NASDAQ 100 FORECAST: BULLISH
- The Nasdaq The 100 index was pulled back from record levels when the earnings season arrives
- Investors forecast 64% annual profit growth in the broader market
- This week will focus on results from IBM, Netflix, Intel and Twitter. What are the markets looking for?
Several energetic minds bank results started Q2’s strong revenue season by sending Dow Jones, S&P 500 and Nasdaq 100 indices to reach record heights. So far, 22 S&P 500 companies have reported the results. Of these, 21 have exceeded street forecasts by an average income surpriI know + 19%.
According to Factset, the S&P 500’s revenue growth rate is expected to be YoY 64% for the second quarter, marking the best season in more than a decade. The real growth rate may be even higher than most corporate America tends to provide conservative EPS predictions and offer positive surprises.Higher EPS may more effectively reduce the price-to-earnings (PE) ratio of major US indices, paving the way for them to go deeper into record territory.
The big technology companies will start publishing their results together this week IBM, Netflix, Intel and Twitter in focus. Here is a brief preview.
Major Tech Earnings EPS Forecast – 19.-23. July
Source: Bloomberg, DailyFX
- Estimated revenue for the second quarter is $ 2.275 billion and revenue is $ 18.26 billion
- The global digital trend is expected to drive the cloud and cognitive software segment, which has already grown by 4% in the first quarter.
- Acquiring Red Hat is also likely to contribute to cloud revenue
- The global business services segment may benefit from increased customer investment in digital technologies
- The departure of former IBM President Jim Whitehurst could be the focus of a profit talk
- EPS is expected to be $ 2.248 billion and revenue $ 7.323 billion for the second quarter
- After a strong increase in subscribers, some moderation can be seen due to the high watermark set during the Netflix pandemic.
- Most analysts expect to add less than 2 million new users during the quarter
- Recent price increases and demand for outdoor entertainment may contribute to the uncertainty in the Q3 guide
- Netflix has sought to move from a subscriber-centric narrative to more stable average revenue per user (ARPU) metrics
- Estimated revenue for the second quarter is $ 1.065 billion and revenue of $ 17.84 billion
- Intel’s EPS and revenue are expected to be lower than last year
- While PC and server shipments can be bright spot, growth in its semiconductor segment lags behind competitors such as Nvidia and AMD
- EPS is expected to reach $ 0.064 billion and revenue of $ 1.058 billion by Q2
- Continuing live and sports can drive affiliation trends and increase daily active users advertisers may increase expenses in the midst of reopening Covid locks
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Source: Bloomberg, DailyFX
– Wrote DailyFX.com strategist Margaret Yang
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