Overall, nearly a third of the S&P 500 is expected to deliver its quarterly updates in the week beginning Monday, according to FactSet..
Soaring inflation and fears over falling consumer demand have been the focus so far this earnings season. On top of that, companies across industries are warning that lockdowns in China and Russia’s war on Ukraine have exacerbated supply chain costs. Many companies anticipate that higher costs will likely put pressure on their operations throughout the year. While some companies have warned that inflation could reduce consumers’ purchasing power, others say demand is holding up.
saw its slowest rate of sales growth in at least 12 years last quarter. Chief Financial Officer Brian Olsavsky said consumers continue to spend despite rising costs across the economy.
“We are aware of the current inflationary environment and its impact on household budgets,” Olsavsky said Thursday. “But we don’t generally see any macroeconomic factors in this forecast on the demand side. We certainly see it on the cost side, though.
Leaders at Kraft Heinz Co.
said they would continue to raise prices to try to stay ahead of input cost increases. “Obviously we’re still catching up a bit with inflation that started to rise late last year,” Kraft chief financial officer Andre Maciel said Wednesday.
So far, more than half of S&P 500 companies have reported results for the quarter just ended, according to FactSet data. Earnings are on track to rise 7.1% year-over-year for the quarter, based on actual results and estimates from companies that have yet to report, FactSet said. , marking the lowest earnings growth rate since the fourth quarter of 2020. Although FactSet noted that excluding Amazon’s results, the S&P 500 would see earnings growth of 10.1% for the quarter. Revenue is expected to increase by 12.2%.
Pfizer, which is expected to report first-quarter results on Tuesday, is expected to see quarterly sales soar more than 60%, fueled by the company’s Covid-19 vaccine. Rival vaccine maker Moderna Inc.
will report the results on Wednesday.
CVS reports its first-quarter results on Wednesday and is expected to see sales rise about 9% on the back of a continued increase in its Covid-19 vaccine and testing services.
On Tuesday, Starbucks will hold its first earnings call since Howard Schultz, who built the coffee chain into a global empire, joined the company as CEO in April amid a growing unionization spurt among American baristas. . The company is expected to post a lower quarterly profit as rising labor and ingredient costs weigh on operations. The coffee company will also offer insight into how consumer demand is coping with rising costs.
Marriott and Hilton Worldwide Holdings Inc.
are expected to see quarterly sales jump 80% and nearly 100%, respectively, according to analyst estimates compiled by FactSet, as the travel industry rides the wave of growing demand. Expedia Group Inc.
and reservation credits Inc.,
expected to report results on Monday and Wednesday, respectively, will also weigh on the travel market.
Chipmaker Advanced Micro Devices Inc.
is due to report on Tuesday afternoon. Molson Coors Beverages Co.
and Yum Brands Inc.,
which reports on Tuesday and Wednesday, respectively, will provide investors with an update on labor and raw material costs as well as how consumers are reacting to recent price increases.
a pandemic winner set to report results on Wednesday, will offer another insight into how tech’s pandemic winners endure as Covid-19 cases dwindle and society normalizes.
Other notables expected to report include Clorox Co.
Monday; Matching group Inc.
tuesday; Hostess Marks Inc.
Wednesday; Papa John’s International Inc.
and Shopify Inc.
Thursday; and DraftKings Inc.
Write to Will Feuer at [email protected]
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