Apple, Amazon, Intel - what to expect from earnings?

Amazon (AMZN.US) - earnings after the market close

Market expectations:

Expected earnings per share (EPS): $0.24

Expected revenue: $128.05 billion

• Despite an uncertain outlook for the economy and evidence of a decline in consumer spending, Amazon continues to grow sales. The double-digit revenue growth projected for this quarter will be more than double that of the previous two quarters. Part of the reason for this is that this quarter will be easier as the difficult comparative data resulting from the pandemic demand boom begins to ease, leading to faster sales growth and a smoother decline in profits.
• Another reason for the faster growth is that Prime Day sales took place in the third quarter, while last year they took place in the second. This is expected to contribute to an 8.1% increase in sales from its core ecommerce business and a 17% increase in revenue from a range of services the company provides to third-party sellers on its platform.
• Subscription services based on Prime are expected to remain strong, with Wall Street forecasting 13% revenue growth in the quarter.

Apple (AAPL.US) - earnings after the market close

Market expectations:

Expected earnings per share (EPS): $1.27

Expected revenue: $88.79 billion

• The most important new information will be any details on iPhone 14 sales.
• Many investors will be watching to see whether Apple's latest iPhones, which went on sale at the end of the quarter, are on track for an upward cycle, or whether global macroeconomic conditions have finally begun to weigh on the high-end electronics market.
• In July, Apple CFO Luca Maestri said that revenue growth in September would be greater than the 2% annual growth in the third quarter.
• Maestri also warned investors that while the high-margin services business would continue to grow, its growth rate would slow from 12% in the June quarter, citing the strong dollar and economic factors.

Intel (INTC.US) - after market close

Market expectations:

Expected earnings per share (EPS): $0.34

Expected revenue: $15.49 billion

• Over the past year, Intel - like other chip companies - has struggled with supply constraints resulting from a global chip shortage. Now, however, the added pressures of inflation and sharply declining economic activity have reduced the outlook for global demand for PCs and tablets.
• Unsurprisingly, Intel is expected to again report a 21% year-on-year decline in revenue in its core Client Computing segment - which makes operating systems and hardware to support PCs.
• The company's second-largest sales segment, Data Center - which creates platforms for computing, storage and networking functions - is also expected to see a 16% year-on-year decline in revenue, as the economy and executive issues affect sales.
• In Q2, Intel predicted the weakness would continue as competition in the chip business increases and the company loses market share to Advanced Micro Devices and Nvidia. Apple is also introducing its own M1 chip, which could threaten high-end central processing units (CPUs).