Earnings week ahead: MSFT, AMZN, AAPL, META, PFE, MCD, SBUX, XOM, CVX and more

As July transitions to August, the upcoming week promises a flood of earnings reports from some of the world's largest companies. The spotlight is firmly on the members of the Magnificent 7: Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Apple (NASDAQ:AAPL).

In addition to these tech behemoths, the week ahead will also feature reports from diverse sectors, including coffee house chain Starbucks (NASDAQ:SBUX), fast food colossus McDonald's (NYSE:MCD), aerospace and defense giant Boeing (NYSE:BA) and payment processor Mastercard (MA).

Major pharmaceutical companies Pfizer (PFE), Moderna (MRNA) and Merck (MRK) will also release figures, along with energy giants Chevron (CVX), ExxonMobil (XOM), Shell (SHEL), and BP (BP).

Meme stocks DraftKings (DKNG), Roblox (RBLX), SoFi Technologies (SOFI), Advanced Micro Devices (AMD), Intel (INTC) and Qualcomm (QCOM) highlight the earnings docket as well.

Below is a rundown of major quarterly updates anticipated in the week of July 29– August 2:

Monday, July 29

McDonald’s (MCD)

McDonald's (MCD), the world's second-largest restaurant chain, is set to unveil its Q2 earnings on Monday. While analysts predict a slight uptick in revenue, they expect profits to dip around 3% compared to the previous year.

While Wall Street analysts remain optimistic about the fast-food giant, with a consensus Buy rating, Seeking Alpha's quant model is more cautious, assigning it a Hold rating, noting concerns over McDonald's valuation and growth.

Luca Socci, a bullish SA author, predicts McDonald's shares are declining due to high commodity prices and consumer price index increases. The company's shift to franchising has resulted in flat revenue growth but increased profitability. However, the Q2 earnings preview suggests a gloomy outlook, with value promotions impacting margins and potential post-earnings sell-off risk. 

• Consensus EPS Estimates: $3.07
• Consensus Revenue Estimates: $6.63B
• Earnings Insight: McDonald’s has missed EPS estimates only once in the past 8 quarters, while missing revenue estimates twice in that span.

Also reporting: Tilray Brands (TLRY), Chesapeake Energy Corporation (CHK), ON Semiconductor Corporation (ON), F5 (FFIV), Koninklijke Philips N.V. (PHG) and more.

Tuesday, July 30

Microsoft (MSFT)

After lackluster reports from other members of the Magnificent 7, Microsoft (MSFT) is set to release its quarterly performance after the closing bell on Tuesday. Analysts expect more than 9% growth in EPS and around 15% growth in its top line. The company has recently been in the international spotlight, implicated alongside CrowdStrike (CRWD) in a global IT black out.

So far this year, Microsoft is the second-weakest performer (after Tesla) within the prestigious Magnificent 7 group of technology and growth stocks.

While Seeking Alpha's Quant Rating system maintains a cautious Hold outlook, Wall Street analysts continue to express optimism with a consensus Strong Buy rating.

Oakoff Investments, a bullish SA Investing Group Leader, expects strong performance in OS, cloud and search segments in the quarter, citing the most recent developments, guidance and market trends. 

On the other hand, Noah's Arc Capital Management, SA author with a bearish sentiment, believes Microsoft's growth relies heavily on future backend performance to meet ambitious price targets. Despite high earnings expectations, Microsoft's valuation is stretched compared to sector medians, leading to a Hold rating. The company plans to double capital expenditures by FY2025, focusing on AI, but competition from Google poses a significant threat, the analyst stated.

• Consensus EPS Estimates: $2.94
• Consensus Revenue Estimates: $64.41B
• Earnings Insight: Microsoft has outperformed EPS forecasts in 7 of the last 8 quarters and revenue in 6 of those quarters.

Also reporting: Advanced Micro Devices (AMD), Pfizer (PFE), PayPal Holdings (PYPL), Starbucks (SBUX), Procter & Gamble (PG), Merck & Co (MRK), BP p.l.c. (BP), Pinterest (PINS), SoFi Technologies (SOFI), American Tower Corporation (AMT), First Solar (FSLR), Rio Tinto Group (RIO), Lemonade (LMND), Electronic Arts (EA), JetBlue Airways (JBLU) and more.

Wednesday, July 31

Meta Platforms (META)

Also reporting: Arm Holdings (ARM), Boeing (BA), QUALCOMM (QCOM), Altria (MO), Mastercard (MA), Kraft Heinz (KHC), Etsy (ETSY), GSK (GSK), DuPont (DD), Lam Research (LRCX), Riot Platforms (RIOT), Transocean (RIG), eBay (EBAY), Norwegian Cruise Line Holdings (NCLH), T-Mobile US (TMUS), American International Group (AIG), MGM Resorts International (MGM), Automatic Data Processing (ADP), Aflac Incorporated (AFL), Marriott International (MAR), MetLife (MET) and more.

Thursday, August 1

Apple (AAPL)

California-based tech giant Apple (AAPL) is slated to report financial figures on Thursday, after the market close, with analysts anticipating a 6% Y/Y rise in earnings per share and around 3% revenue growth.

Despite Wall Street's optimism, reflected in a consensus Buy rating, Seeking Alpha's quant model is more cautious, assigning a Hold rating due to concerns about growth and valuation.

• Consensus EPS Estimates: $1.33
• Consensus Revenue Estimates: $84.14B
• Earnings Insight: Apple has beaten EPS estimates in 7 of the past 8 quarters, exceeding revenue expectations in 5 of those reports.

Amazon (AMZN)

E-commerce and cloud giant Amazon (AMZN), another part of the Magnificent 7, will report its Q2 earnings after the closing bell on Thursday, alongside Apple.

Over the past 12 months, Amazon shares have risen by about 39% and by nearly 20% so far this year. While Wall Street analysts have a consensus Strong Buy rating, Seeking Alpha's Quant Ratings system maintains a Hold rating on the stock.

SA Investing Group Leader Dividend Sensei, with a bullish stance, notes that the tech earnings season's volatility presents buying opportunities for Amazon investors. He highlights Amazon's substantial growth potential, with seven markets each exceeding $1T and $1.1T in growth spending projected through 2029. According to the analyst, this scale positions Amazon nearly as large as the US government and is expected to boost free cash flow to $200B. 

Conversely, SA author The Entertainment Oracle, who holds a Hold rating, points out that Amazon's expansion into streaming leads to misleading comparisons with Netflix, which is solely focused on streaming. Amazon’s streaming efforts are primarily a complement to its main retail business. The recent update to its streaming interface, which displays content only from subscribed services, aligns with its strategy to keep both its streaming and retail platforms simple and user-friendly, the analyst stated.

• Consensus EPS Estimates: $1.01
• Consensus Revenue Estimates: $148.59B
• Earnings Insight: Amazon has beaten revenue expectations in 7 of the past 8 quarters and EPS only 6 times in that time span.

Also reporting: Intel (INTC), Block (SQ), Roku (ROKU), Shell (SHEL), Moderna (MRNA), Twilio (TWLO), ConocoPhillips (COP), Coinbase (COIN), Snap (SNAP), DraftKings (DKNG), MercadoLibre (MELI), Prudential Financial (PRU), Roblox (RBLX), Biogen (BIIB), Regeneron Pharmaceuticals (REGN), Marathon Digital (MARA), United States Steel (X), Sirius XM Holdings (SIRI), Booking Holdings (BKNG), Clorox (CLX), Consolidated Edison (ED), Anheuser-Busch InBev (BUD) and more.

Friday, August 2

Chevron (CVX) and ExxonMobil (XOM) 

The busy earnings week concludes with oil giants Chevron (CVX) and ExxonMobil (XOM), both reporting Q2 earnings before the market opens on Friday. Analysts expect a year-over-year revenue surge for both companies, though they predict a drop in Chevron's bottom line.

Seeking Alpha's Quant Rating system takes a cautious stance on the stocks, assigning a Hold rating to both, while Wall Street analysts remain optimistic with Buy ratings.

Bullish on CVX and XOM, SA author Steven Fiorillo identifies ExxonMobil as a strong investment due to its robust financials, attractive valuation, and potential for dividend and buyback growth. He also sees Chevron as offering value with its high dividend yield and potential for capital appreciation.

• Consensus EPS Estimates: XOM: $2.04; CVX: $3.01
• Consensus Revenue Estimates: XOM: $89.68B; CVX: $50.61B
• Earnings Insight: XOM has topped EPS expectations in 5 of the past 8 quarters, beating revenue estimates in 50% of those reports, whereas CVX has beaten EPS and revenue estimates in 6% of those reports.

Also reporting: AMC Entertainment (AMC), Berkshire Hathaway (BRK.A), Editas Medicine (EDIT), Frontier Communications (FYBR), Fulgent Genetics (FLGT), Tellurian (TELL) and more.

More on related stocks:

• Meta Platforms: Still A Compelling Opportunity As Earnings Near
• How Amazon's Newest Feature Stays True To One Of The Company's Key Objectives
• 3 Reasons Dividend Investors Should Buy Amazon Before Earnings
• McDonald Q2 results preview: Fading customer footfall to pressure earnings, outlook
• Intel estimate drops ahead of earnings, AMD mostly unchanged: Bernstein