It’s another earnings bonanza on Thursday.
Alphabet’s second-quarter results will be closely watched, after the company shocked investors when it reported sharp revenue deceleration in the first quarter. Analysts and investors are still scratching their heads on what truly caused revenue growth to plunge below 20% in the first quarter. “We have to acknowledge that we are no closer to figuring out the primary factors that drove Google's revenue deceleration in 1Q19, which superseded investor focus away from what we hoped would be a resumption of free cash flow growth,” Credit Suisse analyst Stephen Ju said in a note Monday. Ju currently has an Outperform rating on Alphabet stock with a $1,400 price target.
Key areas of focus will be on Search monetization, performance of non-Search businesses, cloud revenue, and YouTube.
Analysts polled by Bloomberg expect Alphabet adjusted earnings of $13.97 per share on $30.84 billion in revenue. Alphabet shares have been underperforming its mega-cap tech peers as well as the broader market in 2019.
Fellow tech behemoth Amazon also drops quarterly results after the bell Thursday. Amazon is expected to report adjusted earnings of $8.14 per share on $62.46 billion in revenue. Amazon Web Services (AWS), retail results and margins will be the focal points when Amazon reports.
Some Wall Street analysts predict that Amazon’s free one-day Prime delivery will have cut into margins. “Heading into the 2Q19 results, we lower our operating income forecast for 2H19 as we expect Amazon to underwrite faster Prime shipping across a greater selection of products,” Ju wrote in a note Wednesday. “Despite the short term impact to operating profit, we believe faster free shipping should drive greater [gross merchandise volume] growth for the out years and hence steeper free cash flow growth as unit economics recover.”
In addition, coffee giant Starbucks is expected to report fiscal third-quarter adjusted earnings of 73 cents per share on $6.68 billion in revenue, according to data compiled by Bloomberg.
Same-store sales, a key industry metric, is expected to have risen 4.5% in the Americas. Investors will be paying close attention to sales in the U.S. and China.
Other notable earnings reports scheduled for Thursday include 3M (MMM), Anheuser-Busch InBev (BUD), Astrazeneca (AZN), Bristol-Myers Squibb (BMY), Comcast (CMCSA), Hershey (HSY), Raytheon (RTN), Southwest Airlines (LUV), World Wrestling Entertainment (WWE) before market open. Alaska Air (ALK), BJ’s Restaurants (BJRI), Boston Beer (SAM), Expedia (EXPE), Mattel (MAT), MGM Resorts (MGM) will report after the market close.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
More from Heidi: