Amazon, UPS and Exxon set to report earnings next week

BY WILL FEUER | UPDATED JANUARY 29, 2022 07:00 EST

Inflation and supply chains were common topics on quarterly corporate conference calls

Amazon.com Inc., United Parcel Service Inc. and Exxon Mobil Corp. are among the companies headlining another busy earnings week as investors continue to digest corporate commentary on supply chain challenges and inflation.

Tech giants like Google parent Alphabet Inc. and Facebook parent Meta Platforms Inc. are also expected to report earnings; automakers Ford Motor Co. and General Motors Co.; and other big names in manufacturing, pharmaceutical and industrial.

Overall, more than a fifth of the S&P 500 and a few prominent names in the Dow Jones Industrial Average are expected to deliver their quarterly updates during the week beginning Monday, according to FactSet.

Inflation has been a common topic so far this earnings season, with companies in various sectors saying cost pressures have accelerated towards the end of 2021 and expressing mixed views on the persistence of the latest surge in inflation. ‘inflation.

“We’re seeing inflation,” Apple Inc. CEO Tim Cook said on the company’s earnings call Thursday. “Logistics, as I mentioned on a previous call, are very high in terms of the cost of moving things around. Hopefully at least some of that is transitory, but the world has changed, and we will see.”

Tractor Supply Co. Chief Financial Officer Kurt Barton said the company expects inflation to be more subdued in coming years, but sees cost increases holding steady.

3M Co. Chief Financial Officer Monish Patolawala said the maker saw lower inflation in December compared to previous months.

“It’s still inflationary, but we’ve seen the pace slow down. And I think that’s a plus point. But again, it will depend on how the winter goes, it will depend on logistics, etc. and if the ports will not be congested,” he said.

So far, about a third of S&P 500 companies have reported results for the last quarter of 2021, according to FactSet data. Earnings are expected to rise 24.3% year-over-year for the quarter, based on actual results and estimates from companies that have yet to report, FactSet said, and revenue is expected increase by 13.9%.

Amazon, which is due to report results on Thursday afternoon, is expected to post record quarterly revenue of $137.73 billion, but profits are expected to fall from a year earlier, in part due to higher prices. costs. When Amazon released its third-quarter results in October, CEO Andy Jassy warned that costs would rise by at least several billion dollars in the holiday quarter as the company faced labor shortages. labour, supply chain issues, and higher wages and shipping costs.

UPS reports its fourth quarter results Tuesday morning and is expected to post a record profit of $2.73 billion on its highest quarterly sales of $27.06 billion, according to FactSet.

Exxon, for its part, is expected to ride the surge in oil prices to post strong growth with quarterly profit of $8.22 billion on revenue of $85 billion when it reports fourth quarter results on Tuesday morning. , according to FactSet.

Other companies to watch in the coming week include chipmakers Advanced Micro Devices Inc. and Qualcomm Inc., which are due to report on Tuesday and Wednesday afternoon respectively. These companies should offer insight into the global shortage of microchips.

Similarly, Ford and GM, which report earnings on Thursday and Tuesday, respectively, will likely discuss how they’re tackling chip shortages while churning out new cars. The two automakers will also likely provide more color on recent investments in electric vehicles.

Starbucks Corp. will release its results on Tuesday afternoon, providing insight into the strength of consumer spending and continued rising costs. And Activision Blizzard Inc. is expected to report Thursday afternoon, with analysts likely tuned for more information on the video game company’s recent deal to be purchased by Microsoft in an all-in deal. cash valued at $75 billion.

L3Harris Technologies Inc. reports results Monday morning, followed by Stanley Black & Decker Inc. and PayPal Holdings Inc. on Tuesday. Costco Wholesale Corp. and pharmaceutical giant AbbVie Inc. will report results on Wednesday, followed by Dow Jones Industrial Average components Honeywell International Inc. and Merck & Co. Inc. on Thursday.

Other notables expected to report include Match Group Inc. on Tuesday; Waste Management Inc. and Emerson Electric Co. on Wednesday; Quest Diagnostics Inc. and Clorox Co. Thursday; and Bristol-Myers Squibb Co. Friday.