Chipotle, Microsoft, Tesla, American Airlines, and Others to Report Earnings This Week

Tesla Inc., Microsoft Corp, and Chipotle are all expected to report earnings by Wednesday afternoon, according to Bloomberg News.

The results of many of the earnings reports that were announced last week showed that this season could be the worst earnings reporting season since the 2008 financial crisis. Hopefully, this week’s report should beat expectations judging from last week.

Other companies that are set to report earnings include eight companies under the Dow Jones Industrial Average and eighty members of the S&P 500 index. For the S&P 500 components, the results have been poor so far. The index posted a 47.4% drop in second-quarter profits, with about 9% of reports issued. Analysts expect a 44% earnings decline for the S&P 500 as a whole, which would make it the sharpest year-over-year dip in earnings since 2008 when profits fell 70%.

Chipotle

By market close on Wednesday, Chipotle Mexican Grill (CMG) is expected to report adjusted net income of $7.8 million, or 23 cents a share, on sales of $1.3 billion, according to a FactSet survey. In the same period a year ago, Chipotle reported a net income of $88.1 million, or $3.99 a share on sales of $1.4 billion.

Since the company’s last earnings report on April 21, the stock has risen 43.6%. Analysts also forecast that in the upcoming quarter, adjusted net income of $79.7 million, or $2.79 a share, on revenue of $1.5 billion will be reported. Analysts have projected total revenue of $5.7 billion for the year.

Microsoft

While many companies may have suffered from the impact of the coronavirus, some benefitted from the stay-home orders. Tech giant like Microsoft (MSFT) will most likely have a better trajectory since the stay-home orders greatly increased demand in remote work services and products, however, do not quote us on this as anything can change in the next few days. The high performance of big companies like Microsoft will help boost the S&P’s performance since such companies are more heavily weighted in the index.

Analysts expect Microsoft to report adjusted net income of $10.6 billion, or $1.38 a share, on revenue of $36.4 billion, on Wednesday afternoon, according to a FactSet survey. In the same period a year ago, Microsoft posted earnings of $1.37 a share on sales of $33.7 billion and a net income of $8.8 billion. In the upcoming quarter, analysts expect an adjusted net income of $11.2 billion or $1.46 a share on sales of $35.8 billion. Since the company’s last report on April 29, its shares have risen 14.9%.

Tesla

According to FactSet estimates, Tesla (TSLA) is expected to read in red for the second quarter, although analysts still predict that there might be a lower loss than a year ago. Some other analysts are optimistic that Tesla could post an unexpected GAAP profit that could finally land Tesla in the S&P 500. In the past three quarters, Tesla has been successful, one more successful quarter and the company will make it to the S&P 500 list.

American Airlines (AAL)

With travel restriction orders and social distancing orders in place, the airline industry is one of the industries that has greatly suffered from the impact of the coronavirus pandemic. Investors do not expect American Airlines’ Q2 to be profitable, rather they expect a huge decline in financials. Markets expect a net loss of $7.27 in the airline’s earnings per share (EPS), down from a negative $2.27 in the first quarter.

When the market closes on Thursday, American Airlines is expected to a loss of $3328 million, or $7.70 a share, on sales of $1.4 billion, according to a FactSet survey.

This report is about what analysts are saying about these stocks ahead of their earnings, it does not mean that these numbers will be in line with what these companies will report.

Disclaimer: Investinport owns MSFT.