Earnings Season: What to Watch for as we close out May 2023
May is earnings season, and investors will be closely watching the results of major companies to get a sense of the state of the economy. Here are some of the key companies reporting earnings this week:
- Costco (COST)
- Dollar Tree (DLTR)
- Nvidia (NVDA)
- TD Bank (TD)
- FOMC Minutes
- PCE Price Index
- University of Michigan Consumer Sentiment
Take a lucky guess which earnings everyone will be watching this week.— Heisenberg (@Mr_Derivatives) May 20, 2023
And no it’s not Dick’s Sporting Goods…
Costco is a major retailer that sells a wide variety of products to members. The company is expected to report strong earnings for the quarter, as consumers continue to shop at Costco despite rising inflation.
Dollar Tree is a discount retailer that sells a variety of everyday items. The company is expected to report weaker earnings for the quarter, as consumers are starting to cut back on discretionary spending.
Nvidia is a semiconductor company that makes graphics processing units (GPUs). The company is expected to report strong earnings for the quarter, as demand for GPUs remains strong from gamers and data center operators.
NVIDIA HAS EARNINGS ON WEDNESDAY THIS WEEK $NVDA— GURGAVIN (@gurgavin) May 21, 2023
REVENUE -> $6.5 BILLION ( DOWN 21.5% YoY )
EPS -> $0.92( DOWN 17% YoY )
CURRENTLY TRADING AT 136 TIMES EARNINGS ( TTM)
TD Bank is a Canadian bank that operates in the United States. The company is expected to report strong earnings for the quarter, as the US economy continues to grow.
The FOMC Minutes will provide insights into the Federal Reserve’s thinking on interest rates and inflation. The minutes are expected to show that the Fed is committed to raising interest rates to combat inflation.
The PCE Price Index is a measure of inflation that is closely followed by the Federal Reserve. The index is expected to show that inflation is still rising, but at a slower pace than in recent months.
🇺🇸U.S. ECONOMIC DATA THIS WEEK:— Investing.com (@Investingcom) May 21, 2023
*SERVICES PMI (TUES.)
*MANUFACTURING PMI (TUES.)
*NEW HOME SALES (TUES.)
*FED FOMC MINUTES (WED.)
*Q1 GDP (THURS.)
*JOBLESS CLAIMS (THURS.)
*PENDING HOME SALES (TUES.)
*CORE PCE PRICE INDEX (FRI.)
👉 https://t.co/OKkl2OypnQ$DIA $SPY $QQQ $VIX pic.twitter.com/E7lPcgH5QN
The University of Michigan Consumer Sentiment Index is a measure of consumer confidence. The index is expected to show that consumer confidence is declining, as consumers are becoming increasingly concerned about inflation.
Overall, investors are expecting earnings season to be mixed. Some companies are expected to report strong earnings, while others are expected to report weaker earnings. The key for investors will be to focus on the companies that are best positioned to weather the economic storm.
Here are some additional things to keep in mind during earnings season:
- Earnings estimates: Analysts have already released their earnings estimates for most companies. Investors should pay attention to these estimates and see how they compare to the actual results.
- Earnings surprises: Companies that beat or miss earnings estimates by a wide margin can have a big impact on the stock market. Investors should be prepared for these surprises and be ready to react accordingly.
- Earnings conference calls: After companies release their earnings reports, they typically hold conference calls with analysts to discuss the results. Investors can listen to these calls to get more information about the company’s performance and outlook.
Earnings season is a busy time for investors, but it can also be a rewarding time. By following these tips, investors can make the most of earnings season and improve their investment returns.
Make sure to turn into our live twitter spaces tomorrow May 23, 2023 at 5:30 PM EST to stay up to date on the latest market news and notes.