on Wednesday, April 27, 2022, after delivering solid profit and sales for its fiscal second quarter. The digital payments giant reported adjusted earnings of $1.79 per share, representing a surge of 30 percent over the same period of 2021.

Revenue came in at $7.19 billion, well above $5.73 billion in the comparable period of the prior year. Analysts were expecting Visa Inc. (NYSE:V) to report earnings of $1.65 per share on revenue of $6.84 billion.

Visa Inc. (NYSE:V) also released its segment-wise sales performance. Its service revenue jumped 24 percent to $3.5 billion, data processing revenue rose 16 percent to $3.5 billion, and international transaction revenue climbed 48 percent to $2.2 billion in the quarter.

Among other updates, Visa Inc. (NYSE:V) reported that its total processed transactions for the quarter increased 19 percent to 44.8 billion, while payment volume rose 17 percent on a year-over-year basis.

2. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 158

Shares of Alphabet Inc. (NASDAQ:GOOG) plummeted to a nearly one-year low in the pre-market trading session on Wednesday, April 27, 2022, after posting weak financial results for the first quarter. The results were partly weighed down by the suspension of ad sales in Russia.

Alphabet Inc. (NASDAQ:GOOG) reported adjusted earnings of $24.62 per share, compared to $26.29 per share in the same quarter of the prior year. Revenue for the quarter jumped 23 percent on a year-over-year basis to $68.01 billion. However, the results missed analysts’ average estimate of $25.91 per share for earnings and $68.11 billion for revenue.

Alphabet Inc. (NASDAQ:GOOG) also released the sales results of its flagship segments. Its YouTube ad revenue increased to $6.9 billion, from $6 billion last year but missed the consensus of $7.51 billion. The company’s video business is facing intense competition from rival apps such as TikTok.

On the bright side, Alphabet Inc. (NASDAQ:GOOG) reported that Google Cloud revenue climbed 44 percent on a year-over-year basis to $5.82 billion, topping estimates of $5.76 billion. In addition, revenue from the Google Search & other segment rose 24.3 percent versus last year to $39.62 billion.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 262

Shares of Microsoft Corporation (NASDAQ:MSFT) rose over three percent in the pre-market trading session on Wednesday, April 27, 2022, following an impressive financial performance for its fiscal third quarter.

Microsoft Corporation (NASDAQ:MSFT) reported earnings of $2.22 per share, up from $2.03 per share in the comparable period of 2021. Analysts were expecting the software giant to earn $2.19 per share.

In addition, Microsoft Corporation (NASDAQ:MSFT) posted revenue of $49.36 billion, representing a surge of 18 percent over the same quarter of the prior year. The quarterly revenue also exceeded the consensus of $49.05 billion.

Microsoft Corporation (NASDAQ:MSFT) reported that revenue from its Productivity and Business Processes segment jumped 17 percent to $15.8 billion. The surge was mainly driven by solid demand for its office productivity software, such as Office 365. In comparison, its Intelligent Cloud revenue climbed 26 percent to $19.1 billion, while revenue from the More Personal Computing segment rose 11 percent to $14.5 billion in the quarter.

Among other updates, Microsoft Corporation (NASDAQ:MSFT) announced that it returned $12.4 billion to investors in the form of share buybacks and dividends during the third quarter ended March 31.

Speaking on the results, CEO Satya Nadella said in a statement:

“Going forward, digital technology will be the key input that powers the world’s economic output. Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”

You can also take a peek at 10 Favorite Stocks of Billionaire Izzy Englander and 10 Favorite Stocks of Dan Loeb’s Third Point.

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