Apple, Amazon and Microsoft report a busy earnings week

Overall, about a third of the S&P 500 and nearly half of the Dow Jones Industrial Average are expected to deliver their quarterly updates during the week beginning Monday, according to FactSet..

Metaplatforms related to Facebook Inc.,

Facebook -2.11%

Alphabet, owner of Google Inc.

GOOG -4.26%

and Twitter Inc.

have income at hand next week. Industrial conglomerates such as General Electric should also provide quarterly updates. Co.

and 3M Co.

; food heavyweights Mondelez International Inc.

and McDonald’s Corp.

MCD -1.99%

; and other big names in the manufacturing and pharmaceutical industry.

The Apple Store at Singapore Airport. Analysts expect the iPhone maker to post a slightly lower profit.


Photo:

Lauryn Ishak/Bloomberg News

Supply chain issues related to Covid-19 remain a problem, and the Russian invasion of Ukraine presents new hurdles for businesses. Investors are looking to see how companies approach these topics and maneuver in a macroeconomic environment marked by high inflation.

“Inflation is higher than we thought,” said Scott Kirby, chief executive of United Airlines Holdings. Inc.,

said Thursday. “We built high inflation over a year ago, and we thought we were conservative, but I think everyone was surprised by the high level of inflation.”

Tech companies, after profiting from the pandemic as restrictions and public health concerns left many Americans confined to their homes, now face a changing landscape as consumer spending shifts to goods and services in person.

netflix Inc.

has already issued a warning that it has lost subscribers for the first time in more than 10 years and expects those losses to accelerate in the current quarter.

As other companies report earnings for the recently ended quarter, many should point to severe public health restrictions in Shanghai and elsewhere in China that have disrupted supply chains, said Brian Belski, chief investment strategist at BMO Capital Markets.

“Tech companies have a free pass right now because the sector is down,” Belski said, adding that CEOs will use China-related supply chain issues to lower expectations. “That doesn’t mean revenue is going to be zero. It just means this is their opportunity to really set the bar lower and under-promise and over-deliver.

So far, about 20% of S&P 500 companies have reported earnings for the quarter just ended, according to FactSet. Earnings are expected to rise 6.6% year-over-year for the quarter, based on actual results and estimates from companies that have yet to report, FactSet said. That would be the lowest earnings growth rate reported by FactSet’s index since the fourth quarter of 2020. Recent period revenue is expected to rise 11.1% year-over-year, FactSet said. .

Microsoft, which reports its fiscal third quarter results on Tuesday afternoon, is expected to post a nearly 18% increase in revenue, according to FactSet, driven by continued cloud growth. Investors will also likely seek more information on the company’s $75 billion cash deal to buy video game maker Activision Blizzard. Inc.,

which publishes its quarterly results on Monday.

Apple, which reports second-quarter results on Thursday afternoon, is expected to see profits fall slightly to $23.33 billion from pandemic-spurred results in the prior year period, according to FactSet. Analysts expect Amazon, which is also expected to report on Thursday, to show its quarterly profit fell nearly 46% to $4.39 billion after a pandemic-era blowout, according to data. FactSet estimates.

Meta, which reports first-quarter results on Wednesday, is expected to report that its quarterly profit fell to $7.17 billion as the company continues to invest in its metaverse initiatives, according to FactSet. Analysts will be tuning in to learn more about the company’s metaverse view and reasons for reversing the stock’s 45% year-to-date decline.

Analysts expect Alphabet’s earnings to also decline slightly amid tough year-ago comparisons. Google’s parent company released its first-quarter results on Tuesday.

Twitter, the social media company is currently considering a takeover offer from Tesla Inc.

Chief Executive Elon Musk is expected to release his first-quarter results on Thursday.

Beyond technology, other big companies are also releasing their results in the coming week. Las Vegas Sands Corp.

is expected to report Wednesday afternoon, likely giving some insight into the state of travel demand. McDonald’s will follow before the bell on Thursday, with indications of general consumer strength.

3M, a major maker of N95 masks, will release its results on Tuesday, as will GE, followed by Caterpillar Inc.

Friday morning.

Other notables that should point out include Coca-Cola Co.

Monday; Visa Inc.

tuesday; Boeing Co.

Wednesday; MasterCard Inc.

Thursday; and Colgate Palmolive Co.

Friday.

How the biggest companies work

Write to Will Feuer at will.feuer@wsj.com

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