The latest round of earnings reports sparked caution on Wall Street, with the futures pointing to a slide at the start of Wednesday’s trading. A lower open would follow a mixed performance the day before. Here are some stocks to watch on Wednesday:
- Microsoft (NASDAQ:MSFT) edged past expectations with its Q4 adjusted EPS, which fell from last year to reach $2.32. This topped expectations by a penny. Revenue rose by 2% to $52.7B, although this missed projections by $450M. Meanwhile, the software giant suffered a network outage for its Azure cloud platform and Teams and Outlook services earlier Wednesday.
- AT&T (T) pushed higher in premarket trading following the release of its quarterly results, climbing by about 2%. The telecom behemoth topped projections with its Q4 profit. The company also revealed that it has added 656K postpaid phone subscribers.
- Capital One (COF) revealed Q4 results that came in below analysts’ expectations. The company reported adjusted EPS of $2.82, down from $5.62 in the same period last year. Experts were looking for a figure around $3.86.
- Texas Instruments (TXN) reported Q4 EPS of $2.13, exceeding projections by $0.15. The firm’s revenue slipped 3% from last year to reach $4.67B. Looking ahead, the company projected revenue of $4.17B-$4.53B, compared to a consensus of $4.42B.
- Tesla (TSLA) is scheduled to report its quarterly results after the closing bell. Elon Musk’s EV maker is projected to earn $1.11 per share, on revenue of $24.3B. Investors are also going to be looking for deliveries guidance and potential hints about a CEO succession.
- IBM (IBM) is also set to announce its financial figures in the post-market period. Analysts are looking for EPS of $3.61, a nearly 8% improvement from last year. Revenue is expected to dip about 2% to $16.4B.
For a look at the broader markets, Seeking Alpha contributor Sandeep Rao takes a deep dive into the January effect and lays out its impact on the outlook for 2023.
