Yahoo Finance The Zacks Analyst Blog Highlights Apple, Microsoft, Meta Platforms, Diageo and 3M Company
For Immediate Release
Chicago, IL – May 3, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms, Inc. META, Diageo plc DEO and 3M Company MMM.
Here are highlights from Tuesday’s Analyst Blog:
Q1 Earnings Season Scorecard and Featured Research on Apple, Microsoft and Meta Platforms
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q1 earnings season in addition to new research reports on 16 major stocks, including Apple Inc., Microsoft Corp. and Meta Platforms, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q1 Earnings Season Scorecard
Including all of this morning's releases, we now have Q1 results from 310 S&P 500 members or 62% of the index's total membership.
Total earnings for these companies are down -2.2% from the same period last year on +3.9% higher revenues, with 78.1% beating EPS estimates and 73.9% beating revenue estimates.
The proportion of these 310 index members beating both EPS and revenue estimates is 61.6%. This 61.6% 'blended' beats percentage compares to 57.4% in 2022 Q4, 54.5% in 2022 Q3, 57.1% in Q2, 63.9% in Q1 and the 5-year average of 59.4%.
Looking at 2023 Q1 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, total S&P 500 earnings are now expected to be down -5.4% on +3.1% higher revenues.
Earnings for the current period (2023 Q2) are currently expected to be down -7.4% from the same period last year on -0.6% lower revenues. This is only modestly down from -7.2% and -0.5% expected at the end of March 2023.
For more details about the Q1 earnings season and evolving expectations for the coming periods, please check out our weekly Earnings Trends report here >>> 2023 Earnings: Good Enough, But Not Great
Featured Analyst Reports
Apple shares have been standout performers this year, with the stock gaining +29.4% vs. +20.3% gain for the Zacks Tech sector and +9% gain for the S&P 500 index. Ahead of the company's March-quarter earnings release after the market's close on Thursday (May 4th), the Zacks analyst sees Apple's revenues to grow year over year. Growing services subscriber base and a strong liquidity position are key catalysts for Apple’s prospects.
However, Apple expects the March quarter’s year-over-year revenue growth to be similar to that of the December quarter due to unfavorable forex. For iPhone, Apple expects the March quarter’s year-over-year revenue growth to accelerate relative to the December quarter’s year-over-year revenue growth.
For Mac and iPad, revenues are expected to decline in double digits on a year-over-year basis due to challenging comparison and macroeconomic headwinds. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
(You can read the full research report on Apple here >>>)
Shares of Microsoft have outperformed the Zacks Computer - Software industry over the past six months (+43.4% vs. +37.9%). The company’s third-quarter fiscal 2023 results were driven by improvement in Intelligent Cloud and Productivity and Business Processes, offset in part by a decline in More Personal Computing. Intelligent Cloud revenues increased in the quarter, driven by Azure and other cloud services. Productivity and Business
Processes revenues increased due to the Office 365 Commercial. Continued momentum in the small and medium businesses and frontline worker offerings, as well as gain in revenue per user drove top-line growth. More Personal Computing revenues decreased due to Windows and Devices. Steady performance in Talent Solutions aided LinkedIn revenues.
However, declining gaming revenues and videogame sales were headwinds. Increasing spend on Azure enhancements amid stiff competition in the cloud space from Amazon is likely to dent margins.
(You can read the full research report on Microsoft here >>>)
Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past year (+14.7% vs. -14.0%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger, and Facebook has been a major growth driver. Its restructuring plan is expected to reduce expenses driving profitability.
However, challenging macroeconomic conditions are negatively impacting Meta’s advertising revenues. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes are headwinds. Its second-quarter guidance reflects macroeconomic and forex concerns.
The company continues to expect Reality Labs operating losses to increase year-over-year in 2023. Ongoing regulatory developments including the upcoming IDPC decision on transatlantic data transfers is expected to weigh down its prospects.
(You can read the full research report on Meta Platforms here >>>)
Other noteworthy reports we are featuring today include Diageo plc and 3M Company.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
