The first earnings season of 2023 picks up vital steam within the last full week of January. A broad sampling of firms is ready to report, together with high-profile representatives of the transportation, protection, client staples, tech, telecommunications and power sectors.

Headliners for the week forward embrace Tesla (NASDAQ:TSLA) and Microsoft (NASDAQ:MSFT). Those key experiences can be joined by outcomes from cost processors Visa (V) and Mastercard (MA), power sector giants Baker Hughes (BKR) and Chevron (CVX), in addition to semiconductor stalwarts ASML Holding (ASML), Lam Research (LRCX) and Intel (INTC).

Below is a curated listing of earnings outcomes anticipated within the week of January 23 by 27:

Monday, January 23

Baker Hughes (BKR)

Baker Hughes (BKR) is ready to submit its fourth quarter earnings replace earlier than the bell on Monday. Shares of the Houston-based power and expertise firm rose sharply in 2022 and has added a double-digit achieve early in 2023.

To begin the yr, the corporate introduced it had gained a contract to produce carbon dioxide compression gear to Petronas’ Kasawari carbon seize and storage mission offshore Malaysia, projected to be the world’s largest offshore CCS facility. In different information, the corporate’s proposed acquisition of Altus Intervention is underneath scrutiny within the U.Ok., with the nation’s Competition and Markets Authority advising that the deal could possibly be anti-competitive.

• Consensus EPS Estimates: $0.40
• Consensus Revenue Estimates: $6.07B
• Earnings Insight: Bakers Hughes has overwhelmed EPS estimates in 2 of the previous 8 quarters, exceeding income expectation thrice in that span.

Tuesday, January 24

Microsoft (MSFT)

Microsoft (MSFT) is anticipated to submit its fiscal second quarter earnings outcomes after the bell on Tuesday. Shares of the software program big fell over 20% in 2022, retreating to ranges final seen in early 2021. Nonetheless, Seeking Alpha surveys replicate a Strong Buy consensus amongst sell-side analysts.

According to Wedbush Securities, cloud development through the agency’s Azure unit was “better than feared” in This fall and more likely to present energy into 2023. “While Azure growth has clearly decelerated in the field we believe MSFT should be able to exceed its 37% Azure growth target (constant currency) in the December quarter,” fairness analyst Dan Ives mentioned forward of the report.

Ives added that talks to combine OpenAI’s ChatGPT into properties like its Bing search engine could possibly be a “gamechanger” to be unveiled in 2023. Morgan Stanley analyst Keith Weiss additionally lauded the reported talks between the 2 firms.

Meanwhile, Microsoft has been vocal about efforts to tighten its belt in 2023. In a letter to staff within the week forward of the outcomes, CEO Satya Nadella mentioned the corporate goals to put off 10,000 staff around the globe and take a $1.2B cost associated to the job cuts for the reported quarter.

• Consensus EPS Estimates: $2.34
• Consensus Revenue Estimates: $53.19B
• Earnings Insight: Microsoft (MSFT) has overwhelmed EPS and income estimates in 7 of the previous 8 quarters.

Defense sector highlight:

Raytheon Technologies (RTX) and Lockheed Martin (LMT) are each as a result of report on Tuesday, adopted by experiences from Boeing (BA) Textron (TXT), and General Dynamics (GD) on Wednesday. Northrop Grumman (NOC) and L3 Harris Technologies (LHX) are anticipated to report as nicely, rounding out the week on Friday.

The protection business outperformed in 2022 amid geopolitical pressure embodied by each the warfare in Ukraine and saber rattling within the South China sea. However, the deal that allowed lawmaker Kevin McCarthy to change into Speaker of the House of Representatives has signaled a possible cutback in protection spending. Additionally, Goldman Sachs not too long ago downgraded quite a few protection names on each spending deceleration and valuation issues.

Elsewhere, L3Harris (LHX) agreed to buy Aerojet Rocketdyne (AJRD) in December. This got here after Lockheed Martin’s (LMT) earlier bid for the propulsive system producer was terminated amid an FTC lawsuit filed on antitrust grounds.

Also reporting: General Electric (GE), Danaher (DHR), Johnson & Johnson (JNJ), 3M (MMM), Halliburton (HAL), DR Horton (DHI), Texas Instruments (TXN), Union Pacific (UNP), and Canadian National Railway (CNI)

Wednesday, January 25

Tesla (TSLA)

Tesla (TSLA) can be among the many most carefully watched experiences of the week, with its outcomes due out after the bell on Wednesday.

Shares of the Austin-based EV producer recorded a stark decline in 2022, falling over 60% as CEO Elon Musk’s Twitter buy proved a major distraction and monetary burden, in accordance with analysts. While shares have roared again within the early a part of 2023, rising 20% within the yr’s first 20 days, the inventory stays a far cry from its highs of late 2021.

So far in 2023, the automaker has moved to slash costs in each China and North America, which analysts have attributed to each tax and demand issues. The firm has additionally delayed the growth of its Shanghai Gigafactory after pulling again manufacturing in China across the flip of the yr.

Analysts stay broadly bullish on the inventory with a consensus Buy score mirrored in Seeking Alpha surveys. However, the common value goal has fallen to about $198 after a slate of goal cuts to begin 2023, $100 decrease than the common goal previous to the automaker’s October earnings launch. Revenue expectations have been revised downward 17 instances within the 90 days previous to the earnings launch, in accordance with Seeking Alpha information.

• Consensus EPS Estimates: $1.14
• Consensus Revenue Estimates: $24.62B
• Earnings Insight: Tesla has exceeded EPS and income expectations in 7 of the previous 8 quarters.

AT&T (NYSE:T)

AT&T (T) is because of submit its fourth quarter earnings replace previous to the opening bell on Wednesday, joined by Verizon (VZ). The consensus sell-side score on T turned to Buy late in 2022, in accordance with Seeking Alpha surveys. To begin 2023, Wells Fargo named the inventory a prime choose.

In December, the telecom big introduced a three way partnership, referred to as Gigapower LLC, with BlackRock (BLK) Alternatives to offer a fiber community to web service suppliers and different companies throughout the U.S. CFO Pascal Desroches indicated the partnership is a part of the corporate’s deliberate growth past its present footprint.

• Consensus EPS Estimates: $0.57
• Consensus Revenue Estimates: $31.42B
• Earnings Insight: AT&T has overwhelmed EPS estimates in 8 consecutive quarters, lacking income expectations solely twice in that span.

Also reporting: ASML Holding (ASML), IBM (IBM), Abbott Labs (ABT), Group 1 Automotive (GPI), Kimberly Clark (KMB), Lam Research (LRCX), Wynn resorts (WYNN), Las Vegas Sands (LVS), Levi Strauss (LEVI), Hess Corporation (HES), Packaging Corporation of America (PKG), Wolfspeed (WOLF), Knight-Swift Transportation (KNX), Crown Castle (CCI), CSX Corporation (CSX), and Norfolk Southern (NSC)

Thursday, January 26

Intel (INTC)

Intel (INTC) is because of submit its fourth quarter earnings outcomes after the bell on Thursday. While shares of the California-based semiconductor firm fell practically 50% in 2022, the inventory has rebounded sharply to begin 2023. Since the beginning of the yr, shares have marked a double-digit achieve.

In the 90 days previous to the earnings outcomes, EPS estimates have been revised downward 30 instances whereas income expectations have been reeled in 24 instances. The consensus score on the inventory amongst analysts stays a Hold.

In phrases of company information, China’s antitrust regulator has reportedly put a pause on the chip firm’s proposed $4.5B acquisition of Tower Semiconductor (TSEM). Intel had beforehand forecast the deal to shut within the first quarter of 2023.

• Consensus EPS Estimates: $0.20
• Consensus Revenue Estimates: $14.51B
• Earnings Insight: Intel has overwhelmed EPS and income expectations in 6 of the previous 8 quarters.

Southwest Airlines (LUV)

Southwest Airlines will headline the week’s earnings experiences for the airline sector, alongside American Airlines (AAL), which pre-announced its outcomes weeks previous to the official report.

For LUV, buyers can be on the lookout for the monetary penalties of the canceled and delayed scores of flights across the Christmas vacation. The firm additionally set to face Senate hearings and excessive reimbursement prices consequently. The service additionally noticed an elevated degree of cancellations amid latest FAA outages, in accordance with FlightTracker. Executives indicated quite a few operational modifications can be pursued in 2023 following the high-profile snafu.

Bank of America analyst Andrew Didora views these modifications positively, advising purchasers that the present share value presents a cut price. After assembly with executives, he reiterated his Buy score on the inventory about two weeks previous to the outcomes, in keeping with the Street consensus.

Additionally, the airline reached a brand new settlement with main unions forward of the outcomes.

• Consensus EPS Estimates: $-0.01
• Consensus Revenue Estimates: $6.18B
• Earnings Insight: Southwest Airlines (LUV) has overwhelmed EPS estimates in 6 of the previous 8 quarters and income expectations in 5 of the previous 8.

Payment processor sector highlight

Both Mastercard (MA) and Visa (V) are anticipated to report previous to the opening bell on Thursday. Both shares outperformed the broader market in 2022, seeing a lift from year-end vacation procuring and persevering with optimistic tendencies into 2023. Both shares have been favorites amongst analysts and hedge funds as nicely. Recently, Credit Suisse named Visa to its “top of the crop” listing to begin 2023 and Goldman Sachs information highlighted Mastercard’s (MA) distinguished place in hedge fund portfolios.

On a company-specific foundation, Mastercard (MA) introduced a $9B buyback program to shut 2022 and expanded cross-border cost capabilities. Meanwhile, Visa (V) additionally benefited from an replace to permit cross-border remittances for the worldwide cash switch service, Xoom. The service is a partnership backed by each Visa (V) and Paypal (PYPL).

According to the Wall Street Journal, each cost processors are the topic of an FTC probe on competitors in cost processing. Bloomberg has additionally reported {that a} group of congressional lawmakers are in search of to interrupt up the duopoly. Mastercard (MA) was ordered to offer competing networks with buyer account info essential to course of debit funds by the FTC in late December.

Also reporting: Alaska Airlines (ALK), American Airlines (AAL), Comcast Corporation (CMCSA), Nucor Corporation (NUE), Archer-Daniels Midland (ADM), Dow Chemical (DOW), Tractor Supply Company (TSCO), Rockwell Automation (ROK), Nokia (NOK), and STMicroelectronics (STM)

Friday, January 27

Chevron (CVX)

Prior to the opening bell on Friday, Chevron (CVX) will submit its fourth quarter earnings outcomes. Shares of the California-based power big rose sharply in 2022, racking up huge earnings alongside a lot of the oil and gasoline business.

Shortly earlier than the earnings announcement, Bank of America downgraded the inventory and referred to as it “a victim of its own success”. Mizuho additionally downgraded CVX on related valuation issues. Still, even with these cautious turns, the consensus sell-side score stays a Buy, in accordance with Seeking Alpha surveys.

• Consensus EPS Estimates: $4.47
• Consensus Revenue Estimates: $53.90B
• Earnings Insight: Chevron has overwhelmed EPS estimates in 4 of the previous 8 quarters, exceeding income expectations in 6 of these experiences.

Also reporting: American Express (AXP), Colgate Palmolive (CL), Church & Dwight (CHD), and Autoliv (ALV)