Stock futures showed a mostly downward trend on Tuesday as investors shifted their focus from the S&P 500 and Dow Jones Industrial Average’s all-time highs to upcoming earnings reports and the Federal Reserve’s two-day policy meeting.
Microsoft’s Impressive Second-Quarter Expectations
Analysts predict that Microsoft will announce second-quarter earnings of $2.77 per share, a significant increase from $2.32 per share last year. Revenue is also expected to rise by 15.7% to $61 billion. Over the past year, Microsoft’s stock has surged by 65%, thanks to its aggressive expansion into generative artificial intelligence software across various product lines. Prior to market opening, Microsoft experienced a 0.8% boost.
Alphabet and AMD Earnings Awaited
The parent company of Google, Alphabet, and chip maker Advanced Micro Devices (AMD) are also scheduled to release their quarterly earnings after the close of trading. Prior to their reports, Alphabet experienced a 0.2% increase, while AMD declined by 0.5%.
Earnings Reports from Various Companies
Additional reports are expected on Monday from Pfizer, United Parcel Service (UPS), Danaher, Starbucks, General Motors, and Electronic Arts.
Super Micro Computer Surpasses Expectations
Super Micro Computer has exceeded expectations for its second-quarter earnings and remains optimistic about future performance. The computer and server manufacturer announced that it expects third-quarter revenue to be between $3.7 billion and $4.1 billion with adjusted earnings per share ranging from $5.20 to $6.01, surpassing previous forecasts. As a result, shares rose by 11%.
Calix Faces Fourth-Quarter Loss
Broadband-software company Calix experienced a 232% decline in its stock after reporting a loss in the fourth quarter. For the first quarter, Calix predicts revenue of $225 million to $231 million, down from $250 million the previous year and below analysts’ estimates of $267.5 million.
Whirlpool Reports Fourth-Quarter Earnings
Whirlpool, the renowned appliance maker, has announced its fourth-quarter adjusted earnings, surpassing analysts’ estimates. However, the company has projected a decline in adjusted earnings for the year 2024, with an expected range of $13 to $15 per share. Additionally, Whirlpool foresees a decrease in sales, estimating $16.9 billion, marking a 13% drop compared to the previous year. This estimate falls short of analysts’ predictions, which anticipated a profit of $15.37 per share on sales amounting to $17.9 billion. Consequently, Whirlpool’s shares have experienced a decline of 4.9%.
F5 Inc. Surpasses Expectations in Fiscal First Quarter
F5 Inc., a notable cloud company, has reported its fiscal first-quarter adjusted earnings of $3.43 per share, exceeding analysts’ estimates. Furthermore, the company has achieved revenue of $693 million, surpassing forecasts as well. Looking ahead, F5 anticipates sales of $675 million to $695 million for the second quarter, outperforming analysts’ projections of $673 million. The positive outlook has resulted in an 8% increase in the stock’s value during premarket trading.
Sanmina Expects Strong Performance for Second Quarter
Sanmina, a manufacturing services provider, has projected its fiscal second-quarter adjusted earnings and sales to surpass Wall Street expectations. Additionally, the company foresees a “sequential improvement” as they progress into the second half of the year. These optimistic announcements led to a remarkable 19% surge in Sanmina’s stock during after-hours trading on Monday.
Cleveland-Cliffs Encounters Q4 Loss
Cleveland-Cliffs, a renowned steelmaker, has disclosed a narrower loss in their fourth-quarter results compared to the previous year. However, the company’s revenue fell short of estimates, amounting to $5.11 billion. Cleveland-Cliffs anticipates that their first-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will “meaningfully exceed” the adjusted EBITDA from the fourth quarter, which amounted to $279 million. As a result, the company’s shares have experienced a decline of 2.5%.
